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Premium member Presentation Transcript Production in Mexico: Production in Mexico Rising Opportunities for Swedish Companies The states of Mexico - Where is it best to invest?AGENDA: AGENDA Background Objective & Key issues Swedish Trade Council Information fast facts about the STC STC Mexico Mexico General Information State by state overview information BACKGROUND: BACKGROUND BACKGROUND: BACKGROUND One of the most successful emerging economies over the last few years has been Mexico which makes it an attractive country for new investment Foreign firms have established new productive units in all spheres of Mexican economic activity Mexico is the world’s 9th largest economy, the 8th largest exporter of goods and services, and the 4th largest oil producer Mexico is a developing nation economically Mexico’s manufacturing output includes many basic goods, such as steel, machinery, and petrochemicals, as well as a wide range of consumer goods Free trade agreements have been a fundamental component of Mexico’s trade policy in recent years Slide5: Mexico has free trade agreements in force with 31 countries, ninety five per cent of its trade are under these Agreements. Mexico is the eight trading power in the world and leader in Latin America From the time of the Free Trade Agreement with the U.S. came into force, participation of products in this market has increased from 6.8% to 11. 2% For example, in the year 2000, overall trade with the countries belonging to the European Union reached US$ 20,366 million BACKGROUNDTHE MEXICAN STATES: THE MEXICAN STATES Mexico is divided into 31 states and 1 district, all with a state government which politics decide the investment climate in the state 1 Aguascalientes 2 Baja California Norte 3 Baja California Sur 4 Campeche 5 Chiapas 6 Chihuahua 7 Coahuila 8 Colima 9 Distrito Federal 10 Durango 11 Estado de México 12 Guerrero 13 Guanajuato 14 Hidalgo 15 Jalisco 16 Michoacán 17 Morelos 18 Nayarit 19 Nuevo León 29 Tlaxcala 30 Veracruz 31 Yucatán 32 Zacatecas 20 Oaxaca 21 Puebla 22 Querétaro 23 Quintana Roo 24 San Luis Potosí 25 Sinaloa 26 Sonora 27 Tabasco 28 TamaulipasAGENDA: Background Objective & Key issues Swedish Trade Council Information fast facts about the STC STC Mexico Mexico General Information State by state overview information AGENDA OBJECTIVES & KEY ISSUES: OBJECTIVES & KEY ISSUES The main purpose of this presentation is to give an overview on the 32 states of Mexico. The Swedish Trade Council, Mexico presents the following for each state (to the extent possible): General information Main industrial activities Foreign investments information climate state incentives main sectors Main foreign companiesAGENDA: Background Objective & Key issues Swedish Trade Council Information fast facts about the STC STC Mexico Mexico General Information State by state overview information AGENDASWEDISH TRADE COUNCIL INFORMATION: SWEDISH TRADE COUNCIL INFORMATION - fast facts about the STC The Swedish Trade Council (STC) specialises in supporting Swedish companies in establishing and expanding their business internationally. Business concept: We make it easier for Swedish companies to grow internationally Vision: To become a natural partner for all Swedish companies in their internationalisation process The STC in numbers: 42 offices in 35 countries Approximately 350 employees – 220 consultants Sales of approximately MSEK 420 in year 2002 The Swedish Trade Council offers cost-effective consulting worldwide, focusing on international establishment and expansion.Slide11: Market checks and analysis Visit Programs Find distributors/sales rep Customer search Business Support Office Assistance in recruitment Export information Swedish Trade Council in Mexico Oficina Comercial de Suecia World Trade Center Piso 12, Oficina 01 Montecito, No.38 Col. Nápoles, 03810 México D.F Tel: +52-55-5488-2840 Fax: +52-55-5488-2848 Email: email@example.com firstname.lastname@example.org What can we do for you: Where to find us: SWEDISH TRADE COUNCIL INFORMATION - STC MexicoAGENDA: Background Objective & Key issues Swedish Trade Council Information fast facts about the STC STC Mexico Mexico General Information State by state overview information AGENDA MEXICO GENERAL INFORMATION: MEXICO GENERAL INFORMATION Official name United Mexican States Founded: Independence (from Spain) 16 September 1810 Capital: Mexico City Population: 105 million Area: 1,972,550 sq km Official languages: Spanish and various indigenous languages Currency: Mexican peso Exchange rate: MXN 1 = 0.66 SEK (as of Feb. 19, 2004) GDP $924.4 billion USD (2002 est.) Growth 6.6% (2000), –0.3% (2001), 0.9 % (2002), 1.3 (2003) Inflation 9.0 % (2000), 4.4% (2001), 5.7 % (2002), 4.0 % (2003) Slide14: - Direct Foreign Investment in the Mexican economy Mexico is one of the three emerging economies that received most direct investment in the period 1994 – 2001 with an amount of some $84,913.7 million USD. Direct Foreign Investment channeled to Mexico represented: - 10% of the total amount channeled to developing countries - 37% of investment flows destined to Latin America and the Caribbean. Most of the Direct Foreign Investment comes from the countries in North America (68%), followed by the European Union (19.2%) and Japan (4%). In the year 2000 Mexico received $13,161.0 million USD in DFI. MEXICO GENERAL INFORMATION- reasons for locating in Mexico: - reasons for locating in Mexico Global production standards Free Trade Agreements Skilled Work Force Manufacturing Integration 100 million consumer market Stable economic and political environment Rich Natural Resources Strategic Geographic Location Sophisticated Infrastructure Logistics MEXICO GENERAL INFORMATIONSlide16: - fundamentals for investments in Mexico MEXICO GENERAL INFORMATIONSlide17: - foreign enterprises producing in Mexico: There are a lot of different important foreign companies currently producing in Mexico. Some of the most important examples are: MEXICO GENERAL INFORMATION- trade Mexico - Sweden: - trade Mexico - Sweden During the last few years the commercial transactions between Mexico and Sweden have registered a substantial growth, the tendency has been strengthened as a result of the entry in force of the Mexico-EU Free Trade Agreement (Mexico-EU FTA). The Government of Mexico has a Permanent Mission to the European Union located in Brussels, Belgium. In the frame of its duties this Representation has, among others, the following objectives: - promotion of Mexican exports in Europe. - promotion of European investments in Mexico. - advice to European businessmen on how to do business in Mexico. - follow-up of trade issues between Mexico and Europe. MEXICO GENERAL INFORMATION- opportunities for Swedish companies: - opportunities for Swedish companies The Agreement between the Government of the United Mexican States and the Government of Sweden concerning the promotion and reciprocal protection of investments was signed in Stockholm on October the 3rd, 2000. The Agreement has the objective to intensify