1、Investin MexicoYour best option for the long term“Invest in Mexico:your best option today for the long term”This publication is in the public domain.Reproduction in whole or in part is authorized.While permission to reproduce this material is not required,the citation must be:Secretara de Economa,Su

2、bsecretara de Comercio Exterior.Invest in Mexico:your best option today for the long term,Mexico City,2023.For copies of this report,please write to:gestionuiegeconomia.gob.mxThis publication is also available on the website of the Secretariat of Economy at:https:/www.gob.mx/se/Secretariat of Econom

3、yUndersecretariat of Foreign TradeGlobal Economic Intelligence UnitFirst version,March 2023INVEST IN MEXICOYour best option for the long termTABLE OF CONTENTSEconomic stabilityYoung and skilled workforcePolitical and social stabilitySufficient and clean energyThe Agreement between Mexico,the United

4、States,and CanadaInvestors Single Window(VUI)Foreign direct investmentTax incentivesConnecting infrastructureMSMEs Development 10 22 14 24 18 30 16 26 20 32 9 PageIntroductionInteractive brochure Interact with the table of contents to navigate through the document.You can return to the table of cont

5、ents by clicking on the header of each page.w w w.gob.mx/se9Invest in MexicoYour best option for the long termMexico is in an unbeatable historical moment to attract investment.Political,eco-nomic and social stability,together with the nearshoring phenomenon,position us,at an international level,as

6、one of the most attractive and competitive countries.Nearshoring consists of companies relocating their production chain,or part of it,to a point closer to the end consumer in order to reduce risks,time and costs.Throughout this Decalogue,we will show you why Mexico is the best destination for your

7、investment.INTRODUCTION 1Economic stabilityw w w.gob.mx/se11Invest in MexicoYour best option for the long termMxico had a Gross Domestic Product(GDP)of 1.273 trillion dollars in 2021.2 In 2022,the GDPs increase was 3.1%3 while,as a refe-rence,that of the United States was 2.1%.4Our country has 14 Fr

8、ee Trade Agreements with 50 countries and 30 Agreements for the Promotion and Reciprocal Protection of Investments with 31 countries,5 which gives us access to 1.3 billion of potential consumers.15th largest economy Mxico is thein the world1As of January 2023,we are consolidated as the main trading

9、partner of the United States of America(U.S).8In addition to being an open economy,the domestic market alone is attractive for investment,as it compri-ses 126 million consumers6 whose purchasing power increases yearlyFor example,cumulative sales in self-service stores,in 2022,were equivalent to 73.7

10、 billion dollars($1 billion),8%higher than in 2021.71 World Bank|GDP(current US$).2 Idem.3 INEGI.Comunicado de prensa No.131/23 del 24 de febrero del 2023.4 BEA|Gross Domestic Product,Fourth Quarter and Year 2022(Second Estimate).5 Secretara de Economa|Comercio Exterior,Pases con Tratados y Acuerdos

11、 firmados con Mxico.6 INEGI-Poblacin 20207ANTAD|Ventas diciembre 2022 ANTAD.8United States Census Bureau|Top Trading Partners-January 2023.12w w w.gob.mx/seInvest in MexicoYour best option for the long termKnow our macroeconomic data:Inflation in Mexico at the end of 2022 was 7.8%.10 This fi-gure is

12、 below the average forecast by the International Monetary Fund for other regions,such as the G20(8.5%),11 the Euro Zone(9.2%)12 and the Organization for Economic Cooperation and Development(OECD)(9.4%).13The Mexican peso is one of the most stable currencies and one of the two that has appreciated th

13、e most in the last year.In 2022,it closed with an appreciation of 4.9%against the U.S.dollar.9Public debt in Mexico represented 49.4%of GDP in 2022,16 while in the United States,it was 124%.17Mexico has solid international reserves,with a growth of 14.6%during the six-year term,starting with$173,775

14、 million dollars14 in November 2018 and reaching$199,094 million dollars15 in December 2022.9Banco de Mxico-Portal del mercado cambiario.10 INEGI|ndice Nacional de Precios al Consumidor.Diciembre de 2022.11 Secretara de Economa.12 Eurostat|(2023,January 18).Annual inflation down to 9.2%in the euro a

