Business Opportunities in Mexico Continues to be Fruitful for Investors
Mexico is number 2 in Latin America in economic size and it covers an area similar to what Western Europe takes up. Mexico is responsible for the natural bridge between South, North, and Central America, which gives it a strategic location in the political and economical aspects. There are a lot of Free Trade Agreements in Mexico, together with the new reforms that give higher security for international trade. In addition, Mexico has 45 partners in open trade which they claim to have. The business opportunities in Mexico are now getting more support than in the past years.
Mexico’s improvement of the trade market they have internationally has opened a lot of opportunities for healthcare, retail energy, aerospace, and infrastructure sectors to foreign businesses.
Prospects for Mexico in the Automotive Industry
The sector in Mexico for automotive is number 7 in the world in terms of size and a lot of international names already have plants there. Mexico is the 5th largest auto-parts exporter. The local government incentivizes the production which led to the construction of hubs in the states near Mexico City. However, they sent about 70% of the manufactured cars to the US. The states located at the border are still attractive to companies.
Since Mexico is a massive country with an increasing population, foreign companies are able to find major opportunities in the country. The national healthcare service in Mexico is under 3 categories: the workers in the public sectors, those who belong to the private sectors, and outside formal employment. Even if generic medicine is famous in Mexico, AstraZeneca and GSK are companies that have achieved success in Mexico for years and they have plants located in Southern Mexico City.
Today, they recognize Mexico as a young country. The average is 27 but their ageing population continues to increase with the life expectancy. There are upscale care homes for the seniors being constructed all over the country. It is because there is a growing demand to care for patients with senior dementia and Alzheimer’s.
Reformation of Energy Industry in Mexico
In the past years, the energy sector of Mexico has undergone major reformation. Pemex, a national company producing oil, is going to open up with accessible tenders for investors from other countries. Although, Pemex has more than 40,000 employees and they have 3,000 consultants. Anyone who wants to have a business with Pemex should have a long-term goal. They should have specialized technologies and become reputable in Mexico. The national grid has been opened by the energy reform. It is for private companies to have the opportunity to link and sell electricity. The ambition of the Mexican government to target 20% of the electricity by 2020 will open opportunities to foreign investors. The electricity will be from sources that are renewable, that promotes waste management and use of solar power.
In some sectors, it might better to put up a company in the country instead of working with 3rd parties. It is very important to find the right accountants and Mexican lawyers. They are familiar with the business and corporate laws of Mexico. Contact 3E Accounting now to get assistance.