FDI Latin America Archives

Peugeot to Become a Premium Brand for Stellantis South America, Which Will Introduce Chinese-Based Vehicles in Brazil

by Editor Latam | Jul 11, 2026 | FDI Latin America

Peugeot and Citroën to Benefit from Stellantis–Dongfeng Partnership

According to the president of Stellantis South America, the group’s French brands will be the primary beneficiaries of the company’s partnership with China’s Dongfeng.

During its global investor presentation outlining investment plans through 2030, Stellantis South America drew attention by making no mention of Peugeot or Citroën in its strategy for Brazil. The omission raised numerous questions about the future of the two French brands in the Brazilian market.

Speaking with journalists on Wednesday evening (July 8), Hernander Zola, President of Stellantis South America, stated that the company has plans for both Peugeot and Citroën in Brazil, particularly because both brands “remain very strong in other South American markets.” Their future is directly tied to a new agreement with Chinese automaker Dongfeng involving shared vehicle platforms and the joint development of new products tailored to the region.

Peugeot to Move Upmarket While Citroën Becomes a Niche Brand

During the interview, the executive acknowledged mistakes in the management of both brands and promised a complete repositioning. According to Zola, both Peugeot and Citroën will become “niche” brands in the Brazilian market. Peugeot, in particular, will move into a premium position, focusing on lower-volume, higher-value vehicles. Zola did not provide specific details regarding Citroën’s new strategic direction.

“When Stellantis was formed, we had to continue with many of the plans for Peugeot and Citroën that had already been established and could no longer be reversed, including major investments in new platforms and products. We made several adjustments, but at that time, the strategy was for both brands to compete with Fiat. Today, we recognize that this competition no longer makes sense. We are seeking a more complementary product portfolio,” explained Hernander Zola, President of Stellantis South America.

Existing Product Lines Will Be Gradually Phased Out

Zola’s comments make it clear that Peugeot and Citroën will gradually exit the entry-level vehicle segment. This signals the eventual phase-out of the current lineup produced in the region, including the Citroën C3, Aircross, and Basalt manufactured in Porto Real, Rio de Janeiro, as well as the Peugeot 208 and 2008 built in El Palomar, Argentina.

“Of course, this won’t happen overnight. It’s a process that will take several years. First, these products need to generate a return on the investments that have already been made,” he said.

Returning Peugeot Production to Brazil

According to Zola, one of the most critical decisions affecting Peugeot was the complete transfer of the brand’s production to Argentina.

“That decision was made under a very different market environment and a different trade relationship between Brazil and Argentina, but it ended up severely limiting our operation,” he explained.

One solution already under consideration is to resume production of at least one Peugeot model in Brazil. This is where Dongfeng enters the picture. In Brazil, the Chinese automaker will operate under the name DFM, as previously reported.

Dongfeng Platforms Will Underpin Future Peugeot and Citroën Models

The President of Stellantis South America was emphatic that the partnership between Stellantis and Dongfeng will lead to the development of new vehicles specifically for the Brazilian market, with Peugeot—and, to a lesser extent, Citroën—as the primary beneficiaries.

“I don’t yet know whether this cooperation will involve joint manufacturing in Brazil, but what I can state categorically is that we will have Peugeot and Citroën vehicles developed using Dongfeng platforms and engineering participation,” he emphasized.

These vehicles will not necessarily be based on the Peugeot Concept 6 and Concept 8 unveiled at the 2026 Beijing Auto Show. Instead, they will be products designed specifically for South America, built on Dongfeng platforms and likely manufactured locally.

Future Manufacturing Plans Under Evaluation

According to the website Autos Segredos, a next-generation Peugeot 3008 midsize SUV is currently under development for production at Stellantis’ Goiana, Pernambuco plant beginning in 2030. However, it remains unclear whether the model will use Dongfeng’s Chinese platform or Stellantis’ STLA Medium architecture, which will underpin the next-generation Jeep Renegade, Compass, and Commander.

An even more likely scenario is that the technical partnership between Stellantis and Dongfeng will result in entirely new vehicles being produced at the Porto Real, Rio de Janeiro plant, replacing the current low-cost Citroën models assembled there.

Zola also acknowledged that Stellantis is studying the possibility of manufacturing vehicles under the DFM brand at its Brazilian factories. While he did not provide additional details, it has recently been reported that Dongfeng is also negotiating the acquisition of the former Campo Largo, Paraná, engine plant.

Dongfeng’s Separate Talks with Nissan

In addition to its discussions with Stellantis, Dongfeng is reportedly negotiating a potential manufacturing partnership with Nissan. According to Zola, however, Stellantis has no intention of participating in a three-way arrangement.

“Either Dongfeng will manufacture with Nissan or with us. Producing with both companies simultaneously is, in my view, virtually impossible,” he concluded.

Stellantis’ Fastlane 2030 Strategy for Brazil

Beyond its plans for Peugeot and Citroën, Stellantis’ Fastlane 2030 strategic plan for Brazil includes:

A next-generation Fiat Argo;
Three new Fiat SUVs, including updated Pulse and Fastback models, plus an all-new seven-passenger SUV;
Next-generation Jeep Renegade, Compass, and Commander SUVs;
New generations of the Fiat Strada, Fiat Toro, and Ram Rampage pickups; and
An all-new flex-fuel full hybrid (HEV) powertrain.

Foreign direct investment in Panama with Horacio Estribi

by Editor Latam | Jul 11, 2026 | FDI Latin America, Podcast

Horacio Estribi
Economic Policy Advisor and Consultant
+507 6379 1454

Propanama

LATAM FDI: Horacio Estribi is with us. Horacio, how are you today?

Horacio Estribi: I’m very good. I’m excellent. Thank you for your interview.

LATAM FDI: Well, listen, um, I think that it would behoove the audience to explain a little bit about yourself.

Horacio Estribi: All right, I’ll try to keep this short. I’m an undergrad from BU. I also have a master’s degree from the Kennedy School in Cambridge, Massachusetts. The main areas of my work have been— I was a public servant for quite a while. Additionally, I’ve served as an international and national consultant for various banks and industries. I’ve also been in academia for a few years. These things have kept me quite busy for the past 35 years.

