jetro’s activities to attract fi c iforeign companies · 2011. 3. 20. · singapore 679 1,265...
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JETRO’s Activities to Attract F i C iForeign Companies
March 2011
2
the end of (year) billion yen GDP（％）
2000 5,782 1.1
2001 6,632 1.3
FDI Position
Reinvested
Earnings
Year Inflow Outflow Net Inflow Outflow Net Net Inflow Outflow Net
2000 29,332 △ 20,363 8,969 23,323 △ 15,023 8,300 △ 98 6,107 △ 5,340 767
Direct Investment in Japan (by non-residents)
(100 million Yen)
Total Equity Capital Other Capital
2002 9,369 1.9
2003 9,610 2.0
2004 10,098 2.0
2005 11,903 2.4
2001 19,966 △ 12,381 7,585 11,697 △ 5,733 5,964 1,880 6,390 △ 6,648 △ 259
2002 47,948 △ 36,363 11,585 19,930 △ 27,185 △ 7,255 1,887 26,132 △ 9,178 16,953
2003 21,278 △ 13,946 7,332 13,614 △ 4,850 8,765 1,627 6,036 △ 9,096 △ 3,060
2004 35,059 △ 26,603 8,456 25,349 △ 17,732 7,617 2,104 7,606 △ 8,871 △ 1,265
2006 12,803 2.5
2007 15,145 2.9
2008 18,456 3.7
2009 18,425 3.9
2005 33,187 △ 30,127 3,059 19,008 △ 15,247 3,761 1,863 12,315 △ 14,880 △ 2,565
2006 53,039 △ 60,605 △ 7,566 29,855 △ 39,897 △ 10,043 2,620 20,564 △ 20,708 △ 144
2007 79,964 △ 53,412 26,552 41,610 △ 28,824 12,785 4,511 33,844 △ 24,588 9,256
2008 75,411 △ 50,165 25,246 42,586 △ 17,818 24,767 3,885 28,940 △ 32,347 △ 3,407
2009 34 863 △ 23 693 11 171 17 177 △ 7 110 10 067 1 168 16 519 △ 16 583 △ 64 2010 sep. 18,353
（Source）Minstery of Finance.% of Gdp calculated based on Date of CabinetOffice
2009 34,863 △ 23,693 11,171 17,177 △ 7,110 10,067 1,168 16,519 △ 16,583 △ 64
2010 49,099 50,546 △ 1,447 35,079 28,374 6,705 △ 2,576 16,596 22,172 △ 5,576
Negative figures (-) recorded under “Net” show net capital outflows, i.e., the withdrawal of direct investment in Japan.
Source:Ministery of Finance
6
8
10
Equity Capital(Inflow) Equity Capital(Outflow) Reinvested Earnings
Other Capital(Inflow) Other Capital(Outflow) Total(Net)trillion yen
Capital of City Group Japan Holdings7869billion yen →300billion yen
Including capital reserve, total amount of withdrawal of of City Bank Group is estimated to about
‐2
0
2
4
Bank Group is estimated to about 1trillion yen.
Capital of City Group Japan Holdings(million yen)July 2007 55,908Dec. 2007 141,427January. 2007 382,024
‐8
‐6
‐4
January. 2007 382,024April 2008 600,837Dec. 2008 785,904Augost 2010 300,000
3
year number million us$
2000 167 16,984
M&A（OUT-IN)
2001 123 19,017
2002 111 6,583
2003 113 12,15225030,000
million us$ number
2004 133 10,398
2005 131 4,592
2006 130 4,599 150
200
15,000
20,000
25,000
2007 217 28,438
2008 188 19,894
2009 129 5,496
2010 160 7 334
0
50
100
0
5,000
10,000
2010 160 7,334
Source:Thomson Reuters Database (as ofJan.6 2011)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
4
(100 million Yen)
2005 2006 2007 2008 2009 2010Total 3,059 △ 7,566 26,552 25,246 11,171 △ 1,447
国・地域
Inward Direct Investment, Country Breakdown
Annual figures
k (100 illi Y )
TOP 10 Countries(year2010)
Asia 1,806 △ 941 2,042 3,513 1,041 2,598 P.R.China 13 14 17 38 △ 135 276 Hong Kong 1,129 △ 2,467 200 247 △ 59 553 Taiwan △ 34 128 43 67 54 21 R.Korea 32 126 254 293 242 234 ASEAN 671 1,267 1,523 2,866 925 1,504
Singapore 679 1,265 1,522 2,840 710 1,276
