The banker highlights that the foreign investors they advise at the bank ask about infrastructure conditions, especially in energy and water. He highlighted the importance of the policies of the following governments promoting long-term investments.
“In this perspective of growth and global markets, they are investments – whether Asian or European – that are for at least 20 or 30 years, they are not investments of swallow capital, they are productive investments and the last thing they want is to be changed the rules of the game,” he says.
It is not that investors want everything to remain the same: they understand that there may be fiscal or administrative adjustments, for example, but the “lumps” in public policy are counterproductive and drive away investments.
The request for clear rules of the game for investors is supported: in 2023, Mexico received 63,058 million dollars in Foreign Direct Investment (FDI), which represented a growth of 27% compared to 2022.
20% of the money that came in through FDI was dedicated to the financial services sector, according to data from the Ministry of Economy.
On the other hand, a country that seeks security helps investors trust in sending their workers to the country.
“Imagine a foreign investor who has to deal with extortion or that you bring managers from foreign countries to work,” he points out.
The effects of nearshoring
The trade war between China and the United States has caused Asian companies to see Mexico as an attractive market.
With almost 40 years of experience serving and specializing in international trade, Banco BASE will open a new office in China in order to bring more Asian companies to the country.
“We realized the great interest that Chinese companies have in settling in Mexico due to the trade war with the United States,” said Escandón.
Banco BASE offers services to carry out international operations, opening accounts for foreign companies in two days, and helping national companies to go global.
The bank achieved a net profit of 1,422 million pesos in 2023, a record figure that also meant an increase of 73.6% compared to 2022. This growth, Escandón highlights, responds to the interest of foreign companies in Mexico.
“We began to see the explorations of Chinese executives who came to Mexico to investigate the market. They contacted us or they contacted a law firm, a tax office or the Ministry of Economy of the states,” he says.
The most visited states are Nuevo León, which saw a surge in interest from foreigners after Elon Musk's announcement to build a Tesla car factory, although Coahuila and Chihuahua have also been attractive states for investment.
Currently, Banco BASE serves 80 Asian companies and went from having 200 to 400 prospects, mainly Chinese. In this way, the bank hopes to become the first with Mexican capital that has a presence in the world's second economic power.
The office would be ready by the end of 2024 or beginning of 2025, estimates Escandón and, since they have hired Asian personnel since the pandemic, they hope that this will help to treat clients better.
Banco BASE numbers at the end of 2023
Year of creation: 1986
Net profit: 1,422 million pesos
Credit portfolio: 12,526 million pesos
