Investing in Japan

Regional Information

Okinawa

Cornerstone of East Asia. Support for advancing companies with Japan's most extensive tax break measures.

Your Regional Guide: Satoru Motonaga

Okinawa Pref. Concierge

Industrial Site Promotion Division, Department of Tourism, Commerce & Industry
1-2-2 Izumizaki, Naha-city, Okinawa Prefecture 900-8570
TEL: +81-98-866-2770 FAX: +81-98-866-2846

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

Basic Information

Population	1.37 million (Male: 0.67 million, Female: 0.7 million) (2007)
Labor force	0.62 million (Male: 0.36 million, Female: 0.26 million) (2007)
Area	2,274km²
GDP	3,745 billion yen (2004)
Major industries	Tourism, agriculture/fisheries, civil engineering/construction, petroleum, and wholesale/retail
Developing industries	Finance/data communications, health foods, processing/commerce, agriculture/fisheries, and tourism
Offices overseas	Taipei/Hong Kong/Shanghai
Offices in Japan	Tokyo/Osaka/Nagoya city, Aichi Prefecture/Fukuoka city, Fukuoka Prefecture
JETRO office	JETRO Okinawa Okinawa Industry Support Center 609, 1831-1, Oroku, Naha-city, Okinawa Prefecture 901-0152 TEL: +81-98-859-7002 FAX: +81-98-859-7456 E-mail: oki@jetro.go.jp

Regional Profile

Strength of the region's industries and economy

Okinawa Prefecture enjoys a highly favorable natural environment characterized by a subtropical maritime climate, along with a unique culture and history and other charismatic tourist and resort resources. It ranks as the nation's largest marine resort region, attracting over 5.6 million tourists annually from both Japan and abroad.
In addition, with Okinawa featuring the only "special economic zone" in Japan, the region offers various types of preferential treatment measures targeting national taxes, regional taxes and tariffs. The main island of Okinawa, meanwhile, has never experienced an earthquake of seismic intensity "5" or above since the start of modern seismological observation (in 1926). Corporate locating to the area is also accelerating, therefore, from the perspective of disaster recovery.

Strength of the region's education/research institutes

Major in-prefecture engineering universities, technical colleges, high schools and human resources development centers:
University of the Ryukyus, Okinawa National College of Technology, Naha Technical High School, Okinawa Technical High School, Nanbu Technical High School, Mirai Technical High School, Misato Technical High School, Urasoe Technical High School, Nago Commercial High School, Miyako Technical High School, Yaeyama Technical High School, Okinawa Polytechnic College, Gushikawa Vocational Training Institute, Urasoe Vocational Training Institute, Okinawa Polytechnic Center

Industry-government-academia collaboration

The goals include developing Okinawa as a cluster of advanced think tank functions for the Asia-Pacific region, together with making a solid contribution to the progress of global science and technology. Established in September 2005 was the Okinawa Institute of Science and Technology (President = Dr. Sydney Brenner of the Salk Institute of the United States), an independent administrative corporation designed to provide basic support for preparations to launch university graduate schools and science and technology related R&D. Efforts are underway to establish facilities and other hardware and attract researchers, with plans to open a school once the services of 50 full-time researchers have been secured. With regard to specific studies aimed at establishing the Okinawa Science and Technology Graduate University, a board of directors (operating committee) has been formed that consists of eight notable scientists (including five Nobel Laureates).

Strength of the region's infrastructure

Okinawa Prefecture is located roughly at the geographical center of East Asia, and offers the major advantages of lying only about two hours from Taiwan, Shanghai, Hong Kong, Seoul and other major cities and regions.

Naha Airport operates a 3,000-meter runway and aprons with 25 berths. With 19 domestic routes and 4 international routes, it fulfills the role of the southern gateway to the skies of Japan.
Naha Port operates about 30 regular service routes to major ports in the main islands of Japan (including four international container routes), acting as the ocean gateway to the island prefecture of Okinawa in supporting the economic activities of the over 40 islands in the chain.

<Land>

The Okinawa Highway, a major artery linking Naha Airport to Nago City (approx. 75km, a 60 minute or so drive), covers the stretch between the Nakagusuku Bay New Port District (the largest industrial park site in Okinawa Prefecture) and Naha Airport in only 50 minutes to facilitate efficient overland transport. The Naha Airport Highway is currently under construction, with convenience to be further heightened from here on.

<Air>

Recognizing the "geographical edge" of Okinawa Prefecture in lying within two hours of the major cities of China and other areas of East Asia now achieving conspicuous economic growth, All Nippon Airways (ANA) is currently in the process of developing Naha Airport as a transit base for the transport of air cargo to Asia (service scheduled to commence in October 2009). Expectations are that the dramatic improvements in international distribution function will follow the move to full-capacity operation.

