Investing in Japan

Regional Information

Hiroshima

Gateway to the Japanese market

Your Regional Guide: Yasunori Ishii

Hiroshima Pref. Concierge

International Business Office
10-52 Moto-machi, Naka-ku, Hiroshima-city, Hiroshima Prefecture 730-8511
TEL: +81-82-222-0207 FAX: +81-82-222-5521

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

Basic Information

Population	2.87 million (Male: 1.39 million, Female: 1.48 million) (2007)
Labor force	1.85 million (Male: 0.92 million, Female: 0.93 million) (2006)
Area	8,479km² (2007)
GDP	11,999 billion yen (2005)
Major industries	Transport machinery, iron & steel, electric machinery, general machinery, food products
Developing industries	Environment, medical care/welfare, biotechnology, information & communications, nanotechnology
Offices overseas	Shanghai (Operated by a foundation funded by Hiroshima Prefecture)
Offices in Japan	Tokyo/Osaka
JETRO office	JETRO Hiroshima Hiroshima Chamber of Commerce & Industry Bldg. 4F, 5-44, Moto-machi Naka-ku, Hiroshima Prefecture 730-0011 TEL: +81-82-228-2563 FAX: +81-82-228-2596 E-mail: hir@jetro.go.jp

Regional Profile

Strength of the region's industries and economy

Hiroshima Prefecture, often called a “microcosm of Japan” because of how closely it tracks nationwide averages in population distribution and other socioeconomic indicators, is utilized by many companies as a test market for the Japanese market and thus plays a part in the development of a variety of new products. “Success in Hiroshima means success in the Japanese market.” As a gateway to the Japanese market, Hiroshima Prefecture offers the optimum environment for your business.
In addition to boasting some of the highest production levels in Japan for iron & steel, lumber and wood products, automobiles and shipbuilding, Hiroshima Prefecture in recent years has seen an agglomeration of cutting-edge technologies such as electronic devices, electronic components, and information & communications equipment and has developed as a production mall featuring a wide variety of companies and technologies.

Strength of the region's education/research institutes

Hiroshima University, a national university, and other universities in Hiroshima Prefecture are engaged in comprehensive research in support of industry as well as in pioneering research and technology development in biotechnology and other life science fields, nanotechnology, materials, and information & communications; they are also involved in training researchers and engineers responsible for future technology development.The Hiroshima Central Science Park adjacent to Hiroshima University comprises the Hiroshima Techno Plaza, a facility supporting efforts to enhance industry in the prefecture, and a concentration of research organizations such as the National Research Institute of Brewing and institutions promoting industry-academia-government collaboration. The Park hosts R&D efforts as well as personnel/academic exchange.

Industry-government-academia collaboration

Hiroshima Prefecture is home to numerous companies, from local enterprises to high-tech corporations, possessing world-class proprietary technologies in their fields of expertise, and to concentrations of valuable technologies, know-how and personnel in a diversity of fields.
Utilizing these exceptional personnel, technology, know-how and other industrial resources as well as the research results of intellectual cluster creation projects, Hiroshima Prefecture is seeking to create new businesses and new industries connected with next-generation industries centered on automotive and biotechnology fields and with recycling/environmental industries.
The Hiroshima Technology Licensing Center, operated jointly by the Hiroshima Industrial Promotion Organization and Hiroshima University, is collaborating with 11 science and engineering universities in the prefecture to provide a full range of support, from the creation and discovery of intellectual property to technology transfer and commercialization.

Strength of the region's infrastructure

Hiroshima Prefecture has well-developed ground, sea and air transportation infrastructure, making possible rapid access to all parts of Japan. Two of the prefecture’s airports – Hiroshima Airport and Hiroshima Nishi Airport – connect Hiroshima with the major cities of Asia. Shinkansen lines pass east-west through the prefecture, while expressways run to various destinations in all directions. The ports of Hiroshima and Fukuyama offer regular container service, making them immensely suitable as bases for domestic and international logistics.

<Land>

There are four arterial expressways that run the length and breadth of the prefecture, enabling companies to undertake industrial activities that span not only the Chugoku Region but also the zone extending from the Kyoto-Osaka-Kobe area to Kyushu.

<Air>

Flights are available to Beijing, Dalian, Shanghai, Seoul, Hong Kong, Taipei, Bangkok and Guam, serving more overseas destinations than other airports in the Chugoku and Shikoku Regions. There are 15 round-trip flights to Tokyo each day.

<Sea>

The ports of Hiroshima, Kure, Fukuyama, and Onomichi Itozaki have been classified as designated or specially-designated ports, and the ports of Hiroshima and Fukuyama operate as international trade ports, with regular container service to/from South Korea, Taiwan, China, etc.

<Railway>

The Sanyo Shinkansen Line (5 stations) runs east-west across the prefecture, and Nozomi trains travel from Hiroshima Station and Fukuyama Station directly to Tokyo and other major cities.

Foreign company(s) operating in the industry

Nearly 200 foreign companies have set up operations in Hiroshima Prefecture, with several dozen of these locating the head offices of their Japanese subsidiaries in the prefecture. Many companies have also established manufacturing bases here.