LATAM FDI: Okay. Well, today we’re going to talk a bit about Panama.

Horacio Estribi: That’s correct.

LATAM FDI: And more specifically, we’re going to talk about foreign direct investment in Panama. Let’s start off the interview by asking, “What’s the importance of FDI to Panama, Horacio?”

Horacio Estribi: FDI has been a key factor in Panama’s growth and economic model for many years. It contributed directly to creating employment, to building infrastructure, and to expanding the service and banking sectors. Of course, foreign direct investment in Panama has mainly targeted sectors such as tourism, banking, and real estate. It’s been a crucial aspect of our economic model. But looking ahead, we have to be a little more selective about the foreign investment we bring to Panama. And that’s what I can explain to you in the next few minutes.

LATAM FDI: Well, looking at all the sectors in Panama, I’m thinking Panama is best known, obviously, for the Panama Canal, but there must be other sectors, in addition to the Panama Canal and logistics, that receive significant foreign direct investment in Panama. Tell us a little bit about those sectors, if you would, please, as well as the importance of the Panama Canal.

Horacio Estribi: Okay, sure. Well, as I said, so far, foreign direct investment in Panama has been allocated mainly towards logistics, transportation, ports, real estate, and finance. And as for the canal, yes, the canal has undergone important, massive, I should say, investments, mainly the widening of it. Actually, a new lock was built. For Panamax ships, which are larger than usual ships, it has been a great success. These investments have been carried out mainly by the canal itself, using its own funds. But yes, there is a connection between the canal and other activities such as ports, logistics, and so forth, and the latter has definitely benefited significantly from attracting foreign investment.

LATAM FDI: What other sectors besides those related to the canal, you mentioned, for instance, tourism, as one sector that’s fairly active? Could you tell us a little bit about the importance of that economic activity to Panama’s economy?

Horacio Estribi: Well, yes, obviously, Panama competes with other countries in the region, but in a different way. We don’t pretend to be Costa Rica or the Dominican Republic. We have different attractions, and therefore we need a different strategy. So far, a large part of that strategy has been built on shopping, conventions, and visits to the canal and to the diversity of Panama’s natural ecosystem. Also, Panama has been quite successful in developing large quantities of hotels, mainly in the capital. And the strategy seems to be shifting now towards building hotels mainly in the rural areas, which means outside Panama

City and the Panama Canal Zone. And that’s where the emphasis is currently being placed. So that’s where you’ve also seen a lot of development in apartment construction. As you know, we attract lots of what we call the silver economy, people who come from abroad, who are of an advanced age of 60 or more.

LATAM FDI: That’s very interesting.

Horacio Estribi: And also, in that respect, foreign investment in Panama has played an important role, although it’s not the only one. We also have other important areas of attraction for foreign investment, such as the Canal Free Zone and SEM, a multinational regime that has attracted many companies. And that is true also for the Canal Free Zone, which is mainly aimed at companies that re-export goods in the region.

LATAM FDI: You just mentioned the SEM. I think it would be good if you could explain to the listeners what that acronym stands for and what it actually is.

Horacio Estribi: Okay, SEM is a multinational and, in Spanish, stands for “Multinational Headquarters Regime.” And it’s been quite a successful initiative. We’ve been able to attract large companies such as Mars, Dell, Nestlé, BMW, Procter & Gamble, and Samsung. The advantages are that the cost of establishing almost 200 multinational regional headquarters has been borne by the companies. The reason for that is mainly Panama’s connectivity. Essentially, we’re lucky enough to have good connections, air connections. We have a good airport. We obviously have a good geographical position with regard to two oceans and two hemispheres. And good hotels. And this is obviously a good banking sector. There’s a good ecosystem of experts, both Panamanians and foreign expats.

LATAM FDI: Yes.

Horacio Estribi: We have quite a flexible immigration system for people to come from abroad and for expatriates to establish themselves in Panama, operate in Panama, and buy houses in Panama. This essentially explains the success we’ve had with some of these initiatives, including the SEM, the so-called multinational headquarters regime. There is, obviously, a fiscal incentive component, but that is only part of the attraction we offer. The others are the ones I just mentioned: mainly our connectivity with other airports and important regions in the area, as well as companies within the region that have operations.

LATAM FDI: You briefly mentioned the financial sector. I know that foreign direct investment in Panama is also known for its financial services. Can you expand on that a bit?

Horacio Estribi: Certainly, yes. Well, to begin with, maybe we should mention that Panama is a fully dollarized economy. We use the dollar as the legal tender, and that’s been true for quite a few years. And, unlike other countries that have experimented with and made progress in this regard, using the dollar. Panama has done this successfully for many years.

Panama is a very open, outward-oriented economy, mainly focused on exporting services related to logistics, the canal, and so forth. And that has allowed us to use the dollar. Other than that, we also have one of the most modern and progressive banking sectors in the region. And as I said, we’ve had this advantage in our regional connectivity, and these factors have contributed significantly to the development of our banking sector, which is based on quite flexible rules. This has given Panama a big advantage in terms of investment facilities and low risk, because you don’t have to face other countries’ exchange-rate risks. So that’s one of the main reasons we have a strong banking sector. Of course, we’ve also had to make progress in complying with many international standards for preventing money laundering and so forth.

Foreign direct investment in Panama has also been making significant progress in that sense.

LATAM FDI: Can you share some success stories related to foreign direct investment?

Horacio Estribi: As I said, we’ve been able to attract lots of companies, multinational headquarters. That is also true of the Colón Free Zone, the largest free zone in the area, or perhaps in the Western Hemisphere. I can also mention Panama Pacific. Panama Pacific was essentially a military compound before the 1977 treaties were signed, which caused many areas to revert to Panama. These areas have essentially been used for investment in the academy, research and development, manufacturing, and so forth. Well, Panama Pacific is one example, a good example of that. We’ve been able to attract companies such as Dell, 3M, Caterpillar, Pepsi-Cola, PriceSmart, and others. And the reason for that is, well, several key factors. One of them is that it’s close, very close to the city. It’s also very close to the canal and all the infrastructure it has, including ports, airports, and so forth. The country has developed a modern system of offices, industrial facilities, and logistics facilities. Also, very importantly, we’ve been able to attract significant foreign direct investment in Panama by using the so-called one-stop shop system, called ventanilla única in Spanish, where you can find solutions to various problems or bottlenecks, such as immigration, labor, and customs issues, and so forth.