economic cooperation as well as to maintain fair and equitable conditions for investments between Mexico and Sweden. The Agreement recognizes that the promotion and reciprocal protection of such investments favour the expansion of the economic relation between both countries. MEXICO GENERAL INFORMATION- some Swedish companies established in Mexico : - some Swedish companies established in Mexico MEXICO GENERAL INFORMATIONAGENDA: Background Objective & Key issues Swedish Trade Council Information Fast facts about the STC STC Mexico Mexico General Information State by state overview information AGENDA THE MEXICAN STATES: THE MEXICAN STATES - location of 31 states and 1 district (click on map or state name to go directly) 1 Aguascalientes 2 Baja California Norte 3 Baja California Sur 4 Campeche 5 Chiapas 6 Chihuahua 7 Coahuila 8 Colima 9 Distrito Federal 10 Durango 11 Estado de México 12 Guerrero 13 Guanajuato 14 Hidalgo 15 Jalisco 16 Michoacán 17 Morelos 18 Nayarit 19 Nuevo León 29 Tlaxcala 30 Veracruz 31 Yucatán 32 Zacatecas 2 1 3 5 4 6 7 10 8 12 9 11 14 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 2 20 Oaxaca 21 Puebla 22 Querétaro 23 Quintana Roo 24 San Luis Potosí 25 Sinaloa 26 Sonora 27 Tabasco 28 Tamaulipas1. AGUASCALIENTES (1-4): 1. AGUASCALIENTES (1-4) General information Main industrial activities textiles and clothing automobile industry basic iron and steel industry food and drinks machinery, equipment and electric accessories1. AGUASCALIENTES (2-4): Foreign investments information Climate Aguascalientes bases its strategy of developing fully functional industrial parks on the special attention given to promoting companies in other municipalities, where all necessary services are provided, such as telephone lines, water, sewerage, security, access for transportation for personnel, materials and products. The government and private sector, including foreign investors, have set up a corridor consisting of six industrial parks close to routes and railroads for better maneuverability. Thanks to its facilities and the availability of experienced labor, Aguascalientes is attracting some major national and foreign investors. In 2002 this State received a total of $392.6 million USD in Foreign Direct Investment, 0.3% of total FDI in the country. 1. AGUASCALIENTES (2-4) State incentives 2% Payroll Tax exemption preferential conditions for acquiring land in industrial parks belonging to the government discounts on municipal feesSlide25: 1. AGUASCALIENTES (3-4) Main sectors The state's strategy for production consists of providing continuity for state development on the basis of seven "clusters": Furniture, Textiles and Clothing, Automobile, Software, Technology and Electronics, Telecommunications and Computing.1. AGUASCALIENTES (4-4): 1. AGUASCALIENTES (4-4) Main foreign companies Slide27: 2. BAJA CALIFORNIA NORTE (1-3) General information Slide28: Main industrial activities 2. BAJA CALIFORNIA NORTE (2-3) metal products machinery and equipment food products, drinks and tobacco timber and wood products non metal minerals, except oil derivative chemicals Foreign investments information Climate One of the tasks undertaken by the state government has been to promote ties between the education and the productive sectors in order to offer foreign investors skilled and industry oriented labor. The state enjoys the benefit of a strategic location for access to highly dynamic markets. In 2002 this State received a total of $6,499.8 million USD in Foreign Direct Investment, 5.7% of the total FDI in the country. Slide29: 2. BAJA CALIFORNIA NORTE (3-3) State incentives guidance in project selection and location organization for business schedule business Seminars personalized and specialized attentionSlide30: 3. BAJA CALIFORNIA SUR (1-4) General information Main industrial activities salt, gypsum, phosphorite mining furniture production clothing production drinks production Slide31: 3. BAJA CALIFORNIA SUR (2-4) Foreign investments information Climate From the very beginning, Baja California Sur has been a strategic region in the field of tourism, aquaculture and fishing. Today the State is offering the world some excellent opportunities for investing with solid guarantees of stability and security. The state's environmental setting has not been spoilt and its social environment is one of stability and work, with abundant resources all along its extensive coastline for tourism, aquaculture and fishing. The state also enjoys excellent weather and health because of its wealth in agriculture and cattle raising, as well as deposits of metal and non metal minerals. State incentives The Law of Economic promotion sets forth a number of different tax incentives for newly formed companies, as well as for companies increasing their installed capacity. Slide32: 3. BAJA CALIFORNIA SUR (3-4) Main sectors Potential for investment in the tourist sector : splendid natural environment for the development of sun and beach destination tourism, as well as alternative types of tourism: historical - cultural tourism, nature watch tourism, ecotourism or ecological tourism, sailing tourism, adventure tourism and synergy tourism the focuses for development are Los Cabos and Loreto - Nopoló there are opportunities for development in new tourist areas such as La Paz, Todos Santos, Buenavista, Los Barriles, Santa Rosalía and Mulegé, as well as other areas Potential for investment in fishing: top quality waters there is potential for fishing 122 different species infrastructure available for processing fishing products research facilities include laboratories for producing larvae and seeds for species such as abalone prawns, clams and Japanese oysters 3. BAJA CALIFORNIA SUR (4-4): 3. BAJA CALIFORNIA SUR (4-4) Potential for investment in aquaculture: mild - tropical climate transition zone natural production of a broad range of marine species 224,000 hectares of protected bodies of water 30,000 hectares of suitable land for building rustic pools bodies of clean water, with an excellent standard of hygiene excellent infrastructure for marine science research Potential for investment in the industrial sector: strategic geographical location for the state's access to the markets of North and South America, the Pacific Rim and the domestic market suitable human resources for manufacturing activities abundant natural resources that can be industrialized for activities such as fishing, mining and agriculture Slide34: 4. CAMPECHE (1-3) General information Slide35: Foreign investments information Climate In the last four years, Campeche has attracted 49 domestic and foreign investment packages for areas such as aquaculture, fishing, agriculture and manufacturing. The state has also attracted Chinese investment for the cultivation of corn and rice. The state's geographical location with regard to the United States is advantageous. Florida can be reached in just 30 minutes by plane and 48 hours by boat. Furthermore, the region is very safe for foreign investments. In 2002 this State received a total of $16.9 million USD in Foreign Direct Investment. 