rank country (100 million Yen)1 U.K. 4,1712 U.S.A. 2,3223 Germany 2,1074 Si 1 276
Singapore 679 1,265 1,522 2,840 710 1,276 Thailand △ 7 1 1 6 22 7 Indonesia 0 4 2 1 0 55 Malaysia △ 1 1 △ 1 13 192 166 Philippines 2 △ 1 1 3 △ 1 Viet Nam 0 △ 3 △ 1 0 India 2 △ 1 4 1 13 4N th A i △ 1 014 △ 3 070 15 196 12 093 1 647 2 368
4 Singapore 1,2765 France 1,0566 Hong Kong 5537 Cayman Islands 5078 L b 346North America △ 1,014 △ 3,070 15,196 12,093 1,647 2,368
U.S.A. 85 140 15,877 11,869 1,758 2,322 Canada △ 1,098 △ 3,209 △ 682 224 △ 111 46Central and South America 1,462 707 3,332 4,216 640 △ 7,041 Mexico 0 △ 6,638 Brazil 2 △ 7 2 Cayman Islands 2 △ 51 1,773 3,774 882 507
8 Luxembourg 3469 P.R.China 276
10 R.Korea 234
Oceania △ 126 42 251 254 44 △ 16 Australia △ 125 41 242 57 35 △ 7 New Zealand 1 0 9 196 4 △ 10Europe 922 △ 4,383 5,691 5,151 7,720 612 Germany 259 △ 622 △ 1,025 1,245 357 2,107 U.K. 155 2,093 625 △ 1,253 5,277 4,171 France △ 88 322 595 180 387 1,056, Netherlands 2,663 △ 8,612 △ 372 2,830 2,390 △ 6,609 Italy 7 56 71 33 △ 19 138 Belgium △ 1,407 1,024 176 △ 2,163 18 △ 337 Luxembourg 396 △ 18 572 487 504 346 Switzerland △ 908 369 1,332 1,951 △ 882 41 Sweden △ 72 778 429 93 △ 91 5
Spain 48 47 △ 48 63 8 24 Spain 48 47 △ 48 63 8 24 Russia 1 0Middle East 10 △ 1 3 △ 2 21 0 Saudi Arabia 1 9 UAE △ 1 0 0 0 0Africa 1 72 38 20 57 32Source:Ministery of Finance
5
Green Industires
Subsidy by Government(factories)
UMICORE(Belgium)lithium ion battery materials
GKN(UK)parts for "eco car"
MOLEX(USA)LED materials
"eco car" TESLA(USA)electric car
A123(USA)lithium ionbattery smart grid
JV:GE(USA) FUJI ELEC.smart grid meter
FDI to Japan in 2010M&Agreen field Investments by Asian companies
Global Alliance
electric car lithium ion battery smart grid meter
PV (newtechonology)
MOTEC(Taiwan)→housing company
Q CELLS(Germany)
Chinese companies
DYESOL(Austraria)dye solar cells
PV(silicon)
KONARKA(USA)organic thin‐film solar
automobile
Japanese Industires
VW→SUZUK(19.9%)$2,730million
pharma‐ceuticals
BOEHRINGER INGELHEIM（Germany)→SSP CO
cellularphone
European and Chinese Companies→WILLCOM
LCD panel LENOVO(China) → NECLenovo NEC Holdings
computer
HON HAI(Taiwan) →HITACHI$1,227million Reported by Nikkei
personalcomputer
year 2011
WESTERN DEGITAL(USA)R fi
PETROBRAS(Brasil) C ti
DE NORA(Italy)←MITSUI
hotel
year 2011
SUNPOWER(USA)supply modules to TOSHIBA
ppartsNon‐Core Sector ←HOYA
magnetic media operationRefinery ←SUMITOMO
refinery plant in OkinawaCoating ←MITSUI
chlor alkali subsidaryJAL reorganization catering
Brands,Techonologies & Know‐Hows
Chinese companies M&A
metal mold factoryfor automobiles
OGIHARA
golf club HONMA
apparelRENOWN
"ramen" chain restaurantHOKKOKU
PV cell production lineEVATECH
Chinese Fund(CITIC)
HIGASHIYAMA FILMplastic film
TRI‐WALLheavy‐duty packaging materials Korean Fund Korean Government backs up to creat a special
fund for M&A of Japaneses SMEs
stimulated by
ICTdatacenter
SALESFORCE(USA)establish data center in
Tokyo
social games
ZYNGA(USA)join venture with
SOFT BABKportal site NHN(Korea)→
portal site"LIVEDOOR" deals siteGROUPON(USA)→
Q‐pod
Healthcare(Aging Society)
genericphamaceuticals
TEVA‐KOWA(Israel)→Taisho Phamaceutical Ind.