Company name	SCHILLER JAPAN
Industry sector	Cutting-edge cardiovascular medical equipment manufacturer
Date of entry	August 2004
Motivation for selecting region	Collaboration with Hiroshima University, known for having some of Japan’s leading cardiovascular researchers. Local government support programs for the approval of medical equipment etc.
Support provided by local government or JETRO	Support for collaboration with research institutes and researchers. Provision of facilities for use in establishing business locations.
Comments	When moving into Hiroshima, we were introduced to some of Japan’s leading cardiovascular researchers, with whom we worked on the joint development of medical equipment. We also enjoyed support tailored to our needs, including support pertaining to facilities in which to base an office and to regulations on the sale of medical equipment.

Company name	BioGaia Japan Inc.
Industry sector	Manufacturing and sales of nutritional supplements using lactic acid bacteria, etc.
Date of entry	August 2006
Motivation for selecting region	Concentration of cutting-edge industries and robust industry-academia-government collaboration. Local government support programs, including subsidies for establishing business locations and mediation with local companies, universities, etc.
Support provided by local government or JETRO	Rent subsidies for the establishment of business locations Assistance in expanding sales channels
Comments	A major attraction of Hiroshima is its agglomeration of cutting-edge industries and robust industry-academia-government collaboration. In addition, the prefectural government helped in coordinating with relevant organizations, offered subsidies for office rent, and mediated with local companies and universities.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Advice on market participation	No	The International Business Office provides one-stop support.
Consulting by external experts and advisers	Yes	The International Business Office offers introductions suited to corporate needs.
Arranging appointments with potential customers and partners	Yes	The International Business Office offers introductions suited to corporate needs.
Support for establishing a base
Monitoring surveys (evaluation of products and services)	Yes	The International Business Office offers introductions suited to corporate needs.
Listing of potential customers and partners	No	The International Business Office provides one-stop support.
Listing of potential customers and partners	No	The International Business Office offers introductions suited to corporate needs.
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Venture Village Hiroshima: free rent during first fiscal year (companies are still liable for common service charges, utility charges, deposit money, etc.) for venture companies Core Creation Incubation Room: 2100 yen/m2 monthly; for new companies and companies expanding into new areas of business
Providing incubation facilities or other facilities	No	The International Business Office offers introductions suited to corporate needs.
Providing information on procedures for investing in Japan	No	The International Business Office offers introductions suited to corporate needs.
Arranging the meetings needed to establish a base (real estate, manpower services)	No	The International Business Office offers introductions suited to corporate needs.
Introduction of available properties and advice on hiring personnel	No	The International Business Office offers introductions suited to corporate needs.
Providing information on permits and licensing procedures	No	The International Business Office offers introductions suited to corporate needs.
Providing information on subsidy programs	No	The International Business Office offers introductions suited to corporate needs.

Support service

Offering consultations on investment and business in Hiroshima, the International Business Office provides order-made support suited to the needs of individual companies, such as collecting information on staff hiring, searching out possible office locations, and introducing potential customers.

Database of candidate partners

World company in Hiroshima "Only-one, Number-one Company"

Introduces companies that handle unique products or possess unique technology or that hold top shares (in production, sales, etc.) domestically or overseas.

Information on about 1700 companies with offices in Hiroshima Prefecture can be searched by location, industry sector, keyword, etc.

Available incentives

Among the incentives in place are start-up support and factory location incentives for foreign companies via corporate location promotion incentive programs, subsidy programs for purchases of land, building and equipment (maximum of 1 billion yen), and financing programs.

Subsidies for new plants: subsidies for land purchases and real estate acquisition tax (in prefecture-run industrial complexes only) and equipment subsidies in connection with factories, distribution, laboratories, and software (certain cities and towns have their own subsidy programs)
Contract programs: programs for installment payments and fixed-term leases of land for business use
Discount programs: discounts on land in prefecture-run industrial complexes
Financing programs: programs for providing up to 500 million yen in financing to manufacturing companies
Foreign company office rent subsidies: subsidies for six months’ office rent (maximum of 1.2 million yen) provided to companies establishing their first offices in Hiroshima Prefecture

Support & Incentives Hiroshima Prefecture

Living environment for foreigners

Living environment	Hiroshima Prefecture has a rich natural bounty, highlighted by the 108 islands dotting the Seto Inland Sea and the seasonal beauty of the mountains of the Chugoku region. At the same time, the prefecture offers sophisticated urban functions, a wide spectrum of tourism and leisure attractions, and a plethora of foods; residents can thus enjoy fulfilling lives in terms of housing, education, leisure, cuisine, etc. Consumer price indices are lower than those in Tokyo, Osaka, Nagoya and other major cities and, with average land prices below the nationwide average, Hiroshima Prefecture has good land available inexpensively.
International schools	The Hiroshima International School provides pre-school, elementary, junior high, and senior high school education to foreign and Japanese children aged 3 to 18 through an international baccalaureate curriculum, and the YMCA International Kindergarten offers English-language instruction.
Health services catering to foreigners	A medical service website allows visitors to search in 10 major languages (English, Chinese, etc.) for hospitals in the prefecture capable of dealing with patients speaking foreign languages. Emergency Medical Care Net HIROSHIMA
Other	The Hiroshima International Center provides interpretation in multiple languages and has a “General Consultation Desk for Foreign Residents” to offer information on visas, social insurance, working conditions, etc.