It’s not fair to compare Texas with other states based on economic strength or as a destination for foreign direct investment (FDI). Compare it with countries, and there’s a contest. As an economic power, Texas ranks eighth globally with a 2023 GDP of $2.6 trillion, ahead of Canada, Russia and South Korea. It’s well ahead of other states as a recipient of FDI in recent memory and for the past 23 years has been the leading U.S. state for exports. Texas is the top exporting state to 92 countries and has led the nation in semiconductor exports for 14 consecutive years and high-tech exports for 12 years.
Nearly 2,200 foreign businesses have operations in Texas. Combined, these companies employ more than 600,000 workers, 194,700 of which work in manufacturing, according to the Global Business Alliance (GBA), which tracks FDI into the U.S. and on the state level. FDI jobs represent 6% of total employment in Texas, the highest percentage of its bordering states. GBA reports that FDI employment in Texas grew 41% from 2012 to 2022 while overall private-sector employment grew 26% during that time.
The Governor’s Texas Economic Development & Tourism Office reports 1,860 foreign investment projects in Texas in the past decade with a combined capital investment value of almost $190 billion.
On an Asia trip In July 2024, Governor Greg Abbott met with South Korea Minister of Foreign Affairs Cho Tae-yul to discuss deepening the economic and trade relationship between Texas and South Korea.
Photo courtesy of the Office of the Governor
Texas’ FDI prowess is due to several factors including its 35 foreign trade zones, the most in the country; 12 deepwater ports, including Port Houston, the leading port for water-borne foreign trade; and 25 commercial airports, three of which are major airline hubs: United Airlines at George Bush Intercontinental in Houston, American Airlines at Dallas Fort Worth International and Southwest at Dallas Love Field.
Houston’s Banner Year
One way to gauge the Lone Star State’s appeal as a location for foreign investment is on the metro level. The 2023 FT-Nikkei Investing in America ranking is a good place to start. Presented by financial publishers Financial Times and Nikkei, in association with GIS Planning and fDi Intelligence, the ranking of 91 U.S. cities is based on more than four dozen metrics in seven categories — workforce and talent, openness, business environment, foreign business needs, quality of life, investment trends and aftercare.
Five Texas metros appear in the top 10, with Houston in first place. Plano, Irving and Dallas rank third, fourth and fifth respectively; Austin places seventh. Fort Worth and Arlington make the top 20.
The Greater Houston Partnership helped land 36 new project announcements in 2024, 20 of which were international company deals. Examples include TMEIC Corporation Americas from Japan ($30 million, 300 jobs); IC Star Solar LLC from Cambodia ($30 million, 350 jobs); and czt Energy of Thailand ($25 million, 135 jobs).
Gov. Abbott and his economic development team know they cannot take foreign capital investment in Texas for granted, no matter how strong the case may be for it. That’s why the governor in 2024 made several trips abroad to deepen economic partnerships and make the case in person to foreign officials that companies in their markets will be well served having operations in Texas.
Road Show
“Texas is the eighth-largest economy in the world, a global leader in energy and trade, and the world’s premier economic destination because of our top-tier business climate,” said Gov. Abbott in a December 2024 statement. “That is why this year, I visited with business leaders and government officials in India, Japan, South Korea, Taiwan and the United Kingdom to showcase the booming Texas economy and attract more businesses to invest in our great state. As Texas looks toward growing our economy even more in 2025, we will continue to provide leading businesses from across the nation and the world with the opportunities they need to thrive in Texas.”
On a January 2024 trip, the governor visited with technology, manufacturing and energy leaders in Mumbai and technology executives in New Delhi, his office reports. While in New Delhi, Gov. Abbott also met with External Affairs Minister of India Dr. Subrahmanyam Jaishankar. Both leaders discussed the continued collaboration between Texas and India across a variety of industries, including semiconductor manufacturing and aerospace technology.
In March 2024, the governor was in the United Kingdom, where he met with former Prime Minister Rishi Sunak and signed a Statement of Mutual Cooperation (SMC).The SMC promotes economic growth, supports innovation and encourages job creation in Texas and the United Kingdom. It also prioritizes collaboration in critical sectors such as new and emerging innovative energy solutions, including hydrogen, carbon capture and energy storage; chemicals production; health and life sciences; supply chains and critical minerals; advanced technologies; aerospace; and more.
In July 2024, the governor met with company executives, business leaders, foreign dignitaries and government officials in Taiwan, South Korea and Japan. The Taiwan visit included the opening of the State of Texas Taiwan Office to help attract foreign direct investment and job creation into Texas and increase Texas exports into Taiwan and other Asian countries. In 2024, total trade between Texas and Taiwan was $25.6 billion, making Taiwan the sixth-largest total trade partner to Texas.
Making a Statement
Gov. Abbott also signed an Economic Development Statement of Intent with Taiwan Minister of Economic Affairs Jyh-Huei Kuo. The statement boosts investments, expands trade, spurs job creation and increases innovation in critical industries between Texas and Taiwan.
In South Korea, the governor announced that SeAH Group has established a high-performance metal manufacturing facility in Temple, generating $110 million in capital investment and creating over 100 new jobs in Central Texas. He also met with Samsung Electronic Co., Ltd. executives at their semiconductor campus in Pyeongtaek and toured the P1 line in the Pyeongtaek complex.
The governor’s Japan visit included a meeting with Chief Cabinet Secretary Yoshimasa Hayashi at the office of the Chief Cabinet Secretary in the Prime Minister’s Office, known as the Naikaku So¯ri Daijin Kantei. The governor and cabinet secretary explored ways Texas and Japan can continue to strengthen the economic partnership through trade and new foreign direct investments. Gov. Abbott and Aichi Prefecture Governor Hideaki Ohmura signed a Statement of Mutual Cooperation to encourage more trade in critical industries and attract new business investments to Texas.
In addition to the new State of Texas Taiwan Office, Texas has state offices in Mexico City and Monterrey, Mexico. Companies south of the border have invested nearly $3 billion in 38 U.S. facilities in the past decade, creating 5,400 jobs. Trade between the two countries totaled about $273 billion in 2023.
In August 2024, Gov. Abbott signed a Statement of Mutual Cooperation (SMC) with Governor Manolo Jiménez Salinas of the Mexican State of Coahuila to commemorate the 200th anniversary of the creation of the single state of “Coahuila y Tejas” and bolster the strong economic and cultural ties between Texas and Coahuila.
The statement encourages collaboration, increases prosperity in both regions and contributes to the further development of favorable relations between Texas and Coahuila. The statement will also boost investment, trade, and collaboration in critical sectors such as advanced manufacturing, biotechnology, energy, innovation, and entrepreneurial initiatives.