All those are connected to one another in a single one-stop shop system.

LATAM FDI: Have you learned anything from other countries in Central America? Did they have successes and other issues in Central America? What lessons has Panama learned from its neighbors?

Horacio Estribi: It’s a very interesting question because we need to look at our neighbors and learn from their successes, but we also need to internalize that and adapt it to our own reality and future. I was precisely going to mention that the interview so far has centered on the importance of foreign direct investment in Panama for economic growth, employment generation, value added, and infrastructure development. But now I should say that, although Panama still has a high growth rate, and even compared to other countries in the region, you must admit that Panama is growing less than it did. This means we need to evolve. We need to move to make some adjustments. I’m not saying that we should change our economic model completely. No, we should learn from what we’ve been successful with, but we need to fine-tune a few things. And one of the things we need, as I mentioned, is to attract foreign investment primarily to strengthen our knowledge, foster innovation, development, technology, and the digital economy.

LATAM FDI: That makes a lot of sense.

Horacio Estribi: Even perhaps getting involved in some of the logistics chains related to the manufacturing and distribution of chips. So that’s where we should focus our interest, and, in that regard, Costa Rica has been quite successful in attracting these sorts of companies. We have to look into what they’re doing, but essentially, they have been successful in customizing their treatment for big companies. They go and knock on the doors of the companies they want to attract. And they have also developed an important pool of high-quality, knowledgeable human resources, especially bilingual personnel. And that’s what we have to look into.

LATAM FDI: If a company wants to set up in Panama, is there a government or other entity that offers training programs for workers?

Horacio Estribi: Yes and no. There is one especially aimed at plumbers and this sort of short tradesman profession, short-term professions that assist people in teaching them how to build a house, and so forth, and it’s been quite successful. Now we need to use the same model to strengthen the training of youth in this sort of skills, soft skills on one hand, and on the other hand, we need to train people in terms of using artificial intelligence, English, and being able to solve problems by themselves, seen from a skill perspective, not from a knowledge perspective only. So yes, we should strengthen our ability as a society to train people exactly for what this new economic activity will demand, one that is increasingly knowledge- and digital-economy-based. There isn’t one institution, I should say, but it is important. There is one called ITSE, Instituto Tecnológico Superior de Educación. That’s one that pops to mind right now, although it’s not the only one.

LATAM FDI: Beyond training for industries of the future through certain government mechanisms, what other institutional changes are currently being implemented to attract foreign direct investment in Panama?

Horacio Estribi: That’s a very interesting question, Steve, because, from my perspective, you know, Panama relied heavily on fiscal incentives. Which we will still depend on, and it will offer that advantage. But we also need to offer other things that aren’t fiscal incentives. And I mentioned a moment ago the need to simplify, speed up, eliminate cumbersome processes, and remove bottlenecks. And I think this is where the country is starting to make important progress in offering non-fiscal incentives through one-stop systems, among other measures, such as simplifying laws and reducing bureaucracy. And all this time, trying to capitalize on all the things that Panama did before, in which we’ve been very successful, is to continue developing our connectivity, continue maintaining our stability, our good reputation towards the US, towards Europe mainly, and be a little bit more aggressive in terms of trying to attract this specific sort of foreign investment we need to bring to the country.

LATAM FDI: Does Panama have a national economic development organization that people can contact for information about the country?

Horacio Estribi: Well, yes, I would say that there is a— I don’t remember the name right now, but there is a specialized institution that operates under the Ministry of Commerce, and I think it’s called Panama Export. I’m not sure. I would have to check that. But yes, that would be a specialized office serving companies interested in pursuing foreign direct investment in Panama.

LATAM FDI: Yeah, I actually think the organization’s name is ProPanama.

Horacio Estribi: ProPanamá, that’s correct. Yes.

LATAM FDI: And, you know, one of the things I’ll include in the transcript section of this interview is a link to ProPanama.

Horacio Estribi: Okay.

LATAM FDI: And that leads me to another very important point. When we do these interviews with people throughout Latin America, I often receive questions about the conversations I’ve had with them. And what I like to do is direct those questions to the person that I interviewed.

Horacio Estribi: So why not? I’d be happy to do that. It sounds like—sounds like a great opportunity for me, and I guess it is, too.

LATAM FDI: Well, what I’d like to do is, first of all, have you explain how someone can get in touch with you if they have a question about Panama?

Horacio Estribi: How should I do that? Should I offer my LinkedIn? Should I offer my email?

LATAM FDI: All of those, all of the above.

Horacio Estribi: Okay, I will. I would send you—make sure I send you my email, my link, my LinkedIn, and what else should I send you?

LATAM FDI: Well, that’ll be fine. What I’ll do is I’ll leave your email address at the top of the transcript section of the page, as well as a link to your LinkedIn profile. That way, anyone who wants to get in touch with you with a question can do so easily.

Horacio Estribi: That sounds good, you know, because I have to say something you probably know, but, uh, and it sounds like a, like a probably here, like a commercial, but it isn’t. Panama has many attractions for foreign investment, but it’s also quite tricky to get around once you’re here. You know, people feel that Panama is such an open, outward-oriented country, and that makes things simple. Well, that helps, but you still have to be familiar with all the characteristics of our institutional system. I’ll leave it at that.

LATAM FDI: Yes, if someone needs a guide, would you be open to that?

Horacio Estribi: Yes, I would, and I think it’s fair we work together, Steven. I think that’s perhaps the whole purpose of this exercise. Okay, at least it’s one of them.

LATAM FDI: Okay, well, thank you very much for joining me today. Everybody’s going to listen to this on different days, but today we’re recording this on a Friday, so I hope that you have a good weekend.

Horacio Estribi: Oh, thank you very much. I wish the same for you, Stephen, and I will. I’m here with my wife at the beach, and believe it or not, I’m supposed to be taking a few days off.

Thank you very much, Steve.

