Increasing Foreign Direct Investment into Japandigi.heteml.jp/tokyo2015/chinese/news-events/2015/pdf/... · 2015-11-05 · office in Tokyo for JETRO clients. Supporting JETRO clients

November 2014

Increasing Foreign Direct Investment into Japan

Takeshi Saito Director, Invest Japan Coordination Division JETRO (Japan External Trade Organization)

1. About JETRO

2. Trends of Foreign Direct Investment into Japan

3. Japanese Government’s Policy for Promoting Foreign Direct Investment

4. JETRO’s Service for Potential Investors

Copyright (C) 2014 JETRO. All rights reserved. 1

JETRO: Japan External Trade Organization

Established in 1958

Government-related organization

Main activities:

Assisting foreign businesses in Japan

Supporting the overseas business of Japanese firms

Facilitating economic growth in developing countries through trade promotion

What is JETRO?

2 Copyright (C) 2014 JETRO. All rights reserved.

74 overseas offices

in 56 countries

Copyright (C) 2014 JETRO. All rights reserved. Copyright (C) 2014 JETRO. All rights reserved.

JETRO’s Overseas Offices

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Copyright (C) 2014 JETRO. All rights reserved. Copyright (C) 2014 JETRO. All rights reserved. 4

JETRO’s Offices in Japan

Headquarters (Tokyo), JETRO Osaka, Institute of Developing

Economies and 40 regional offices

1. About JETRO





Inward FDI into Japan, stock:2000-2013

Sources: Ministry of Finance, Bank of Japan, Cabinet Office

(Unit: billion JPY)

5,782 6,632

9,369 9,610 10,098

11,903 12,803

15,145

18,456 18,425 17,502 17,548 17,808 17,976

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Bankruptcy of Lehman Brothers (Sep. 2008)

Abenomics starts (Dec. 2012)

Great East Japan Earthquake (Mar. 2011)


Inward FDI into Japan, stock:2013

Sources: Ministry of Finance, Bank of Japan

by country and industry Unit: 100 Million JPY

North America

Central & South America

Europe

Asia

Oceania

83,192 (46.3%)

（Top3 Country / Region） Netherlands 29,150 France 15,014 UK 13,819

（Top3 Industry） Finance & Insurance 20,381 Electric Machinery 17,212 Transportation Equip. 13,899

56,780 (31.6%)

（Top2 Country / Region） USA 55,216 Canada 1,564

（Top3 Industry） Finance & Insurance 33,425 Wholesale & Retail 5,862 Electric Machinery 4,197

11,996 (6.7%)

（Top2 Country / Region） Cayman Is. 9,912 Brazil 54

（Top2 Industry） Finance & Insurance 4,706 Electric Machinery 1,936

1,691 (0.9%)

（Top2 Country / Region） Australia 1,301 New Zealand 373

25,822 (14.4%)

（Top3 Country / Region） Singapore 14,077 Hong Kong 5,742 Taiwan 2,395

（Top3 Industry） Finance & Insurance 9,329 Wholesale & Retail 2,810 Services 2,088


1. About JETRO





Drastically strengthening the government’s support framework

for attracting foreign companies

JETRO is strengthening its functional structure through the employment of industry specialists and enhancing support measures to identify and attract prospective foreign companies from the perspective of their executives and in alignment with their specific business strategies. (Japan Revitalization Strategy –JAPAN is BACK p138)

Inward FDI into Japan

Copyright (C) 2014 JETRO. All rights reserved.

Japan Revitalization Strategy (June 2013) Japanese Government

commits inward FDI to expand to 35 trillion by 2020

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Drastically strengthening the government’s support framework

for attracting foreign companies

JETRO to cooperate with embassies in approaching the executives of foreign companies, and to strengthen the function of attracting foreign investment; to work with relevant ministries to build up a one-stop support functionality and to create opportunities for tying up foreign and Japanese companies; and will also aid local municipalities which are actively inviting foreign companies to set up establishments. (Japan Revitalization Strategy (revised June 2014))

Inward FDI into Japan


Japan Revitalization Strategy Revised (June 2014)

Japanese Government commits inward FDI to expand to 35 trillion by 2020

10

Japanese Government commits inward FDI to expand to 35 trillion by 2020

6.6

9.4 9.6 10.1 11.9

12.8

15.1

18.5 18.4 17.5 17.5 17.8 18.0

35.0

(Goal)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Trillion Yen

Sources: Ministry of Finance, Bank of Japan, Cabinet Office


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Japan Revitalization Strategy (June 2013)

1. About JETRO






What does JETRO do?