4. CAMPECHE (2-3) fishing aquaculture petrochemicals manufacturing mining Main industrial activities4. CAMPECHE (3-3): 4. CAMPECHE (3-3) State incentives a rate of 2% has been set for payroll tax and fees for registration in the Public Register of Property and Commerce preferential rates are offered for property tax and taxes on the acquisition of real estate by companies making new investment in production Main sectors agriculture aquaculture mining electricity Slide37: 5. CHIAPAS (1-4) General information Slide38: Foreign investments information Climate The new government of the state of Chiapas is promoting the opening up of business to attract domestic and foreign investment by offering incentives such as legal security for investment. 5. CHIAPAS (2-4) Main industrial activities petrochemicals power generation agricultural maquiladora assemblySlide39: 5. CHIAPAS (3-4) Main sectors Textiles, Auto parts, Electrical, Agricultural and Tourism. The textile industry in Chiapas has great opportunities for development due to the young workforce for labor intensive tasks, the availability of industrial supplies (water and electric power) and the artistic skills used in making garments, which make possible the installation, in the short and medium terms, of industries developing a full range of activities. State incentives specialist training housing programs in industrial zones labour market surveys reconditioning of industrial infrastructure technical studies5. CHIAPAS (4-4): 5. CHIAPAS (4-4) Main foreign companies Slide41: 6. CHIHUAHUA (1-3) General information Slide42: 6. CHIHUAHUA (2-3) Foreign investments information Climate Chihuahua's industrial model is based on industrial groupings, the most highly developed being the Automobile sector, followed by agriculture and materials for building. Chihuahua holds first place nationwide for employment in the maquiladora industry and for the added value of products manufactured in this industry. In 2002 this State received a total of $5,500.4 million USD in Foreign Direct Investment, 4.8% of total FDI in the country. State incentives reduced Payroll tax reduced Public property register charges reduced Municipal taxes and charges training for workers provided by the State Employment Service Main industrial activities manufacturing (maquiladora and domestic Industry) agriculture construction miningSlide43: 6. CHIHUAHUA (3-3) Main foreign companies Main sectors electronics automobile aerospace software biomedicine7. COAHUILA (1-4): 7. COAHUILA (1-4) General information Main industrial activities automobiles and auto parts textiles and clothing metal - steelworks mining - metallurgy electrical - electronics 7. COAHUILA (2-4): 7. COAHUILA (2-4) Foreign investments information Climate The state runs a permanent promotion campaign aimed at attracting new investment which includes, among other things, promotional materials, publications in specialized international magazines for business executives and participation in international fairs and exhibitions in the industrial fields in which Coahuila is involved. Each region in the state has Promotional Agencies run by the private sector with the economic support of the State Government to assist promotion on a regional basis. There are also international offices in Bilbao, Spain, and San Antonio, Texas, which act as a link for companies of Coahuila in need of support for their commercial operations in Europe and the United States. In 2002 this State received a total of $1,281.3 million USD in Foreign Direct Investment, 1.1% of total FDI in the country. 7. COAHUILA (3-4): 7. COAHUILA (3-4) Main sectors automobile and auto parts textiles and clothing diary products and derivatives metal - steelworks mining - metallurgy electrical - electronics State incentives The State Government offers a number of incentives, such as subsidies and exemptions from taxes and other charges. Examples are: waiving of Payroll tax, access to Training Programs and support for formalities on the three levels of government (Federal, State and Municipal). Depending on the location of the new project, economic aspects and the number of jobs that would be created, further incentives are offered (subject to negotiation): waiving of Public register fees, Construction license, infrastructure projects and the processing of municipal incentives.7. COAHUILA (4-4): 7. COAHUILA (4-4) Main foreign companies 8. COLIMA (1-4): 8. COLIMA (1-4) General information 8. COLIMA (2-4): 8. COLIMA (2-4) Foreign investments information Climate There is a broad range of opportunities in both industry and the service sector. What stands out in these sectors is precisely the main factor to be taken into consideration before investing, namely the young people who have been trained at one of the state’s eight universities and are keen to play a role in Colima’s development by meeting international norms and standards in production. Colima is also an unbeatable location for investment projects in the fields of mining, production, manufacturing, marketing and the use of natural resources, given the state’s natural wealth and stable climate throughout the year, which make it possible to raise and improve levels of production and usage. In 2002 this State received a total of 139.1 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country. Main industrial activities clothing textiles non-metallic minerals automobile plastics8. COLIMA (3-4): 8. COLIMA (3-4) State incentives no Payroll tax or Operational state tax for companies reduction and temporary exemption from state taxes sale and lease of property and immovable goods of the state at preferential prices donations of property and immovable goods under special conditions granting of special concessions staff training and grant programs partial payment of training programs support for building and improving infrastructure implementation of promotional programs for exports8. COLIMA (4-4): 8. COLIMA (4-4) Main sectors textiles tourism agriculture automobile infrastructure of the port of Manzanillo electric - electronics Main foreign companies 9. DISTRITO FEDERAL (1-3): 9. DISTRITO FEDERAL (1-3) General information Main industrial activities manufacture of other substances and chemical products pharmaceutical industry printing companies, publishing companies and associated industries automobile industry clothing9. DISTRITO FEDERAL (2-3): 9. DISTRITO FEDERAL (2-3) Foreign investments information Climate In order to encourage foreign investment in the Federal District, a number of programs have been launched to promote the setting up and development of business in areas with a high potential for industry, trade and services. And, with the aim of informing foreign companies and investors about the opportunities for investing in the city, the Government of the Federal District has promoted programs in Chambers, National and International Events, Embassies and Representations from abroad in the city. Furthermore, with the same objective, information has been made available in print and electronically on each of the programs that offer support to the business community. This information is available in the 17 Business Link Centers that have been set up in the municipal offices of the Districts and the Chambers of Commerce of the Federal District, as well as on the website of the Government of the Federal District (www.df.gob.mx) and especially on the website of the SEDECO (www.sedeco.df.gob.mx). In 2002 this State received a total amount of $67,705.3 million USD in Foreign Direct Investment, 59.4% of the total FDI in the country. 