Tightening investment ties with Japan

The cultural, academic and economic relationship between Mexico and Japan after 400 years of beginning their friendship and cooperation, consolidates every day and there is greater exchange between private and academic sectors.

 226 Japanese companies settled in Guanajuato generate an investment of more than 8 billion dollars and more than 43 thousand jobs, housing 2,116 people originally from Japan.

 This was announced by Osamu Hokida, General Consul of Japan, who said that Guanajuato and Japan have kept a close relationship cultural and of investment, mainly in automotive issues, therefore, he did not discarded investments continue arriving in the upcoming years.

 He announced that exports and imports Mexico – Japan grew in 124 % and 176 % respectively between 2004 and 2017.  This is how 4.3 % of total import to Mexico comes from Japan, which occupies second world place in import countries after the United States.

 “The number of Japanese companies investing in Mexico are going through moments of accelerated growth, the community expands at a path of 10 % per year, these tell us about the importance Japan has in the way Mexico makes business, especially Guanajuato,” he noted.

He said Japanese companies are present in 13 municipalities of the state, where jobs have generated and different Japanese investments have settled.

“It is no coincidence that of the five thousand Japanese estimated living in the region of six states of the central-west part of the country, half lives in Guanajuato, mainly in Leon, Irapuato, Celaya and Salamanca,” he noted

He said that having Japan as a friend, partner and ally of Guanajuato has allowed the consolidation of a more innovative, competitive state with development opportunities for all.

INVESTMENT CONSOLIDATES

So far this year, 13 Japanese projects have been concreted with an investment of 132 million dollars and almost 5 thousand committed jobs, given the above, Japan has consolidated as one of the main investors in the State, together with the United States, Italy, Spain and Germany, this according to data given by the National Institute of Statistics and Geography (INEGI, by its Spanish initials.)

During the period from 2011 to the third quarter of 2018, Japanese FDI reached the second place with 3,198.3 million dollars, registering a participation of 24.0 % of the total; the first place was for the United States, with 35.6 % of FDI in the State.

BAJIO: STRATEGIC PRODUCTION CENTER

Mexico became the fifth production center of Japanese automotive companies in 2016.

With the arrival of Mazda, Toyota, Honda, Nissan in Mexico, Guanajuato has profiled as a favorite state for the arrival of Japanese investments. 

Mazda with its Plant in Salamanca produces about 250 thousand vehicles per year; Honda settled in Celaya, produces 200 thousand vehicles while in the plant installed in El Salto, produces 80 thousand per year; Toyota, which will be started production soon in Apaseo el Grande manufacturing 100 thousand vehicles per year, on its plant settled in Baja California they also produce 100 thousand vehicles.  Nissan is settled in Aguascalientes, adjacent municipality of Guanajuato, producing 730 thousand vehicles per year and on their plant in Cuernavaca they manufacture 316 thousand vehicles.

Business Opportunities

Energy Sector:

Petroleum: energy reform opens the possibility of foreign participation in the energy sector.  Particularly, some Japanese companies participate in petroleum exploitation in new areas.

Renewable energy: Japanese investments in electric generation, wind power and solar.

Medical Sector and Pharmaceutical:

Together with Nikkei doctors, they encourage the promotion of medical instruments and Japanese drugs in Mexico.

Mexico has the agreement of equivalency for Japanese medical instruments.  The equivalency agreement is anticipated for pharmaceutical products.

Agri-food sector

Different Mexican agri-food products are exported to Japan, tropical fruits, beef and pork, fish and seafood.

Infrastructure

Mexico has encouraged the construction of infrastructure to improve Industry interconnection, such as roads, ports, airports, etc.

Japan promotes the idea of high quality infrastructure.