LATAM FDI: Thank you for joining me

Foreign Direct Investment in Latin America Shows Resilience Despite Global Uncertainty

by Editor Latam | Jul 1, 2026 | FDI Latin America

Published by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Latin America FDI 2025 report reveals that foreign direct investment (FDI) is still one of the most visible signs of business confidence in emerging markets. When multinationals open factories, service centers, infrastructure projects, or technology operations, they are placing their bets on a country’s future. At the same time, these capital investments can create jobs, transfer technology, build resilient supply chains, and enhance productivity in Latin American countries.

“Foreign direct investment is key for productive transformation and sustainable economic development in Latin America and the Caribbean.” – UN ECLAC

Latin America as a whole can celebrate an encouraging report from ECLAC, considering current global economic headwinds. Despite increasing at a modest rate of 1.7% during 2025, foreign direct investment in Latin America climbed to US$194.2 billion. Amid geopolitical conflict, shifting trade policies, and tighter financial conditions, that growth indicates international businesses are still keen to invest in Latin America for the long-term.

Steady Growth in the Face of Global Economic Uncertainty

Latin America FDI 2025 doesn’t reveal any dramatic increases in investment, but there wasn’t necessarily a downturn either. Global companies felt some hesitation amidst uncertainties about trade relations, interest rates, supply chain realignments, and geopolitical instability. Latin America experienced both positive and negative impacts as international businesses evaluated these macro factors before committing to future growth plans.

Latin America still experienced healthy foreign direct investment activity throughout the year. ECLAC found that foreign direct investment in Latin America:

* Contributed to roughly 14% of gross fixed capital formation

* Made up nearly 2.8% of regional GDP

* Supported ongoing technology transfer

* Contributed to job creation

* Helped nations improve competitiveness

Foreign capital will continue to play an important role in Latin America as countries work to modernize infrastructure, diversify their economies, and improve their competitiveness. Investments from abroad create additional benefits by linking domestic companies to advanced technologies, professional management, and international markets.

“In times of uncertainty, long- term foreign investors have the potential not only to maintain their investment projects but also to generate productive capacity, innovation, and better-paying jobs.”

Brazil and Mexico Lead the Region in Foreign Direct Investment

Brazil continues to lead the region by attracting approximately 40% of foreign direct investment in Latin America during 2025. Investors are still impressed with Brazil’s large consumer market, diversified industry, natural resources, and growing renewable energy sector.

Mexico secured its position as the second-largest recipient of foreign investment in Latin America once again. During the year, Mexico captured roughly 22% of total Latin American FDI. Much of Mexico’s success can be attributed to:

* Proximity to the United States

* Robust free trade agreements

* Mature manufacturing sector

* Nearshoring trends

Nearshoring has been a key benefit for Mexico as many companies look to reduce supply chain risks and increase responsiveness to North American markets. Mexican manufacturing has become an attractive alternative to lengthier and more expensive supply chains that extend across Asia.

Several other countries also attracted high levels of foreign direct investment in Latin America throughout the year. These notable performers include:

* Chile: Mining and renewable energy investments

* Peru: Mining, infrastructure, and manufacturing

* Colombia: Services, infrastructure, industrial investment

* Guyana: Energy sector continues to expand rapidly

Countries like Costa Rica and the Dominican Republic have also been improving their positions as destinations for higher-value investments. Both countries attracted significant investments in advanced manufacturing, medical devices, business services, tourism, and technology industries. Their success illustrates how small and medium-sized economies can attract knowledge-intensive industries by investing in human capital, improving their investment climates, and implementing targeted economic development strategies.

Where is Foreign Investment in Latin America Coming From?

Although United States headquartered companies contributed the majority of foreign direct investment in Latin America (approximately 35%), there are signs that investment is beginning to diversify. Total investment coming from European sources into Latin America rose during 2025, and companies are continuing to adjust supply chains. As international businesses prioritize resilience and sustainability, we can expect to see more diversified sources of foreign investment in the region.

“The diversification of investment sources can help economies reduce their vulnerability to international economic and geopolitical shocks.”

Services Expand Further While Manufacturing Investments Slip

Foreign direct investment in Latin America in the service industries has now surpassed manufacturing. Throughout 2025, more than half of all FDI went to service industries like financial services, digital technologies, logistics, telecommunications, and business process outsourcing (BPO). Strong investment activity in this sector isn’t going to slow down as companies continue to expand their digital transformation initiatives and invest in knowledge-based industries throughout Latin America. Latin America has a highly educated workforce that will allow many countries to support these types of business operations.

Global manufacturing investments slowed in Latin America during 2025. Some of the headwinds impacting this sector include:

* Increased cost of financing

* Weaker global industrial demand

* Uncertainty around international trade

* Delayed capital spending decisions

Many countries throughout Latin America are still prioritizing manufacturing within their investment promotion strategies. Nations like Mexico, Costa Rica, Brazil, and the Dominican Republic will continue to receive investment from companies looking for world-class manufacturing and distribution hubs.

Extractive industries experienced moderate growth during 2025. Mining, energy development, and other critical mineral projects will become increasingly important as demand ramps up for natural resources used in renewable energy, EVs, batteries, and other advanced technologies.

Preparing for the Future: How Latin American Countries Can Attract and Retain Investment

Although foreign direct investment in Latin America only grew by 1.7% this year, there are still actions governments can take to make their countries more attractive destinations for multinational corporations. Public policies should focus on:

* Aligning trade policy with investment promotion objectives

* Industrial diversification

* Encouraging workforce development

* Promoting regional economic integration

* Upgrading existing infrastructure

* Innovation and technology adoption

By aligning trade policy, industrial policy, and investment promotion, governments can help ensure that foreign capital benefits the economy for many years. For example, countries that successfully attract auto manufacturers should support policies that encourage parts production, workforce training, and technologies that improve competitiveness over the long-term.

Regional economic integration was another major theme discussed in Latin America FDI 2025. By strengthening commercial ties with neighboring countries, Latin American nations can stimulate regional demand while insulating themselves from geopolitical shocks.

Looking forward, countries that develop supportive policies, invest in their workforce, and upgrade infrastructure will be best suited to attract future foreign direct investment in Latin America. If governments work to create a stable and transparent business environment that also promotes sustainable business practices, they will give themselves a major advantage over regional rivals.

