Increasing Foreign Direct Investment into...
Transcript of Increasing Foreign Direct Investment into...
November 2014
Increasing Foreign Direct Investment into Japan
Takeshi Saito Director, Invest Japan Coordination Division JETRO (Japan External Trade Organization)
1. About JETRO
2. Trends of Foreign Direct Investment into Japan
3. Japanese Government’s Policy for Promoting Foreign Direct Investment
4. JETRO’s Service for Potential Investors
Copyright (C) 2014 JETRO. All rights reserved. 1
JETRO: Japan External Trade Organization
Established in 1958
Government-related organization
Main activities:
Assisting foreign businesses in Japan
Supporting the overseas business of Japanese firms
Facilitating economic growth in developing countries through trade promotion
What is JETRO?
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74 overseas offices
in 56 countries
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JETRO’s Overseas Offices
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JETRO’s Offices in Japan
Headquarters (Tokyo), JETRO Osaka, Institute of Developing
Economies and 40 regional offices
1. About JETRO
2. Trends of Foreign Direct Investment into Japan
3. Japanese Government’s Policy for Promoting Foreign Direct Investment
4. JETRO’s Service for Potential Investors
Copyright (C) 2014 JETRO. All rights reserved. 5
Inward FDI into Japan, stock:2000-2013
Sources: Ministry of Finance, Bank of Japan, Cabinet Office
(Unit: billion JPY)
5,782 6,632
9,369 9,610 10,098
11,903 12,803
15,145
18,456 18,425 17,502 17,548 17,808 17,976
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Bankruptcy of Lehman Brothers (Sep. 2008)
Abenomics starts (Dec. 2012)
Great East Japan Earthquake (Mar. 2011)
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Inward FDI into Japan, stock:2013
Sources: Ministry of Finance, Bank of Japan
by country and industry Unit: 100 Million JPY
North America
Central & South America
Europe
Asia
Oceania
83,192 (46.3%)
(Top3 Country / Region) Netherlands 29,150 France 15,014 UK 13,819
(Top3 Industry) Finance & Insurance 20,381 Electric Machinery 17,212 Transportation Equip. 13,899
56,780 (31.6%)
(Top2 Country / Region) USA 55,216 Canada 1,564
(Top3 Industry) Finance & Insurance 33,425 Wholesale & Retail 5,862 Electric Machinery 4,197
11,996 (6.7%)
(Top2 Country / Region) Cayman Is. 9,912 Brazil 54
(Top2 Industry) Finance & Insurance 4,706 Electric Machinery 1,936
1,691 (0.9%)
(Top2 Country / Region) Australia 1,301 New Zealand 373
25,822 (14.4%)
(Top3 Country / Region) Singapore 14,077 Hong Kong 5,742 Taiwan 2,395
(Top3 Industry) Finance & Insurance 9,329 Wholesale & Retail 2,810 Services 2,088
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1. About JETRO
2. Trends of Foreign Direct Investment into Japan
3. Japanese Government’s Policy for Promoting Foreign Direct Investment
4. JETRO’s Service for Potential Investors
Copyright (C) 2014 JETRO. All rights reserved. 8
Drastically strengthening the government’s support framework
for attracting foreign companies
JETRO is strengthening its functional structure through the employment of industry specialists and enhancing support measures to identify and attract prospective foreign companies from the perspective of their executives and in alignment with their specific business strategies. (Japan Revitalization Strategy –JAPAN is BACK p138)
Inward FDI into Japan
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Japan Revitalization Strategy (June 2013) Japanese Government
commits inward FDI to expand to 35 trillion by 2020
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Drastically strengthening the government’s support framework
for attracting foreign companies
JETRO to cooperate with embassies in approaching the executives of foreign companies, and to strengthen the function of attracting foreign investment; to work with relevant ministries to build up a one-stop support functionality and to create opportunities for tying up foreign and Japanese companies; and will also aid local municipalities which are actively inviting foreign companies to set up establishments. (Japan Revitalization Strategy (revised June 2014))
Inward FDI into Japan
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Japan Revitalization Strategy Revised (June 2014)
Japanese Government commits inward FDI to expand to 35 trillion by 2020
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Japanese Government commits inward FDI to expand to 35 trillion by 2020
6.6
9.4 9.6 10.1 11.9
12.8
15.1
18.5 18.4 17.5 17.5 17.8 18.0
35.0
(Goal)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Trillion Yen
Sources: Ministry of Finance, Bank of Japan, Cabinet Office
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Japan Revitalization Strategy (June 2013)
1. About JETRO
2. Trends of Foreign Direct Investment into Japan
3. Japanese Government’s Policy for Promoting Foreign Direct Investment
4. JETRO’s Service for Potential Investors
Copyright (C) 2014 JETRO. All rights reserved. 12
Copyright (C) 2014 JETRO. All rights reserved.
