Investing in Japan
Regional Information
Nagasaki
“Everything you need, fully in place! Just show up in Nagasaki to launch a second business!”
- Your Regional Guide: Makoto Akaiwa
Inquiry form
The Foundation of Encourage Nagasaki Industry
Dejima Koryu Kaikan Building 6F, 2-11 Dejima-machi, Nagasaki-city, Nagasaki Prefecture 850-0862
TEL: +81-95-820-8890 FAX: +81-95-827-5243
- Basic Information
- Regional Profile
- Services for investment in Japan
- Available incentives
- Living environment for foreigners
- Links to Related Websites
Basic Information
| Population | 1.44 million (2008) |
|---|---|
| Labor force | 0.73 million (2004) |
| Area | 4,095km² (2005) |
| GDP | 4,351 billion yen (2004) |
| Major industries | Shipbuilding, general machinery, electronic parts, fisheries, tourism, ceramic |
| Developing industries | Environment/energy-related industry, welfare/medical treatment-related industry, telecommunications-related industry |
| Offices overseas | Shanghai (China) |
| Offices in Japan | Tokyo Center for Business Promotion |
| JETRO office | JETRO Nagasaki |
Regional Profile
Strength of the region's industries and economy
During Japan’s long period of national seclusion, Nagasaki Prefecture was the only official gateway open to the West. The influences of Western culture, which were to play such a key role in the modernization of the Japanese state, were brought in by the Dutch (who were only permitted to land in Nagasaki) and subsequently spread throughout Japan.
Nagasaki has developed a solid foundation for “manufacturing,” including the Nagasaki Shipyard of Mitsubishi Heavy Industries (one of the world’s premier shipbuilders), Sony Computer Entertainment (producer of some of the world’s leading semiconductors now used in the PlayStation videogame system) and other powers.
In the telecommunications field as well, a cluster of several companies has already formed in Nagasaki, including a call center base and back office functions of the U.S.-headquartered American International Group (AIG), a globally renowned insurance and financial group. In addition to manufacturing, the prefecture’s rich agricultural resources, the prosperous fisheries industries supported by Japan’s second longest seacoast and other advantages make Nagasaki a virtual resource treasure house for food-related companies.
Strength of the region's education/research institutes
Serving the approx. 1.5 million residents of Nagasaki Prefecture are 14 in-prefecture universities, 12 technical junior colleges and other technical schools, a considerable number of industrial high schools known for graduating highly trained students and other institutions that support impressive local manpower resources. The prefecture also contains the Nagasaki Prefectural Institute for Environmental Research and Public Health, the Industrial Technology Center of Nagasaki, the Ceramic Research Center of Nagasaki, Nagasaki Prefectural Institute of Fisheries, Nagasaki Agriculture and Forestry Experiment Station, Nagasaki Fruit Tree Experiment Station, Nagasaki Prefectural Livestock Experiment Station and other testing and research institutions that spearhead original R&D, joint research with numerous different companies and other programs.
Industry-government-academia collaboration
- Marine industry clusters: A number of major shipbuilders have located to Nagasaki, with a large presence of related businesses and other factors qualifying this as one of the world’s top-caliber shipbuilding strongholds. The prefecture also ranks as one of Japan’s leading bases for the fisheries industry (collaborations with universities, national technical colleges, advanced technical colleges, prefectural research institutes and other research and educational institutes are used to heighten corporate technical prowess in this area).
- Promotion of environment and new energy industries: In order to develop the environmental business in a means that mobilizes Nagasaki’s strengths, new projects are being forged in new energy, environment cleanup and creation, resource recycling and related fields to both create and cultivate environment-related industries. Being advanced with particular vigor is a new type of photovoltaic power generation for which the approach is focused on prominent local companies and other renewed local clustering of environment and new energy industries.
- Promotion of information and electronics industries: A concentration of semiconductor-related companies is advancing in the central part of the prefecture, with this powering efforts to foster semiconductor-related industries matched to the region’s industrial structure in the interest of both cooperation with and differentiation from other regions. The clustering of call centers, back offices and other telecommunications industry functions is underway here, with the focus on Nagasaki City and Sasebo City.
- Automobile industry clustering: Targeting the formation of bases to supply parts to the complete vehicle automakers active in Kyushu, programs are being advanced to both promote local companies in the prefecture and attract new advances by related industries.