9. DISTRITO FEDERAL (3-3): 9. DISTRITO FEDERAL (3-3) Main foreign companies State incentives Tourist and Service Agency Program Industrial Parks Program Tax Incentives Program10. DURANGO (1-3): 10. DURANGO (1-3) General information Main industrial activities clothing forestry mining metals auto parts - electronics10. DURANGO (2-3): 10. DURANGO (2-3) Foreign investments information Climate law of economic promotion municipal incentives security certainty for: operations, development, and consolidation of companies promotion for industrial groupings trusts providing support for industrial development In 2002 this State received a total of $205.6 million USD in Foreign Direct Investment, 0.2% of the total FDI in the country. State incentives full exemption from Payroll taxes for up to 4 years exemption from fees of up to 60 % for registration in the Public property register training grants provided by the Statemp employment service assistance for formalities and registration before the relevant authorities10. DURANGO (3-3): 10. DURANGO (3-3) Main foreign companies Main sectors auto parts textiles electronics metals food11. ESTADO DE MÉXICO (1-4): 11. ESTADO DE MÉXICO (1-4) General information Main industrial activities metal products, machinery and equipment (including automobile and autoparts industry) food, drink and tobacco chemicals, pharmaceuticals and plastics textiles and clothing non-metal minerals11. ESTADO DE MÉXICO (2-4): 11. ESTADO DE MÉXICO (2-4) Foreign investments information Climate One of the strategies to modernize the state economy and incorporate it in commercial and technological activities, consists of attracting foreign direct investment through a constant effort to publicize the comparative and competitive advantages of the State, as well as the provision of quality services to investors and domestic and foreign institutions. An essential element in this strategy involves conducting an extensive promotion of the state abroad, organizing trips with state authorities, attendance at events, promotional trips, attention to investors visiting the state, and relations with leading businessmen living in Mexico and with representatives from other countries. In 2002 this State received a total of 5,387.4 million USD in Foreign Direct Investment, 4.7% of the total FDI in the country.11. ESTADO DE MÉXICO (3-4): 11. ESTADO DE MÉXICO (3-4) Main sectors automobile and auto parts commerce electronics food and drinks paper chemicals, pharmaceuticals and plastics State incentives worker training grants preferences in the acquisition of property from and the provision of services to the State Government.11. ESTADO DE MÉXICO (4-4): 11. ESTADO DE MÉXICO (4-4) Main foreign companies 12. GUERRERO (1-3): 12. GUERRERO (1-3) General information Main industrial activities tourism mining fishing aquaculture handcrafts12. GUERRERO (2-3): 12. GUERRERO (2-3) Foreign investments information Climate Guerrero is one of Mexico's richest states in terms of natural resources. Tourism is the main motor behind economic growth. The state's strategies include the following: The setting up of the Committee for the State Investment Opportunity Atlas, through which they publicize their potential. Launching of the State Opportunities Program, aimed at helping job creation. The launching of industrial projects that give rise to development on a micro regional basis and which include maquiladora plants and gold and silver. Promotion of Mining, including the setting up of an administrative agency to promote mining in an effective manner. Presenting investors with the Guerrero Mining Geology Monograph. Setting up of the Committee for the Creation of the State Geology-Mining Cartography. In 2002 this State received a total of $170.0 million USD in Foreign Direct Investment. 12. GUERRERO (3-3): 12. GUERRERO (3-3) Main sectors real estate services hotels tourism manufacturers of sawmill- and carpentry products transport mining silver State incentives income tax reductions for new and extended companies (between 55 and 80%, depending on the number of jobs created) 50% reduction on charges for the installation of new companies 13. GUANAJUATO (1-4): 13. GUANAJUATO (1-4) General information Main industrial activities automobile and auto parts agriculture household appliances chemicals textiles and clothing13. GUANAJUATO (2-4): 13. GUANAJUATO (2-4) Foreign investments information Climate Guanajuato guarantees long term business ties and offers solid support through its incentives program, based on the specific needs of each company, in order to guarantee their success on the basis of the following: The provision of essential information on the State Logistics and coordination for business trips to Guanajuato Guidance in the selection of land and industrial premises for your company Industrial costs and readily available supplies Guidance and formalities for your business / Single counter for dealing with procedures Support for hiring and training staff In 2002 this State received a total of $587.8 million USD in Foreign Direct Investment, 0.5 % of the total FDI in the country.13. GUANAJUATO (3-4): 13. GUANAJUATO (3-4) Main sectors automobile and auto parts household appliances agriculture information systems plastics State incentives staff training grants support for recruitment, selection and hiring of staff ties with state technical centers and universities single counter services for formalities and permits temporary exemption from Local taxes (transfer of ownership and 2 % payroll tax)13. GUANAJUATO (4-4): 13. GUANAJUATO (4-4) Main foreign companies 14. HIDALGO (1-4) : 14. HIDALGO (1-4) General information Main industrial activities textiles - clothing transportation, automobiles and auto parts processed foods metals mining14. HIDALGO (2-4): 14. HIDALGO (2-4) Foreign investments information Climate The state of Hidalgo is currently consolidating its position as one of Mexico's main destinations for foreign investment. The ratings companies Standard & Poors's and Fitch México recently gave the state MxA and A+ (mx) ratings, respectively, which reflects a stable economy above the national average, solid financial performance, low levels of debt and a reliable state government. These qualities guarantee certainty for investors and financial institutions that decide to place their trust and resources in Mexico. In 2002 this State received a total of 126.4 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country. State incentives Personalized assistance: The