SUN PHAMACEUTICAL(India)plan to invest in Japan
DR.REDDY(India)repretative office
PFIZER(USA)generic pham. in JapaneseMarket
expandproduction lines
ASTRAZENECA(UK)Maibara Factory
BAYER HEALTHCARE(Germany)Shiga Factory
EVONIK DEGUSA(Germany)Ibaragi Technical Center
nursinghome
PARFWAYREIT(Singapore)
stimulated by
Japanese Marketsites
acquiredRetailopen new stores
FOREVER 21(USA)Ginza,Funabashi,Shinjuku,Shibuya
ABERCROMBIE& FITCH(USA)Fukuoka
IKEA(Sweden)Fukoka,Tachikawa
logistic center
AMAZON(USA)Saitama,Osaka
Tourism
LCC AIR BUSAN(Korea)
JET STAR ASIA(Singapore)
SPRING AIRLINES(China)
AIR ASIA X(Malaysia)
JIN AIR(Korea)
ANA+First Easter Invetment Group
(Hong Kong)
year 2011
hotel & resort
MINGLY CORP.(Hong Kong)Japanese style hotel(Ryokan)
Zao Resort & Spa
YTL(Malaysia)NisekoVillage(Hokkaido)
KICC GROUP(Korea)Naqua Shirakami Hotel & Resort(Aomori)
CMIC(China)Japanese style hotel(ryokan)(Atami)
©JETROSource:elaborated by JETRO based on press releases and press informations
Real Estate Asian Capital
MAPLETREE(Singapore)logistic centeres
Miyagi,Saitama,Chiba,Gifu
HKR(Hong Kong)residents in center of Tokyo
Akasaka,Roppongi
PACIFIC ALLIANCE G.(Hong Kong)
real estate fund
CITY DEVELOPMENTS (Singapore)→JAPAN HOTEL & RESORT ADVISERS
JV:GIC REAL ESTATE(Singapore)+SUMIYOMO
large‐scale retail properties
Results of JETRO’s Activities to Attract Foreign Companies6
JETRO consultants with a foreign company (IBSC, Tokyo).
●In accordance with government policy, JETRO works to attract foreign companies to Japan.Japan’s one stop center.
●JETRO has succeeded in atractting 790 foreign companies to Japan over a seven‐year period.
●Investment projects from Asia have been increasing. Accounting for 40% of all attracted companies in FY2009.
JETRO’s ActivitiesJETRO’s Activities
7
Through its networks in and outside Japan, JETRO commits to support foreign companies to expand their businesses in Japan.
Supported companies:
1,295 （FY2009 results）
70+ Overseas offices and experts
JETRO Hong Kong Taiwan
Individual consultations
JETRO Hong Kong Taiwan
Provide customized information Provide information on markets and industries
Exhibition Supports d I it ti
Number of service recipients :
47and Invitation programs
Create business Invitation program
47 （FY2009 results）
opportunities with Japanese companies
Support participating in trade shows and conferences
Invest Japan Business Support Center (Tokyo)
JETRO’s ActivitiesJETRO’s Activities8
Startup support
Number of Rental office users:
132 （FY2009 results）
Free rental office space
Expert advice(t / ti HR i l it l t t t )
through Invest Japan
Business Support Center
Free rental office space(Tokyo, Yokohama, Nagoya, Osaka, Kobe, Fukuoka)
Information on administrative regulations
Information / Consultation for acquiring Incentives
(taxes/accounting, HR, social security, real estate etc.)Center
Domestic offices37 Domestic Offices in Major Cities
Link to localAccess to local governments and ,
Location information
Link to local governments and Further business
development in JapanSupport provided for foreign businesses in Japan
arrangement for acquiring Incentives.
p pNumber of companies attracted:
over 850 (FY2003 -FY2010)
Temporary office space (Tokyo)
9
Facilities
b d (f f h ) d
p y p ( y )
• 50 business days maximum (free of charge) + 25 extra days(daily base charge 5,000 JPY‐7,500JPY)
Offi h 9 00AM t 9 00PM M d t F id• Office hours: 9:00AM to 9:00PM, Monday to Friday
• Ready‐to‐use: Direct Telephone/Fax number, Broadband access and Secretary serviceaccess, and Secretary service
Double‐ occupancy Room Rest SpaceMeeting RoomDouble occupancy Room
・13.5㎡ for 2 people
・18.0 ㎡ for 3people)
Rest Space Meeting Room
JETRO Invest Japan Business Support Center(IBSC) 10
TokyoOsaka
Kobe
YokohamaFukuoka
Nagoyag y
Results of JETRO’s support
Number of investments successfully attracted(by region, %)
h h
(Unit: Number of companies)
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 Total
North America 37 38 41 43 34 31 35 259
11
(Note) China includes Hong Kong and Macau
39.8
36.9 37.3
37.4
27 2 28 9
33.3 33.0
30.0 34 8
39.2
35.0
39.7
35.0
40.0
45.0
