JETRO Activities for Promoting Direct Investment in …...DSM Japan Engineering Plastics K.K. Netherlands R&D Site Nihon Cabot Microelectronics K.K. USA R&D Site NeoPhotonics Japan,

JETRO Activities for Promoting

Direct Investment in Japan

August 2014

What is JETRO? JETRO: Japan External Trade Organization

Government-related organization to promote mutual trade and

investment between Japan and the rest of the world

Established in 1958

73 offices worldwide, 39 domestic offices

2

Main activities:

1. Promoting foreign direct

investment into Japan

2. Supporting the overseas

business of Japanese firms

3. Facilitating economic growth in

developing countries through

trade promotion

Copyright (C) 2014 JETRO. All rights reserved.

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

Inward FDI into Japan, stock : 2000 –2013

Inward FDI into Japan Inward FDI in Japan

3

(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 18 031

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

(Estimate)

Sources: Ministry of Finance, Bank of Japan

Inward FDI in Japan, stock : 2012

Inward FDI into Japan Inward FDI in Japan by Country and Industry

4

(Unit: billion JPY)


Unit: 100 Million JPY

JAPAN

North America

Central& South America

Europe

Asia

Oceania

54,838

82,142

24,099 1,336 15,387

Europe ⇒ Japan 82,142

（Country / Region）（Industry） Netherlands 27,284 Finance & Insurance 21,337 France 15,566 Electric Machinery 18,915 UK 13,354 Transportation Equip. 13,448 Switzerland 11,661 Chem. & Pharm. 10,782 Germany 7,239 Wholesale & Retail 6,731 Luxemburg 2,547 Services 2,300 Sweden 903 Petroleum 1,329 Italy 830 General Machinery 1,056

NA ⇒ Japan 54,838

（Country & Region） USA 53,308 Canada 1,530

（Industry） Finance & Insurance 32,793 Wholesale & Retail 5,356 Electric Machinery 3,287

C&S America ⇒ Japan 15,387

（Country / Region） Cayman Is. 12,176 Brazil 30 （Industry） Finance & Insurance 7,340 Petroleum 1,877

Oceania ⇒ Japan 1,336

（Country / Region） Australia 961 New Zealand 358

Asia ⇒ Japan 24,099

（Country / Region）（Industry） Singapore 13,278 Finance & Insurance 8,361 Hong Kong 4,976 Wholesale & Retail 2,889 Taiwan 2,170 Services 2,166 R. Korea 2,461 Real Estate 1,431 P.R. China 476 Communications 1,269 Malaysia 439 General Machinery 1,140

○Number of successful investment cases in Japan (only higher-

ranking countries between FY2003 and FY2013 are shown)

Total of 1,136 projects: North America: 367, Europe: 355, Asia: 341, other

areas: 73

Attracted approximately 1,000 foreign companies to Japan through the support of more than 10,000 projects. Entry from North America, Europe and Asia accounts for 30% each; top three countries are US, China and

Germany.

FY Number of

cases

2003 93

2004 103

2005 110

2006 115

2007 125

2008 123

2009 121

2010 111

2011 69

2012 94

2013 72

Total 1,136

JETRO’s activities in promoting foreign direct investment (FY2003-2013)

Copyright (C) 2014 JETRO. All rights reserved. 5

○Number and share of successful

cases by region

No. of cases

No. of cases

North America

32%

Europe

31%

Asia

30%

Pacific

5%

South-Central America

1%

Middle East & Africa

1%

Website and events: Distributing information on Japanese

business environment

Invest-in-Japan website

(http://www.jetro.go.jp/en/invest/)

Seminars/symposia, brochures

Overseas offices: Finding businesses interested in

investing in Japan

HQ and domestic offices: Developing proposals (providing

customized information)

Finding companies interested in investing in Japan

by visiting businesses and exhibitions

Individual consultations with interested companies

Supporting business

startups through the IBSC

(Invest Japan Business Support

Center)

Providing information on markets and industries

Providing information and introductions for

governmental approval and licenses

Providing expert advice (taxes, accounting, human

resources, social security, real estate, etc.)

Providing temporary office space (six IBSCs /

Tokyo, Yokohama, Nagoya, Osaka, Kobe, Fukuoka)

Domestic offices: Providing a link to local

governments and attracting

businesses

Cooperation with local governors/mayors to

promote their areas

Support new investments of companies already

operating in Japan

Support in exhibitions: Increasing business opportunities

with Japanese companies

Support for foreign businesses to participate in

exhibitions held in Japan

Providing information on regions throughout Japan

(location sites, local incentives, etc.)