Hidalgo State Government through the Hidalgo International Corporation (COINHI) is actively helping national and foreign investors to formulate and implement their investment plans in Mexico. Our working team stays in contact with investors from the prospecting stages until business is actually launched.14. HIDALGO (3-4): 14. HIDALGO (3-4) The assistance services offered by the COINHI are free and include information, prospecting visits, a single window for formalities, contact with potential partners for strategic alliances and joint investment projects, and general feedback for the project. Tax Incentives: The only state tax is Payroll tax, which varies from state to state. Hidalgo also offers one of the lowest rates of taxation in the whole of Mexico, along with attractive incentives in the provisional or percentage payment of these taxes and for fees and payments made for state licenses and authorizations. Training Program: The State Government, through the Secretariat of Economic Development, covers initial worker training costs, including social security for up to three months. 14. HIDALGO (4-4): 14. HIDALGO (4-4) Main sectors electronic assembly telecommunications processed foods automobiles and auto parts metals and steelworks building materials textiles and clothing Main foreign companies 15. JALISCO (1-4): 15. JALISCO (1-4) General information Main industrial activities commerce and services agriculture electronics and telecommunications processed foods drinks15. JALISCO (2-4): 15. JALISCO (2-4) Foreign investments information Climate The strategy for attracting foreign investment is centered on attracting projects with high added value in the electronics sector, research and development centers and design centers. Promotional efforts also focus on projects in the Automobile and Autoparts sector, as well as the search for joint investment for the development of Small and Medium Companies (PYMES) in the traditional sectors of the economy. State incentives Training the workforce, including costs of training materials, training infrastructure and travel costs for people from Jalisco traveling abroad to receive training or expenses for bringing instructors to Jalisco. Basic infrastructure, including costs of installing electrical and drainage facilities, along with other types of facilities in the company premises. This also includes the construction of routes and deceleration zones to facilitate access. 15. JALISCO (3-4): 15. JALISCO (3-4) Environmental protection facilities, including costs of creating and installing water treatment plants, as well as environmental protection systems. Purchase of land. If projects are set up outside the metropolitan area of Guadalajara, and in which job creation is of vital importance, businessmen may use the incentives available to purchase land. Main sectors Electronics Information Technology Automobile and Autoparts Agriculture Food and Drink15. JALISCO (4-4): 15. JALISCO (4-4) Main foreign companies Slide77: 16. MICHOACÁN (1-4) General information 16. MICHOACÁN (2-4): 16. MICHOACÁN (2-4) Main industrial activities food automobile and auto parts leather (footwear and supplies) metals chemicals textiles - Clothing Foreign investments information Climate The vision of the state of Michoacan is: to be the best option for investment in production in order to generate opportunities in the field and provide highly competitive human resources, standing as an international model for the sustainable utilization of resources and job creation. The state has its own consolidated infrastructure for investment. Its privileged location on the Pacific Rim, close to the US border and next to two of Mexico's main centers of development, Valle de México and the state of Jalisco, make it an appealing option for foreign investors. It also has abundant and diverse natural resources in the fields of mining, forestry, aquaculture and agriculture, as well as skilled labor.Slide79: In 2002 this State received a total of $106.8 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country. State incentives reduced state and municipal taxes preferential rates for Public Register fees reduced property prices in industrial parks in Michoacán guidance for company training single window for formalities Main sectors The main sectors for foreign investments are: forestry, mining, metals and non-metals, agriculture and fruit, cattle raising, fishing. 16. MICHOACÁN (3-4)Slide80: Main foreign companies 16. MICHOACÁN (4-4)17. MORELOS (1-3): 17. MORELOS (1-3) General information Main industrial activities automobile - auto parts chemical - pharmaceutical high technology agriculture plastics17. MORELOS (2-3): 17. MORELOS (2-3) Foreign investments information Climate There is great potential for investment in Morelos, largely because of the diversity of industrial activities being conducted here. There are good prospects in agriculture and tourism. The potential of the service sector should be strongly emphasized with its wide variety of services, including health, research, recreation, golf courses, professional consultancy, and those requiring highly qualified and specialized staff. All these activities demonstrate that Morelos has the ideal climate for work and/or leisure. In 2002 this State received a total of 441.9 million USD in Foreign Direct Investment 2002, 0.4% of the total FDI in the country. State incentives there is NO payroll tax (2%) formalities for obtaining discounts in the Public property register formalities for obtaining a discount from the municipalities on property and ownership transfer taxes formalities for obtaining discounts from the municipalities on construction licenses and permits17. MORELOS (3-3): 17. MORELOS (3-3) Main foreign companies Main sectors automobile - auto parts chemical - pharmaceuticals software tourism (infrastructure and entertainment) agriculture18. NAYARIT (1-3): 18. NAYARIT (1-3) General information 18. NAYARIT (2-3): 18. NAYARIT (2-3) Foreign investments information Climate The Economic Promotion Office of the Secretariat of Economic Development promotes economic activities in the state with the aim of attracting domestic and foreign investment, on both a national and international level. The Secretariat also has a Bureau of Tourism which promotes the riches of Nayarit in this sector, as does the Law of Promotion for the Economic Development of the State of Nayarit, whose aim is to contribute to the development of investment in the state through tax incentives on a state and municipal level. In 2002 this State received a total of 131.4 million USD in Foreign Direct Investment, 0.1 % of the total FDI in the country. Main industrial activities food, drinks and tobacco timber and wooden products metal products, machinery and equipment textiles, clothing and leather non-metal minerals, except for oil derivatives18. NAYARIT (3-3): 18. NAYARIT (3-3) State incentives law of Promotion for the Economic Development in the State of Nayarit reduced Payroll tax, Property tax and Licence fees reduced Public property and Commerce register fees