Foreign investment in Mexico, beyond the US; in these states others dominate

The United States is the largest foreign investor in Mexico, contributing 46% of the total, but its reign does not cover the entire country.


The Mexican territory is mostly painted with the stars and stripes flag, in terms of Foreign Direct Investment (FDI), but there are states in which other countries have managed to steal the spotlight from the United States.

The accumulated FDI in Mexico between 2006 and 2023 reaches 556,557 million dollars. Of this, 46% (232,280 million) is from the United States, according to data from the Ministry of Economy.

In second place, with a distant 10% of the pie (57,194 million dollars) is Spain, and in third place, with 9% (50,133 million), Canada.

The strength of FDI from the United States is evident, as it dominates in 20 of the 32 entities in Mexico. Which countries beat him in the other 12 states?

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Canada leads in six entities
Durango, Guerrero, Hidalgo, Sinaloa, Colima and Zacatecas are the entities where Canada reigns in foreign investment, with its mining vocation and the transportation of natural gas by pipeline.

In Sinaloa, Canadian FDI represents 50% of the total, in Zacatecas also 50%; in Guerrero, 49%; in Durango, 45%; in Hidalgo, 29%, and in Colima, 27%.

Around 645 Canadian companies operate in these six entities, including Torex Gold Resources, Organimax Nutrient Corp, Goldgroup Mining, Transcanada and ATCO.

Although the line of business of Canadian companies has been diversifying, mining companies are the ones with the greatest presence in Mexico, nearly 40% of the FDI injected into the country is into this sector.

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Japan parks in Aguascalientes and Morelos
The Asian country is the fifth country that injects the most foreign investment into Mexico (29,283 million dollars), which has set its sights on two destinations for the automotive sector.

Aguascalientes is the biggest bet, with an FDI of 6.27 billion dollars, 59% of the total. While in Morelos its participation is more conservative, with 29%, but this is enough to be the number one investor.

Nissan is the promoter of these capitals, as it decided to install its vehicle production plants in these states. The Japanese brand has become one of the ones that sells the most units in the country.

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Germany settles in Puebla
Germany is the fourth most important foreign investor for Mexico, in the last 17 years, it has accumulated 29,452 million dollars, with a notable presence in the automotive sector.

The European country is the one that leads FDI in Puebla, with 5,769 million dollars, 41% of the entity’s total, which reaches 14,233 million.

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Volkswagen began its vehicle production in Puebla 57 years ago, since then it has become a strategic point. The plant it installed in the entity is the second largest outside of Germany and has attracted other suppliers from that country.

Another important investment is that of Audi, with its plant in San José Chiapa, the brand also belongs to the Volkswagen Group.

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Luxembourg merges with Michoacán
With 5,006 million dollars, Luxembourg is the sixteenth place for FDI in Mexico, and a good part has been injected into Michoacán.

In the accumulated period from 2006 to 2023, Michoacán registers a foreign investment of 8,686 million, of which 45% comes from Luxembourg (3,898 million).

The largest investment by the European country in Michoacán is explained by the presence of the steel and mining company ArcelorMittal, which decided to install its main operation in Lázaro Cárdenas.

The Luxembourg company has become a trigger for FDI in Michoacán in recent years, which has announced another 3 billion dollars for the entity.

Spain stays in Quintana Roo
The tourist attraction of Quintana Roo puts it on the map of foreign investments, and Spain went to conquer it with the hotel service.

FDI from the Iberian country in this state contributes 2,308 million dollars, that is, 26% of the total.

Spanish companies have an important presence in the hotel industry in the Cancun and Riviera Maya area.

The chains with the most rooms in the state are: RIU, Barceló, Catalonia and Mayakoba. According to the specialized tourism media, Reportur, there are at least 20 Spanish families with hotels in Quintana Roo.

Belgium leaves its mark in Oaxaca
An investment that came from Belgium in 2013 continues to have a significant mark on Oaxaca’s FDI, but since then the European country has not looked at the entity again.

Until 2023, Oaxaca has a foreign investment of 5,676 million dollars, 32% (1,834 million) corresponds to Belgium.

The presence of this country in Oaxaca occurs after the purchase of Grupo Modelo by the Belgian AB InBev, which was completed in 2013.

Among the plants that Grupo Modelo already had and that AB InBev acquired, was the one in Tuxtepec in Oaxaca. This operation maintains Belgium as the dominant FDI country in the south-southeast state.

Source: expansion