6

JETRO’s activities to attract foreign direct investment

Support for foreign businesses at

exhibitions held in Japan

Invest-in-Japan website

Temporary office

Seminars and symposia

Government incentives: Providing information on

government incentives

Providing information on Subsidy Program for Global

Companies and other government incentives


• Maximum period of use: 75 business days (free of charge up to 50 business days)

• Office hours: 8:00 a.m. to 10:00 p.m. (excluding Saturdays, Sundays, and national holidays)

• Desks, chairs, telephones, fax, internet connection (telephone / fax charges borne by tenant)

• Receptionists, advisory service (on the Japanese market, industry, legal and accounting issues, human resources, etc.) (advisory service on appointment basis)

Private office space

・13.5 ㎡ (two-person office)

・18.0 ㎡ (three-person office)

・36.0 ㎡ (six-person office)

Refreshment space Conference room

7

IBSC Tokyo incubation office services


IBSCs are located in six major cities of Japan. At each IBSC, experienced staff and advisors provide information making use of broad networks, and offer consultation according to your company’s needs. IBSCs offer these and other services, including temporary office space for both foreign firms that are new to Japan and those already operating in the country.

IBSC (Invest Japan Business Support Center)

JETRO’s support and services

Scope of consultation

Incorporation of a

company or local

branch

Types of incorporation, taxation,

regulations, etc.

Registration of the business

Tax notices

Opening a bank account

Human resource-

related issues

Human resources and labor

Employment procedures

Social insurance

Visa-related

issues

Consultations for acquisition of

Japanese visas with suitable

residence status

Assistance in opening a Japanese office

Providing temporary office space

Support in establishing a permanent office

8

IBSCs in six locations

Tokyo

Osaka

Fukuoka

Nagoya Yokohama

Kobe


Incentives by the Japanese Government

9

Source: JETRO website (http://www.jetro.go.jp/en/invest/incentive_programs/)

Program name Outline Implementtion

status Authority in charge

The Act for

Promotion of Japan

as an Asian

Business Center

The Japanese Government will take support measures for

certified global companies, including tax breaks and patent

fee reduction, in order to motivate them to locate their R&D

facilities or regional headquarters in Japan.

Effective from Nov.

2012

Trade and Investment

Facilitation Division, Trade

and Economic Cooperation

Bureau, METI

Subsidy Program

for Projects

Promoting FDI, Site

Location and

Regional

Development in

Japan

Subsidy program for establishment by global companies

of R&D facilities or regional headquarters in Japan.

Covers survey design costs, facility costs, equipment

costs, and facility rental fee.

Application Period

for 2014:

March 24 – June 2

Trade and Investment

Facilitation Division, Trade

and Economic Cooperation

Bureau, METI

Comprehensive

Special Zones

Incentives, including special regulatory measures and tax

reduction, are available for companies with business plans

in 7 designated zones: Hokkaido, Ibaraki, Tokyo,

Kanagawa, Aichi/Gifu, Kyoto/Osaka/Hyogo, Fukuoka.

Special regulatory

measures differ

from one

designated region

to the other.

Regional Revitalization

Bureau, Cabinet

Secretariat

Special Zones for

Reconstruction

Incentives, including special regulatory measures and tax

reduction, are available for companies with business plans

in the recovering areas stipulated in the Act on Special

Provisions of Article 3 of the Public Finance Act.

In effect Reconstruction Agency

Points-based

Preferential

Immigration

Treatment for

Highly Skilled

Foreign

Professionals

Under the points-based system, foreign professionals who

earn 70 points or more will be recognized as "highly skilled

foreign professionals" and will be given preferential

immigration treatment.

(* Personnel of selected companies for the Subsidy

Program for Projects Promoting Asian Site Location in

Japan are given 10 points.)

Effective from May

2012

Foreign Residents

Information Center,

Immigration Bureau,

Ministry of Justice


Inward FDI into Japan Asian Business Location Promotion Project

Subsidy -2

Copyright (C) 2014 JETRO. All rights reserved. 10

Source: Press release by METI Projects selected for the subsidy program for FY 2010－2013