North America Europe Asia ChinaEurope 31 34 33 40 49 43 31 261
China (including Hong Kong and Macau) 6 11 13 14 15 19 21 99
Asia (excluding China) 9 11 13 12 18 22 27 112
Oceania 6 6 8 5 6 5 5 41
Central and South America 4 2 1 0 2 2 0 11
Middle East and Africa 0 1 1 1 1 1 2 7
T t l 93 103 110 115 125 123 121 790 27.2
25.2
28.9 34.8
25.6
16.1
21.4 23.6 22.6
26.4
33.3
10.7 11.8 12.2 12.0
15.4 17.4
10 0
15.0
20.0
25.0
30.0 Total 93 103 110 115 125 123 121 790
Ranking Country No. ofcompanies
Ranking Country No. ofcompanies
1 United States 241 India 17
FY2003-FY2009 Number of investments successfully attracted (Top 20 countries) (Cumulative total)
6.5
0.0
5.0
10.0
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
<METI Survey of Trends in Business Activities of Foreign Affiliates/FY2003→FY2008>North American 37.9%→31.7%; Asian 14.6%→21.0%; European 42.2%→42.5%; Others’ 5.3%→4.8%
2 China 80 Taiwan 173 Germany 77 Netherlands 174 Great Britain 42 14 Switzerland 125 France 41 15 Finland 116 Korea 35 Belgium 77 Singapore 24 New Zealand 7
11
16
476 in Tokyo (60%)
314 in other than Tokyo
(40%)
Investment location by prefecture(FY2003-FY2009 Cumulative total)
FY2003 FY2009 Investment location by prefecture (Cumulative total)
g p8 Italy 23 Austria 6
Hong Kong 18 Brazil 6Canada 18 Sweden 5
Thailand 5Israel 5
18
19
9
(60%)(40%)FY2003‐FY2009 Investment location by prefecture (Cumulative total)
Prefecture No. of companies Prefecture No. of companiesTokyo 476 Hiroshima 3Kanagawa 89 Gunma 2Aichi 51 Shizuoka 2Osaka 46 Shiga 2Hyogo 34 Gifu 2Chiba 24 Mie 2
<METI Survey of Trends in Business Activities of Foreign Affiliates/FY2008>Number of respondents: 2,763 companiesTokyo 1,905 companies (68.9%)Other than Tokyo 858 companies (31.1%)
Fukuoka 21 Miyagi 1Saitama 13 Niigata 1Hokkaido 6 Ibaraki 1Kyoto 5 Tottori 1Nagano 3 Yamaguchi 1Okayama 3 Okinawa 1
Total 790
Examples of Foreign companies Attracted by JETRO (1)
En Lithium ion battery and cathode materials manufacturer
Oil refining
12
nergy and enviro
Umicore (non-ferrous metals) [Belgium>Kobe]In March 2010, Umicore received a
subsidy from METI (Regional Development Subsidy for Enterprises
manufacturer
Petrobras (petroleum)[Brazil>Okinawa]In 2007, Brazil’s largest state-owned oil
company acquired Nansei Sekiyu Kabushiki Kaisha from TonenGeneral onm
ent
N i l ll ( i hi
p y pCreating Employment and Adding to a Low-Carbon Society) and decided to establish a plant in Kobe.
Sekiyu K.K. and entered Okinawa.
Ski resort development
Konarka (photovoltaic cells) [U.S.>Tokyo]Konarka entered Japan in 2009. The
Next-generation solar cells (organic thin film) manufacturer
Touris
Nihon Harmony Resorts K.K. (Tourism development) [Australia/Hong Kong>Niseko, Hokkaido]A A t li ki t t fi
Ski resort development
company signed a comprehensive capital and business tie-up agreement with Konica Minolta Holdings for the development, production and sale of organic thin-film solar cells.
m
An Australian ski resort management firm began a large-scale ski resort development in Niseko, Hokkaido in 2004. Now Nihon Harmony Resorts is wholly-owned by a Hong Kong firm.
DBS Cruise Ferry (Ferry operations) [Korea>Sakaiminato City, Tottori]
Japan-Korea-Russian Far East Ferry
HKR (real estate) [Hong Kong>Zao, Miyagi〕HKR successfully managed
Renovation of traditional Japanese-style inn
DBS Cruise Ferry established a Japanese affiliate in 2009 and began regular Sakaiminato (Japan)-Tokai (Korea)-Vladivostok (Russia) service.
travelers.
HKR successfully managed “Chikusenso”, the traditional inn. The inn newly opened in April 2010. Their target customers include non-Japanese travelers.
Examples of Foreign companies Attracted by JETRO (2)13
IKEA
Sweden
Hennes & Mauritz AB (H&M)
Sweden
Inditex Group(ZARA)
Spain
Forever21
United States
Abercrombie & Fitch
United StatesSweden
Famous interior furnishing brand. Five stores in Japan.
SwedenFast fashion apparel brand. Seven stores in Japan.
Fast fashion apparel brand. About 50 stores in Japan.
Fast fashion apparel brand.The company opened its first store in
Harajuku in 2009.
Upscale casual apparel brand.The company opened its first
store in Ginza in 2009.