<Sea>

Naha Port is utilizing its network of 24 domestic routes focused on Tokyo, Nagoya, Osaka, Hakata and other major Japanese cities, as well as its geographical advantages, to achieve clustering as an international logistical base. In addition, efforts are underway to promote a concentration of the international distribution industry on a 7.8-hectare distribute landsite located directly behind the international container terminal, to heighten the synergistic effects with the Naha International Container Terminal.

Foreign company(s) operating in the industry

Company name	OCTANORM ASIA (Manufacture of Fabricated Metal Products)
Industry sector	Hardware manufacturing
Date of entry	April 2001
Motivation for selecting region	This company, Japanese branch of headquarters in Germany, was engaged in the consulting industry, advising on display systems for exhibitions and retail outlets. In its search for opportunities to expand into South East Asia, the company heard about Okinawa's Special Free Trade Zone that offers tax advantages and rental factories. The opportunity to push down the cost of initial set-up was the deciding factor in the decision to locate to Okinawa, in which setting up a processing base of display systems for exhibitions and retail outlets.
Support provided by local government or JETRO	Occupation of rental plants Preferential tax system

Company name	World T.N.T Co.,LTD. (Wholesale Trade, General Merchandise)
Industry sector	All wholesaling
Date of entry	April 2003
Motivation for selecting region	Before locating to the Special Free Trade Zone, this company was leasing offices and warehouses in Okinawa Prefecture. With the increase in freight handling volumes, the burden of custody fees also increased, making it more economic to own its own warehouses. This, in addition to the opportunity to take advantage of the bond system, led to the decision to locate to the area.
Support provided by local government or JETRO	Waiving of one portion of the fixed property tax burden for five years, granting of partial immunity from the real estate acquisition tax.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Advice on market participation	No	Supplied by Corporate Locating Support Center advisor.
Support for establishing a base
Listing of potential customers and partners	No	Supplied by Corporate Locating Promotion Section
Listing of potential customers and partners	No	Supplied by Corporate Locating Promotion Section
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Access to 15 or more incubation facilities within the prefecture.
Providing information on procedures for investing in Japan	No	Supplied by Corporate Locating Promotion Section
Introduction of available properties and advice on hiring personnel	No	Supplied by Corporate Locating Promotion Section
Providing information on permits and licensing procedures	No	Supplied by Corporate Locating Promotion Section
Providing information on subsidy programs	No	Supplied by Corporate Locating Promotion Section

Support service

In addition to the ability of companies locating their operations in Okinawa to use the support center set up inside the special free trade zone as conference and negotiation rooms, the center is also available as temporary office space at the preparation stage to further help pave the way to smooth business launches.
As support operations for firms that have advanced to the prefecture or companies planning to locate operations locally in Okinawa, full-time staffers provide introductions to companies in the prefecture, assistance in coordinating customs clearance in the trade zone, help in obtaining certification of origin and other establishment and operation procedures.

Database of candidate partners

Okinawa Industry Promotion Public Corporation （Japanese Only）

A nonprofit foundation conducts Small and Medium Enterprise (SME) Promotion Center operations designed to furnish backup for equipment modernization, smooth subcontracting transactions, information collection and supply, SME invigoration, support for creative SME, management innovation and other services to promote production technology improvements and management rationalization in commerce and industry inside Okinawa Prefecture, and other activities necessary to cultivate industrial endeavor. The goal of advancing these services is to contribute to the sound development of Okinawa industry.

Available incentives

The most beneficial tax treatment measures in Japan can be accessed in the various special zones such as the Special Free Trade Zone, the Designated Information and Communications Industry Promotion Zone, and the Financial Business Promotion Zone.

<Subsidies and Tax Breaks>
･ Companies that locate in the Special Free Trade Zone receive a number of tax advantages, such as a 35 percent deduction in taxable income for corporation tax purposes, and partial exemptions from local government taxes such as real estate acquisition tax and fixed asset tax.
･ Companies are able to choose between alternative systems for the application of tariffs.
･ Companies hiring employees under 35 years of age receive subsidies equal to one third of the employees' wages.
<Financing Program>

Low-interest financing can be accessed from the Okinawa Development Finance Corporation.

Welcome to a Business Paradise

Living environment for foreigners

Living environment	Because Okinawa Prefecture contains the largest U.S. military base in the Far East, there are over 50,000 foreign residents (including civilian employees of the military). Because of this, there is a considerable volume of housing for U.S. military officers and other foreigners in the area, as well as an American School, hospitals where patients can be served in English and other facilities that create a reassuring living environment for people not originally from Japan.
International schools	American Schools located on US military bases Okinawa Christian School International
Health services catering to foreigners	<Adventist Medical Center> Service available in: English. Medical services: internal medicine, pediatrics, surgery, obstetrics, maternity and gynecology, dentistry, etc. <Adventist Dental> Service available in: English, Spanish. Medical services: dentistry. <Other hospitals providing service in foreign languages> All prefectural public hospitals and a number of emergency hospitals provide service in foreign languages.