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Investing in Japan

Regional Information

Aichi

Aichi:Moving Forward to Global Prominence

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• Basic Information
• Regional Profile
• Services for investment in Japan
• Available incentives
• Living environment for foreigners
• Links to Related Websites

Basic Information

Population	7.37 million (Male: 3.7 million, Female: 3.67 million) (2008)
Labor force	4.88 million (Male: 2.52 million, Female: 2.36 million) (2008)
Area	5,116km² (2008)
GDP	36,723 billion yen (2006)
Major industries	Transport machinery, general machinery, iron and steel, electrical machinery, plastics
Developing industries	Aerospace, health and longevity, environmental and energy, quality of life (robotics, design, etc.)
Offices overseas	Paris (Shared office with JETRO)/San Francisco (Shared office with JETRO)/Shanghai (Shared office with JETRO)
Offices in Japan	Tokyo
JETRO office	JETRO Nagoya Nagoya Center Bldg. Annex 8F, 2-22, Nishiki, 2-chome, Naka-ku, Nagoya-city, Aichi Prefecture 460-0003 TEL: +81-52-211-4517 FAX: +81-52-202-0750 E-mail: nag@jetro.go.jp

Regional Profile

Strength of the region's industries and economy

Aichi Prefecture is located in almost the exact center of Japan, has a rich natural environment and an abundant workforce and human resources; all of this serves as a base for the well-balanced growth of industry, commerce and agriculture in the prefecture. In particular, Aichi has a particularly strong concentration of manufacturing-related companies, especially in the transport machinery industry (automobiles, airplanes, etc.); since 1977 until today, Aichi has maintained the No. 1 position in Japan in terms of the value of its total shipments of manufactured products. Among 24 industry sectors for which statistics are kept, Aichi is No. 1 in Japan for 11 of them. It boasts a gross production in excess of 315.7 billion dollars, surpassing Denmark in terms of economic scale.
Aichi is already home to more than 400 foreign-backed firms and continues to develop business activity. In 2005, the Central Japan International Airport was opened and the World Exposition (Aichi Expo) was held in the prefecture. These two events represent Aichi’s deepening commitment to cultural, human and information exchange with the world, to strengthening its central position globally in industrial technology, and to promoting an even strong concentration of industries within the prefecture.

Strength of the region's education/research institutes

Aichi boasts 49 universities (including Nagoya University, which is led by Nobel Prize winning Professor Ryoji Noyori), 27 junior colleges, 1 specialized vocational high school, and 226 high schools, all of which produce a large number of outstanding graduates. In particular, the number of graduates each year exceeds roughly 40,000 from the prefecture’s engineering-related graduate schools, universities, and junior colleges. Over the past 22 years, Aichi students have won 20 of the Team Awards for Outstanding Skill at the nation’s Skill Olympics; and it is this sort of outstanding human resources which are the driving force behind manufacturing in Aichi. Furthermore, Aichi is working to develop a “Knowledge Center” to serve as a core facility in knowledge creation (science and technology) which in turn is tied to the increasing sophistication and development of next-generation industries. This aim of this facility is to serve as an integrated research and development base by implementing comprehensive research initiatives centered on nanotech, biotech, IT and other research facilities, helping with everything from finding research topics to commercializing the results.
In addition, Aichi helps support corporate technological development through a concentration of national testing and research institutions, such as the Advanced Industrial Science and Technology Chubu Center; the Inter-University Research Institute Corporation National Institutes of Natural Sciences; and the National Institute for Longevity Sciences, NCGG; as well as the Aichi Industrial Technology Institute, the Japan Fine Ceramics Center and the research institutions of the prefecture’s various universities.

Industry-government-academia collaboration

Aichi Prefecture is making a focused effort through collaboration between industry, academia and government to promote the following growth areas and industries for the next generation and to strengthen the industrial clusters which exist in the prefecture.