Amazon.com, Inc
United States
Alibaba Group
China
PRICE COSTCO/COSTCO WHOLESALE JAPAN
United States
JC Decaux Group
France
Alessi S.p.A.
Italy United StatesThe company opened two
logistics centers in Chiba and Osaka, and a customer center
in Hokkaido.
ChinaChina’s largest e‐commerce firm (B to B). The company established a joint venture with Softbank.
United StatesMembers‐only warehouse‐type retail company. Nine stores in Japan.
FranceThe company has installed about 1,000 ad board bus stops in over 30 Japanese
cities.
ItalyLong‐established Italian interior goods brand. The company set up
a Japan affiliate in 2008.
KUKA Robot Group Red Bull PRESIDENT ENTERPRISES CORP.
Taiwan
MAGNA CAR TOP SYSTEMS Tata Consultancy Services
GermanyOne of the world’s leading robot manufacturers. The company
established a technical center in Tokyo (Daiba) in 2009.
AustriaEnergy drink maker with loyal
customers in over 100 countries. The company also sells the
product through convenience stores.
The company is developing 4,700 Seven‐Eleven stores in Taiwan. They procure foods,
beverages and other products in Japan.
GermanyAutomobile roof system
manufacturing firm. The company outsources manufacturing to
Japanese companies for delivery to Nissan.
IndiaThe major IT consulting firms in Asia. The company set up a Japan affiliate in 1987 and opened an
office in Osaka in 2010
Emerging Foreign Businesses in the Tourism Field: The year 2000 - current Until around 2005, it was common for American investment companies and funds to acquire facilities (hotels, golf courses, amusement parks) that were experiencing
financial difficulties. Ski resort developments (Niseko/2004, Hakuba/2007) are pioneering examples of the investments that targeted tourists to Japan. Asian capital investments increased after 2007. Expanded investment ranges from facilities (hotels, Japanese-style inns, golf courses) to the service industry (shipping,
travel companies, retail, financial and similar services).
Prioritized sector: Tourism JETRO supported companies 15
2001 -
Goldman Sachs
Golf Courses
Hotels
Lone Star
American I
Com
pani
Acquisitions of bankrupt hotels: Ishin Hotels, Solare Hotels (formerly Chisun)/Hotel business management -> Hotel specialization type J-REITAcquisitions of bankrupt golf courses -> Chains IPO (list on the Tokyo Stock
p )
Morgan Stanley
2005
AParks
Amusement Parks
Lone Star
Grove International Partners and Westmont Hospitality
Colony Capital
Investment
es/Funds
Chains, IPO (list on the Tokyo Stock Exchange): Accordia Golf, Pacific Golf (Both holding over 100 courses)
Acquisitions of facilities experiencing financial difficulties: Seagaia, Universal Studios, Hawks Town
From 2003
American
Hong Kong
Grand Hyatt Tokyo, Conrad Tokyo, The Rits Carlton Tokyo, St. Regis Osaka
Mandarin Oriental Tokyo, The Peninsula Tokyo, Shangri La Tokyo
Acquisition of
g )High-class City Hotels (New
Buildings) in the metropolitan Area
From 2004 Ski resort development
Niseko
Hakuba
Korean Hotels, Japanese-t l i
Targeting t
Acquisition of Niseko Village (Malaysia), Pension Management (Australia)
Hakuba 47 (America)
Redevelopment of Zao Japanese-style inn (Hong
Plan: Purchase existing business -> Build high-class lodging facility
Japan Harmony Resort (Australia -> Hong Kong)
From 2007
Chinese
Asian investm
eincrease
ystyle inns
Golf Courses
Airlines, Ferries, Buses
Travel
tourists visiting
Kong), acquisition of hotels in Hokkaido and Kyushu (Singapore and Korea).
Acquisitions of golf courses in Kyushu, Kanto, and Tohoku (Korea). Golf simulation machines (Korea)
Low cost carrier airline service (Korea, Malaysia, Philippines, Singapore), Bus company in Kyushu (Korea)Tottori (Sakaiminato) - Donghae (Korea) Ferry,
Hong Kong2007
South-east Asia
ents have ed. p
Travel CompaniesRetail and Finance
Taiwan
Food and drink
Japan
( ) g ( ) y,Establishment of travel companies to take care of visitors to Japan (Taiwan, Korea)Acquisition of home-electronics retailer, Laox (China), investment in overseas travel gift catalog sales businesses (China), CUP card (China)
Shanghai classical restaurants, Thai restaurants, Drink chain (Taiwan, Singapore)
Open Sky With the aim of doubling the volume of flows of people, goods and funds from Asia and other places of the world into Japan, we will make Haneda a 24‐hour airport and promote full open skies involving airports in the Tokyo metropolitan area.
