In different parts of the world
European Union
Foreign direct investment in the European Union (EU) is characterized by having one of the most open and transparent regulatory frameworks regarding FDI. Currently, investments from non-EU countries in its territory reach approximately 6,295 million euros. Investment decisions, whether by companies or individuals, usually respond to the search for cost-efficient locations, with qualified labor, access to inputs or proximity to consumer markets. In the case of the EU, this means access to a highly integrated single market covering 500 million consumers.[8].
Furthermore, the EU applies strict rules to safeguard investments within its jurisdiction and, at the same time, promotes the existence of similar conditions abroad to protect the interests of its investors in other countries.[8].
China
According to UNCTAD's World Investment Report 2024, in 2023 foreign direct investment (FDI) inflows into China fell 13.6% compared to the previous year, reaching $163.2 billion. Despite this decrease, China remained the second largest recipient of FDI globally, concentrating 21% of the world total. At the end of that year, the accumulated stock of FDI in the country reached 3.66 trillion dollars. In addition, China ranked third among the largest issuers of FDI, with a stock of outbound investments estimated at 2.94 trillion dollars.[9].
Among the main multinational companies investing in the manufacturing sector in China, Hon Hai Precision Industry (Taiwan), BASF (Germany), and automobile manufacturers such as Toyota (Japan), Volkswagen and BMW (Germany), as well as Samsung Electronics (South Korea) stand out. These firms have maintained substantial manufacturing operations in the country for many years. However, since 2019 they have reduced their greenfield investments, choosing to establish alliances with local manufacturers, especially in the electric vehicle sector.[9].
Both Hon Hai and Samsung have reconsidered their manufacturing presence in China as a result of trade tensions. A large portion of its advanced technological goods—such as microchips and electronic devices—are still manufactured in China for export to the United States. However, Hon Hai reduced its greenfield projects in the country from 23 to 6, while Samsung went from 9 to just 1. Currently, both companies are allocating new investments to their home countries, as well as other strategic locations such as Vietnam, India and Mexico.[9].
USA
According to UNCTAD's World Investment Report 2024, the United States maintained its position as the largest recipient of foreign direct investment (FDI) in 2023, with inflows of $311 billion, representing almost 25% of the global total. The country consolidated itself as the main destination for both new investment projects and international financing operations. However, despite this leadership, FDI inflows were down 6% from the previous year, largely due to a sharp 40% drop in cross-border mergers and acquisitions, which totaled $81 billion, half the average over the past decade. This decline is attributed, to a large extent, to the decline in the value of operations in the information and communication technologies (ICT) sector.[10].
During the year, 2,152 projects for new facilities were announced. The most notable merger transaction of 2023 was the reverse integration of VinFast Auto, for $23 billion, through a US-based SPAC, making it the largest transaction of its type globally.[10].
At the end of the year, the total stock of FDI in the United States reached 12.81 trillion dollars, equivalent to 46.8% of the country's GDP. Foreign investment in the US is mainly concentrated in the manufacturing sector, which represents 41.2% of the total, with the chemical industry standing out as the most relevant segment. Significant investments are also recorded in the finance and insurance sectors (10.6%) and in wholesale trade (10%).[10].
According to the most recent data from the OECD, in the first half of 2024, FDI inflows into the United States totaled $153.2 billion, which represents a drop of 12.3% compared to the same period of the previous year.[10].
Mexico
In 2024, Mexico reached a new record in foreign direct investment (FDI), despite the uncertainty generated by the trade policies promoted by Donald Trump. At the end of the year, the country captured $36,872 million in foreign investment, which represents an increase of 1.1% compared to 2023 and the highest amount recorded since official statistics have been kept. Of the total, 28,710 million corresponded to reinvestments of profits, 3,159 million to new investments and 3,169 million to transfers between companies of the same corporate group.[11].
Although the general data shows a slight growth, when analyzing the components, a significant decrease is observed in the flows of new investments, which decreased by 39% compared to the previous year, going from 5,217 to 3,169 million dollars, the lowest level in the last 30 years. According to the Bank of Mexico, in the fourth quarter of 2024, 676 million dollars in FDI entered the country, which is equivalent to a drop of 45% compared to the same period in 2023, considering revised data.[11].
The United States continued to be the main investment partner, with 16,513 million dollars (45% of the total), followed by Japan with 4,285 million, Germany with 3,788 million and Canada with 3,216 million, according to data from the Ministry of Economy "Secretariat of Economy (Mexico)"). As in previous years, Mexico City topped the list of receiving entities with more than 14,000 million dollars, followed by the State of Mexico (2,642 million) and Baja California (2,479 million).[11].
Regarding sectors, 54% of FDI was allocated to the manufacturing industry, highlighting the production of transportation equipment, which accounted for half of this amount. Other relevant sectors were beverages and tobacco, computer equipment, chemical industry and basic metal products.[11].