reduced taxes on the acquisition of movable and immovable goods support or benefits for infrastructure construction and service provision projects, in proportion to the amount invested and the number of jobs created Main sectors tourism agricultural services 19. NUEVO LEÓN (1-3): 19. NUEVO LEÓN (1-3) General information Main industrial activities metal products, machinery and equipment food, drinks and tobacco non metal minerals, except oil derivatives chemicals, oil derivatives, rubber and plastics construction19. NUEVO LEÓN (2-3): 19. NUEVO LEÓN (2-3) Foreign investments information Climate The Government of Nuevo León has a department in charge of promoting foreign investment. The State is promoted in trips to a number of countries around the world made by staff from the Foreign Investment Department of the state''s Secretariat of Economic Development. State incentives reduction of or exemption from Payroll tax and Other taxes preferential rates in the payment of Public register fees staff training grants for workers reduced prices offered for property located outside the metropolitan area of Monterrey guidance for forming companies single window for formalities guidance in dealing with financial institutions 19. NUEVO LEÓN (3-3): 19. NUEVO LEÓN (3-3) Main foreign companies Main sectors automobile metals electronics and telecommunications software20. OAXACA (1-4): 20. OAXACA (1-4) General information 20. OAXACA (2-4): 20. OAXACA (2-4) Foreign investments information Climate The state of Oaxaca is characterized by its wealth of resources and exploitable products, which over the last few years have given rise to a new supply of industrial spaces and enjoys an attractive labor force for companies. Oaxaca also offers investors a climate of tranquility, security and social stability in a pleasant cultural, natural and gastronomic setting. Futhermore the State Law for the Promotion of Economic Development sets forth a new legal framework for attracting investment and there is a new (2000) Industrial Park, located in Magdalena Apazco, Etla. In 2002 this State received a total of $3.8 million USD in Foreign Direct Investment, 0.01% of the total FDI in the country. Main industrial activities mining drinks oil refining sugar maquiladora20. OAXACA (3-4): 20. OAXACA (3-4) Main sectors The main areas of activity are the service sector, which accounts for 61.6 % of total investments, the manufacturing industry with 15.1 % and commerce with 13.7 %, while other sectors account for 9.6 % of the total. State incentives exemption from state fees and taxes for the first two years of operation reductions in state fees and taxes of up to 50% in the third year and 25% in the fourth training grants for workers deregulation of business formalities single window for procedures payroll tax exemption20. OAXACA (4-4): 20. OAXACA (4-4) Main foreign companies By September 2002 there were 73 companies with foreign capital in the state of Oaxaca. The most important ones, in terms of their share of total investments, are in the municipality of Santa María Huatulco and Oaxaca de Juárez.21. PUEBLA (1-4): 21. PUEBLA (1-4) General information 21. PUEBLA (2-4): 21. PUEBLA (2-4) Main industrial activities automobiles and auto parts metals processed food textiles - clothing chemicals Foreign investments information Climate Puebla has earned its place as one of Mexico's most attractive states for Foreign Direct Investment (FDI). Throughout the last decade it consistently maintained its position among the top ten states in the country in terms of FDI received. In 2002, according to a report issued by the National Foreign Investment Committee, Puebla state ranked 5th among the main recipients of FDI in the country, which is a reflection of the dynamism of its industrial and commercial activities, its high levels of competitiveness and the faith that foreign investors have placed in Puebla as an excellent business partner. 21. PUEBLA (3-4): 21. PUEBLA (3-4) All of this is the result of a solid promotional strategy formulated by the state Government with the aim of attracting new firms, offering help in the formalities required for setting up business and establishing lasting relations so that everyone may benefit. In 2002 this State received a total of $2,191.3 million USD in Foreign Direct Investment, 1.9% of total FDI in the country. State incentives 1 % Payroll Tax training grants single window for conducting formalities solid industrial infrastructure solid educational infrastructure 21. PUEBLA (4-4): 21. PUEBLA (4-4) Main sectors automobiles and auto parts metals agriculture processed food furniture Main foreign companies 22. QUERÉTARO (1-4): 22. QUERÉTARO (1-4) General information Main industrial activities metals and autoparts food, drinks and tobacco chemicals, rubber and plastics paper, printing and publishing non-metal minerals22. QUERÉTARO (2-4): 22. QUERÉTARO (2-4) Foreign investments information Climate Splendid location, industrial infrastructure, security, good standard of living, legal solidity, stable labor, skilled staff, universities and research and development centers in technology. Investor service plan: Presentation of main characteristics of the state, visits to industrial parks and premises, established companies, attention to requests for information, continuity, reliable providers of services for installation, recruitment of staff, development of suppliers, personalized attention for formalities and constant guidance. Prospectuses may be obtained by attending Fairs, Forums, Exhibitions, Foreign Investment Seminars, individual agendas in the country in which the company is based, as well as the personalized attention of the State of Querétaro for visitors provided by Bancomext, investment promotion organizations, the State office in Mexico City, as well as businessmen attended and established in Querétaro. In 2002 this State received a total of $937.8 million USD in Foreign Direct Investment, 0.8% of total FDI in the country. 22. QUERÉTARO (3-4): 22. QUERÉTARO (3-4) Payroll tax 2 to 3 % on payments made to staff. There is no Income law in Querétaro tax on Transfer of ownership 2% on the purchase value of property, full or partial rebate at the discretion of the municipal authorities Inscription in the Public Property Register 0.75% on the purchase value of property, full rebate. SICAT (Training for work system) payment of a minimum salary per person per month during the training period for unemployed people (maximum 3 months). Afterwards, the company must employ 70% of the trainees, whom they are responsible for in labor matters up to that time PAC (Training support program) payment of up to 50% of instructor´s fees for 200 hours training given to your staff (a single employee or the whole company), up to a maximum of 250 pesos per hour guidance and simplification of government standards formalities, recruitment of staff and continuity for incentives State incentives22. QUERÉTARO (4-4): 22. QUERÉTARO (4-4) Main sectors metals and auto parts chemicals, rubber and plastics food, drink and tobacco