15、rea.13Secretara de Economa.14Banxico|Boletn Semanal sobre el Estado de Cuenta del Banxico|4 diciembre 2018 15 Banxico|Boletn Semanal sobre el Estado de Cuenta del Banxico|3 enero 2023w w w.gob.mx/se13Invest in MexicoYour best option for the long termThe Mexican government has made a historical pay-m

16、ent of interest on foreign debt to reduce pressure on public finances in the medium term.Tax collection levels in 202218 were even higher than in the years before the pandemic and are a record in the countrys history.Mexico increased its collection despite the COVID-19 health emergency,a sign of tax

17、-payers confidence and commitment.Mexico has sound public finances:61.1 billion dollars21%Planned investment more than in 2022spending by 20231916Gobierno de Mxico|Comunicado No.9 Informes sobre la Situacin Econmica,las Finanzas Pblicas y la Deuda Pblica al cuarto trimestre de 2022|Secretara de Haci

18、enda y Crdito Pblico|Gobierno|gob.mx(www.gob.mx).17Fiscal Data-treasury.gov 18SAT|Recaudacin|Ingresos tributarios del Gobierno Federal.19Transparencia Presupuestaria|Gasto de Inversin.Nota:Inversin Pblica.2Political and social stabilityw w w.gob.mx/se15Invest in MexicoYour best option for the long t

19、ermThe democratization of the Mexican political system and a solid anti-corruption policy provide certainty to economic actors.This administration focuses on fighting problems at their root causes and prioritizes people and regions historically excluded from the countrys economic development.Priorit

20、y programs:Out of 35 million families in the country,30 million receive directly,through public and private banks,a portion of the general budget through Welfare Programs20 Such economic transfers have increased consumption power and allowed more and more Mexicans to access financial services.Never

21、before has so much of the public budget been invested in the social justice agenda.Youth Building the Future(Jvenes Construyendo el Futuro).Seeding life (Sembrando Vida).Benito Juarez Scholarships.Support for Children of Working Mothers.Pension for the Welfare of Persons with Disabilities.Assistance

22、 for the Welfare of the Elderly.20Programas de Bienestar|programasparaelbienestar.gob.mx(4 de febrero 2023).3Foreign Direct Investmentw w w.gob.mx/se17Invest in MexicoYour best option for the long termMexico has incomparable characteristics that make us one of the most competitive economies in the w

23、orld.These figures show that relocation is a reality and not a short-term project.FDI in Mexico(million dollars)Cumulative Foreign Direct Investment in 2022.Mexico is among thethat receive the most Foreign Direct Investmenthigher than 2021PRELIMINARY FIGURE35 thousand 292 million dollars21ten countr

24、ies 11.9%It is worth noting that even during the pandemic,FDI in Mexico continued to increase.Source:Secretara de Economa.Preliminar data.21Secretara de Economa|Registro Nacional de Inversiones Extranjeras(RNIE).4The agreementbetween Mexico,the United States,and Canadaw w w.gob.mx/se19Invest in Mexi

25、coYour best option for the long termThree decades of trade integration have consolidated North American production chains.In addition,the modernization that gave rise to the T-MEC,as of July 1 2020,places this trade zone at the forefront of labor and environmental standards.22Thanks to the T-MEC,com

26、panies setting up in Mexico can access:Given the lessons of the pandemic,geopolitical changes,and increased logistics costs,the T-MEC provides certainty to investors seeking to reduce risks by relocating their production chains closer to their final consumers.of potential consumers inthe United Stat

27、es and Canada23370 millionThe total value of North American trade globally in 202224Mexico,the United States and Canada coordinate and they ensure supply chains in the event of any emergency25US$7.7 trillionWith T-MEC Decision 5To measure the magnitude of the relationship,the three partners trade ar

28、ound US$15 million with the world every minute.22Secretaria de Economa|(2020,1 de julio)T-MEC.23World Bank|Total population.24US Census Bureau|Goverment of Canada Report Trade Data Online|Banco de Mxico.Informacin Revisada de Comercio Exterior,diciembre de 2022.25USMCA Free Trade Commission Decision

29、 No.5.5Infrastructure that connectsw w w.gob.mx/se21Invest in MexicoYour best option for the long termEfficient connectivity is crucial in making trade work.Mexico also stands out for its rail infrastructure,air-ports,seaports and highways.Mexico shares 3,153 km of border with the United States,with

