Investing in Japan
Regional Information
Sakai city
Based on its history and tradition, the city evolves now and in the future.
- Your Regional Guide
Inquiry form
Business Investment Promotion Division, Industrial Promotion Bureau
3-1, Minamikawaramachi, Sakai-ku, Sakai-city, Osaka Prefecture 590-0078
TEL: +81-72-228-7629 FAX: +81-72-228-8816
- Basic Information
- Regional Profile
- Services for investment in Japan
- Available incentives
- Living environment for foreigners
- Links to Related Websites
Basic Information
| Population | 0.83 million (Male: 0.40 million, Female: 0.43 million) (2008) |
|---|---|
| Labor force | 0.41 million (2000) |
| Area | 150km² (2008) |
| GDP | 2,570 billion yen |
| Major industries | Manufacturing (metal product, general machinery/tool and chemical), service, wholesale and retail |
| Developing industries | New energy, environment, software and leading-edge intelligent home appliance |
| Offices in Japan | Tokyo |
| JETRO office | JETRO Osaka |
Regional Profile
Strength of the region's industries and economy
Sakai has attracted a number of small-and-medium-sized businesses (SMBs) since the old days, and they have to improve their technological capabilities and brand strength to survive the fierce competition in this area. As a result, Sakai is still the center of many excellent companies. The shipment value of industrial products exceeds two trillion yen, ranked No. 10 in Japan, and the number of offices/facilities and employees is ranked in top 15, boasting one of the densest industrial concentrations in Japan. The variety of industries is extremely broad due to its historical background and vicinity to the Kyoto, Osaka, and Kobe markets. Among them all, metal product manufacturing and general machinery/tool manufacturing are two dominant industries and this forms the characteristics of the area’s industry concentration. The City's waterfront area is one of the largest industrial centers in Japan and a number of large-scale factories including petrochemical complexes are located there. In 2007, construction of the world’s largest-scale industrial complex consisting of Sharp Corporation and its affiliated companies was determined. The company will produce liquid crystal panels and thin-film solar cells there. The City is adjacent to Osaka City, which provides a variety of commercial and entertainment facilities, while a rich natural environment is still alive in the area within 100 km. This ensures enriched living environment for residents.
Strength of the region's education/research institutes
Five universities, four junior colleges, 21 higher vocational schools, and 26 high schools
Osaka Prefecture University, a core research center of the world’s most advanced nanotechnology and biotechnology, is located in the City and many nearby universities are accessible within 60 minutes. Universities in South Osaka got together and established the University Consortium of Southern Osaka in 2002 to contribute to the local community through collaboration in a variety of areas including education and academic research and started such efforts as industry-academia collaboration. When we turn our eyes to high schools, Sakai Municipal Technical High School has won a number of awards in solar-car races.
Industry-government-academia collaboration
<Sakai Business Incubation Center (S-CUBE)>
For revitalization of economy, it is important to nurture ventures and SMBs that will be leaders of new business activities in the future. For sustainable economic development, it is important to accelerate the creation of new business. Under the circumstances, a business incubation center was established in 2004 to provide comprehensive support for entrepreneurs and SMBs who dare to attempt creating new business and to play a role of their incubation. Basically, this is a facility for start-ups and those who are planning to start a new business. However, it also provides spaces (as well as business support, security, LAN, etc.) for new business creation of different styles; including incubation desks that are open for the existing SMBs in Sakai and South Osaka starting new business, companies entering Sakai, industrial-academia collaboration for advancement of manufacturing technologies, community businesses, NPOs, and foreign business people who want a foothold in Japan. An office of the University Consortium of Southern Osaka is also located in the center to prepare an environment for promoting industrial-academia collaboration.
<Techno-Frontier Sakai>
It is essential for the survival of SMBs to improve their technological capabilities, enhance customer-oriented product/service development capability and promote sophistication and heightening the added value. Techno-Frontier Sakai provides space required for manufacturers and service providers to produce trial models when they develop a new product or branch into a new field. It has an office building for software development and designing and a test production/factory building for trial manufacture, assembly, and small-scale production, where SMBs are making efforts to invent future technologies every day.
<Sakai-hama Small-and-medium-sized Company Cluster>
It was developed as the base of manufacturers in the Sakai-hama waterfront area to support sophistication of SMBs and to revitalize local industries. Eleven companies are informally designated to join the project.
Strength of the region's infrastructure
Kansai International Airport is an international hub airport offering a large number of direct flights to overseas. Access from Sakai to the airport is approximately 30 minutes by train and 20 minutes by car, and it will be the nearest government-designated city for the visitors from overseas. The City also has easy access to major expressway networks that lead you to major cities all over Japan. It is located in the center of a huge consuming region; eight million in Osaka Prefecture and 20 million in the Kansai district, providing extremely convenient environment for the speedy exchange of people, goods and information.
<Land>
An expressway network connected to Kyoto, Osaka, Kobe and other markets is almost perfect. In addition, construction of Yamatogawa Line of the Hanshin Expressway is planned. Transportation of people and cargoes is expected to be further more active after its opening.
<Air>
Approx. 30 minutes by rail and 20 minutes by car from Sakai City to Kansa International Airport
<Sea>
Construction of quake-resistant quay walls is planned in Sakai-hama. It will be used as the physical distribution base for sea transportation after completion.
<Railway>
The City will enhance the means of transportation connecting east and west of the city (light rail transit=LRT), support and promote the community building along the LRT, build the City’s original urban area and liaise with the existing public transportation systems and projects carried out along the systems to create an attractive and convenient community for everyone.
Services for investment in Japan
| Menu of services | Fees charged? | Content of services |
|---|---|---|
| Support for establishing a base | ||
| Providing incubation facilities or other facilities | Yes | A variety of rental offices are provided for ventures, SMBs and entrepreneurs. Tenants are eligible for the support by a specialist incubation manager from R&D to commercialization. Applications are accepted when space is available. |
Database of candidate partners
- Webiz engine SAKAI 21
Webiz Engine SAKAI 21 is an order acceptance/placement information system between companies. It supports customer acquisition and creation/increase of business opportunities through information exchange, search and transmission among companies. Information in English is also provided.
Available incentives
The City has established one of the Japan’s largest exemption systems for the fixed asset tax (building and depreciable property), the city planning tax (building), and the business facility tax for the companies moving to its waterfront area. For example, approximately 7 billion yen tax will be exempted for the investment of 100 billion yen. This is to exempt the fixed asset tax of companies that build or enlarge facilities on land appropriate for the manufacturing industry (restricted industrial zone and industrial zone) in the waterfront area of the City. Companies applying for the system must obtain approval for the company facility plan by the deadline (March 31, 2010)
Part of the fixed asset tax (building and depreciable property), the city planning tax (building) and the business facility tax are exempted according to the amount of investment (excluding costs spent for land). No upper limit set.
Exemption:
- 4/5 exempted for 10 years for investment of 60 billion yen or above
- 2/3 exempted for 10 years for investment of 30 billion yen or above
- 1/2 exempted for five years for investment of 1 billion yen or above
- 1/2 exempted for five years for investment of 100 million yen or above (* for SMBs only)
For the investment of 30 billion or above, there is an additional requirement that one-fifth or more of the employees of the facility must be residents of the City.
Living environment for foreigners
| Living environment | A life information provision program is launched where volunteers answer the inquiries from foreign residents about living and administration. (Languages: English, Chinese, Korean, Portuguese, and Spanish. Some languages are answered only on fixed days of the week.) |
|---|---|
| Health services catering to foreigners | 423 medical institutions understand foreign languages, mostly English. |
Links to Related Websites
