The representation in Mexico of the Japanese Foreign Trade Organization (Jetro for its acronym in English) will carry out in Guanajuato during the celebration of industrial transformation Mexico 2022 the Jetro Challenge: Zero Emission Vehicle, a type of Startup Pitch with which seek to collaborate in the development of non-polluting vehicles by Mexican companies.
In an exclusive interview for MILLENNIUM, Takao Nakahatathe general manager of Jetro Mexico said that the challenge is aimed at startups that are part of the zero-emission vehicle supply chain, in order to contribute to the development of the electric vehicle industry, focused on automotive parts, suppliers, software and everything related to this sector.
In this way, the winning company will obtain a special diagnosis from Jetro, who will visit the same company that will be added to JETRO’s Mexican supplier database including a special recommendation for innovation events held in Japan.
The official pointed out that Mexico andIt is the first Japanese export destination in Latin American countries and that there are about 1,300 Japanese-funded enterprises in our country.
The value of bilateral trade in the year 2021 atIt reached 22 thousand 850 million dollars, which is 113.3% more than the value of 20 years ago (2001), the value of exports from Mexico to Japan for the year 2021 exceeds the figure of 5 thousand 765 million dollars, or 187.6% more than the value for the year 2001.
The Bajío region is an area where the greatest Japanese investments and the state of Guanajuato is the largest destination for Japanese investment in the entire territory Mexican.
While he acknowledged that there is legal uncertainty under the current federal administration, particularly in the area of energy companies, he said that our country has the incomparable advantage of its geographical location with access to various markets such as the United States, Europe and Latin America.
How important is the trade relationship with Mexico to Japan?
Mexico is the first export destination for Latin American countries, the annual value of its exports to Mexico is more than double that of its exports to Brazil.
Mexico is the number one destination for Japanese investment in Latin America. There are about 1,300 Japanese companies in Mexico, more than double the number in Brazil.
How has trade between Japan and Mexico behaved over the past 10 years?
Thanks to the entry into force of the AAEMJ (2005) and the TIPAT (2018), the value of bilateral trade has increasedespecially the value of Mexican exports to Japan.
The value of bilateral trade in 2021 reached 22 thousand 850 million dollars, which is 113.3% more than 20 years ago (2001), the value of exports from Mexico to Japan in 2021 exceeds the figure of 5 $765 million. , 187.6% more than the value for the year 2001.
How much do Japanese companies invest in our country?
The value of direct foreign investment from Japan to Mexico from 1999 to 2021 amounts to 29 thousand 860 million dollars, which represents 4.7% of the total value of FDI in Mexico during the same period. Japan is the 4th. investor country for Mexico after the USA, Spain and Canada.
How many Japanese companies have investments in Mexico?
According to figures from the Ministry of Economy, there are 1,291 Japanese-funded companies as of March 31, 2022.
Do Japanese investors trust Mexico?
Japanese businessmen also feel some legal uncertainty under the current federal administration, especially in the field of energy companies, however, the MXN – USD exchange rate is quite stable, there are no restrictions on remittances or there are tariff and non-tariff barriers that are so excessive, that is, the essential condition for making the investment is still maintained.
On another side, Mexico has excellent geographical advantages from the point of view of “nearshoring“and an abundant skilled labor force, so for Japanese investors it is also a country that they consider strategic.
What significance does the Mexican Bajío have for Japanese investors, especially the state of Guanajuato?
The Bajío region is an area where the largest Japanese investments are concentrated and the state of Guanajuato is the largest destination for Japanese investments in the entire Mexican territory.
What advantages have you found investing in Guanajuato and Mexico?
The state of Guanajuato has a good level of infrastructure, an abundant skilled labor force and an investor-friendly government. Mexico has the incomparable advantage of its geographical location with access to various markets such as the United States, Europe and Latin America.
What are the investment projects in Guanajuato and Mexico? Will investments increase?
After the arrival of Donald Trump to the American presidency, the covid-19 pandemic and theThe current lack of essential inputs such as semiconductorsJapanese investment has slowed.
However, the current global situation is also influencing the thinking of Japanese investors and making them reflect on the importance of nearshoring and supply chain restructuring to maintain and grow business in the North American continent.
We therefore believe that little by little new Japanese investments will increase both in Guanajuato and in other states of Mexico.
JETRO organizes the Japan Pavilion at ITM 2022, what are the interests of Japanese companies to participate in ITM 2022?
For Japanese companies, the state of Guanajuato has been very relevant for seek strategic alliances that enhance businessbecoming a beneficiary state of Japanese investments mainly in the automotive sector. ITM 2022 is therefore part of the search for this type of alliance, because it is a show that gathers the best of technology applied to manufacturing, in areas such as process automation, artificial intelligence, logistics 4.0, machine learning, decarbonization, circular economy, among others, focused on improving the quality of life of society.
The products and services that Japanese companies located in Mexico will offer in the Japan pavilion, led by JETRO Mexico, focus on the improvement of industrial processes through automated machinery, the use of technology for the care of the human body in activities that involve heavy load, services and advanced technology for development projects, digital services, among others.
What awaits Mexico with the JETRO CHALLENGE: Zero Emission Vehicle (a type of Startup Pitch it proposed at ITM 2022)
JETRO Mexico considers that the 4 axes proposed by ITM 2022 as are artificial intelligence, circular economy, decarbonization and logistics 4.0 They are very skilled in solving challenges such as improving people’s quality of life, improving mobility, automating processes, among others.
In addition to the above, our planet is facing another challenge, which is the reduction of carbon emissions, we are convinced that Japan and Mexico can work as a team to find suitable solutions, It is for this reason that JETRO Mexico is very interested in collaborating in the development of the sector of zero emission vehicles such as electric vehicles, hydrogen fuel cells or hydrogen engines, etc., and has decided to add a category addition to the 2022 ITM Startup Pitch called the JETRO CHALLENGE: Zero Emission Vehicle.
this category look for startups that are part of the zero-emission vehicle supply chains, to contribute to the development of the electric vehicle industry, focusing on auto parts, suppliers, software and everything related to this industry.
The benefits that JETRO Mexico will grant to the winning startup of the JETRO Challenge are:
Special diagnosis by JETRO, they will visit the company and translate their diagnosis into Japanese.
The startup will be added to JETRO’s Mexican supplier database: https://www.jetro.go.jp/mexico/indusporte.html. A special recommendation will be given for innovation events held in Japan.
These benefits are only for this category, they do not apply to other categories.
We hope that Mexican startups can join this challenge and collaborate with Japanese companies to create better companies that will help solve current and future challenges.