1. Aerospace: Three leading aerospace companies have facilities in Aichi whose production value, when neighboring prefectures are included, totals 50% of the national share. These three companies are scheduled to produce 35% of the Boeing 787. Also, Mitsubishi Heavy Industries will establish Mitsubishi Aircraft in Nagoya and has begun developing MRJ (small-sized planes for inter-regional flights). In order to help further the aerospace industry concentration in Aichi, the prefecture has sponsored aerospace symposiums and technical lectures aimed at small to medium-sized companies in Aichi; secured land for attracting the flight research facility of the Japan Aerospace Exploration Agency to the prefecture; developed an “Aerospace Industry Promotion Vision”; and provided support for investigative research, research exchange, etc.
2. Health and Longevity: The Aichi Health and Longevity Industry Cluster Promotion Council (February 2008) is made up of 306 industry, academic and government bodies and serves as the driving force behind University, etc., research conferences, exchanges and societies as well as carries out actual utility verifications for regional businesses.
3. Environment and Energy: In order to incorporate the results of the Aichi Expo (theme: “Nature’s Wisdom”) into the prefecture’s industrial cluster, the “Aichi FCV Promotion Council” and the “Aichi Hydrogen Energy Industry Council” serve as the driving force behind information provision and institutional collaborations as well as carry out experimental studies in the area of fuel cells, establish and utilize technology support centers, undertake joint research between industry, academia and government, and perform research and development related to environmentally-friendly materials. In addition, they are working together with the New Energy and Industrial Technology Organization (NEDO) to build an experimentation center to carry on the work of NEDO’s regionally focused experimental studies into new energies and to help Aichi become a regional leader in new energies.
4. Quality of Life: Research groups composed of industry, academic and government bodies are a central force behind efforts to develop next-generation robots. They host symposiums, carry out research and, through prefectural research institutions, perform research and development for assisted-living robots and provide support for the introduction of environmentally-friendly production systems.

Strength of the region's infrastructure

Aichi Prefecture is located along the sea in the center of Japan (in between Tokyo and Osaka). Because of this it has long been a strategic point of contact between the eastern and western halves of Japan and is at the center of the country’s transportation network. The Tomei, Meishin, Chuo, Tomeihan and other expressways run through the prefecture, and it has an extensive rail system which includes a shinkansen (bullet train) line. As for sea lanes, Aichi is home to Port Nagoya, which handles the largest volume of freight of any port in Japan, and Port Mikawa, which handles the largest volume of automobile imports. Furthermore, in February 2005 the Central Japan International Airport was opened. It is easily accessible from the city center, is convenient transit point for domestic flights and is a key gateway to overseas. Aichi has also long been renowned for its abundant nature and water which has helped it remain a bustling agricultural and forestry area. It is No. 1 in Japan in agricultural production for a number of products, such as cabbage and flowers and ornamental plants, and its overall agricultural production is 5th in Japan. Aichi also has a long history in the ceramics and textile industries, maintaining a key concentration of related companies and organizations.

<Land>

The Tomei, Meishin, Isewangan, Chuo, Tomeihan, Tokai-Hokuriku, Tokai-Kanjo and other expressways run through the prefecture, and Aichi serves as the meeting point of eastern and western Japan on National Route 1 – a major transportation artery. Aichi is, therefore, a key region for ground transport in Japan. In addition, work is progressing on the 2nd Tomei and Meishin Expressways and the Tokai-Kanjo Expressway, which will serve to make access even more convenient.

<Air>

Aichi features the Central Japan International Airport, which can be reached in approximately 30 minutes from the city center, offers a full network of domestic and international flights, and is the first airport in Japan to be a comprehensive bonded area. There is also the prefecturally-administered Nagoya Airport, which serves as a full-scale transportation hub for small airplanes, providing commuter flights, international business flights and more. Combined, these facilities enable Aichi to meet a diverse demand for air travel.

<Sea>

The major ports in Aichi are Port Nagoya, Port Mikawa, and Port Kinu-ura. Port Nagoya is Japan’s No. 1 port in terms of trade and freight volume and has been designated as a “Super Central Port” due to it being one of the top international ports worldwide. Port Mikawa is Japan’s No. 1 port in terms of automobile imports and is a key hub linking Japan with countries overseas.

<Railway>

With Nagoya Station at its center, Aichi provides access to every region in Japan via its radial network of train lines, including the Tokaido shinkansen (bullet train) line (which provides access to Tokyo in approximately 90 minutes and Osaka in approximately 50 minutes), the JR Tokaido line, Chuo main line, Kansai main line, the Nagoya Railroad, and Kinki Japan Railroad. Also, the city of Nagoya offers a full range of public transportation, including Japan’s first circularly arranged subway system, to provide speedy access throughout the city.

Foreign company(s) operating in the industry

Aichi is home to corporate facilities for 433 foreign firms, 49 of which are headquartered in the prefecture (as of 2007)