The New Growth Strategy June 18, 2010 16
p p g p y p
Open Sky Agreement
Country,Area Cover Area
ThailandThailand
Macao
Hong Kong
VietnamN i AiOpen Sky Agreements
in effective Except metropolitan airports(Narita,Haneda)
Canada
Sri Lanka
USA All airports including
December 2010
negotiationsForecast to Increase Landing Slots(Narita Airport & Haneda Airport)
Narita Airport
Haneda Airport International Terminalgmetropolitan airports(Narita and/or Haneda)
Korea2013(projected)
Singapore
Malaysia
Haneda Airport, International Terminal
Forecast to Increase Landing Slots (Narita Airport & Haneda Airport)
17
Narita Airport increased its slot from 200,000 times to 220,000 times in March, 2010. The airport is planning further expansion aiming to become one of the Asian hub airports.
The number of international slots of Haneda Airport used to be 9,000 times, but will increase up to 60,000 times in October, 2010. The airport is expecting 30,000 slots during the daytime which will mainly
N it Ai t H d Ai t
be business flights to Asia (Seoul, Shanghai, Hong Kong and so on), and 30,000 slots in early morning and late night to major cities worldwide. Even after October 2010, they have plans to increase the slots gradually.
30
22 0
25.0
30.0(10,000 times）50
37.1
44.7
39.0
(10,000 times）
Narita Airport Haneda Airport
27.0
20
22.0
30
40 30.320.0
0
10
10
20International slots will increase from 9,000 to 60,000
0 0
Source：Website of Ministry of Land, Infrastructure, Transport and TourismSource：Website of Narita International Airport Corporation
2009 2010 2011 2012 2014 2009 2010/10 2011/4 Final Plan
AutomobilesConc
Concentration of automobile manufacturers and parts companies (Toyota, Nissan, Honda, DENSO, etc.)
(Next generation
Japanese companies and markets Foreign companies
Many foreign companies have entered Japan in order to increase Japanese transactions.
Accelerate development of hybrids and electric Entry of U.S. venture companies into Japan
Attracting foreign companies: Priority and strategic sectors (working draft)
Areas of growth 20
Electronics and electric
machinery
centration of glofirm
s Production base for high‐value‐added products
(Next-generation automobiles) Expand lithium‐ion battery production
Production of materials (cathode materials) p yvehicles
Production of materials (liquid crystal glass panels)
Move away from general purpose product production bases
Foreign companies handle outsourcing (EMS)
Aircraft Begin production of regional jet (MRJ) Entry by components
New energy
obal
Expand production and sales of photovoltaic cells
Develop next‐generation photovoltaic cells
In wind power generation the main markets are overseas, with venture companies tackling small‐
Production of materials (industrial gas). Supply of cell panels.
Joint development with Japanese companies
Equipment supply. Feasibility study for t bli h t f i d i b
Aircraft Begin production of regional jet (MRJ) Entry by components companies, establishment of training facilities
gy
Participate in smart grid feasibility tests
, p gscale wind power generation
establishment of repair and service bases
Smart meter production (joint ventures), IT controls
Study practical use of wave power generation Establishment of companies for demonstration tests (joint ventures)
Top pharmaceuticals companies engaging in
Asian induscenter, R
& M&A with mid‐sized Japanese pharmaceutical
Healthcare
J
p p p g g gM&A with foreign companies
strial &D
Expand market for medical care equipment
p pcompanies (including generics).Recognize Japan as an unprecedented market among aging societies → Strengthen production, sales and development
Growing demand for medical information
Expand market for services for senior citizens
Entry of clinical trial service companies
Acquire pay homes for the elderly, focus on products such as remote medical care and
Retailing and services
Japanese mark
p p oducts suc as e ote ed ca ca e a delectronic medical records
Falling demand for traditional retail stores (department stores and supermarkets)
Enter new business model of retail
Deregulation Bus stops with advertising boards
Spread of cloud computing Creation of data centers
Tourism
ket Global development of Japanese foods and contents made in Japan
Establishment of procurement bases
Tourism‐oriented country (increase in the number of foreign tourists)
Increase investment from Asia (lodgings, transportation, travel agents, etc.)
Measures to Encourage Company Location in JapanCarrying out reforms in Japan to unify the Asian market; doubling the flow ofpeople goods and money between Japan and the rest of the world June 18, 2010 Cabinet decision
21
As much as possible, Japan must eliminate barriers to the flow of people, goods and money with Asia as well as with the rest of the world. Japan will actively undertake prioritized domestic reforms – e.g., boldly reviewing regulations that present hindrances to this flow
– with the goal of doubling the flow of people, goods and money to Japan.
people, goods and money between Japan and the rest of the world
Lower corporate taxes FY2011
Forfore
Objectives: enhancing the competitiveness of companies locating in Japan and encouraging foreign companiesto set up operations in Japan.