What does JETRO do?
Consultation regarding investing in Japan hotline
Requests for regulatory reforms hotline
Providing information on Japanese business environment
Increasing business opportunities with Japanese companies
Supporting business startups through the IBSC
Finding and developing businesses interested in investing in Japan
Overseas offices/Invest Japan Attaches Domestic offices
HQ/Invest Japan Attaches
・Invest in Japan website
・Seminars and symposia
・Temporary offices(IBSC)
・Advice from specialists
・Approach by Invest Japan
attaches
・Visiting companies and exhibitions
・Individual consultation
・Providing information
・Business matching events
Government establishments overseas
Local governments
Relevant government authorities
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North America 32%(367)
Europe 31%(355)
Asia 30%(341)
Pacific 5%
South-Central America
1% Middle East &
Africa 1%
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Achievements (FY2003-2013)
Supported
projects 11,000
1,100
Share of successful cases by region
Foreign companies’ startups
over
over
14
Number of successful investment cases in Japan
(only higher-ranking countries between FY2003 and FY2013 are shown)
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Achievements (FY2003-2013)
United States 32%(341)
China 11%(114)
Germany 9%(99)
Korea 7%(73)
United Kingdom 7%(68)
France 6%(57)
Australia 4%(42)
Singapore 3%(34)
Taiwan 3%(33)
Hong Kong 3%(32)
others 15%(159)
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Invest Japan Website
Providing information on Japanese business environment
Increasing business opportunities with Japanese companies
Supporting business startups through the IBSC
Finding and developing businesses interested in investing in Japan
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Global Peace Index 2013 Global Ranking 6th Rank
Comparison of Research Expenditures Between G8 Countries
1st Rank
Business Sophistication Rank 1st / 144 Countries
Japan’s Globally Significant Attractiveness
Nominal GDP in the world Rank 3rd
The Global Competitiveness Index 2013-2014
Rank 9th / 144 Countries
Source: World Economic Forum, “The Global Competitiveness Report”
Source: World Economic Forum, “The Global Competitiveness Report”
Source: Data from the most recent available years (2005-2010)
Source: Compiled by JETRO based on data from the Ministry of International Affairs and Communications Statistics Bureau
Sources: International Monetary Fund, World Economic Outlook Database, April 2014
Providing information on Japanese business environment
Increasing business opportunities with Japanese companies
Supporting business startups through the IBSC
Finding and developing businesses interested in investing in Japan
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Invest Japan Attachés ・Consultants/Consulting firms ・Advertising agencies ・Persons with Experience in the industry
Target Companies JETRO Offices
Invest Japan Attaches will make specific proposals for investment (locations, incentives, etc.)
Invest Japan
Attachés
Local Governments
Cooperation
Japanese Companies
Facilitating capital alliances and M&As
Knocking the door
JETRO’s New Scheme: 60 Invest Japan Attachés
Overseas
In Japan
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Providing information on Japanese business environment
Increasing business opportunities with Japanese companies
Supporting business startups through the IBSC
Finding and developing businesses interested in investing in Japan
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North America: 20 teams Europe: 22 teams Asia/Oceania: 12 teams Japan: 6 teams Total: 60 teams
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North America (New York / Chicago / San Francisco) ・Life Science: 4 ・Environmental Energy: 4 ・IT and Electronics: 4 ・Tourism: 2 ・Infrastructure: 3 ・Finance and Service : 1 ・Agriculture: 1 ・Education: 1 Total 20
Europe (London / Düsseldorf / Paris) ・Life Science: 4 ・Environmental Energy: 4 ・IT and Electronics: 4 ・Tourism: 3 ・Infrastructure: 4 ・Finance and Service: 1 ・Agriculture: 1 ・Education: 1 Total 22
Japan (※Mainly making market
reports and business model proposals) ・Life Science: 1 ・Environmental Energy: 1 ・IT and Electronics: 1 ・Tourism: 1 ・Infrastructure: 1 ・Finance and Service : 1 Total 6
Asia ・Oceania (Hong Kong / Singapore / Sydney / Seoul / Shanghai, etc.) ・Life Science: 2 ・Environmental Energy: 2 ・IT and Electronics: 2 ・Tourism: 3 ・ Infrastructure / Finance and Service : 2 ・Agriculture / Education: 1 Total 12
Making the target lists and approaching them 1,200 companies
Making the target lists and approaching them 500 companies
【Total Outcome of Invest Japan Attachés 】 ・Making the target lists and approaching them 3,000 companies
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Allocation of Invest Japan Attachés
Making the target lists of 300 companies Making market reports and business model proposals, etc.
