Background on Nuevo León’s Foreign Direct Investment (FDI)
According to an analysis by Coparmex Nuevo León, based on Data Nuevo León, from 1999 to the second quarter of 2024, Nuevo León has recorded a total Foreign Direct Investment (FDI) of 31,732.6 million dollars. Out of this figure, 46.7% comes from the United States, representing nearly half of the FDI that has reached the state.
US Investment Dominance in Nuevo León
From 1999 to the second quarter of 2024, the United States contributed 46.7% to Nuevo León’s FDI, followed by Argentina (14.2%), the Netherlands (9.4%), Spain (6.8%), and South Korea (4.6%). Coparmex Nuevo León highlighted that the state is highly attractive for investment due to its proximity to the world’s largest economy and its competitiveness, with a skilled workforce and higher education coverage of 46.9%, surpassing the national average of 35%.
Competitive Advantages and FDI Diversification
Nuevo León’s favorable labor climate, infrastructure, and service quality also exceed the national average. According to the Instituto Mexicano para la Competitividad (IMCO), Nuevo León is among the four federal entities with the highest competitiveness index nationally.
The FDI in the manufacturing sector has experienced diversification. Out of the total investment registered in the state, metallurgical basic industries have represented the largest percentage (16.6%), followed by transportation equipment manufacturing (12.5%) and the beverages and tobacco industry (11.4%).
Addressing Internal Issues for Continued FDI Attraction
Cecilia Carrillo López, director of Coparmex Nuevo León, pointed out that the new US trade policy negatively impacts Mexico’s export sector, even with the preferential treatment. Therefore, it is essential to identify opportunities that this situation may present.
“It’s undeniable that the new protectionist policy of the United States is causing negative impacts globally and in Mexico. However, we recognize that among the evils, ours is the least harmful. We believe this could signify an opportunity and revive nearshoring,” she added.
To capitalize on these opportunities, Nuevo León must resolve its internal issues: mobility, environment, and security. This will further elevate its competitiveness levels and maintain its appeal to Foreign Direct Investment (FDI).
Key Questions and Answers
- What is the main source of FDI in Nuevo León? The United States accounts for 46.7% of the FDI in Nuevo León from 1999 to the second quarter of 2024.
- Why is Nuevo León attractive for FDI? The state’s proximity to the world’s largest economy, skilled workforce, higher education coverage (46.9%), favorable labor climate, infrastructure, and service quality contribute to its attractiveness for FDI.
- What are the competitive advantages of Nuevo León? Nuevo León ranks among the top four federal entities for competitiveness nationally, according to IMCO. Its diversified FDI in manufacturing sectors further highlights its competitive edge.
- What internal issues must Nuevo León address to maintain FDI attraction? The state needs to tackle mobility, environmental concerns, and security issues to further enhance its competitiveness and maintain its appeal for FDI.