FY Company Name Nationality Type

FY

22

Salesforce.com Co., Ltd. USA R&D Site

Zydus Pharma Japan Co., Ltd. India R&D Site

Dyesol Japan Co., Ltd. Australia R&D Site

Eurocopter Japan T&E Co., Ltd. France R&D Site

Dou Yee International Private Limited Singapore R&D Site

FY

23

Sanofi-Aventis K.K. France Regional Headquarters

3M Health Care Ltd. USA R&D Site

DSM Japan Engineering Plastics K.K. Netherlands R&D Site

Nihon Cabot Microelectronics K.K. USA R&D Site

NeoPhotonics Japan, Godo Kaisha USA R&D Site

Mikado Kyowa Seed Co., Ltd. (Subsidiary of Vilmorin & Cie S.A.) France R&D Site

Medasys Japan K.K. France R&D Site

Intelligent Energy Holdings Plc U.K. R&D Site

Umicore N.V. Belgium R&D Site

Volvo Technology AB Sweden R&D Site

FY

24

GE Japan Limited USA R&D Site

Johnson & Johnson K.K. USA R&D Site

Tenneco Japan Ltd. USA R&D Site

Faurecia Japan K.K. France R&D Site

FY

25

BASF Japan, Ltd. Germany R&D Site

Comverge Japan K.K. USA R&D site

Nippon Busch K.K. Germany Head site / R&D Site

Siemens Japan K.K. Germany R&D Site

11

国際的に見た日本の対内直接投資の現状 Recent Cases Supported by JETRO (worldwide)

The monitoring software development company with HQ office in Riga, Latvia.

In October 2012, ZABBIX established a subsidiary “Zabbix Japan LLC” in Tokyo with an aim to expand sales and support channels in the Japanese market.

【JETRO’s Support】 Providing a temporary office space at JETRO Tokyo

IBSC Expert advice in company registration, local tax

consultancy, legal affairs and labor matters Introducing outsourcing companies

Zabbix SIA (Latvia)

With the brand concept of “Make Life One Long Weekend,” Tommy Bahama maintains an island-lifestyle apparel brand and runs more than 100 stores worldwide.

In April 2013, Tommy Bahama opened its first Japanese freestanding store in Ginza, Tokyo. It is the first store with a bar and a restaurant outside the U.S.

【JETRO’s Support】 Consultation on entering the Japanese market Information about import regulations Introducing some service providers in Japan

Tommy Bahama (United States)

Major French Pharmaceutical company headquartered in Paris.

In January 2013, Sanofi established its regional headquarters in Tokyo for its medical and pharmaceutical product business to manage the financing, human resources, strategies, and regulatory affairs in JPAC regions (Japan, Korea, Australia and NZ).

【JETRO’s Support】 Provided information on incentive and other support

programs. (Especially Subsidy Program for Projects Promoting Asian Site Location in Japan.)

Sanofi (France)

Mikado Kyowa is a member of Vilmorin & Cie group (France) and is a vegetable seed company.

In February 2013, Mikado Kyowa established its R&D center in Otaki Town, Chiba Prefecture. The R&D center will research and develop high quality seeds with resistance to diseases specially unique to Asia mainly for Tomatoes, Crucifer and Cucurbit vegetables.

【JETRO’s Support】 Provided information on incentive and other support

programs. (Especially Subsidy Program for Projects Promoting Asian Site Location in Japan.)

Mikado Kyowa Seed Co., Ltd. (France)

12

国際的に見た日本の対内直接投資の現状 Recent Cases Supported by JETRO (Czech Republic)

MORAVIA IT ELMARCO Ltd.

ZONER software

Provider of translation, localization, and testing services

Industry′s first and leading supplier of industrial scale nanofiber production equipment

Photo studio software

LOGIS JAPAN

INSTAR ITS JAPAN, Inc.

Provider of IS ENERGIS - global software tool for the support of energy management

Consulting and advisory company providing expert services and information technologies focused on improvement of the management quality and competitive strength

1. Business Matching Events

Business matching at the 4th International Smart Grid EXPO (February 26-

28, 2014, at Tokyo Big Sight)

Business matching (EU and Japan) at InnoTrans 2014 (September 23-26,

2014, Berlin, Germany)

2. Seminars and symposia to promote direct investment into Japan

Investment Symposium in London (Jan. 2014)

"Invest in Japan: A Regional Roadmap" - Japan Business Promotion

Seminar (May 1, 2014, in London)

"Polish Japanese Economic relations – the next 10 years" – Japan Business

Promotion Seminar (July 3, 2014, in Warsaw)

Czech Japanese Economic relations – Business nad Investment Promotion

Seminar (October 31, 2014, in Prague)

Seminars and Events for Investment Promotion in Japan

FY 2014

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

Ⓒ 2014 JETRO. All rights reserved.

JETRO Praha

Na Příkopě 1096/19

117 19 Praha 1

Czech Republic

Tel. +420 224 814 972, Fax. +420 224 813 998

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

JETRO Activities for Promoting Direct Investment in …...DSM Japan Engineering Plastics K.K. Netherlands R&D Site Nihon Cabot Microelectronics K.K. USA R&D Site NeoPhotonics Japan,