Consultation regarding investing in Japan hotline

Requests for regulatory reforms hotline

Providing information on Japanese business environment

Increasing business opportunities with Japanese companies

Supporting business startups through the IBSC

Finding and developing businesses interested in investing in Japan

Overseas offices/Invest Japan Attaches Domestic offices

HQ/Invest Japan Attaches

・Invest in Japan website

・Seminars and symposia

・Temporary offices(IBSC)

・Advice from specialists

・Approach by Invest Japan

attaches

・Visiting companies and exhibitions

・Individual consultation

・Providing information

・Business matching events

Government establishments overseas

Local governments

Relevant government authorities

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North America 32%(367)

Europe 31%(355)

Asia 30%(341)

Pacific 5%

South-Central America

1% Middle East &

Africa 1%


Achievements (FY2003-2013)

Supported

projects 11,000

1,100

Share of successful cases by region

Foreign companies’ startups

over

over

14

Number of successful investment cases in Japan

(only higher-ranking countries between FY2003 and FY2013 are shown)


Achievements (FY2003-2013)

United States 32%(341)

China 11%(114)

Germany 9%(99)

Korea 7%(73)

United Kingdom 7%(68)

France 6%(57)

Australia 4%(42)

Singapore 3%(34)

Taiwan 3%(33)

Hong Kong 3%(32)

others 15%(159)

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Invest Japan Website





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Global Peace Index 2013 Global Ranking 6th Rank

Comparison of Research Expenditures Between G8 Countries

1st Rank

Business Sophistication Rank 1st / 144 Countries

Japan’s Globally Significant Attractiveness

Nominal GDP in the world Rank 3rd

The Global Competitiveness Index 2013-2014

Rank 9th / 144 Countries

Source: World Economic Forum, “The Global Competitiveness Report”

Source: World Economic Forum, “The Global Competitiveness Report”

Source: Data from the most recent available years (2005-2010)

Source: Compiled by JETRO based on data from the Ministry of International Affairs and Communications Statistics Bureau

Sources: International Monetary Fund, World Economic Outlook Database, April 2014





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Invest Japan Attachés ・Consultants/Consulting firms ・Advertising agencies ・Persons with Experience in the industry

Target Companies JETRO Offices

Invest Japan Attaches will make specific proposals for investment (locations, incentives, etc.)

Invest Japan

Attachés

Local Governments

Cooperation

Japanese Companies

Facilitating capital alliances and M&As

Knocking the door

JETRO’s New Scheme: 60 Invest Japan Attachés

Overseas

In Japan






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North America: 20 teams Europe: 22 teams Asia/Oceania: 12 teams Japan: 6 teams Total: 60 teams

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North America （New York / Chicago / San Francisco）・Life Science: 4 ・Environmental Energy: 4 ・IT and Electronics: 4 ・Tourism: 2 ・Infrastructure: 3 ・Finance and Service : 1 ・Agriculture: 1 ・Education: 1 Total 20

Europe （London / Düsseldorf / Paris）・Life Science: 4 ・Environmental Energy: 4 ・IT and Electronics: 4 ・Tourism: 3 ・Infrastructure: 4 ・Finance and Service: 1 ・Agriculture: 1 ・Education: 1 Total 22

Japan （※Mainly making market

reports and business model proposals）・Life Science: 1 ・Environmental Energy: 1 ・IT and Electronics: 1 ・Tourism: 1 ・Infrastructure: 1 ・Finance and Service : 1 Total 6

Asia ・Oceania （Hong Kong / Singapore / Sydney / Seoul / Shanghai, etc.）・Life Science: 2 ・Environmental Energy: 2 ・IT and Electronics: 2 ・Tourism: 3 ・ Infrastructure / Finance and Service : 2 ・Agriculture / Education: 1 Total 12

Making the target lists and approaching them 1,200 companies

Making the target lists and approaching them 500 companies

【Total Outcome of Invest Japan Attachés 】・Making the target lists and approaching them 3,000 companies


Allocation of Invest Japan Attachés

Making the target lists of 300 companies Making market reports and business model proposals, etc.

