Doing business in Mexico

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.

Why do business in Mexico?

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:

  • Highest ranking country in Ease of Doing Business of Latin America (#60).
  • Located in North America, Mexico is the 2nd largest economy of Latin America.
  • Excellent geographical location: in the north Mexico´s #1 trade partner USA, to the south Latin America. Large variety of ports on both the Pacific and Atlantic Oceans provide access to economies around the world. Solid road- air- and rail network connects Mexico internally. In 2019, Mexico was de world´s 12th largest exporter.
  • Mexico is one of the emerging countries most open to foreign direct investment, the world’s 15th largest FDI recipient with a total stock of FDI of $US 628 billion (2019). Main investors: United States, Spain, and Canada. Most foreign investment is in the automotive industry (21%), electricity, water and gas supply finance, retail and wholesale trade, and financial services.
Why do business in Mexico?

  • Mexico is the country with the most trade agreements in the world: 12 Free Trade Agreements with 46 countries and another 41 other agreements, thereby giving access to 61% of global GDP and over 50% of global trade.
  • Political stability.
  • Openness to work with foreign partners.
  • Skilled, young, and available workforce, both low-cost workers and high-quality experts.
  • History of solid macro-economic management (commitment to fiscal targets, sound debt management, flexible exchange rate, appropriate monetary policies).
  • The open economy has created a diversified economy with many dynamic sectors that compete globally.
  • The country is very well integrated into the world economic order: it is a member USMCA, OECD, G20 and the Pacific Alliance.
  • Mexico is home to a wide variety of natural resources, with 6 out of 8 mayor ecosystems present in the country.

Our Services

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.

 

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Our Services

Sectors of Opportunity

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.

Energy & Maritime

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:

  • Vast energy resources
  • Pro-petroleum government
  • Projected growth in Oil & Gas production
  • Demand for expertise in offshore deepwater field development and on efficient gas usage
  • 117 functional ports
  • Demand for port development and maritime expertise
  • Energy storage and transportation
Energy & Maritime

Agri-food & Horticulture

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:

  • High-tech agri- and horticulture form a fast-growing sector
  • High demand for knowledge and expertise on agro-parks and agro-logistics
  • Demand for gourmet Dutch food products and organic food products
Agri-food & Horticulture

Life Sciences & Health

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:

  • First Mover Advantage
  • Good reputation of EU products
  • Biggest importer in Latin-America
  • Increase in healthcare infrastructure
  • Rapidly aging population
Life Sciences & Health

Advanced Manufacturing

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:

  • Mexico is transforming into an advanced manufacturing hub, demanding innovation and expertise
  • World´s 6th largest automotive manufacturer, 4th largest light vehicle manufacturer
  • Young, skilled, affordable and available workforce
  • Direct access to US, the Atlantic and Pacific oceans.
  • USMCA, MEX-EU FTA & Pacific Alliance
  • Governmental incentives promote FDI
  • Potential to become the Industry 4.0 hub of Latin America
Advanced Manufacturing

Sustainability & Water Management

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

  • Water treatment solutions
  • Unequal water distribution
  • Water management in the energy sector
  • Waste-to-Energy sector
  • Climate goals: 35% energy consumption generated through renewable sources by 2024
  • Renewable energy production through distributed generation
  • Growing interest in electric vehicles and shifting view on mobility
Sustainability & Water Management

Fernando Flores

CEO GreenID

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.