Mexico could grow 5 percent 'for decades,' says official

US recovery 'very good news' for Mexico

Rapid growth, a manufacturing boom and key industries opening up to foreign involvement put Mexico in a position to be this decade's China in terms of investment opportunity.

Even the Federal Reserve's diminished stimulus program isn't denting enthusiasm south of the U.S. border.

"The fact that the tapering is happening means that the U.S. economy is recovering, and that's very good news for Mexico," which sends 80 percent of its exports to the U.S., Mexican Finance Minister Luis Videgaray told CNBC in an interview.

"We can deal with that challenge as long as U.S. growth is more robust," he said, citing the Mexican peso's outperformance relative to other hard-hit emerging market currencies, including those of Turkey, Indonesia and Brazil, as evidence that most investors generally feel the same way.

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Luis Videgaray
Yuri Cortez | AFP | Getty Images

Under its reformist president, Enrique Peña Nieto, Mexico has been busy opening up industries once dominated by state-owned monopolies, such as oil, gas and telecom, to more foreign investment and private capital.

It is also benefiting from being a large exporter of good—such as cars, flat-screen televisions and computers—that are in high demand around the world. And brighter growth prospects for its largest trade partner, the U.S., don't hurt.

Add it all up, and North America is "perhaps the most exciting region in the world to be a part of," Videgaray said.

Meanwhile, other emerging markets, including China, are struggling to advance market reforms and continue their rapid growth.

That Moody's upgraded Mexico's credit rating last week amid a selloff in many other emerging markets and turbulence in the U.S. is a further sign that the country is "headed in the right direction," he added.

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Resistance may still come, especially as industries such as telecom, which have made Carlos Slim one of the world's wealthiest people are pushed to change.

Peña Nieto is "fully committed to making changes to sectors such as telecommunications by bringing in more competition, or opening up our oil and gas industry as well as our electricity sector," Videgaray said.

Part of the impetus for such action is to partner with outside companies—namely large American oil and gas businesses—that can deploy technology to increase Mexico's energy production and lower the cost for consumers and producers.

"We have to have the technology we don't have—that is the essence of reform," said Videgaray. "We have an abundance of resources that could make us more competitive, [but] right now we are not using [them]."

Deployed more effectively, those resources should help Mexico achieve its forecast of 3.9 percent growth in gross domestic product this year.

Beyond that, Videgaray declared, "we expect to have a consistent potential growth rate of 5 percent for the next years and decades to come."

—By CNBC's Kelly Evans. Follow her on Twitter @Kelly_Evans.