household appliances, electrical and electronic goods corporate centers23. QUINTANA ROO (1-3): 23. QUINTANA ROO (1-3) General information Main industrial activities trade and tourism agriculture, forestry and fishing forestry construction manufacturing23. QUINTANA ROO (2-3): 23. QUINTANA ROO (2-3) Foreign investments information Climate tariff and duty free imports of supplies, machinery and equipment for producing goods for exportation skilled labor at competitive costs abundance of natural resources planned tourist infrastructure sea and air transport integrated financial structure protection for technological innovations and trademarks In 2002 this State recieved a total of $517.3 million USD in Foreign Direct Investment, 0.5% of the total FDI in the country23. QUINTANA ROO (3-3): 23. QUINTANA ROO (3-3) Main sectors agriculture manufacturing aquaculture forestry tourism State incentives 10% Value Added Tax (Border Zone Scheme) taxation on company profits (called Income tax) at a rate of 32% protection for technological innovations and trademarks support with risk capital access to risk capital schemes through the development bank24. SAN LUIS POTOSÍ (1-3): 24. SAN LUIS POTOSÍ (1-3) General information Main industrial activities basic non-ferrous metals industry steel industry domestic appliances furniture industry24. SAN LUIS POTOSÍ (2-3): 24. SAN LUIS POTOSÍ (2-3) Foreign investments information Climate Privileged geographical location, modern infrastructure for production and services, skilled human resources, stable labor climate, extensive supply of skilled labor, salaries lower than in several other Mexican states, the active population accounts for more than 30% of the total population. In 2002 this State received a total of $825.1 million USD in Foreign Direct Investment, 0.7% of the total FDI in the country. State incentives Training Grant Programs Rural Industry Support Program through Industrial Premises granted on a 10 year loan with purchase option support in processing documents through our Single Window transfers of ownership and payroll tax of 1%, money used in projects to support industry construction of industrial premises, provided that this takes place outside the state capital’s urban area 24. SAN LUIS POTOSÍ (3-3): 24. SAN LUIS POTOSÍ (3-3) Main foreign companies Main sectors metals food and tobacco furniture automobile and auto parts25. SINALOA (1-4): 25. SINALOA (1-4) General information 25. SINALOA (2-4): 25. SINALOA (2-4) Main industrial activities agriculture automobile textiles tourism light manufacturing Foreign investments information Climate The task of promoting investment in the state of Sinaloa lies with the Investment Promotion Unit, which is a joint office set up by the Secretariat for Economic Development and the Economic Development Board of Sinaloa, the latter comprising businessmen of the State committed to improving the Quality of Life of the residents of Sinaloa. 25. SINALOA (3-4): 25. SINALOA (3-4) The Investment Agency attends investors through the promotion and installation process, in other words from initial contact up to the post sales service (known as aftercare) through a specialist sector executive that guides companies along all the different government and operational formalities. In 2002 this State received a total of $308.3 million USD in Foreign Direct Investment, 0.3% of the total FDI in the country. State incentives The Government has, in conjunction with the Economic Development Board of Sinaloa, devised a program of incentives defined by the Economic Development Promotion Law of Sinaloa that sets forth tax incentives for up to 7 years, as well as: two months' training for operators with the minimum salary through PROBECAT grants shared transport and accommodation expenses for any supervisors who require training outside the state a real estate purchase, rental or leasing scheme to help companies avoid making any major capital expenditure in the first few years of operation an account executive to assist the company in any municipal, state and federal formalities, as well as the process of adapting to the locality25. SINALOA (4-4): 25. SINALOA (4-4) Main sectors automobile processed foods manufacturing, electronics and plastics tourism textiles Main foreign companies 26. SONORA (1-4): 26. SONORA (1-4) General information 26. SONORA (2-4): 26. SONORA (2-4) Foreign investments information State incentives given that certain requirements have been complied with, the percentage of reduction in taxation on payment for personal work is applied according to categories. labor market analysis work training assistance access to the regulatory authorities coordination between municipal and state assistance Main industrial activities metal products, machinery and equipment food, drinks and tobacco non-metal minerals, except oil derivatives textiles, clothing and leather basic metal industries26. SONORA (3-4): 26. SONORA (3-4) Main sectors automobile and auto parts aerospace and metals electronics and software food commerce and services support in selecting the best location coordination during construction and help in looking for employees In 2002 this State recieved a total amount of $1,616.0 million USD in Foreign Direct Investment, 1.4% of the total FDI in the country.26. SONORA (4-4): 26. SONORA (4-4) Main foreign companies 27. TABASCO (1-3): 27. TABASCO (1-3) General information 27. TABASCO (2-3): 27. TABASCO (2-3) Main industrial activities Cattle raising Agriculture Aquaculture Tourism Chemicals Foreign investments information Climate Today Tabasco is one of the most attractive states for investors in the southeast of the country, given its involvement in two of the Federal Government's priority programs, namely "Marcha hacia el Sur (March towards the South)” and "Plan Puebla Panamá (Puebla Panama Plan)", both of which were devised to reduce the disparity between the north and south of the country and bring about social development, not just economic growth. In 2002 this State received a total of $105.7 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country.27. TABASCO (3-3): 27. TABASCO (3-3) State incentives the Government provides investors with direct support land and real estate belonging to the State or Municipal Government made available for lease, rent or sale support for training grants through the State Employment Service (3 months' salary) provision of public services: water, sewerage, paving Main sectors agriculture tourism oil Industry fishing and Aquaculture manufacturing28. TAMAULIPAS (1-4): 28. TAMAULIPAS (1-4) General information 28. TAMAULIPAS (2-4): 28. TAMAULIPAS (2-4) Main industrial activities petrochemicals electronics automobile and auto parts textiles Foreign investments information Climate Investors are given all the necessary support on their business trips to the state, including any information they may need in order to make a decision about investing in Tamaulipas. Continuity is provided for the purposes of promotion until a decision is made to set up business in the state. promoting