Japanese Economic Trends and JETRO’s activities€¦ · Japanese Economic Trends and JETRO’s...

Japanese Economic Trends and JETRO’s activities

September 19th, 2019

Doing Business in Japan 20194th Business Seminar in the Czech Republic, Prague

JETRO：Japan External Trade Organization

Established in 1958

Incorporated Administrative Agency, funded by the government

Domestic offices: 47 offices + HQ in Tokyo and JETRO Osaka

Overseas offices: 74 offices (54 countries)

Employees: 1,730 people (as of April 2019)

Main Activities:

1. Facilitating Innovations Through Inward Foreign Direct Investment (FDI) in Japan and Supporting Overseas Expansions of Startups

2. Supporting Exports of Japanese Agricultural, Forestry, and Fishery Products and Food

3. Assisting Japanese Companies with Their Overseas Business

4. Contributing to the Activities and Trade Policies of Japanese Companies Through Surveys and Research

Overview of JETRO

Copyright (C) 2019 JETRO. All rights reserved.

Overview of JETRO - Global Network


Overview of JETRO – Domestic Network


Japanese Economic Trends


World Ranking of GDP (2017)

Rank Country GDP

1 China 26,499

2 US 23,475

3 India 7,841

4 Japan 5,468

5 Germany 4,347

6 UK 3,530

7 France 3,186

8 Brazil 2,969

9 Indonesia 2,449

10 Italy 2,278

Rank Country GDP

1 China 49,853

2 US 34,102

3 India 28,021

4 Indonesia 7,275

5 Japan 6,779

6 Brazil 6,532

7 Germany 6,138

8 Mexico 5,563

9 UK 5,369

10 Russia 5,127

Source: “The long view: how will the global economic order change by 2050?” (PwC)

Global GDP ranking forecast for 2030 and 2050

2030（Billion US dollars）

2050

Source: “GDP Ranking” (World Bank)

Japan’s GDP is ranked 3rd in the world



Comparison of regional GDP in Japan

Kanto region 1,858.8

Italy 1832.9

Chubu region 708.8

Switzerland 679.3

Kinki/Kansai region 692.7

Switzerland 679.3

Hokkaido/Tohoku region 513.6

Sweden 497.9

Chugoku region 249.1

Finland 232.5

Kyushu region 408.8

Belgium 455.2

Shikoku region 118.0

Hungary 122.9

Japan’s local regions offer enormous and attractive markets. Even one region has national-level GDP.

Comparison of Japanese regional gross production (nominal, FY2015) (unit: billion US dollars)

Source: “Report on Prefectural Accounts FY2015” (2018) (Cabinet Office)

Over 70% of the companies perceive Japan as a highly profitable market.

Results from JETRO “Survey on Japan’s Investment Climate 2018”

A survey conducted by JETRO from May to June 2018, which collected and analyzed data on the perception of the business environment in Japan among 266 foreign-affiliated companies

Japanese market in terms of profitability

7

Ranked 3rd overall,

1st in services industry among 22 countries

Evaluation of the Japanese market

in terms of profitability(Reference) Rate of return on inward FDI (2014)

Source: “Survey on Japan’s Investment Climate 2018” (JETRO)

10.0％

17.8％

Source: ”FDI in Figures” (April 2016) (OECD)




Steadily increasing investment in Japan

Target

35

• Japan’s inward FDI stock in 2018 renewed record at 30.7 trillion yen (approximately 278.2 billion US dollars).

• Record high achieved five years in a row

Inward FDI stock and its portion to nominal GDP

Record High

Source: "International Investment Position of Japan" (Ministry of Finance, Bank of Japan), "National Accounts of Japan" (Japan Cabinet Office)



Reduction of effective corporate tax rate

-7%

Source: "Materials on Corporate Taxation" (Ministry of Finance)



Attractiveness of Japan in the rankings

Innovation Ecosystem

(in Global Competitiveness Index)

“The Global Competitiveness Report 2018” (WEF)

Rank in

Asia

Foreign Direct Investment

Confidence Index

“The 2018 A.T. Kearney Foreign Direct Investment

Confidence Index” (A.T. Kearney)

Travel & Tourism

Competitiveness Index

“Travel and Tourism Competitiveness Report 2017” (WEF)

Asia-Pacific City of the Future

“Asia-Pacific Cities of the Future 2017/18” (fDi Intelligence)

Rank in

Asia1st 2nd

Rank in

Asia 1st



Japan-EU EPA- The EU and Japan's Economic Partnership Agreement entered into force on 1 February 2019.- Businesses and consumers across Europe and in Japan can now take advantage of the largest open trade zone in the world.

Government’s forecast of economic effect of Japan-EU EPA:

• Economy +1% of real GDP

= About 5 trillion yen (44.6 billion US dollars)

• Job Creation +0.5％

＝ About 290,000 jobs

Source: “The Strategic Significance of the EU-Japan EPA” (Cabinet Secretariat TPP Task force)

- Potential of 32.7% Increase in EU Exports to Japan and 23.5% Increase of Japanese Exports to the EU

JETRO provides finely tuned support for success in Japan

JETRO has supported 19,447 projects (cumulative total in FY2003-2018)

Achieved success in 2,013 projects in establishing business operation or expanding businesses in Japan (cumulative total in FY2003-2018)

(36% Asia, 30% Europe, 29% North America, 5% other regions)

JETRO’s Activities and Services


INVEST JAPAN VIDEO

https://www.youtube.com/watch?v=K-jkqCnuz44&t=0s&index=3&list=PLoj1Ym89bkavGUd98uxAUIdRKXcNz0K7f

Common issues that new businesses face

What do I need to know to do business

in Japan?