1. Major companies headquartered in Aichi

2. Companies with manufacturing plants or research facilities in Aichi

Company name	Doerken Japan K.K.
Industry sector	Industrial corrosion control coating sales and service
Date of entry	Japanese corporation established January 2007
Motivation for selecting region	Active support through such means as information provision by local governments, JETRO and support organizations; prompt response to consultation matters; etc. A concentration of industries, such as the automotive industry Centrally located in Japan and provides easy access nationwide
Support provided by local government or JETRO	Human resources information Provides an investment environment, regional information Support measures, such as expansion support subsidies, etc.
Comments	Doerken’s expansion into Japan stemmed from a business promotion visit by Aichi Governor Kanda in November 2003 to top seller Doerken MKS Systems in Herdecke, Germany. Doerken, a developer and manufacturer of industrial-use corrosion prevention coatings mainly for the automobile industry has been expanding overseas since 2000 and had been long considering expanding into Japan’s automotive industry cluster. Following the Governor’s visit, Doerken received support from Aichi Prefecture, JETRO, and the Aichi-Nagoya International Business Access Center regarding the active investment environment, the direction of Japan’s automobile industry, information on human resources and help with market research, all of which helped demonstrate the region’s enthusiasm at having Doerken expand into Aichi. During this time the CEO and key directors visited Japan numerous times to discuss their proposed expansion into Japan; and after assessing the local enthusiasm at having Doerken, the local concentration of industry, the geographical advantages offered by Aichi, and the ability to secure qualified human resources locally, the decision was made to expand into Japan, with incorporation taking place in January 2007 in Nagoya City’s Naka Ward. In May of the same year the CEO of Doerken visited Japan and participated in a press conference and establishment ceremony organized with the help of related organizations. Since the 1980s, Doerken has been developing and providing environmentally-friendly coatings that include no chrome, and they continue to provide ever more technologically advanced products. The company’s business development plan is to secure a 30% share within five years. (Doerken Japan Co., Ltd.;　President and Representative Director: Chihiro Yasuda)

Company name	Inside Japan Tours Ltd.
Industry sector	Travel
Date of entry	November 2006
Motivation for selecting region	(1) The company founder had lived in Aichi Prefecture and was familiar with the Nagoya area. (2) Aichi is well located between the main tourist destinations of Tokyo and Kyoto. (3) Costs can be kept below what they would be in Tokyo.
Support provided by local government or JETRO	(1) JETRO Nagoya introduced them to an administrative scrivener, etc. (2) Subsidies were provided by the Nagoya city office.
Comments	While it may be anomalous for an overseas travel company to set up its base of operations in Nagoya, Inside Japan Tours saw no need to establish itself in Tokyo because most of its business is conducted over the Internet. Rather, because it is located in between Tokyo and Kansai (Kyoto), it is approached by hotels and other tourism-related businesses, etc., from both regions, turning its geographical location into a positive factor.

Company name	Cadence Innovation LLD
Industry sector	Automotive part manufacture and sales
Date of entry	October 2006
Motivation for selecting region	The location is ideal in that it allows Cadence Innovation to transact business with Toyota, Honda, Mitsubishi and other major Japanese automobile and related parts manufacturers.
Support provided by local government or JETRO	I-BAC was the organization initially contacted and it was able to provide comprehensive information on offices and local government preferential treatment policies. JETRO introduced the company to English-speaking tax accountants, attorneys and others when they were establishing their office. Cadence Innovation was able to be housed in the IBSC until their own offices were completed.
Comments	Because this area is full of automobile and parts manufacturers, there is a great demand for English-speaking, skilled engineers proficient in the use of CAD, and it is hard to secure enough human resources. If greater effort is put into human resources development, Aichi and Nagoya will only become more desirable as corporate locations. The once a year “Foreign Firm Network Conference” held by I-BAC for companies already established in the region is an invaluable opportunity to acquire a variety of information and to exchange ideas and opinions with other companies.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Advice on market participation	No	Consultations and information provision by the Aichi-Nagoya International Business Access Center (I-BAC)
Consulting by external experts and advisers	No	Introduction from I-BAC to internationally-experienced law offices, accounting offices, etc.
Arranging appointments with potential customers and partners	No	Consultations, information provision and introductions to specialized institutions by I-BAC.
Support for establishing a base
Monitoring surveys (evaluation of products and services)	No	Consultations, information provision and introductions to specialized institutions by I-BAC.
Listing of potential customers and partners	No	Information provision through I-BAC, utilizing the network of established local companies and related organizations. Information provision also from other support organizations.
Listing of potential customers and partners	No	Information provision through I-BAC, utilizing the network of established local companies and related organizations. Information provision also from other support organizations.
Support for establishing a base
Providing incubation facilities or other facilities	No	Information provided from I-BAC on available facilities in Aichi.
Providing incubation facilities or other facilities	No	Consultations, information provision and introductions to specialized institutions by I-BAC.
Providing information on procedures for investing in Japan	No	Consultations and advice provided by I-BAC on licensing and other procedures. For specialized areas, companies are introduced to specialists and support companies.
Arranging the meetings needed to establish a base (real estate, manpower services)	No	Consultations and advice provided by I-BAC. For specialized areas, companies are introduced to specialists and support companies.
Introduction of available properties and advice on hiring personnel	No	Consultations and advice provided by I-BAC. For specialized areas, companies are introduced to specialists and support companies.
Providing information on permits and licensing procedures	No	Consultations and advice provided by I-BAC. For specialized areas, companies are introduced to specialists and support companies.
Providing information on subsidy programs	No	Consultations and information provision by I-BAC.

