Total population:
4.13 million
inhabitants
Territorial area:
93,758 km2
(5th place
nationwide)
1.98 M employed population (46% of the total)
CONNECTIVITY
Oaxaca has 31,115 km of highway infrastructure
2 new highways:
Connection from the city of Oaxaca to
the Coast in
2.5 hours
the Isthmus in
2 hours
3 international
and one domestic airport
- Oaxaca City
- Puerto Escondido
- Huatulco
- Ciudad Ixtepec (domestic airport)
2 railway lines
Line K: from Ciudad Ixtepec (Oaxaca) to Ciudad Hidalgo (Chiapas)
4 Ports
- Puerto Ángel
- Puerto Escondido
- Bahías de Huatulco
- Salina Cruz (Deep-sea and cabotage port, commercial fishing and oil port, IOth nationwide)
PORT OF SALINA CRUZ
- This cargo port ranks 10th place nationwide with 8.4 million tons per year
- It receives petroleum and petrochemical products
- Its area is 4,070.25 hectares, with a total capacity of 835,230 tons.
- Its high potential enables it to develop as a logistics and commercial port for transporting and unloading any type of cargo
- It features a system of multifunctional mechanisms
- It generates renewable energy.
General connectivity of Oaxaca City to other places in Mexico
ECONOMIC OVERVIEW
Economic activities with the highest contribution to the state's GDP:
Manufacturing industries
(3.48 million dollars- 17.23%)
Construction
(2.33 million dollars- 11.53%)
Retail trade
(2.71 million dollars – 13.40%)
Real estate and rental of movable and intangible property services
(2.06 million dollars- 10.22%)
Foreign Trade
Main commercial partners
International sales:
United States
Canada
Germany
International purchases:
United States
Italy
Germany
Main export sectors
Agriculture
pineapple, coffee, avocado, mango, lemon, and papaya
110.229 million dollars
Chemical industry
Sulfur, lime, and cement
20.384 million dollars
Beverage and tobacco industry
Mezcal
8.655 million dollars
Foreign Direct Investment (FDI)
Oaxaca received an investment of 53.2 million dollars during 2023.
8 countries have contributed 5,528 million dollars since 2006.
The state ranks 22 nd nationally from 2006 to 2023.
Main investors
The countries that have made the largest contributions of foreign investment in Oaxaca are
Canada
19.7 million dollars
Spain
19.3 million dollars
United States
4.9 million dollars
COMPETITIVE ADVANTAGES
Oaxaca experienced an economic activity growth of 8.3% in 2023, ranked 3rd nationally
Oaxaca stands out in different topics:
- 1st place nationally in wind power production (29 parks in the Isthmus of Tehuantepec with an annual production
of 2,758 megawatts) - 1st place in biodiversity in Mexico and one of the main providers of ecosystem services in the country
- 1st place in mezcal exports (8.5 mi Ilion liters/386.8 million dollars)
- 1st place nationally in papaya production (367,153 tons)
- 2nd place nationally in pineapple production (167,895 tons)
- 3rd place nationally with the largest forested area (6.29 million hectares)
- 5th place nationally for being the state with the longest coastline (568 km)
- 5th largest silver producer nationally (237,690 tons)
- 6th largest gold producer nationally (2,590 tons)
- 14th place nationally in tourist attraction (5.6 million tourists)
ISTHMUS OF TEHUANTEPEC INTEROCEANIC
CORRIDOR PROJECT
The project of the Isthmus of Tehuantepec Interoceanic Corridor connects the Gulf of Mexico and the Pacific Ocean through the isthmus of 300 km. This project will become one of the main commercial gateways between southeast Mexico Asia, and Europe, both coasts of the USA, Central and Latin America
.
The project consists of two parallel models:
2
Multimodal logistics platform
Connectivity scheme that includes:
Federal Transisthmian
Highway 185
1
Industrial platform with industrial and scientific parks
These are conceived as scientific parks that will attract leading companies, enabling an improvement in technology transfer, and creating centers for development and innovation to enhance human capital formation together with the academy
Benefits:
- Social and industrial development of the region.
- Promoting economic growth and strengthening the region with new investments that generate jobs with decent wages.
- Reinforcement of productive activities in the region.
There are different federal and state fiscal incentives with this project:
TAX INCENTIVES
FEDERAL
depreciation
income tax
value-added tax
STATE
OAXACA AND VERACRUZ
- Deductions from the expenditures for personal labor remuneration tax
- Deductions on the vehicle ownership or use tax
- Deductions on the tax for social development
- Incentives in payment of fees
- 100% for the first three fiscal years
- 50% in the subsequent three years
NON-FISCAL INCENTIVES (VERACRUZ - OAXACA):
- Supplier development strategy, linking large companies with local businesses in Oaxaca
- Accompaniment of investors in their process of installation
- Analysis and provision of strategic information
- Training courses and certification for technical and operational staff to improve job performance
- Support for companies in the selection of human capital
- Linkage between workers and companies, absorbing the cost of the employee’s salary during the training period
COMPETITIVE ADVANTAGES
- The project of the Interoceanic Corridor of the Isthmus of Tehuantepec will connect more than 1.3 billion consumers thanks to Mexico’s treaties and trade agreements with other countries.
-
Strengthening connectivity within Mexico
- Reinforcement of interconnection with railway networks in the central and northern regions of the country
-
Reduced transportation times for goods and opening of trade channels
- Commercial connection with the USA, Asia, Europe, Central, and Latin America.
