Mexico improved in the evaluation of indicators related to the diversification of Foreign Direct Investment (FDI) and exports, informed the Ministry of Economy.
On the one hand, the indicator of the gap between the central-north and west-south regions measures the percentage difference of FDI received by the states of central and northern Mexico, with respect to FDI received by those of the south and west of the country.
In 2021, the indicator stood at 0.53, while in 2020 it was 0.62, which shows that the gap has narrowed by 0.09 points.
On the other hand, the export diversification index during 2021, was 127.6, achieving greater diversification with respect to the 2018 baseline year of 168.2.
In particular, the Ministry of Economy uses the Herfindahl-Hirschman Index (HHI) to measure Mexico’s export diversification to the world. A high index expresses a highly concentrated and uncompetitive market.
During the period from September 1, 2021 to June 30, 2022, nine neutral investment projects have been authorized, eight projects of the National Foreign Investment Commission (CNIE) and the establishment of 202 foreign legal entities in the Mexican Republic.
Also during the same period, the National Registry of Foreign Investments (RNIE) received 40,787 procedures, of which 100% were processed electronically.
From October 2021 to June 2022, the flow of FDI was 30,553.3 million dollars, as a result of the movements of 3,050 companies with foreign capital participation and foreign legal entities, as well as 4,373 trusts from which rights in favor of foreign investment are derived.
Foreign Investment Law
Article 9 of the Foreign Investment Law (LIE) establishes that a favorable resolution of the National Foreign Investment Commission is required for the foreign investment to participate, directly or indirectly, in a proportion greater than 49% in the capital stock of Mexican companies, whose total value of assets at the time of submitting the acquisition request exceeds the amount determined annually by the Commission.
In addition, the Ministry of Economy indicated that four agreements were signed with Tamaulipas, Baja California, Querétaro and Sinaloa, which will allow their governments to know the behavior of FDI in Mexico and, in particular, in their states.
This facilitates decision-making and the implementation of public policies to attract FDI and obtain benefits such as job creation and growth in their states.
The purpose of the agreements is to promote regional development by attracting foreign investment through the exchange of information at the company level on the investments that materialize in the state.