“As international investment slows globally, countries that build strong brands around sustainable investment practices will enjoy first-mover advantages in the years ahead.”

Final Thoughts

While foreign direct investment in Latin American activities slowed due to global economic uncertainty, global businesses still invested nearly US$194 billion into the region. Brazil and Mexico will continue attracting the majority of foreign capital, but nations like Chile, Costa Rica, Colombia, Peru, the Dominican Republic, and Guyana are making meaningful strides of their own.

FAQs

FDI into Latin America grew by 1.7% during 2025. Throughout the year, almost US$194 billion in new foreign direct investment flowed into Latin America.

Brazil attracted 40% of foreign direct investment into Latin America during the year.

Approximately 22% of all FDI inflows going to Latin America were captured by Mexico.

While investment into manufacturing decreased in 2025, the services sector continues to experience strong growth in Latin America.

Latin America attracted diversified sources of foreign direct investment during 2025. While the United States still originated the most investment into Latin America, European investors increased their investments into the region.

FDI inflows in Mexico and Central America rebounded 30% to 42 billion dollars

The largest economy in the region, Mexico, recorded an increase in FDI of only 13%, to 32 billion dollars. This made the country the second largest recipient in the subregion, behind Brazil.

However, the number of FDI greenfield projects announced in the country, an indicator of future investment plans, increased by 43% compared to 2020.

The greatest leap occurred in information and communication technologies. The Chinese giant Huawei, for example, announced that it would open a $4.5 billion cloud data center in Mexico.

With new investments in special economic zones, foreign direct investment to Costa Rica returned to pre-pandemic levels, nearly doubling to $3.2 billion.

In Guatemala, FDI reached a record level of 3.5 billion dollars.

FDI in the Caribbean increased by 39% to 3.8 billion dollars

The growth of external investment drove the rebound in FDI in the Caribbean economies. The Dominican Republic was the largest recipient of foreign direct investment to the region.

The island country saw its FDI increase by 21% to 3.1 billion dollars. Flows increased in mining, financial services, and special economic zones that contain manufacturing plants.

Main FDI trends by sector in the region

The Latin American and Caribbean region saw a general increase in cross-border mergers and acquisitions. Although the number increased by 49% to 244 operations, the total value of net sales (8 billion dollars) was practically unchanged from the previous year.

The services sector posted the largest increase in net sales, up 12%, to $6.4 billion, mainly in the financial and energy supply industries.

Announced regional investments increased by 16%, with most commitments going to the automotive, information and communication, and extractive industries.

The value of international project financing deals announced in the region doubled, exceeding pre-pandemic levels. Large transport infrastructure projects, especially in Brazil, and mining and renewable energy activities throughout the region were the biggest contributors to this rebound in levels of foreign direct investment.

How Special Economic Zones in Peru Can Transition the Country to an Advanced Manufacturing Economy

by Editor Latam | Jun 16, 2026 | FDI Latin America

Countries have discovered for centuries that manufacturing industries can bring economic prosperity. Those who industrialize tend to enjoy higher productivity and exports, more innovation, and better jobs. Peru is already on its way. Manufacturing exports have grown dramatically over the last two decades. But so far, Peru’s economic growth has remained reliant on mining and other extractive sectors. It’s time to diversify.

Establishing special economic zones in Peru that attract investors to produce and export higher-value goods can help Peru transition to a sophisticated manufacturing economy.

Manufacturing as an Engine of Growth

Manufacturing industries become synonymous with economic development for a reason. Manufacturers provide jobs not only in factories but also across the supply chain. Manufacturing production generates demand for services like logistics, engineering, IT, and accounting.

Successful manufacturing sectors can mean:

Higher-wage jobs
More productivity and innovation
Development of local suppliers
Diversification of the economy
Stronger exports

Moving up the value chain helps countries earn more money from their natural resources, but it also provides an outlet for sustainable growth that isn’t as subject to swings in commodity prices.

Countries that develop their manufacturing sectors provide their citizens with more opportunities and upward mobility.

Special Economic Zones

Special economic zones (SEZ) provide parks and facilities where businesses can operate under customs, regulations, and structures designed to promote investment and exports.

Special economic zones frequently offer:

Tax incentives
Customs efficiency
Efficient permitting
Modern infrastructure

Better access to ports or other transportation

Special economic zones make it easier for companies to operate, which encourages more investment in the countries and begins to jumpstart industrialization.

“In today’s hyper-connected world, industrial competitiveness depends not only on costs but also on efficiency.” – Manjiv P. Singh

Countries such as China have built entire industries within SEZs. As Jeff Cheng, founder of SEZ consultancy Prime Aster, explained to American Reporter:

“China began building SEZs in the late ’80s, which attracted investment. These inflows encouraged technology transfer, enabled exports, created jobs, and helped China become the factory of the world.”

Costa Rica also used special economic zones to attract manufacturers. The Central American country successfully encouraged multinationals to invest in medical devices, life sciences, electronics, and other high-value industries.

Building Foundations for Success

China and Costa Rica offer examples that Peru and other countries can learn from. However, they also highlight that incentives alone are never enough.

Successful special economic zones require:

Investment in education to provide workers
Strong infrastructure
Strategic marketing to attract investors

As long as Peru can provide the support that businesses need, special economic zones in Peru can bring investors looking to broaden production outside of China.

Why Now? Economic Zones Are Evolving in Peru

Peru is no stranger to economic zones. Previously, programs such as CETICOS existed. Later, they were replaced by Development Zones, known as ZEDs. More recently, Peru enacted reforms to allow for more private-sector led economic zones. The government has taken steps to make it easier for investors and companies to develop their zones.

American Reporter recently reported:

“Designed under public-private principles, promoters have more flexibility in selecting a legal structure and business model. Zone promoters can now be constituted as limited liability companies,” explains Bosshard.

Economic zones have been in Peru for years. Now they’re adapting to fit the needs of today’s investors.

Private Economic Zones are Here

Increased private-sector participation in special economic zones is a worldwide trend. Private economic zones are becoming more common for several reasons:

Privately built zones often have infrastructure available faster.
Private companies allow for professional park management.
Privately developed zones operate under market-driven investment strategies.

