Activities
Promoting foreign direct investment (FDI) into Japan
Doubling Japan's cumulative FDI stock
In June 2006, the Japanese government announced plans to accelerate efforts to achieve its goal of doubling Japan's total FDI stock to the level of 5% of GDP by 2010, with JETRO as one of the principal bodies to help realize this goal. For a nation whose cumulative FDI stock is a fraction of that of most major developed countries, this signified a call to action.
FDI introduces new technologies and management know-how, and brings in new products and services that stimulate competition and lead to the formation of new markets. Importantly, it also invigorates the economy and creates employment. Thus, given its many benefits, FDI is seen as a key to revitalizing and strengthening Japan's economy.
By providing foreign investors with abundant information on all aspects of doing business in Japan―and also offering expert consultation and even free temporary office space throughout the country―JETRO is actively working to achieve the target.
Helping foreign companies bring their business to Japan
With more than 70 overseas offices in over 50 countries, JETRO provides companies around the world with a direct link to business in Japan. And JETRO offices located throughout Japan make it easy for foreign firms to get timely and accurate information about specific regions, markets and prefectural incentive programs.
JETRO operates one-stop business support centers in major business areas across the country. These centers, called Invest Japan Business Support Centers (IBSCs), offer foreign businesses everything they need to begin investing in Japan, and all under one roof. Located in Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka, IBSCs are stocked with a wealth of relevant business information and offer access to industry experts, legal scriveners, accountants, ICT specialists and certified social insurance consultants. The centers also provide free temporary office space (for up to 50 business days) and access to meeting and conference rooms.
Businesspeople can also make use of the JETRO Business Library, located in Tokyo and Osaka headquarter offices. The Library boasts a wide selection of materials and resources devoted to international trade, business and investment, including numerous Japanese and foreign books, statistics, company directories, customs tariff tables, newspapers and magazines. Library users can also access commercial online databases and CD-ROMs containing recent trade and economic data.
Cooperating with regional governments to attract foreign investment
JETRO works with regional governments to help them attract foreign investment. Cooperative activities include drawing up business incentive programs, conducting PR overseas and identifying promising foreign investors. JETRO also provides investment-promotion training for regional government personnel.
Government policy
FDI levels in major countries
(ratio of FDI stocks to nominal GDP, as of end 2006)
Source: UNCTAD, World Investment Report 2007
Japan's FDI stock balance
Source: Bank of Japan, Balance of Payments
Abridged excerpt from a report compiled by the Japan Investment Council Expert Committee (June 2006)
FDI brings in new products and services and introduces new technologies and management know-how. It also creates employment opportunities and is a stable source of financing from overseas. For Japan, which is facing a declining birthrate and ageing population, FDI is taking on increasing importance. In June 2006, the Japanese government announced plans to accelerate efforts to achieve its goal of doubling the country's total FDI stock to the level of 5% of GDP by 2010.
The government is taking measures in the following three targeted fields:
- Facilitating economic growth of local areas and improving the quality of life
Ex. Helping foreign firms make use of regional resources to expand their business or make initial entry - Improving Japan's investment environment to win in the global competition for foreign investment
Ex. Encouraging Japanese firms to make flexible changes in their organizational structure, including cross-border M&As, and also strengthen their R&D infrastructure - Practicing aggressive public relations in Japan and overseas
Ex. Holding large-scale seminars overseas and Japan Investment Councils in Japan's regions.
Disseminating the merits of investing in Japan
In addition to holding symposiums and seminars in major cities worldwide, JETRO disseminates the merits of investing in Japan through various brochures, such as 10 Advantages to Investing in Japan, Attractive Sectors and Success Stories.
The Investing in Japan section of the JETRO website includes a wealth of information on doing business in Japan and includes up-to-date information on Japanese FDI trends and movements. Available in six languages (English, Japanese, German, French, Chinese, and Korean), the website is a one-stop business resource, offering everything from regional information, success stories, a cost-simulator to the merits of investing in Japan, a step-by-step guide to setting up a business in Japan and also an introduction to the JETRO Invest Japan Business Support Center (IBSC).
The website has become the country's leading online portal to business in Japan, receiving more than two million hits in 2006.
Investing in Japan
Success stories
H&M Hennes & Mauritz Japan KK ("H&M" Sweden)
H&M is a leading global apparel retailer, with some 1,500 shops in 28 countries worldwide. A specialty retailer of its own private label apparel, the company boasts the second highest sales worldwide. In anticipation of opening their first stores in Japan, the company formally established a Japan subsidiary in August 2007. The JETRO IBSC advised H&M on country of origin labeling and provided support in locating suitable offices and information on resident visas.
Bodycote Japan K.K. (United Kingdom)
Bodycote plc, a leading provider of contracted thermal processing services, operates more than 180 thermal processing plants and 120 materials testing facilities in 35 countries worldwide and has some 11,000 employees. The firm established a Japan subsidiary in March 2008 in Nagoya, where companies in the automobile and aerospace industries are concentrated. The JETRO IBSC supported the firm's business expansion by providing free temporary office space (at the IBSC in Nagoya) and information on local government incentives.
TATA AutoComp Systems Limited (India)
TATA AutoComp Systems, part of India's largest conglomerate (the TATA Group), is an auto parts maker with 16 global partners, 20 manufacturing sites and five engineering centers worldwide. The company established an office in September 2007 in Yokohama, with the aim of dispatching engineers to Japanese auto parts manufacturers and receiving orders for system development at the parent company in India. To support TATA's entry, The JETRO IBSC provided free temporary office space (at the IBSC in Yokohama), consultation on company establishment procedures and help finding suitable offices.
Preservation Technologies Japan (United States)
US-based Preservation Technologies L.P. is a provider of deacidification products and services for libraries, archives, and consumers worldwide. The firm's patented Bookkeeper Deacidification Process, which safely, effectively and economically neutralizes acids in books and documents, has earned the firm large contracts with prominent institutions such as the US Library of Congress and others. To popularize their technology in Japan, the firm established a subsidiary in Saitama in April 2007, and later opened a deacidification plant. The JETRO IBSC provided the firm with consultation on company establishment procedures as well as information on permits and licenses.
