News & Press Releases

The Japan External Trade Organization (JETRO) is boosting its support and service for foreign-affiliated firms already operating in Japan seeking to expand their operations into other regions of the country. This follows on JETRO's success of attracting 508 new foreign entrants to the Japan market since 2003, in line with JETRO's role as the principal body tasked with doubling Japan's cumulative foreign direct investment stock.

JETRO's enhanced support and service will tap the deep knowledge and experience of JETRO staff to help companies gather and analyze information, assist them in finding offices or factory sites, and support them in dealing with taxation and legal issues. In addition, firms can make use of free temporary office space (for up to 50 business days) and expert consultation offered at JETRO's Invest Japan Business Support Centers (IBSCs), located in Tokyo, Yokohama, Nagoya, Osaka, Fukuoka and Kobe.

According to a March 2007 JETRO survey of foreign-affiliated firms operating in Japan (936 firms took part in the survey), nearly two-thirds reported increased year-on-year sales in fiscal 2005. Moreover, nearly 60% said they planned to expand their business here. This demonstrates that foreign companies are doing well in the Japan market and have a strong investment appetite. Among the 508 firms utilizing JETRO to set-up their business in Japan, 63% based their operations in Tokyo. But with the expansion of the Japanese economy and increased local trade, foreign firms are looking beyond Tokyo, where business costs are lower and highly skilled labor plentiful. They represent industries ranging from information technology, automobiles and services. At the same time, local governments are aggressively courting foreign firms and offering investment incentives.

One example of a global enterprise that has expanded regionally in Japan is Canadian auto parts maker Magna International Inc., which is planning to establish a technology development center in Toyota, Aichi prefecture. "Japanese auto makers are extremely important customers and we're aiming to expand our business with them," says Seiichi Mihara, President of Magna International Japan. "By focusing our development center where Japan's auto industry is concentrated, we hope to provide speedier and more flexible service."

Moving in the same way is Nobel Biocare, a global leader in innovative esthetic dental solutions based in Zurich, Switzerland, which with JETRO's support in September 2007 established its first Asian supply base in Narashino, Chiba prefecture. "We have been doing business in Japan for more than 20 years and have established our position as the market leader in dental implants and CAD/CAM - based crowns and bridges," says Atushi Shimada, President of Nobel Biocare Japan K.K. "But knowing that we needed to expand further in Japan and Asia Pacific, we established the supply center in Narashino. This gives us good access to our Japan office in Shinagawa and to Narita and Haneda airports. Blessed with that kind of location we decided to move forward."

Foreign firms interested in JETRO's support and services for investing in Japan's regions are invited to contact the JETRO Japan Business Secondary Investment Group at 03-3582-5410; jad2@jetro.go.jp.