This means that special economic zones in Peru have the potential to attract investors as they have companies that want to develop zones tailor-made for their needs.

Time to Double Down on a Competitive Advantage

Peru has many attractive qualities that can help it successfully encourage exports through special economic zones.

Locational Advantages

Situated on the Pacific Coast, Peru is primed to engage in trade with North America and Latin America while also having easy access to Asia.

Peru has invested in ports, logistics, and other transportation infrastructure to help support exporters.

Free Trade Agreements

Not only does Peru border Latin America and the Pacific, but its network of free trade agreements is also one of the most robust in Latin America. For those looking to access new markets, producing in Peru can give companies an edge.

Natural Resources

Peru has plenty of natural resources, including minerals, agricultural products, and more. Rather than exporting these raw materials, special economic zones in Peru can help companies move further down the value chain and produce finished goods.

Economic Stability

Peru also has the advantage of macroeconomic stability. When investors choose a country to invest in, they value stability and certainty.

Encouraging Manufacturing Industries

While Peru has many advantages, there are still areas of concern that need to be addressed if the country wants to capitalize on manufacturers looking for somewhere new to produce.

Infrastructure

Logistics, transportation, and even utilities will need to keep up with increased production.

Workers

Peru also needs to make sure it has workers that are trained to meet the needs of today’s advanced manufacturing. That means investing in education. Peru could also benefit from creating vocational training programs tailored to the needs of companies investing in special economic zones.

Efficiency

Countries that make it easy to do business win. Investors don’t want to spend years waiting for permits and licenses to start production. Simplifying processes and ensuring companies can predictably navigate investment requirements will be important to Peru remaining competitive.

Peru is not the only country trying to attract manufacturers. Regions like Asia are heavily promoting their own economies. To stand out from the crowd, Peru needs to understand its strengths and continue investing in them.

Opportunity Industries

With all that being said, what industries are most likely to take advantage of special economic zones in Peru? Here are few industries that have prospects of succeeding.

Advanced Manufacturing

Anything technology-related could do well in Peru from electronics to automation to manufacturing equipment.

Medical Devices

Can Peru follow in the footsteps of Costa Rica? Only time will tell. But there is opportunity for Peru to encourage growth in medical technology production.

Agribusiness

Thousands of acres of farmland are devoted to agriculture in Peru. Why not begin producing more finished goods domestically?

Mining Equipment and Services

Mining is a large part of Peru’s economy. Given the demand for mining equipment and technology, perhaps some of those items could be produced in Peru.

Renewable Energy and Clean Technology

More and more companies are making sustainable products. Peru could position itself as a prime location to manufacture these products.

Jobs and Economic Growth

When done right, special economic zones in Peru can provide more jobs for citizens. They also allow countries to diversify their exports.

Economic zones can:

Attract foreign direct investment
Create better jobs
Support local businesses
Increase exports
Support innovation and technology
Grow other regions outside of Lima
Lead to government revenue generated by increased economic activity.

Growth breeds opportunity. Industrial parks can become a source of continuous innovation as companies work to provide the best product at the best price.

Looking Beyond the Tax Breaks

Tax incentives don’t develop industries. They’re just one piece of the puzzle. Countries need stable infrastructure and capable workers, and they need to market themselves to potential investors.

Building an industrial park takes years, but the benefits could be felt for generations.

Special Economic Zones Can Help Lead the Charge

There is no silver bullet for economic growth, but special economic zones in Peru can provide a great start. By encouraging investment and production in target industries, Peru can develop a more robust and diversified economy.

Investment in Chile: doTERRA Essential Oils to Open Offices in Santiago

by Editor Latam | Jun 7, 2026 | FDI Latin America

Opening of company offices highlights the need for investment in Chile & Entrepreneurship

Encouraging news for companies, entrepreneurs, and workers in Chile: The downturn in economic activity and rising unemployment have caught the attention of international companies looking to invest in Chile. Recently, doTERRA Latam announced that it would be opening new company offices in Santiago. Foreign direct investment like this helps provide momentum and confidence in the Chilean economy.

Investment in Chile and Foreign Companies Optimistic About the Economy

“This inward investment not only provides jobs but can also increase innovation and entrepreneurship.”

Economy Experts

Opening new offices gives hope to Chileans searching for income opportunities. Opening new business locations in Chile is just one way that foreign direct investment can lead to job creation. Here’s why the latest announcement matters:

COVID Crisis Affects the Chilean Economy

While Chile continues recovering from the long-term effects of the pandemic crisis, local experts say more progress is needed to improve living standards and boost employment rates. Recent figures from the Chilean government show:

The national unemployment rate reached 9.1% between February and April 2026
The female unemployment rate reached 10%
The informal labor market rate reached 26.5%
Impact Economic Activity Index decreased by -1.2% in April.
Mining activity decreased by 11.8%.
Gross domestic product fell by 0.5% during the first quarter.

Rates like these motivate government officials and policymakers to support entrepreneurship and seek foreign investment. This way, workers can seek alternative sources of income while traditional companies continue searching for Chilean workers. While jobs are the typical solution, entrepreneurship can allow workers to become self-employed and develop their businesses with minimal start-up costs.

Company to Invest in Chile Continues Expansion

DoTerra is one of many household names looking to grow its footprint in Latin America and the surrounding regions. The company specializes in products and essential oils with therapeutic-grade quality. With offices in over 100 countries worldwide, doTERRA has been busy developing its international entrepreneurship model for years.

Here’s what we know about the company’s expansion into Latin America:

The company plans to invest over US$1 million in LATAM and related markets.
New company offices to be opened in Chile.
The company plans to expand into Costa Rica.
The company will continue operations in Guatemala.
New operations will begin in Mexico.
The company will continue expansion efforts in Colombia.

doTERRA has strategically placed Chile in its queue for international expansion. The South American country has been recognized for its strong business stability, reliable institutions, and commitment to international trade. With the office opening in Santiago, entrepreneurs and distributors gain access to a new market interested in health, wellness, and lifestyle.