Decision of 5% reduction in “Fiscal Year 2011 General Outline for Tax Reform.”
p
Comprehensive global strategic special zones FY2011
Go to page 22
r Japanese and eign com
panies
Promoting the agglomeration of industries, foreign companies, etc., to serve as an engine for economic growth. Special regulatory measures; tax, fiscal and financial assistance measures. The “Fiscal Year 2011 General
Outline for Tax Reform,” contains implementation of measures for special depreciation, tax credits or incomedeductions.
Promotion of location to low-carbon, job-creating industries FY2009
Go to page 26
Assisting “green industries” to establish factories within Japan and providing subsidies for locating (subsidy rateof 1/3 [1/2 for small companies]).
Utilizing the FY2009 supplementary budget and FY2010 reserve funds for subsidies (subsidy ceiling: 15 billionyen per company); the Ministry of Economy, Trade and Industry requested the needed budget funds for FY2011.
Establishment of contact points for administrative procedures FY2010
Objectives: facilitating business by companies, as well as promoting direct investment in Japan . Consideration will be given to consolidating contact points for national and local administrative procedures
(creation of ‘one-stop’ contacts) and establishing contacts capable of handling matters in English.
Promotion of Japan as a hub for Asian operations and establishment of high value-added business locations FY2010 For Foreign
companies
Assisting companies from overseas to create high value-added business sites. Providing strong incentives toselected companies on par with those offered by other countries. Implementation of location subsidies, taxableincomedeductions (20%), and other measures.
Location subsidies to be implemented in FY2010 supplementary budget (\2 billion). The Ministry of Economy,Trade and Industry requested the budget for FY2011.
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Corporate Effective Tax Rate Deduction of 5 Percentage Points (Corporate tax, corporate residents’ tax)
○ As the first step in lowering Japan’s corporate effective tax rate (currently high from an international perspective) to a level commensurate with other major nations in order to open up Japan and establish investment and business
Prepared by JETRO Invest Japan Division based upon “Fiscal Year 2011 General Outline for Tax Reform” (reference materials), Ministry of Economy, Trade and Industry (December 2010)
22
level commensurate with other major nations in order to open up Japan and establish investment and business environments on a global standard, the said corporate effective tax rate will be reduced by 5 percentage points.
○ This measure will curb the movement overseas of core manufacturing bases and R&D bases, promote direct domestic investment and pave the way for Japan to emerge from deflation and create domestic employment.
Reform Outline [Present Status]
Corporate tax rate 30%Corporate effective tax rate 40.7%(including 2 local corporate taxes)
[After Reforms]Corporate tax rate 25.5%Corporate effective tax rate 35.6%(including 2 local corporate taxes)
○ International levels of nominal effective tax rates have moved to the 25~30% level over the past 10 years.
Corporate tax rate(*1) 2000 2009
EU Approx. 35% Approx. 27%
OECD Approx. 34% Approx. 26%
○Moves to further lower corporate taxes in recent yearsSingapore ：18%→17% (2010~)
pp pp
Asia Approx. 28% Approx. 25%
Japan 42% 40.7%
Singapore ：18%→17% (2010~)Taiwan ：20%→18% (2008~) →17% (2010~)Hong Kong ：17.5%→16.5% (2008~)South Korea ：27.5%→24.2% (2009~)China ：33%→25% (2008~)UK ：28%→24% (2011~)(*2)U 8% % ( 0 )( )Germany ：38.7%→29.8% (2008~)
(Notes)*1 EU (15 countries as of 1998), OECD and Asia are simple averages. For Switzerland, the January 2008 tax rate is used.*2 To be lowered by 1 percentage point each year from 2011 to 2014.
Subsidies for Project to Promote the Establishment of High-Value-Added Facilities and Promote Japan as an Asian BusinessHub
Prepared by JETRO Invest Japan Division based on “List ofProjects Especially Promising for a Healthy Recovery by Japan”(Ministry of Economy, Trade and Industry, September 28, 2010)
23
Project Overview/Purpose Asian headquarters (image)
○To maintain and bolster high-value-added facilities in Japan and ensure sustained growth for the Japanese economy, this project will support the establishment of high added-value facilities in Japan by foreign companies which are deemed to have a particularly large impact on the Japanese economy, and to strategically and actively attract/accumulate high-value-added functions suited to Japan’s strengths.
Concept
○Deploying skilled personnel, including managerial personnel at global companies, and making business decisions for the Asia region with regard to marketing, corporate planning, sales, distribution, manufacturing, R&D and other functions
added functions suited to Japan s strengths.
Project Image
【Targets】 Making Japan a regional headquarters for Asia that brings together
Resulting benefits
○Management decisions on manufacturing/distribution collaboration, etc., that benefit Japan will be made by attracting personnel in charge of high-level business assessments.
○The level of Japanese personnel working at
Strate
skilled human resources (experts in business management, technology, etc.) essential to global society/economy. Establishing R&D bases, including commercialization functions grounded in manufacturing capabilities.
Application
○The level of Japanese personnel working at these global companies will be improved (globalization of Japanese personnel).