Making the target lists and approaching them 1,000 companies

－Free individual consultation for your company－

• Tenancy eligibility : Foreign company considering to start a business in Japan

• Tenancy period : Up to 75 Business days in principle ( free charge up to 50 business days)

• Tenancy Fee : Free (Deposit and communication fee are required)

• Equipment : Desks, Chairs, telephones, fax machines, and broadband connections

• Common facilities : Conference rooms, multipurpose hall, business library

Consulting

Facilities

－Temporary office space offered free of charge－

About the Temporary Office

Invest Japan Business Support Center（IBSC) A one-stop center for establishing a business base in Japan

Conference room

Refreshment space

Private office space






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• Market and industry information

• Establishing an office

• Cost estimates

• Taxation, labor and legal issues

• Requesting Deregulation

• Translation of subsidy application

• Information on incentives from national and local governments

• Information on relevant legal systems

• Networking with potential business partners

• Finding human resources

• Finding an office location

• Arranging meetings with government authorities

－Free individual consultation

for your company－

－Temporary office space offered free of charge－ Facilities

Examples of Services


Consulting

Invest Japan Business Support Center(IBSC) A one-stop center for establishing a business base in Japan

Consultation

Market and industry information

Arranging meetings





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Introducing 50% discount for serviced rental office in Tokyo for JETRO clients.

Supporting JETRO clients in applying to TMG for subsidies and incentives

Introduction and matchmaking of SMEs in Tokyo with JETRO clients

Introducing JETRO IBSC temporary office for companies supported by TMG

Others

Cooperation between the Tokyo Metropolitan Government (TMG) and JETRO


Medical appliances

Tourism

◆Date: May 26, 2014 ◆Presentations: GE Healthcare Japan, 3M Healthcare Japan, Japan BD, Japan Medtronic ◆Networking event was held after the presentation sessions.

◆JETRO invited major global manufacturers of medical appliances, and Japanese SMEs who provides products and technologies utilized for medical appliances, in order to facilitate business alliances.

◆JETRO organized a presentation seminar and networking event, inviting 5 global tourism companies in Japan, and Japanese SMEs interested in partnering with these companies.

◆Date: July 2, 2014 ◆Presentations: Uber Japan, Air Asia, TripAdvisor, Spring Japan Airline, HRS hotel reservation services ◆Networking event was held after the presentation sessions.

JETRO Business Matching Events in Tokyo (2014)


03-3582-4684 http://www.jetro.go.jp/en/invest/hotline/

Invest Japan Hotline

JETRO will arrange meetings with the relevant authorities and provide comprehensive support.

Consultation regarding investing in Japan

Consultation regarding investing in Japan and regulatory reform requests from foreign companies

JETRO will submit requests for regulatory reforms to the Cabinet Office and METI.

Requests for regulatory reforms

Invest Japan Hotline


Invest Japan Department Japan External Trade Organization (JETRO) 1-12-32, Akasaka, Minato-ku, Tokyo 107-6006 Japan Tel. +81 3 3582 5234, Fax. +81 3 3505 1990

This document is owned by JETRO. All of the content in this document, including, but not limited to, still images, text, pictorial works, designs and logos, is owned or licensed by JETRO. This document shall not be reproduced or reprinted on any medium or registered on any search system in whole or part by any means, without prior permission of JETRO. Although JETRO makes its best efforts to ensure the accuracy of the information contained in this document, JETRO does not take any responsibility regarding losses derived from the information contained in this document.


Documents

Increasing Foreign Direct Investment into Japandigi.heteml.jp/tokyo2015/chinese/news-events/2015/pdf/... · 2015-11-05 · office in Tokyo for JETRO clients. Supporting JETRO clients