Investment in Chile: Entrepreneurship Creates Economic Opportunities

When doTERRA expands to a country like Chile, entrepreneurship becomes possible for everyday citizens. Traditional job hiring requires companies to set a fixed budget for employee payroll. DoTerra, however, allows individuals to become independent entrepreneurs with little start-up costs.

Entrepreneurial opportunities for workers include:

Flexibility
Possible Side Income
Become Self-Employed
Work From Home
Owning Your Own Business

While some people may choose this pathway as an alternative to working at doTERRA, others may see entrepreneurship as a pathway to supplement existing jobs. The world of work is changing, and many employees desire flexibility in their schedules. Whether that be to spend more time with family, go back to school, or start a side hustle, entrepreneurship can allow people to do just that.

Why Companies Continue to Invest in Chile

Investment in Chile becomes even more attractive when considering doTERRA’s arrival. Chile kicked off 2026 with approximately US$1.815 billion in foreign direct investment. That’s a 164% increase from prior years!

Companies continue to invest in Chile for reasons such as:

Political Stability
Strong Institutions
Location (Gateway to South America)
Skilled labor force.

Open for Business

Chile continues to welcome international trade and investment. As a result, many companies seek to grow their operations inside the country.

“In the long run, investors don’t care about cycles. They care about fundamentals.”

Because this investment comes at a time of economic slowdown, companies like doTERRA help provide momentum and confidence in Chile.

Investing in the Communities of Chile

While some companies seek to expand into Chile for economic advantages, doTERRA provides platforms focused on sustainability.

Healing Hands Foundation, as well as Co-IMPACT sourcing, both allow entrepreneurs to focus on sustainability when developing their businesses. Here are two ways doTERRA encourages entrepreneurs to invest back into Chile.

CO Impacts sourcing
Healing Hands Foundation

Programs like this allow entrepreneurs to develop sustainable supply chains while investing in Chile’s communities. Businesses have the opportunity to give back to Chile in a way that matters to them.

Investment in Chile Creates Confidence

Investment in Chile helps provide jobs, strengthens the economy, and offers entrepreneurs opportunities to develop their business. While foreign investment doesn’t fix Chile’s economic struggles, it does provide confidence in the future. As Chile continues to recover from both the pandemic and the affordability crisis, companies like doTERRA choose to invest millions of dollars into the country.

Conclusion

For entrepreneurs looking to reach international markets and work remotely, opportunities like these become especially exciting. Investment in Chile not only provides jobs for workers but also creates opportunities for entrepreneurship and innovation. As Chile’s economy faces low growth, continued investment provides confidence in Chile’s long-term prosperity.

Ebell de Castro discusses the Punta Cana Free Trade Zone with LATAM FDI

by Editor Latam | Jun 2, 2026 | FDI Latin America, Podcast

Ebell de Castro
General Manager
Punta Cana Free Trade Zone
Punta Cana, Dominican Republic
edecastro@puntacanafreezone.com

LATAM FDI: We have Abel de Castro with us today. Abel, how are you?

Ebel de Castro: Hello, Steven, I’m very fine, thank you. Very pleased and very happy to be here with you today.

LATAM FDI: Well, I’m glad you are with me as well. I always like to ask the people that I interview to start by telling us a little bit about their background and about their organization.

Ebell de Castro: Thank you, Steven. First of all, I am passionate about free zones and foreign investment. I have been working in the free zones of the Dominican Republic for over 20 years, since I was 18. So, my career started at the National Free Zones Council, which, as you may know, is the main government body in the Dominican Republic responsible for promoting and regulating free zones. There, I had the opportunity to work with several multinational corporations on interesting investment projects, including a greenfield investment in the DR. From there, I worked as a general manager at Nigua Free Zone, a private free zone park in the Dominican Republic. There, I had the chance to be involved in an expansion project aimed at increasing the park’s size by 3. And after spending 6 years, 5 years, almost 6 years as general manager of the Nigua Free Zone, I received an offer to serve as general manager of the Punta Cana Free Trade Zone, a new and unique free trade zone in the Dominican Republic.

It is an initiative of Grupo Punta Cana, which, as you may have heard, is one of the main economic groups in the Dominican Republic, a corporation with more than 22 companies that were initially well known worldwide for developing Punta Cana as a global tourist destination. So now, you know, taking into account all these experiences, all this development, and all these externalities that have emerged in Punta Cana, the group established the Punta Cana Free Trade Zone, which is the park where I am pleased to work now as general manager.

LATAM FDI: Well, thank you for that background information. I’ve got a few questions to ask you today. And the first one is: what makes the Dominican Republic an attractive destination for international companies looking to expand?

Ebel de Castro: Well, I think that the Dominican Republic has developed remarkable competitive advantages over the years. But I think that the main, uh, the main— I would say the main incentive, the main positioning that the Dominican Republic has to show to the world for free zones development and for attracting foreign investments into the free zones. It is the economic incentive packages that I believe are the most competitive in the region, you know. First, this incentive scheme exempts companies from 100% of all national and local taxes for 15 years, and the exemption can be renewed as long as the companies contribute to job creation, foreign currency generation, and technology transfer. These incentives would remain in place. And together with this, I think that it is important to mention the economic and political stability that the Dominican Republic has, you know, enjoyed. For the last 50 or 60 years, we have been living in a democracy. We have had elections for 60 years, with new presidents every 4 years. We have a government that is an ally of the private sector. It is a pro-business government.

So, I think this has been key, Steven, for positioning the country as a solid option, a solid alternative for foreign investors.

LATAM FDI: You touched upon this a little bit, but maybe we could go into a bit more detail. For a company that is considering investing in the DR, what are the key factors you think they should evaluate before making a decision whether or not to start operations there?

Ebel de Castro: Well, I think one of the main things that is very appealing to investors, manufacturers, and logistics operators who will work in the global marketplace is logistics and connectivity. The DR has a network of 9 international airports and 11 ports. You know, in different years, according to the Global Competitiveness Report, the Dominican Republic has been ranked as the Latin American country with the best-quality transport infrastructure. So, in addition to this, we should take into account that we have great connectivity. For example, just to mention one case: at Punta Cana International Airport, we handle approximately 900 flights per week and serve 85 destinations directly from there. So, you can fly from Punta Cana, or you can send cargo from Punta Cana, from any other place through Punta Cana, and you will have the cargo in the final destination in less than one day. We offer direct flights across Europe, including Poland and Finland, and we fly to 17 Canadian cities daily.