30、 47 entry crossings.33 Transit times from Mexico to the United States are the most competitive:50,798 km of federal high.103,053 km of state highways.23,131 km of roads(municipal and private).10,923 km of concessional high.32We have 1,512 airfields,554 heliports27 and 78 airports,28 of which the mos

31、t relevant are Tijuana,Monterrey,Guadalajara,Cancun,and Mexico City.The latter hand-led more than 46 million passengers in 2022 and more than 571 thousand tons of cargo.29Mexico has more thanTijuana to Los Angeles Shanghai to Los Angeles 17 day3 hoursof highways and commercial routes187,905 km17,360

32、 km of primary and secondary roads under concession.4,474 km of auxiliary road.1,555 km of private roads.26The national railroad network totalsand it is divided into:23,389 kilometers(km)Mexico has 103 ports,30 among which the most traded are Manzanillo,Lzaro Crdenas,Veracruz,Coatzacoalcos and Altam

33、ira.In 2022,287 million tons31 were mobilized in all ports.26Sistema Ferroviario Mexicano|Agencia Reguladora del Transporte Ferroviario|Gobierno.27Base de Datos de Aerdromos y Helipuertos|Agencia Federal de Aviacin Civil|Gobierno.28Sistema Aeroportuario Mexicano|Agencia Federal de Aviacin Civil|Gobi

34、erno.29AICM en cifras|Diciembre 2022|Actualizacin 30 de enero 2023.30Secretara de Marina|Prontuario_2022.pdf31Secretara de Marina|Informe Estadstico Mensual 2021-2022.32Red Nacional de Caminos|Instituto Mexicano del Transporte|Gobierno.33SECTUR|Programa Mxico Norte.6Young and skilledworkforcew w w.g

35、ob.mx/se23Invest in MexicoYour best option for the long termWe are the tenth most populated country in the world.Of the 126 million inhabitants,34 nearly half are part of the active labor force,35 so the countrys commitment is to education.In the last two decades,average schooling increased from 7.5

36、 to 9.7 years.36 By 2023,investment in this sec-tor is expected to reach 47 billion dollars.37Mexico is one of the ten countries of the Organization for Economic Cooperation and Development(OECD)that graduates more professionals in science,techno-logy,engineering,and mathematics every year.Every yea

37、r,more than one million graduates are ready to join the productive activities arriving with nearshoring.Currently,there is a coordinated effort between the Secretariats of Economy,Public Education,Labor,and Social Welfare,the National Council of Science and Technology,and the productive sectors to u

38、pdate curricula by discipline,promote specialties per industry relocated and guarantee that investments have an adequate profile of the available Mexican talent.The average age of the Mexican populationare part of the active labor force29 years old+60 millionThe availability of the labor force,legal

39、 reforms,and productivity made Mexico one of the ten most attractive labor markets globally in 2022.(Workforce de Manpower Index).34INEGI.Poblacin.35INEGI.Empleo.36INEGI.Educacin.37Transparencia Presupuestaria|Clasificacin Funcional|Desarrollo Social.7Sufficient and clean energyw w w.gob.mx/se25Inve

40、st in MexicoYour best option for the long termMexico has accelerated its move to the green energy transition while ensuring grid reliability with sufficient energy at affordable prices.According to the Secretariat of Energy figures,in 2021,29.5%of the energy genera-ted came from clean sources(96,850

41、 GWh).38One of the advantages of the Mexican energy system is its diversified matrix:the confluence of hydroelectric,natural gas,oil,and nuclear energy and the growing presence of solar and wind energy sources allows the supply network to not depend on a single basis.Hydroelectric plants Natural gas

42、 Oil Nuclear energy Geothermal Photovoltaic Bioenergy Solar and wind power sources with a growing presenceDiversified energy matrix:Nearly one-third of energy comes from clean sources38Secretara de Energa|AnexoII.pdf(energia.gob.mx).8Taxincentivesw w w.gob.mx/se27Invest in MexicoYour best option for

43、 the long termMexico has a series of incentives and development pro-grams that help to attract investment.These include tax incentives to promote regional development in the Northern Border and in the South-Southeast.It consists of a tax credit of 50%of the VAT,which is applied directly to the 16%ra

44、te,so the reduced rate is 8%.39Applies to:Individuals and legal entities.Acts or activities consisting of the alienation of goods.Provision of independent services.Granting of the temporary use or enjoyment of goods in branches,premises,or establishments located at the borders.Residents that tax und

