JETRO Japan External Trade Organization
Opening the Door to Business in Japan
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Investing in Japan

Why Japan?

10 Advantages to Investing in Japan

6. Access to new Asian markets

East Asia continues to grow at an astonishing pace and economic integration in the region continues to increase. In 1980, East Asia's share of global GDP stood at 17%. In 2005, the figure stands at 29%, due to the robust economic growth of East Asia, where Japan continues to have a strong presence.


Share of global GDP (PPP*) by region

Note: GDP based on purchasing-power-parity (PPP) valuation of country GDP
Source: "World Economic Outlook Database" (April, 2006), IMF
Comparative GDP trends in East Asian region

Source: "World Economic Outlook Database" (April, 2006), IMF



As East Asia grows, economies are becoming more service-oriented. Common tastes are developing and lifestyles are converging, in particular in urban areas. Many consumer products that gain popularity in Japan, including movies, anime, game software, clothing and cosmetics, go on to become popular in East Asia in general. Success in Japan is a litmus test for success in East Asia.

Changes in the percentage of GDP represented by service industries in Asian countries

Source: "White Paper on International Economy and Trade 2006," Ministry of Economy, Trade and Industry


Cooperation in the mutual supply of components is increasing in the Asian region, in particular in the field of electrical machinery. Horizontal intra-industry trade involving components between Japan and the rest of the Asian region is also progressing. And Japan is playing an important role as a supplier of core components.
East Asia is moving closer towards the establishment of an East Asian free business zone, as governments in the region work to conclude free trade and economic partnership agreements. This will help further trade in the region.

Trade relationships between Japan, East Asia, Europe and the U.S.
* Figures show trade value (US$ billion, 2004)

Note: NIEs (East Asia comprises the Newly Industrialized Economies):
Korea, Taiwan, Hong Kong and Singapore
ASEAN4: Malaysia, Thailand, Philippines and Indonesia

Source: World Trade Matrix, JETRO website


Japanese companies continue to expand their market reach throughout the East Asia region. Their established networks provide foreign-affiliated business partners smooth access to these growth markets.

Changes in volume of sales by overseas subsidiaries of Japanese manufacturers

Source: "White Paper on International Economy and Trade 2006," Ministry of Economy, Trade and Industry