So, you know, these are advantages that not a lot of countries have. Other very important elements are the strong network of industrial parks we have in the DR. We have almost 100 industrial free zone parks, located all over the country, especially in areas with high-quality labor and airports and international ports, as I mentioned earlier. And most of all, we have a very cost-competitive economy. We have very attractive labor costs, which are currently, on average, competitive with those of Asian countries like China. So, you know, the idea that we are more expensive than Asian countries is not necessarily true. I think that it is another advantage that a new investor should take into account.

Well, I think that currently we’re seeing something very, very interesting. For example, you know that in the past, maybe 90% of the workers in the free zones were basic operators. Now let’s say 60% of all the workers that we have are operators and 40% are technicians. This means we are increasing the value of the products we manufacture and export. So that is, I think, great news because, you remember, Steven, in the past most of the products that we used to manufacture were apparel and very basic assemblies, right? Right now, we are competing in the manufacturing of medical devices and high-value electronic components, and, you know, this definitely says a lot about how we have learned, how we have gained expertise, and especially that we are competing in these segments with advanced countries. But now we are seeing the beginning of new industries like aviation, like aerospace, which is what we are trying to develop at the Punta Cana Free Trade Zone.

LATAM FDI: For those who may not be familiar with it, your free zone, the Punta Cana Free Trade Zone, how does it fit in with the country’s economy? How does it fit in with the logistics system? Can you fill me in on that?

Ebell de Castro: Yes, well, first of all, Steven, the Punta Cana Free Trade Zone is the first industrial and logistics park located within an international airport in this region. You have other business parks within airports and around nearby airports, but this is located inside the Punta Cana International Airport. This means a lot for logistics. Just, just think that manufacturers that establish themselves in the Punta Cana Free Trade Zone, logistic operators that establish operations in the Punta Cana Free Trade Zone, can move their goods from their warehouses to the cargo terminal in less than 5 minutes. The air cargo terminal, which we call the Air Cargo Hub, is located within the free zone park. All products that the Dominican Republic exports through the Punta Cana International Airport, or that are important to the Punta Cana International Airport, or cargo that goes in transit through the Punta Cana Airport, you know, has to go to the free zone first. But remember, the free zone is inside the airport. We think this aligns well with the Dominican Republic’s goal of becoming a regional logistics hub.

But also, companies that move their goods by air, as I mentioned earlier, have the great advantage of an airport in their backyard.

Ebell de Castro: Well, you mentioned just now the aviation component. You talked about MRO maintenance of aircraft. Why is this relevant to the Dominican Republic region in general?

Ebel de Castro: Well, you know, the MRO, the maintenance of aircraft, is a new industry in the Dominican Republic. It is important to mention that there are several different subzones within the Punta Cana Free Trade Zone. One of them is the Logistics Zone, the Logistics Center Zone. Another zone is the Manufacturing Center, where we will manufacture products that will be transported primarily by air, such as medicines, pharmaceuticals, jewelry, and high-value electronics. There is another, which is the MRO, the maintenance, repair, and overhaul. So the idea is to have, you know, in an area of the park with access to the airport, a hangar currently operated by FL Technics, one of the world’s largest providers of maintenance services. This company will create approximately 1,000 specialized jobs, Steven. But think about the demand that this company will have for aerospace components and engineering services. This creates a new labor market in the Dominican Republic for people who are prepared and capable of working in the aviation industry. In both manufacturing and services, because this MRO has, you know, also some areas where they also manufacture a few of the components that they use for their services.

LATAM FDI: What’s the long-term vision for your Punta Cana Free Zone, and what types of companies are you looking to attract to it? You touched on this question a bit, but could you be more detailed?

Ebell de Castro: Of course. Well, first, our target— what are we attracting? First, companies related to the aerospace and aviation industries, and the manufacturing industries in general. This is maintenance, repair, and overhaul (MRO). All aviation activities related to maintenance and manufacturing. Services are also part of the target that we are attracting. The second one, the second very important target is value-added logistics services. As I mentioned earlier, we have a logistics center within the park, and there we are promoting the establishment of distribution centers. And you can think about, for example, companies that work in the fast fashion industry. We are, for example, promoting the establishment of companies that will import garments and luxury goods into these warehouses. Here, they will provide added-value logistics services such as packaging, labeling, and similar activities. And from there, they will distribute these products to all their stores and distribution centers throughout the whole region. And the third target that we have is the manufacturers of goods that are mainly transported by air. This includes aviation components, jewelry, pharmaceutical goods, and many others.

So, what is our vision right now? While we are training workers in the aviation industry who are gaining skills for, if you know, for, for, for their— and in the airspace industry in general, we believe that in the long term, let’s say in 15 years to 20 years, we could be manufacturing aircraft in the Dominican Republic in the Punta Cana Free Trade Zone. That is the vision, Steven: assembling an aerospace cluster within the Punta Cana Free Trade Zone that would be the first of its kind in the Caribbean.

LATAM FDI: That sounds very interesting. One thing that’s consistent about these podcasts is that listeners often want to ask further questions to the people who participate in them. So, I’m wondering: if someone who hears this wants to get in touch with you, how would they go about it?

Ebell de Castro: Well, I would be more than happy, you know, to explain, to present our value proposition to any of our— any of the people that are part of the audience. Anyone can email me at the personal email listed at the top of the transcript page. Additionally, they can visit our website and fill out the contact form. And our website is www.puntacanafreezone.com.

LATAM FDI: What I’ll do as well is, at the top of the transcript of our discussion, I’ll put your LinkedIn profile, if that’s okay, your email, of course, your email, and the links that you just mentioned.

Ebell de Castro: Perfect.

LATAM FDI: Well, I want to thank you for being with me today. It’s very interesting what’s going on in the Dominican Republic, and I wish you a lot of success.

Ebell de Castro: Thank you very much, Steven. I really appreciate the opportunity of talking with you and your audience.

LATAM FDI: Have a great day.

Ebell de Castro: You too, Steven. Goodbye.

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