Making the target lists and approaching them 1,000 companies
-Free individual consultation for your company-
• Tenancy eligibility : Foreign company considering to start a business in Japan
• Tenancy period : Up to 75 Business days in principle ( free charge up to 50 business days)
• Tenancy Fee : Free (Deposit and communication fee are required)
• Equipment : Desks, Chairs, telephones, fax machines, and broadband connections
• Common facilities : Conference rooms, multipurpose hall, business library
Consulting
Facilities
-Temporary office space offered free of charge-
About the Temporary Office
Invest Japan Business Support Center(IBSC) A one-stop center for establishing a business base in Japan
Conference room
Refreshment space
Private office space
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Providing information on Japanese business environment
Increasing business opportunities with Japanese companies
Supporting business startups through the IBSC
Finding and developing businesses interested in investing in Japan
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• Market and industry information
• Establishing an office
• Cost estimates
• Taxation, labor and legal issues
• Requesting Deregulation
• Translation of subsidy application
• Information on incentives from national and local governments
• Information on relevant legal systems
• Networking with potential business partners
• Finding human resources
• Finding an office location
• Arranging meetings with government authorities
-Free individual consultation
for your company-
-Temporary office space offered free of charge- Facilities
Examples of Services
Copyright (C) 2014 JETRO. All rights reserved.
Consulting
Invest Japan Business Support Center(IBSC) A one-stop center for establishing a business base in Japan
Consultation
Market and industry information
Arranging meetings
Providing information on Japanese business environment
Increasing business opportunities with Japanese companies
Supporting business startups through the IBSC
Finding and developing businesses interested in investing in Japan
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Introducing 50% discount for serviced rental office in Tokyo for JETRO clients.
Supporting JETRO clients in applying to TMG for subsidies and incentives
Introduction and matchmaking of SMEs in Tokyo with JETRO clients
Introducing JETRO IBSC temporary office for companies supported by TMG
Others
Cooperation between the Tokyo Metropolitan Government (TMG) and JETRO
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Medical appliances
Tourism
◆Date: May 26, 2014 ◆Presentations: GE Healthcare Japan, 3M Healthcare Japan, Japan BD, Japan Medtronic ◆Networking event was held after the presentation sessions.
◆JETRO invited major global manufacturers of medical appliances, and Japanese SMEs who provides products and technologies utilized for medical appliances, in order to facilitate business alliances.
◆JETRO organized a presentation seminar and networking event, inviting 5 global tourism companies in Japan, and Japanese SMEs interested in partnering with these companies.
◆Date: July 2, 2014 ◆Presentations: Uber Japan, Air Asia, TripAdvisor, Spring Japan Airline, HRS hotel reservation services ◆Networking event was held after the presentation sessions.
JETRO Business Matching Events in Tokyo (2014)
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03-3582-4684 http://www.jetro.go.jp/en/invest/hotline/
Invest Japan Hotline
JETRO will arrange meetings with the relevant authorities and provide comprehensive support.
Consultation regarding investing in Japan
Consultation regarding investing in Japan and regulatory reform requests from foreign companies
JETRO will submit requests for regulatory reforms to the Cabinet Office and METI.
Requests for regulatory reforms
Invest Japan Hotline
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Invest Japan Department Japan External Trade Organization (JETRO) 1-12-32, Akasaka, Minato-ku, Tokyo 107-6006 Japan Tel. +81 3 3582 5234, Fax. +81 3 3505 1990
This document is owned by JETRO. All of the content in this document, including, but not limited to, still images, text, pictorial works, designs and logos, is owned or licensed by JETRO. This document shall not be reproduced or reprinted on any medium or registered on any search system in whole or part by any means, without prior permission of JETRO. Although JETRO makes its best efforts to ensure the accuracy of the information contained in this document, JETRO does not take any responsibility regarding losses derived from the information contained in this document.
Copyright (C) 2014 JETRO. All rights reserved.