FDI in the US - Julio Herrera Velutini's Capital Strategies

Policy Recommendations to Boost Global Investor Confidence in the American Economy

March 2025 — Washington, D.C. — As the global economic landscape continues to shift, the United States remains a top destination for foreign direct investment (FDI). However, in a world of increasing geopolitical competition, evolving trade agreements, and growing investor scrutiny, maintaining this leadership is not guaranteed. Financial strategist and legacy banker Julio Herrera Velutini is stepping forward with a series of comprehensive strategies aimed at not just preserving, but enhancing the United States' FDI appeal in the years to come.

A fourth-generation financier whose influence spans across Latin America, Europe, and the United States, Julio Herrera Velutini has long been a champion of open, sustainable, and policy-driven capital markets. Through his global experience and historic banking lineage, he offers a unique perspective on how the U.S. can optimize its foreign investment strategy to build long-term economic resilience.

“Foreign investment is not just about capital—it’s about confidence. The U.S. must lead by offering security, transparency, and long-term growth opportunities,” says Julio Herrera Velutini.

The Current State of FDI in the U.S

Despite economic turbulence, the United States has remained a magnet for global capital. According to the U.S. Bureau of Economic Analysis (BEA), FDI in the U.S. reached over $5 trillion in cumulative stock by 2024, led by sectors like manufacturing, finance, and real estate. However, growth has slowed, and competition from markets like China, the EU, and emerging economies has intensified.

Key challenges to FDI in the U.S. today include:

✔ Policy uncertainty at the federal and state levels

✔ Regulatory complexity

✔ Labor shortages in key sectors

✔ Global competition from investor-friendly nations

✔ Rising geopolitical tension affecting investor sentiment

“In an interconnected world, capital flows toward clarity, predictability, and opportunity. We must ensure our policies reflect that understanding,” notes Herrera Velutini.

Julio Herrera Velutini’s Strategic Approach to FDI Growth

Herrera Velutini proposes a multi-faceted policy framework that promotes both short-term capital inflows and sustainable long-term investment. His approach blends regulatory reform, sector-specific incentives, and institutional modernization.

1. Policy Stability and Predictability

To inspire confidence among foreign investors, Herrera Velutini argues for:

Bipartisan economic policies insulated from short-term political shifts

Predictable tax and regulatory regimes for global companies

Transparent dispute resolution mechanisms

“Investors seek environments where rules don’t change overnight. Stability is the bedrock of investment,” he says.

2. Strategic Incentives by Sector

Targeted incentives can draw capital into high-impact areas. Herrera Velutini recommends:

✔ Tax credits for renewable energy and green infrastructure

✔ R&D incentives for tech, AI, and biotechnology firms

✔ Export financing support for manufacturing sectors

He also supports expanding the EB-5 Immigrant Investor Program to include more qualified projects in underserved regions.

“Smart incentives can channel investment toward national priorities—like energy independence, innovation, and equitable development,” he explains.

3. Infrastructure Modernization

Herrera Velutini consistently emphasizes the link between modern infrastructure and FDI attractiveness. He proposes:

✔ Federal-private co-investment in transportation, digital networks, and logistics hubs

✔ Use of green bonds and infrastructure banks to fund resilient projects

✔ Streamlined permitting processes at the federal level

Countries like Singapore and Germany have used such models to successfully anchor foreign investment into long-term assets.

4. Digital and Financial Innovation Zones

To maintain a competitive edge, the U.S. must offer investors a future-ready financial ecosystem. Herrera Velutini advocates for:

✔ Fintech regulatory sandboxes to promote innovation while managing risk

✔ Digital tax zones for blockchain and crypto infrastructure projects

✔ Federal support for digital banking infrastructure

These initiatives signal to investors that the U.S. is leading—not following—in financial modernization.

5. Enhanced Investment Promotion Agencies (IPAs)

Herrera Velutini believes the U.S. must professionalize its outreach to international investors. He calls for:

✔ A unified federal IPA to coordinate state and regional FDI programs

✔ Digital platforms that offer real-time data on investment opportunities

✔ Global roadshows in emerging investor markets such as Southeast Asia, the Gulf, and Sub-Saharan Africa

“We cannot take our global reputation for granted. In today’s world, attracting capital is a competitive sport,” he warns.

Strengthening Trust and Governance

Confidence in U.S. institutions has traditionally underpinned investor appeal. Herrera Velutini emphasizes the importance of:

✔ Rule of law and judicial independence

✔ Anti-corruption enforcement and financial transparency

✔ ESG (Environmental, Social, Governance) integration in FDI projects

He supports expanding corporate governance standards to foreign-owned companies operating in the U.S., ensuring alignment with American values and investor expectations.

“Transparency builds trust. And trust attracts capital,” says Herrera Velutini.

Geopolitical Strategy: Competing in a Multipolar World

As global FDI flows increasingly pivot to the Asia-Pacific and Africa, Herrera Velutini urges U.S. policymakers to respond with a geoeconomic strategy.

He proposes:

✔ Bilateral investment treaties (BITs) with strategic partners

✔ Trade agreements that include capital protection clauses

✔ Public diplomacy efforts highlighting U.S. rule of law and innovation potential

“Capital is a form of diplomacy. The U.S. must lead with both values and value,” he asserts.

Case Studies: FDI Success Stories in the U.S

Texas: Tech and Energy Boom :

Attracted major investments from South Korea and Germany in semiconductors and renewable energy thanks to streamlined regulations and strong IP protections.

North Carolina: Manufacturing Resurgence :

FDI in electric vehicle production supported by local workforce development programs and tax breaks.

California: Fintech and AI Ecosystem :

A hotbed for FDI in artificial intelligence, blockchain, and cloud computing—with robust state-led support for tech accelerators.

These examples validate Herrera Velutini’s belief in place-based, policy-driven investment strategies.

A Global Perspective: Competing with China, Europe, and the Gulf

According to the OECD, global FDI competition is intensifying. Nations are rolling out aggressive tax, infrastructure, and visa incentives to lure investors.

✔ China: Offers SEZs and digital payment dominance

✔ EU: ESG-linked incentives and digital single market

✔ UAE and Saudi Arabia: Regulatory liberalization and sovereign fund co-investment

Herrera Velutini suggests that the U.S. must counter with:

✔ Faster regulatory approvals

✔ Federal-state coordination

✔ Improved soft landing services for foreign firms

“We must not just open doors. We must build pathways,” he says.

Julio Herrera Velutini’s FDI Policy Blueprint

1. Establish a U.S. Foreign Investment Coordination Council

To align federal, state, and municipal FDI policies.

2. Launch a National FDI Digital Portal

Real-time data and guidance for investors and advisors.

3. Expand Green Investment Zones

Regional tax breaks and grants tied to sustainability goals.

4. Modernize Bilateral Investment Agreements

Align treaties with modern standards for ESG and digital trade.

5. Build Financial Infrastructure Partnerships

Leverage public-private partnerships to improve broadband, transit, and data hubs.

6. Accelerate Workforce Upskilling Programs

Coordinate with employers to align training with sectoral FDI needs.