45、er the income accrual option.The beneficiary taxpayers are:Individuals with business activity.Legal entities.Foreign residents with a permanent establish-ment in Mexico.Those who receive income at the borders from business activitiesIt consists of a tax credit equivalent to one-third of the income t

46、ax incurred in the fiscal year or in provisional payments,which is applied against the years income tax or in its provisional payments,as applicable,in pro-portion to the income obtained.40Value-added tax(VAT)Income tax(ISR)39Secretara de Hacienda y Crdito Pblico|Estmulos fiscales para la regin fron

47、teriza norte y sur(sat.gob.mx).40dem.28w w w.gob.mx/seInvest in MexicoYour best option for the long termManufacturing,Maquila,and Export Service Industry Program(IMMEX)41 Development programsIMMEX is an export promotion instrument used by companies that import goods temporarily and carry out an indu

48、strial or service process for manufacturing,transforming,repairing,or providing services.This program offers the possibility of importing goods under a temporary regime,deferring the payment of the general import tax,the value-added tax(VAT),and,if applicable,the countervailing duties,as long as the

49、 companies carry out an industrial or service pro-cess intended for the manufacturing,transformation,repair or rendering of export services.This applies tolegal entitiesProducersResidents in the national territoryExport service providers41Secretara de Economa|Servicio Nacional de Informacin de Comer

50、cio Exterior(SNICE)|Programas de fomento.IMMEX.w w w.gob.mx/se29Invest in MexicoYour best option for the long termSector Promotion Programs(PROSEC)42PROSEC is an instrument that benefits legal entities that produce certain goods.They are allowed to import various goods used in the production of spec

51、ific products at a preferential tariff,regardless of whether the final products are destined for export or to the domestic market.The benefits are only for the imported goods for the participant sectors;however,PROSEC program holders may request their incorporation into new sectors,pro-vided they ca

52、n prove that they manufacture the goods corresponding to such industries.This applies to manufacturers of goods in24 PROSEC sectorsArticle 4 PROSEC Decree42Secretara de Economa|Servicio Nacional de Informacin de Comercio Exterior(SNICE)|Programas de fomento.PROSEC.9Investors Single Windoww w w.gob.m

53、x/se31Invest in MexicoYour best option for the long termIn response to the needs of potential investors,the Mexican government,through the Secretariat of Economy,as the agency responsible for generating policies to attract and promote foreign investment,offers the Single Window for Investors(VUI by

54、its acronym in Spanish)as a mechanism for the attention and support of those interested in investing in Mexico.The objective is to provide transparency and guide investors in the procedures to be carried out for their installation in our country,to be a point of contact,and to facilitate communicati

55、on with the government and the various strategic partners at the national level.The Single Window for Investors has a specialized support team to provide immediate attention.The Single Windows are tools created to promote FDI,as an internationally recommended practice,by facili-tating investments an

56、d guiding the procedures of the investment cycle.According to UNCTAD information(Global Enterprise Registration),170 countries have digital information portals,and 76 countries have Single Windows.By 2023,the goal is to position Mexico as a country with a policy to attract foreign investment based o

57、n reliable and efficient tools that provide legal certainty to investors.Provide transparency in rules and procedures.Simplification of procedures.Promote public awareness and stimulate public-private dialogue on standards and procedures.Among the recognized advantages of the VUI are the following:1

58、0MSMEsDevelopmentw w w.gob.mx/se33Invest in MexicoYour best option for the long termThe Micro,Small and Medium Enterprises(MSMEs)play an essential role in the Mexican economy.According to the latest 2019 Economic Census,there are 4.7 million.As the most significant percentage of economic units,MSMEs

59、 are an investment niche in multiple sectors such as tourism,agro-food,and chemicals.Their high level of adaptability and the use of various resources throughout the different geographical areas of the country characterize them.Manufacturing MSMEs with export capacity concen-trate on economic activi

60、ties related to the automotive,food,and textile industries.We are working with the companies that are relocating to secure their supply.of the countrys establishments are MSMEs43employed person work in a MSME4499.8%7 out of 10The Secretariat of Economy,through various actions,works hand in hand with MSMEs to include them in regional supply chains to meet the input demands of companies relocating to Mexico.43INEGI|Estadsticas a propsito del da de las micro,pequeas y medianas empresas datos nacionales(25 de junio 2020).44INEGI|Estadsticas del Censo Econmico 2019.