Strength of the region's infrastructure
- The main ports are Nagasaki Port, Sasebo Port, and Izuhara Port, which handle 380 billion yen in trade annually (2005; export: 240 billion yen; import: 140 billion yen). Nagasaki Port offers cargo liner service once per week between Nagasaki and Pusan. ・A passenger liner connecting Tsushima (Izuhara Port, Hitakatsu Port) with Pusan operates five to six times per week, and is used by a total of 76,000 people annually.
- Located in the center of the prefecture, Nagasaki Airport is utilized every day by about 100 domestic flights, and offers six regular overseas flights weekly (one round-trip flight to Shanghai and two round-trip flights to Seoul). The airport handles 564.9 billion yen in trade annually (2007; export: 368 billion yen; import: 196.9 billion yen).
<Land>
The motor expressway system serving the Fukuoka district and other key bases of Kyushu has grown extremely advanced, ensuring efficient overland transport. The expressway network in Nagasaki Prefecture has also been enhanced to furnish more reliable travel, resulting in ready access from most points in the prefecture to the major cities of Nagasaki and Sasebo, Nagasaki Airport and the various ports.
<Air>
Nagasaki Airport, the world’s first offshore airport, is located in the central area of Nagasaki Prefecture. The facility boasts a truly extensive range of flight service, including 11 domestic routes (Tokyo, Osaka, Nagoya, etc.) and 2 international routes (Shanghai and Seoul).
<Sea>
The prefecture’s leading ports are Nagasaki Port, Sasebo Port and Izuhara Port. Nagasaki Port maintains regular route between Nagasaki and Pusan (one passage weekly). There is also regular passenger service linking Tsushima and Pusan, with vessels making 5 to 6 passages weekly.
<Railway>
Utilizing Japan Railways (JR) provides ready access from Nagasaki to the main cities in other prefectures. The decision has also been made to launch construction on the Nagasaki Shinkansen, which will further enhance access to destinations both within and outside of the prefecture in the near future.
Foreign company(s) operating in the industry
The American International Group (AIG), a globally renowned insurance and financial group, has located its call center and back office functions in Nagasaki, with several other foreign firms also advancing business operations to the prefecture.
One of the key reasons cited for the decision to locate in Nagasaki is the supply of outstanding human resources. For example, serving the 1.5 million residents of Nagasaki Prefecture are 14 in-prefecture universities, 12 technical junior colleges and other technical schools and a considerable number of industrial high schools that graduate highly trained students.
Examples of foreign companies advancing to Nagasaki Prefecture: Yashiki-Trienekens Co., Ltd., (mercury, glass, metal), Geotechtor Japan Inc.(ground strong agent), Shin-Etsu Quartz Products Co., Ltd. (quartz glass products), AIG Star Insurance Co., Ltd., (call center, back office), AIG Edison Life Insurance Company (call center, back office), American Life Insurance Company (call center, back office)
| Company name | American International Group, Inc |
|---|---|
| Industry sector | Insurance, financing service |
| Date of entry | 2001 |
| Motivation for selecting region | Plentiful supply of highly-skilled human resources. Highly talented workers can be hired at a very reasonable cost. |
| Support provided by local government or JETRO | Various types of information concerning business advances (infrastructure, etc.), detailed support for recruiting personnel. |
| Comments | Guide for locating in Nagasaki: Refer to Nagasaki Prefecture Company Recruiting Guide- “We Chose Nagasaki” The AIG Group. |
Services for investment in Japan
| Menu of services | Fees charged? | Content of services |
|---|---|---|
| Providing market information | ||
| Advice on market participation | No | The Nagasaki Industrial Promotion Foundation plays a key role in furnishing companies expanding to Nagasaki with lists of customers matched to their particular industries and names of companies viewed as potential partners, while also providing support in finding good matches. |
| Consulting by external experts and advisers | Yes | The prefecture provides complimentary consultation services to the greatest extent possible. When the need arises, however, screening and introductions will also be arranged to highly reputable legal offices, tax accountants, patent offices and other outside experts and advisors. |
| Arranging appointments with potential customers and partners | Free (In some cases, charged) | Customized market reports will be prepared free of charge for companies expressing the volition to invest in Nagasaki Prefecture (fees will be charged in cases that require outsourcing to external institutions in order to gather more specialized information). |
| Support for establishing a base | ||
| Monitoring surveys (evaluation of products and services) | Yes | Nagasaki Prefecture and the Nagasaki Industrial Promotion Foundation furnish support for monitoring studies. |
| Listing of potential customers and partners | No | The networks of companies, universities, research institutes and other entities establishing bases in the prefecture are regularly harnessed to provide introductions. Cooperation with other support organizations is also mobilized to supply pertinent information. |
