Guanajuato largest recipient of foreign direct investment from Asia

May 10, 2023

Japan's ambassador to Mexico, right, at event in leon, Mexico — Katsumi Itagaki, Japan's ambassador to Mexico, right, at a formal event in León, Guanajuato. Japan was the state's second highest foreign investor nation in 2022. (Twitter)

Guanajuato received US $832.8 million in foreign direct investment (FDI) from Asian countries in 2022, making the state the largest recipient of Asian FDI nationwide.

According to the Economy Ministry, 53.2% of the state’s overall investment came from Asia. US $819.2 million of that came from Japan and US $13.6 million from China.

The candy manufacturer and distributor Grupo Ferrero announced that they planned to invest US $50 million to expand their industrial operations in Guanajuato, on the Bajío states. — Several international corporations, including the Ferrero Group, have chosen Guanajuato as a manufacturing hub. (State of Guanajuato)

In 2021, Guanajuato saw US $666 million in foreign investment, a growth figure of 25% compared to 2022.

Héctor Magaña, an academic at the Tech de Monterrey-México state, told the newspaper El Economista that Guanajuato was one of the first states to take advantage of the North American Free Trade Agreement, particularly in the automotive sector. This has created an auto sector workforce with more experience than competitors.

“While other states in the Bajío and northern Mexico have become attractive, Guanajuato’s skilled workforce and years of experience have been essential in it continuing to be one of the main recipients of FDI,” he said.

The presence of Asian companies in the state, Magaña added, could be a sign that foreign money will continue to flow, although he acknowledged that its ranking does not necessarily mean Guanajuato is well-positioned for nearshoring opportunities — the latest trend in manufacturing, in which manufacturers wishing to be physically near the U.S market open facilities in Mexico.

Guanajuato city, Mexico — Despite its current investment boom, Guanajuato state may be too far from the U.S. border to take advantage of the nearshoring boom, according to economist Hector Magaña. (Alex Person/Unsplash)

Guanajuato isn’t close enough to the Mexico-U.S. border to be a good candidate for nearshoring opportunities, he said.

During 2022, the top three countries worldwide that invested the most money in Guanajuato were the U.S., with US $646 million; Japan, with US $639 million; and France, with US $119 million.

With reports from El Economista and Data Mexico.