- Reduction in transportation times
- Expansion of commercial routes
- Movement of over 44,000 tons between both ports (Salina Cruz in Oaxaca and Coatzacoalcos, Veracruz)
-
Time reduction of transportation times for goods to Asia and Europe in 15 days
5-day reduction in transit time compared to the Panama Channel
26-day reduction in transit compared to the Beagle Channel from Cape Horn for crude oil
-
4. Value added to products and assembly lines
- Increase the value of local products
- Development of supply chains
- Opportunity to generate an assembly line through the project
Modernization infrastructure in
the port of Salina Cruz
The port of Salina Cruz is being modernized to become a center of maritime routes for import, export, and cabotage, and it is also connected to the railway lines
Completed works
- West breakwater (1.6 km)
- Reinforcement of Section 2 of the multi-purpose dock and expansion of the container dock (section 1 of the multi-purpose dock)
Works in progress
- Reinforcement of the multi-purpose dock (137m) and alignment of the container dock (275m)
- Removal of the breakwater for the expansion of the access channel and dockyard
- Dredging of navigation areas (900,000m³)
- Construction of a traffic control center and reconfiguration of land accesses
- Railway access – Viaduct to the Container Specialized Terminal (2.5 km)
- Road access to the CST (3.5 km)
- Container Specialized Terminal (1.3 million TEUs annually)
- Berth length of 800 meters
- 2 berthing positions
- Depth of 20 meters
- It will be able to accommodate container ships of more than 18,000 TEUs
- It will have a dynamic capacity of 1.3 million TEUs
Benefits of the works
Berth length
Current: 275 m
Projected: 530 m
Draft of the multi-purpose terminal
Current: 10 meters
Projected: 12 meters
Container ship
Current: 1,200 TEU´s
Projected: 2,300 TEU´s
Berth positions
Current: 1
Projected: 2
Draft of the specialized
container terminal
Current: —
Projected: 20 meters
Inland shipping
Current: Daytime
Projected: 24 hrs
Similarly, a new short-distance maritime transportation route is being developed from Salina Cruz to Manzanillo
The port of Salina Cruz will be the port of origin, and the port of Manzanillo will be the transshipment port
Estimated transfer time of 4 days (8 days round trip) with a volume of 1270 TEUs
Which can strengthen imports and exports with average volumes of 930 TEUs per year
STRATEGIC SECTORS WITH INVESTMENT OPPORTUNITIES
AGROINDUSTRY
The state of Oaxaca has 24 products within the national ranking of agricultural, livestock, and fisheries production, as well as the production of other endemic products.
Investment opportunities in food industrialization and processing:
- Dehydration of fruits and vegetables
- Freezing of stews and other prepared foods
- Production of corn flour
- Production of spices
- Manufacturing of breakfast cereals
- Coffee products
ALCOHOLIC AND NON-ALCOHOLIC BEVERAGES
- Oaxaca produces more than 90% of mezcal at the national level
- It is one of the largest producers of craft beer
- It is the 6th producer of beer nationwide
Other distilled beverages:
- Oaxaca also produces aged and white rum, corn-based whiskey, and gin.
Non-alcoholic beverages:
- Products made from natural ingredients, such as fruits without added sugars.
Investment opportunity:
- Non- alcoholic beverages: products made from natural ingredients, such as fruits with added sugars
- Promotion of small and medium- sized businesses dedicated to this activity
TEXTILE INDUSTRY
Oaxaca is one of the states in Mexico with the highest growth in production in the artisanal textile and clothing sector, allowing its recognition in national and international markets.
Investment opportunity:
- Production of starches, other starches, and their derivatives for textile preparation
- Manufacture of synthetic pigments and dyes
- Diversification of products
RENEWABLE ENERGIES
- Wind Energy
Currently, there are 29 wind farms in the Isthmus of Tehuantepec, with an approximate annual production of 2,758 megawatts per year
Investment opportunity: Wind farms in the Isthmus of Tehuantepec have an estimated potential of over 44,000 megawatts in an area larger than 8,800 km2
- Solar Energy (photovoltaic)
According to the National Inventory of Clean Energies (INEL), the regions of Mixteca, Sierra Sur, and Costa in Oaxaca exhibit high levels of solar radiation of 6.21 kWh/m2/day
TOURISM
Oaxaca is considered as one of the best places to travel in Mexico.
- Ranked 14th nationwide in tourist attraction
- Winner of the World Travel Award 2020 and 2021 as the Best Leading Urban Getaway Destination in Mexico and Central America
- Chahué Beach in Huatulco was the first in the country to receive the Blue Flag Distinction
- 9 different airlines
- 1,130,179 passengers in the top 3 destinations
31 arrivals of international cruises in Huatulco, with a total of 52,689 passengers
SERVICES: EDUCATION, HEALTH, INFRASTRUCTURE, AND CONSTRUCTION
- 244 universities and technological institutes
- 14,025 graduates per year
- Specialty hospital (High Specialty Hospital of Oaxaca)
- 1 Third-level hospital (Oaxacan Children’s Hospital)
- Hotels (1,573)
- Restaurants, bars, and cafeterias (1,723)
Investment Opportunity: The urban development of several cities has occurred thanks to the opening of the Coast and Isthmus highways, generating investment opportunities in construction, real estate, healthcare centers, educational centers, hotels, and restaurants.
AUTOMOTIVE SECTOR
- Air conditioning
- Lighting accessories
- Measurement instruments
- Hardware
- Metal packaging
SOLID WASTE INDUSTRY
With the opportunity for private investment, a sustainable solid waste industrial system is enabled to produce biofertilizers, fuels, and recycled products.
AEROSPACE INDUSTRY
The aerospace cluster in Oaxaca enables the establishment of an economic development hub to incentivize the attraction of private investment and the installation of high-technology industries, thereby boosting other sectors with value-added processes.