Mexico, a Favorite of Multinationals

Mexico, a favorite of multinationals
The country remains one of the favorite destinations for foreign investors, lower turnover and better qualified engineers are the benefits they receive from Mexico.


The automotive, retail, aerospace, electronics and renewable energies are the most dynamic for investment. (Photo: AP file)
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Special
100 Multinational 2010 By: Andrea Vega Valerio
The objective was clear and pointed. As part of their daily work to locate potential investment companies in the country, ProMéxico had identified a good candidate: a German company dedicated to making auto partsWhich, although produced in Mexico since 2007, focused its operations at a plant in China.

Offices Germany China and the agency responsible for coordinating and implementing the strategy for attract foreign investment (FDI) had exchanged information and were aware of the misfortunes of the company in China.

Then came the business case design, coordinated by ProMéxico headquarters, to convince Label to migrate its Chinese plant to a Mexican state.

The result was successful and for three months Guanajuato can presume that it robbed the great Asian threat factory whose investment was around $ 500 million (MDD) and will generate 1,200 jobs.

The reasons why the company took the decision, said Luis Oliva, head of the Investment Promotion Unit and International Business ProMéxico are summarized as follows: "In Mexico there is less turnover and our engineers are better qualified."

Mexico has improved business facilities. According to Doing Business 2010, the World Bank, Won four positions this year to reach the site 51 out of 183 countries.

Culiacán and Monterrey are the cities with less red tape for starting a business, According to Rodrigo Gallegos, project director of the Mexican Institute for Competitivead (IMCO).

Beyond what is reflected in the numbers and polls, analysts in Mexico are several advantages for multinationals. The main one is its geographical position.

Send a product by sea from Mexico New York takes five days, Gallegos mentioned, while in China to New York takes 32, and from Brazil, 15.

They are also a wide lead of 12 FTAs Mexico has signed and macroeconomic stability.

No wonder then that the study 'Foreign Direct Investment in Mexico, is your safe investment? ", Conducted by the American Chamber, point out that in 2010 foreign direct investment in the country will add between 19.000 and 22.000 MDD.

The most dynamic sectors in investment will retail, Automotive, aerospace, e and energy renewable.

But multinational companies have several concerns when arriving in Mexico. Insecurity is a major. "This matter is being viewed with caution, especially in the case of the U.S. border area," says Hans Kohlsdorf, president of Global Business Executive Council.

The second point of nervousness is the fiscal and administrative simplification, and the lack of dynamism domestic market. Omar Salgado, a professor and researcher at the Business School of the Tecnológico de Monterrey, Campus Estado de Mexico, said: "Other competing countries like China Brazil and domestic markets are more dynamic. "

The other challenges are modernize more procedures to open businesses and improve customs operation border. If these slopes are resolved, you can compete with those who take away from Mexico investment opportunitiesBrazil, China, Russia, India.