A recent study conducted by the Citi Institute reveals that the trend of nearshoring, where companies relocate portions of their production closer to their markets, is not favoring Mexico as a primary destination. Despite Mexico’s advantages like lower tariffs and its strategic location next to the United States, many corporations are looking toward Asian countries such as Vietnam and Thailand as their main relocation sites. The findings suggest that these nations are capitalizing on competitive advantages that outweigh those of Mexico.

The report highlights that around 25% of surveyed investors are interested in diversifying their operations to Vietnam, while another 17% are considering Thailand. This trend indicates a significant shift in corporate strategies when it comes to managing supply chains, especially in light of recent global economic challenges and the rise of artificial intelligence in production processes. In contrast, only 12% of companies are contemplating reshoring, or returning operations to their home countries, showcasing a nuanced view of how businesses are adapting to current market dynamics.

Despite the apparent preference for Asian countries, this analysis has significant implications for Mexico’s economy. If companies continue to favor regions like Vietnam and Thailand, Mexico may need to reassess its competitive positioning to attract foreign investments. This could include financial incentives, better trade agreements, or enhancing the overall business environment to make it a more attractive option for companies looking to nearshore their operations.