Mexico is the second largest economy of Latin America and the #1 trade partner of the USA. Its ideal geographical location, wide variety of natural resources, solid infrastructure, young and available workforce, ample portfolio of trade agreements, and stable macroeconomics, make Mexico one of the most attractive emerging markets on the globe.
Mexico is an emerging economy and open for business in a variety of industries. Here are a few reasons that make Mexico an attractive business destination:
At HHM, we aim to help you find practical answers to your questions. We can help you identify and capitalize on opportunities on the Mexican market through our tailormade service portfolio. Contact us to schedule an appointment to explore your possibilities.
The Netherlands has identified top sectors in which the government wants to strengthen the country’s international position. These priorities arealigned with the following focus sectors of Holland House Mexico, which have been defined based on the available business opportunities for Dutch companies in the Mexican market. HHM is structured largely around these sectors, in addition to industries such as e-commerce, tourism, and creative arts and sports.
Mexico’s Energy Reform set in motion a series of changes that continue to revolutionize the country’s energy sector. With vast untapped hydrocarbon reserves, over 100 E&P contracts signed with private operators in the context of new regulatory framework, and a resurgent PEMEX under the new government, Mexico is one of the most exciting oil and gas markets. Given that the vast majority of Mexico’s hydrocarbon production takes place offshore, this opportunity is also a boon for maritime service providers and port infrastructure development.
Specific opportunities include:
Mexico’s mild climate, abundance of agricultural land and affordable labor have positioned the country as one of the world leaders in horticultural production. Serving both a domestic market of almost 126+ million people, as well as export markets around the world, Mexico has become an important exporter of vegetables, fruits and flowers, and an attractive market for agricultural technology. The Netherlands is perceived as an innovative and high-quality supplier in the high-tech agribusiness.
Opportunities include:
President López Obrador has made universal healthcare one of his top priorities, along with the need to address the rise in chronic diseases and their management, while adapting regulations to the rapidly changing requirements of a burgeoning technological environment. Among the industry’s buzzwords at this time of change are Big Data, automation, and innovation. As Industry 4.0 practices penetrate the health sector one key hurdle stands in the way: Mexico’s fragmented system makes it difficult to share data and realize the integration of information that characterizes the technological revolution now under way.
Opportunities include:
Over the past decade Mexico has started a transformation from a low-cost manufacturer to an advanced manufacturing hub. As a result, the country has become a key player in the automotive industry, is the world’s largest flat screen exporter, and is about to join the world’s top 10 aerospace industry manufacturers. The recent implementation of the Free Trade Agreement USMCA, which replaces the more low-cost manufacturing focused NAFTA, further strengthens the outlook for advanced manufacturing in Mexico. The Dutch government has identified the advanced manufacturing industry as one of the nine “Top Sectors” of the economy, creating an interesting match between both countries.
Opportunities include:
The Mexican government has prioritized boosting Mexico’s economy through high-profile investments in the country’s infrastructure. Verticalization and transparency are the industry’s new buzzwords as cities are looking inward to accommodate not only growth but also the quality of life demands of citizens. Imbalances in water supply and demand across the country, ranging from flooding risk in the south to droughts in the north of the country, create opportunities to build on the already established Dutch-Mexican cooperation in water management.
Opportunities include:
With technology increasingly ingrained in our way of working, the pandemic has forced whole industries to adopt more digital tools to continue operating remotely. According to the Technology Trends Index by research firm McKinsey, there are seven trends that will reshape and disrupt the way companies operate. These trends include next – level process automation, 5G and IoT connectivity, applied Artificial Intelligence, among others.
According to the recently released 2022 Online Sales Study by Mexican Online Sales Association (AMVO), E-Commerce in Mexico generated in 2021 a total of $401.3 billion pesos (aprox. USD $20 billion), this represented a 27% increase compared to 2020, for the second consecutive year E-Commerce’s market value saw a double digit increase after the 81% increase in 2020. Furthermore, ITA’s Mexico’s Country Commercial Guide states that experts predict that Mexico will have over 77 million E-Commerce users by 2025 due to improvements in connectivity, enhanced financial inclusion, streamlined logistics, and increased digital literacy.
Opportunities include:
Doing business in Mexico requires solid preparation. The main issue entrepreneurs might face is a lack of understanding of the Mexican mindset. With the right concept, the right preparation, and a little bit of help from parties such as HHM, achieving sustainable business success is just a matter of time.
