JETRO s activities Promoting Inward Foreign Direct Investment

Transcription

1 JETRO s activities Promoting Inward Foreign Direct Investment Feb. 1, 2016 Kazuya Nakajo Director-General of Invest Japan Department Japan External Trade Organization (JETRO)

2 Abenomics & Economic Trends The Achievements of Abenomics in numbers Improvement of economy, economic indicators After starting Abenomics, The Japanese economy realizes high-level economic growth Business conditions, Active jobs-to-applicants are Greatly improved GDP (Real GDP) (seasonally adjusted) Business conditions (Tankan current situation) Active jobs-to-applicants 517 Trillion Yen 2012 Oct-Dec (Before Abenomics) Large firms Medium-sized firms SMEs Survey in Dec.2012 (manufacture) 1,938, average Trillion Yen 2015 Jul-Sep Large firms Medium-sized firms SMEs Survey in Dec.2015 (manufacture) 2,464, Nov Unemployment rate 4.3% 2012average 3.3% 2015 Nov CPI growth rate (less food except alcohol and energy ) -1.1% % 2015 Nov 2

3 Abenomics & Economic trends Structural reforms and deregulation 3 Business cost in Japan is showing improvement Low-cost Real Estate compared to major cities in Asia (Shanghai, Hong Kong Seoul, Singapore). (Unit: $) The labor cost in Tokyo is higher than in other Asian cities, however, the gap has drastically shrunk in some occupational categories. (Unit: $, %, no. of months) <As of June, 2015> <As of June, 2015> Office Rent (Monthly) (per sq.m) Tokyo Hong Kong Singapore Tokyo Hong Kong Singapore Manufacturers Section Manager 4,227 3,832 4,362 Non-Manufacturers Section Manager 4,515 4,276 4,425 Housing rent for expatriates (Monthly) 2,263 3,094 4,421 Social security burden rate (Employer burden rate (%) Source: Created from JETRO 25 th Investment Related Cost Comparison of Major Cities/Areas in Asia (June 2015)

4 Abenomics & Economic trends Structural reforms and deregulation 4 Reduction of the corporation tax rate FY 2015: 34.62% 32.11% (- 2.51%) FY 2016: 32.11% 29.97% (- 2.14%) 40.00% Corporate Tax Rate (%) 35.00% 30.00% 34.62% 32.11% 29.97% 29.74% 45% 40% 35% 40.75% 33.33% 25.00% 30% 29.66% 20.00% 15.00% Reducing down to the range of 20s 25% 20% 15% 25% 24.2% 20% 17% 10.00% 10% 5.00% 5% 0.00% % USA France Germany China Korea UK Singapore

5 Abenomics & Economic Trends The Achievements of Abenomics in numbers Earning power Corporate governance Growth-oriented corporate tax reform Innovation Local Abenomics Productivity in service industries Tourism industry Reform on working style Correction of prolonged working hours Women s participation/highly skilled foreign professionals Agreement in Government- Labor-Management Meeting Corporate Profits Wages Further wage hikes Improvement of transaction conditions for SME suppliers (accept higher raw material costs, etc.) Revolution in productivity through future-oriented investment Investment Consumption Advancements for a new society Newly established publicprivate sector dialogue Thorough utilization of ICT Respond to social transformation (IoT, big data, A.I. etc.) Investment in human resources (professional knowledge/ re-training etc.11 Bedrock regulation reform Reform of primary industries Reform of medical/ healthcare industries Reform of energy industries National Strategic Special Zones Already implemented First Arrow Bold monetary easing Second Arrow Flexible fiscal policy 5

6 Overall Flow Services provided JETRO Government JETRO s Activities JETRO s Services Providing information on Japanese business environment Finding and developing businesses interested in investing in Japan Supporting business startups through the IBSC Increasing business opportunities with Japanese companies Visiting companies and Business matching events Invest in Japan website exhibitions Temporary offices(ibsc) (between Japanese and Seminars and symposia Individual consultation Advice from specialists foreign companies) Providing information JETRO Head Quarters (Tokyo) JETRO s Foreign Offices Invest Japan Hotline JETRO s Domestic Offices Cooperation Cooperation Cooperation Foreign Embassies Government Ministries Regulatory Reform Hotline Local Governments