the development of industry, commerce and infrastructure supporting the consolidation of existing jobs supporting the generation of more and better jobs constantly striving for customer satisfaction encouraging domestic and foreign investment28. TAMAULIPAS (3-4): 28. TAMAULIPAS (3-4) State incentives reduced taxes labor exchange training grants free procedures for obtaining permits, registers, authorizations and licenses In 2002 this State received a total amount of 3,331.6 million U.S. Dollars of Foreign Direct Investment, 2.9% of the total FDI in the country. Main sectors automobile electronics chemicals and petrochemicals textiles and derivates agriculture and food28. TAMAULIPAS (4-4): 28. TAMAULIPAS (4-4) Main foreign companies 29. TLAXCALA (1-4): 29. TLAXCALA (1-4) General information 29. TLAXCALA (2-4): 29. TLAXCALA (2-4) Main industrial activities clothing textiles non-metallic minerals automobile plastics Foreign investments information Climate tax incentives for up to 5 years, renewable annually training for up to 5 months for workers and professionals who have recently completed their education specialist advice on import-export procedures and formalities development of national and local suppliers of goods and services29. TLAXCALA (3-4): 29. TLAXCALA (3-4) support for the development of the labour market: Staff recruitment and selection Study and solution of transportation for staff Work in conjunction with the Mexican social security institute (IMSS) for the development of services such as day nurseries in the industrial parks written commitments to attend to and solve problems relating to the installation, operation and growth of companies in the State. In 2002 this State recieved a total amount of 88.9 million U. S. Dollars of Foreign Direct Investment, 0.1% of the total FDI in the country. State incentives Property tax and Construction license discounts of between fifty and one hundred per cent Public register fee discounts of between twenty-five and seventy per cent one hundred per cent exemption on inscription in the public registry of deeds relating to the restructuring of company debts in the State Payroll tax discounts of up to fifty per cent29. TLAXCALA (4-4): 29. TLAXCALA (4-4) Main sectors electronics plastics automobile and auto parts metals chemicals Main foreign companies 30. VERACRUZ (1-4): 30. VERACRUZ (1-4) General information 30. VERACRUZ (2-4): 30. VERACRUZ (2-4) Main industrial activities agriculture fishing oil petrochemicals electric power30. VERACRUZ (3-4): 30. VERACRUZ (3-4) Foreign investments information Climate The State of Veracruz enjoys a wealth of natural beauty, culture and natural resources that support development in the fields of commerce, agriculture, petrochemicals and industry. It is regarded throughout the world as an attractive destination for long term investment, with a government that is committed to sustainable economic growth and development. Veracruz is a key location linking domestic and international trade. It is also a natural point of access to the Gulf of Mexico, Central America and South America and the east coast of the United States, as well as the Pacific ports and the markets of Asia via the Isthmus of Tehuantepec. In 2002 this State received a total of $170.0 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country. State incentives reductions of up to 50% on payroll tax legal framework to provide security to foreign investors Economic Promotion Law with incentives for industrial plant modernization and to help the installation and launching of new businesses30. VERACRUZ (4-4): 30. VERACRUZ (4-4) Main sectors agriculture, processing and industrialization cold rooms, canning and processing facilities transportation of products by sea, rail and road development of the maquiladora industry in textiles and footwear development of the food industry for domestic consumption and export convention centers to integrate the Gulf states with the Caribbean nations Main foreign companies 31. YUCATÁN (1-4): 31. YUCATÁN (1-4) General information 31. YUCATÁN (2-4): 31. YUCATÁN (2-4) Main industrial activities commerce, restaurants and hotels community and social services financial services, insurance manufacturing communications and transport Foreign investments information Climate strategic location in southwestern Mexico, with world class transport (less than 2 hours by plane and 36 hours by sea from Miami) skilled and stable labor force available (low levels of staff turnover and absence from work, 90% not unionized) highly competitive operational costs, which in proportion, are 50% lower than in the United States31. YUCATÁN (3-4): 31. YUCATÁN (3-4) abundant resources of water and electricity (costs are among the lowest in all of Mexico) excellent telecommunications, and the state is also Mexico's newest information technology corridor industrial parks and locations for setting up your company education and training reliability, security and an exceptional standard of living preferential access to a market consisting of almost one billion consumers (including Japan and Singapore), through the global network of Mexican free trade agreements In 2002 this State recieved a total of 170.0 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country.31. YUCATÁN (4-4): 31. YUCATÁN (4-4) State incentives Training Support Program training for committed employment infrastructure for committed employment the amount of financial support provided is set by a committee in Mexico City and may vary depending on the product and the processes used by the requesting company Main sectors textiles and clothing aerospace medicine furniture and timber information technologies agriculture32. ZACATECAS (1-3): 32. ZACATECAS (1-3) General information Main industrial activities mining agriculture textiles and clothing auto parts commerce and services 32. ZACATECAS (2-3): 32. ZACATECAS (2-3) Foreign investments information Climate The main goal of the current government of Zacatecas is the overall economic development of the state, which it is pursuing by promoting clean industrialization and productive investment that protect the environment and create dignified and well-paid jobs. The benefits offered by the state of Zacatecas include its strategic location with regard to domestic and international markets, as well as its stable social climate for business. In 2002 this State received a total of $98.9 million USD in Foreign Direct Investment, 0.1% of the total FDI in the country. State incentives sale of terrain in industrial parks and zones at preferential rates urban services in industrial zones the provision of grants (technical-industrial) to workers during the period of training (2 months) and for the development of new lines of production in order to obtain skilled labour supply of drinking water from wells (the cost varies depending on the zone of availability)32. ZACATECAS (3-3): 32. ZACATECAS (3-3) Main sectors textile furniture footwear electrics/electronics Main foreign companies You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.