How do I set upbusiness in

Japan?!

I don’t have any business

connection in Japan!!



Invest Japan Hotline

Regulatory Reform 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

JETRO’s Foreign Offices JETRO’s Domestic Offices

JETRO Headquarters (Tokyo)

Invest in Japan website

Seminars and

symposiums

Brochures & Pamphlets

Temporary offices(IBSC)

Advice from specialists

Information for establishing

business base

Visiting companies and

exhibitions

Individual consultation

Providing information

Business matching events

between Japanese and

foreign companies.

Foreign Embassies Local GovernmentsGovernment Ministries

Overa

ll

Flo

wServ

ices p

rovid

ed

JETR

OG

overn

ment

Cooperation Cooperation Cooperation

１２３４



What’s IBSC?

Invest Japan Business Support Center

50 business days FREE!

JETRO’s Activities and Services- Invest Japan Business Support Center（IBSC)


－Free individual consultation for your company－

•

• Tenancy eligibility : Foreign company considering to start a business in Japan

• Tenancy period : Up to 100 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

Facilities

－Temporary office space offered free of charge－

About the Temporary OfficeConference room

Refreshment space

Private office space

JETRO’s Activities and Services- Invest Japan Business Support Center（IBSC)


• Market and industry information• Cost estimates

• Introductions to local service providers

• Networking and biz matching with potential business partners

• Consultation by experienced staff (tax, legal affairs, HR, real estate…)

• PR support

• Requests for regulatory reforms

－Free individual consultation

for your company－ Facilities

Examples of Services

Consultation

Market and industry information

Arranging meetings

Consulting

3．JETRO’s Activities and Services- Invest Japan Business Support Center（IBSC)


－Temporary office space offered free of charge－



One-stop center for business establishment～Tokyo One-Stop Business Establishment Center (TOSBEC)

The first center in Japan that has integrated the procedures for establishing business by foreign-affiliated and venture companies.

Provide interpretation/translation services in multiple languages.

Launched in JETRO HQ in Tokyo (April, 2015)

Experts assist with administrative procedures required for starting business

Source: Tokyo One-Stop Business Establishment Center https://www.seisakukikaku.metro.tokyo.jp/onestop/english/top/index.html

Additional facilities located on the same floor:

• Business Development Center TOKYObilingual consultants will help matters related to life for workers of foreign-affiliated companies starting business in Tokyo.

• Tokyo Employment Consultation Centerhelps non-Japanese enterprises to understand the employment rules in Japan.

<Example of using the JETRO HP https://www.jetro.go.jp/en/invest: Research about how to set up business in Japan>

JETRO’s Activities and Services - Invest Japan HP


https://www.jetro.go.jp/en/invest

JETRO’s Activities and Services- JETRO Prague 2016-2019

Activities related to IoT, Industry 4.0, Robotics and Cybernetics + Innovation, startups, AI, R&D cooperation


- April 29, 2016 / Conference IoT Business: Future Perspective and Impact on Industry- October 6, 2016 / Conference on Japanese Robotics, IoT and Industry 4.0 (IEF / MSV) - October 17-21, 2016 / supporting the visit of prof. Mařík to Japan - March 21, 2017 / Czech Japan digital co-operation seminar in CeBIT Hannover - April 2-7, 2017 / supporting CzechInvest Technology mission on Robotics to Japan - Regular / Follow up meetings and workshops on Industry 4.0 and digitalization / Society 4.0 - September 20, 2017 / supporting Czech Japan Technology partnership workshop (TACR-NEDO)- March 12, 2018 / Smat factory Workshop and tour- June 25, 2019 / Czech-Japan technology partnership (workshop with TACR – NEDO / DELTA 2 scheme)

- October 23-28, 2016 / ICT business mission to Japan / IT Week 2016- October 2017 / Biotechnology mission to Japan / BioJapan 2017- October 2018 / IoT Sector business mission to Japan / CEATEC 2018- October 2019 / Digital Innovation Sector / IT Week 2019 + Innovation Leaders Summit 2019

Business delegation from CEE countries to Japan !!!

Others

- Annual / Round table meeting with Czech ministries- September 16, 2015 / Reverse trade fair- March 13, 2018 / Reverse trade fair


October 23-28, 2016 / ICT business mission to Japan / during IT Week



October 9-13, 2017 / Biotechnology and Healthcare business delegation



October 14-20, 2018 / IoT sector business mission



June 25, 2019 / TACR – NEDO – technology partnership / DELTA 2

Talk to JETRO First!


Thank you for your attention !

Japanese Economic Trends and JETRO’s activities€¦ · Japanese Economic Trends and JETRO’s...

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