7 JETRO s Activities Investment projects supported by JETRO (2003~2014) 7 Supported over 12,000 projects Pacific 4% South- Central America 1% Middle East & Africa 1% 1,245 Foreign companies startups Asia 31% Europe 31% North America 32%

8 8 JETRO s Activities Invest Japan Business Support Center (IBSC) Consultation service Specialists give advises about how to start up business in Japan Legal advise Business cost Market regulations Business culture Human resources Real estate Private office space Temporary offices Temporary offices in 6 major Japanese cities are available for free of charge for 50 business days Consultation Conference room

9 JETRO s Activities Tokyo One-Stop Business Establishment Center 9 Tokyo One-Stop Business Establishment Center (TOBEC) You can file applications necessary for company establishment in one place. 1 Certification of Articles of Incorporation 2 Company Registration 3 Tax (National Tax) 4 Tax (Metropolitan Tax) 5 Immigration (Status of Residence) Inside the Center 6 Employment Insurance 7 Labor Insurance 8 Health and Pension Insurance

10 JETRO s Activities JETRO s Invest Japan Activity Results (FY2014) From North America, Europe, Asia is 30% each / United States, China, Germany are top 3 Number of Japan Investment Success Cases (FY2003 ~ FY2014), Top Countries) Total: 1,245 Cases:North America 399 Cases, Europe 389 Cases, Asia 382 Cases, FY Success Cases Total 1,245 Success Cases by Region (Ratio) Pacific 52 South America 13 Asia 382 Europe 389 No. Country Case 1 U.S.A China Germany South Korea 84 5 U.K France 64 7 Australia 44 8 Singapore 38 8 Taiwan Hong Kong 34 North America 399 Middle East / Africa 10 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 33% 16% 6% Other Regions 75 Cases No. Country Case 11 Italy Canada India Holland Switzerland Finland Belgium Thailand Spain 9 19 Austria 9 North America Europe China Asia Success Cases by Entry Region Fukuoka 25 Chiba 33 Aichi 78 Osaka 88 Hyogo 48 Kanaga wa 131 Saitama 14 Other 63 Other than Tokyo % 61.5% Tokyo % 32% 29% 11% % 31% 29% 12% China includes Hong Kong & Macao. Asia also includes China. 10

11 JETRO s Activities JETRO s Invest Japan Activity Results 11 Nihon Cabot Microelectronics KK Optimizely, Inc. Manufacturing & Infrastructure Nihon Cabot Microelectronics KK started plant operations in Tsu (Mie) in 2000, and established an Asia-Pacific technology center in the plant in The R&D center aims to strengthen Japan s world-leading development system in the semiconductor field, and expand its presence in emerging markets in Asia that are growing in importance. JETRO s support Subsidy Program for Projects Promoting Asian Site Location in Japan (FY 2011) Optimizely has achieved top shares at a global level and the company has offices in the United Kingdom, Germany and the Netherlands. In February, 2015, established its Japanese subsidiary in Tokyo to further strengthen its business in Japan. JETRO s support consultation with visa experts introductions to service providers Provided temporary office space in IBSC Tokyo ICT Johnson & Johnson K.K. Lifescience J&J has more than 265 operating companies in over 60 countries throughout the world with approximately 126,500 employees in total. In Fiscal Year 2014, the company posted sales of approximately 74.3 billion U.S. dollars (approximately 8.9 trillion yen). J&J established TSC in Kawasaki on August 6, 2014, an area designated as a national strategic special zone. JETRO s support Subsidy Program for Projects Promoting Asian Site Location in Japan (FY 2012) GUESS JAPAN Amid a global expansion to countries around the world, GUESS enjoys high popularity in the Asian region, such as in Korea and Hong Kong. In Japan, it established a subsidiary for the purpose of opening new shops and conducting exports in Tokyo. JETRO s support Provided temporary office space in IBSC Tokyo Provided with apparel market information in Japan consultations with in the fields of tax and labor Service

12 Invest Japan Department Japan External Trade Organization (JETRO) , Akasaka, Minato-ku, Tokyo Japan Tel , Fax 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.