| Listing of potential customers and partners | No | Responsibilities are assumed for booking appointments with the companies on the aforementioned lists. |
| Support for establishing a base | ||
| Providing incubation facilities or other facilities | Yes | Startup offices inside the prefecture supplied at cut-rate prices. |
| Providing incubation facilities or other facilities | No | Supplied by the Nagasaki Industrial Promotion Foundation. |
| Providing information on procedures for investing in Japan | No | Supplied by the Nagasaki Industrial Promotion Foundation. |
| Arranging the meetings needed to establish a base (real estate, manpower services) | No | Supplied by the Nagasaki Industrial Promotion Foundation. |
| Introduction of available properties and advice on hiring personnel | No | Supplied by the Nagasaki Industrial Promotion Foundation. |
| Providing information on permits and licensing procedures | No | Supplied by the Nagasaki Industrial Promotion Foundation. |
| Providing information on subsidy programs | No | Supplied by the Nagasaki Industrial Promotion Foundation. |
Support service
The Nagasaki Industrial Promotion Foundation assumes responsibilities for furnishing assistance to overseas companies and foreign-owned businesses studying possible investment in Nagasaki Prefecture. Useful information and advice on the wide range of required procedures, real estate, potential technical tie-up partners (universities, companies) and other aspects of such ventures is supplied on a complimentary basis. In addition to this, sustained and detailed services will also be provided to assist in the procedures and incentives pertinent to locating business operations in Nagasaki, along with support for hiring personnel and other follow-up needs of companies advancing to the prefecture.
Database of candidate partners
- Nagasaki Industry Information,The Foundation of Encourage Nagasaki Industry
<Business-to-business transaction introductions and referrals>
Arrangements are made for company visits and individual business meetings, prospective orders to be issued are identified through surveys of order needs, orders to be issued are introduced and referred to companies with bases in the prefecture and other steps are adopted to support expanded transactions and market development. Along with this, collaboration with organizations that support small and medium-sized enterprises throughout Japan is mobilized to facilitate speedy wide-area business transaction referrals, supply useful company information and provide other services. Specifically, these services span ordering information collection and supply, support for visits to prospective order issuing companies both inside and outside the prefecture, sponsoring of business partner matching fairs and other efforts.
Available incentives
- Subsidy system for investment, etc.: Per-project subsidy maximum of 3 billion yen (subsidy rate rises proportional to employment scale).
- Original finance options
New Dejima Dream Fund: Per-project maximum of 100 million yen, underwriting of unsecured/non-guaranteed corporate bonds.
- Low-interest financing: Access to low-interest financing system offered by Nagasaki Prefecture. Per-project financing 200 million yen (up to 5 million yen with special approval).
- Reduction of initial costs: Land rentals, leased plants (for industrial complexes with good location conditions, leasing through fixed-term business use land leaseholds for 10 to 20 years, proposals for customized leased plants, supplies of information on private sector plant vacant at present).
- Installment sales, leases
For machinery and equipment, underwriting of up to 60 million yen per project.
Operating leases may also be used to lower leasing charges.
Living environment for foreigners
| Living environment | Nagasaki Prefecture flourishes as a renowned tourist destination, supported by an impressive array of sightseeing facilities, sites of historical interest, vacation resorts and other tourist draws stretching throughout the prefecture. Having developed outstanding air route and expressway networks, Nagasaki likewise provides strong supports for corporate activities and the daily lifestyles of the people who work and live there. Another outstanding attraction is the prefecture’s nearly total absence of earthquakes (unique in the earthquake prone nation of Japan). The Nagasaki region also has one of the lowest crime rates in Japan, an indication of its ability to supply secure residential and general living environments. At present, about 5,000 non-Japanese businesspersons, researchers and students reside in the prefecture. Nagasaki also contains Kyushu’s only private university specializing in foreign language, with the foreign language education level of the prefecture as a whole quite high. |
|---|---|
| International schools | There is an English-language education school located inside the U.S. Naval Base at Sasebo. |
| Health services catering to foreigners | The prefecture contains a total of 2,341 hospitals, including the National Hospital Organization Nagasaki Medical Center, Nagasaki University |
Links to Related Websites