Support service

The Aichi-Nagoya International Business Access Center (I-BAC) offers foreign firms thinking of expanding into the Aichi/Nagoya area with the following services free of charge.
(1) Provides a variety of information about Aichi and Nagoya
(2) Provides information on business partners
(3) Provides information on incentives
(4) Provides information on locating sites for offices and factories
(5) Provides information on the transportation infrastructure
(6) Provides human resources information
(7) Provides daily living information, such as housing, education and medical care
(8) Provides consultations and advice on licensing and other procedures related to expansion into the area
(9) Introduces specialists and support companies

Database of candidate partners

• List of Aichi Quality companies
  

  The primary driving force behind Aichi’s vigorous, nationally recognized manufacturing industry is the sincere and hardworking effort that goes into it.And amongst the manufacturing companies that support Aichi’s manufacturing industry are some which are certified as “Aichi Brand Companies” for their excellence which helps promote Aichi manufacturing to Japan and the rest of the world. “Aichi Brand Companies” are all companies with world-class products and technology, distinctive management principles and unique strengths. 228 companies were certified “Aichi Brand Companies” between 2003 and 2007, and straightforward outlines, major products and core competences of these companies will be provided.

• GNI（Greater Nagoya Initiative) Partners Club
  

  GNI actively works to promote partnerships between overseas companies and Japanese companies, universities, research institutions, etc., in the greater Nagoya area.The GNI Partners Club run by GNI supports the goal of GNI and is made up of approximately 400 companies, universities, research institutions, etc., in the greater Nagoya area that wish to partner with overseas companies.
  
  <Support for Local Member Companies>
  Various support is provided in introducing local firms about which foreign firms have expressed an interest and in providing specific business matching. Consultations are provided for business transactions between local companies and foreign companies (for specialized consultations, such as international law or accounting issues, specialists will be introduced).English language informational materials containing business information about Aichi is provided for business presentations made overseas.Introductions are provided during overseas PR.Consultations are provided regarding regulations, etc., involved in business transactions with overseas companies.

Available incentives

1. Aichi-Nagoya International Business Access Center (I-BAC) (introduced under “Support Services” above) provides free, speedy, ‘one-stop service’ relating to markets, clients and business partner candidates, support measures, offices and factories, transportation and other infrastructure, human resources, housing, education and medical care, and licensing and other related procedures.
2. Foreign firms moving into Aichi for the first time can receive subsidies from Aichi Prefecture and Nagoya City to help with preparation expenses (translation fees, labor recruiting costs, etc.) and office rental costs.

• Aichi Incentive

Living environment for foreigners

Living environment	Abundant nature: Northern Aichi has mountains more than 1,000m above sea level while Owari and Mikawa have flat plains; water abounds with rivers, the Pacific Ocean, and the Sea of Japan (along which are found Port Ise and Mikawa); and Aichi offers an abundance of nature touched by four distinct seasons. Culture: Aichi has a large number of cultural facilities, including the Aichi Arts Center, which offers music, art and drama; a hall for Noh performances; and the Tokugawa Art Museum. In addition, the different regions in the prefecture offer a wealth of inspiring and beautiful traditional festivals. Also, there are a number of cultural, etc., exchange facilities, such as the Nagoya Congress Center which features many international conferences. History: Aichi allows visitors and residents to experience a tremendous historical legacy which includes such pivotal figures as Oda Nobunaga, Toyotomi Hideyoshi, and Tokugawa Ieyasu. Industrial Legacy: Aichi has a long legacy of industrial and production technologies which is showcased in facilities, such as the Commemorative Museum of Industry and Technology, which explore the roots and innovators of manufacturing. Living Convenience and Cost: Compared with Tokyo and Osaka, housing and other living costs are lower while shorter commute times, etc., allow for a more fulfilling life. For more details: A wealth of information about Aichi can be obtained free of charge from the Aichi International Association and other organizations that cater to non-Japanese.
International schools	Aichi Prefecture offers an established, well-known international school. Name: Nagoya International School Location: Nagoya City, Moriyama Ward Established: 1964 Open to: children from kindergarten through high school No. of Students: 340 Language: English (a WASC and IB accredited school)
Health services catering to foreigners	Aichi offers more than 2,500 medical facilities able to accommodate foreign languages, making Aichi a convenient and safe place for non-Japanese speakers to live. Search by correspondent language
Other	The Medical Information Center Aichi, located in the Nakamura Ward of Nagoya, offers free medical consultations to foreigners.

Links to Related Websites

• Aichi Prefectural Government
• The Land og Innovation
• Aichi Investment Support Office
• Aichi International association

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