R&D bases (image)
gictalks
oninvest
Screening by national governmentDecision on support, taking into account economic benefits, etc., forJapan.
Concept
○Utilizing innovative technology and skilled personnel (engineers, researchers) to carry out active R&D
○Developing highly innovative technology and products for the global market through joint research and collaboration with
tmentprom
otion
○Initial investment support under this subsidy projectBold incentives for selected companies on par with those offered by other countries
Anticipated benefits
Japanese universities, small and medium-sized enterprises, etc.
○Engineers, researchers and other expert personnel will be brought, resulting in innovation promotion in Japan.
○Employment will be created for highly skilled
・Global business expansion based in Japan・Accumulation of high-value-added functions in Japan・Attraction of skilled foreign personnel・Job creation in Japan
Resulting benefits○Employment will be created for highly skilled
personnel in Japan.
○ Innovative technology will be developed through fusion with technology belonging to universities, small and medium-sized enterprises, etc.
Establishment of “Tax System to Promote Japan as an Asian Business Hub”
(Income tax, corporate tax, individual residents’ tax, corporate residents’ tax, enterprise tax)
○ In order to encourage global companies to locate their R&D bases and regional headquarters in Japan, a bold preferential tax treatment system comparable with those in Asian countries will be established under a company approval
Prepared by JETRO Invest Japan Division based upon “Fiscal Year 2011 General Outline for Tax Reform” (reference materials), Ministry of Economy, Trade and Industry (December 2010)
24
preferential tax treatment system comparable with those in Asian countries will be established under a company approval format or other framework.
[Approval Period] 3 years (through end of FY2013)
○ In order to promote the locating in Japan of R&D bases and regional headquarters by global companies, bold f i l ill b d i d h i f l b d f
Reform Outline
preferential tax treatment measures will be devised on the premise of company approval based on a system of promoting Japan as an Asian business hub. (1) With regard to global company R&D bases and regional headquarters, when satisfying the terms pertaining to
creating employment or expanding investment, a 20% taxable income reduction will be permitted for a period of 5 years from the point of approval. →Together with reduction of the corporate effective tax rate, the tax rate for approved companies will be lowered to 28.5%
(2) Establishment of preferential measures to impose capital gains taxes(20%) on all profits from stock options paid to directors and other personnel of approved companies by the overseas parent corporations.
Regional headquarters pooling management personnel and other resources indispensable for
R&D bases pooling advanced researchers and other personnel i di bl f i ti
Basic Policy
Target other resources indispensable for a global economic society. indispensable for innovation.
Approval of business plan
Attraction Incentives Tax system measure (reduced corporate tax burden, personal income tax exceptions)Reduced taxes on R&D base patent fees, etc.
Anticipated EffectsGlobal business development based in Japan, generating domestic employment. Location of high value-added business operations in Japan.Attraction of advanced level overseas personnel to Japan.
(Reference) Promoting Japan as an Asian Business Hub
○ Against the backdrop of the declining competitiveness of Japan as a business location in order to encourage globalSummary
Prepared by JETRO Invest Japan Division based upon “Fiscal Year 2011 General Outline for Tax Reform” (reference materials), Ministry of Economy, Trade and Industry (December 2010)
25
○ Against the backdrop of the declining competitiveness of Japan as a business location, in order to encourage global companies to locate their R&D centers and regional headquarters in Japan, exceptions to taxation and patent fees and other support measures will be devised for authorized companies.
Measures
1. Target Business Activities○ R&D and other international headquarters operations by
global companies establishing new corporations in Japan*.* Operations pertaining to policy determination, etc. of two or more subsidiaries.
2 Plan Approval
◆Primary Conditions for Company Approval◆<Re: Attracting Global Companies>○ Companies newly established as group firms of overseas
companies advancing global development.
<Re: High Added-Value Business Base Not-Existing in Japan>2. Plan Approval○ Global companies intending to locate R&D or international
headquarters operations in Japan prepare and submit business plans.
○ When the said plans are viewed as being appropriate in light of the basic policies and other details, it will be possible to receive approval from the state minister in
e g dded a ue us ess ase ot st g Japa○ Companies engaged exclusively in R&D or headquarters
operations.○ Secure employment at a set level or above during the plan
period<R&D> Maintain employment for 10 persons or more during the plan period and additional hiring of 15 persons or more by thep pp
charge.
3. Support Measures○ The following support measures will be devised for
approved companies.・Tax system measures (reduced corporate tax burden,
ti t l i t )
plan period and additional hiring of 15 persons or more by the end of the term. <Headquarters> Maintain employment for 10 persons or more during the plan period and additional hiring of 8 persons or more by the end of the term.<When hiring non-Japanese> All members must be high-level human resources.exceptions to personal income tax)
・Reduction or exemption of R&D base patent fees, etc.
Note: In addition to the above, as measures on the administrative front, streamlining of visa inspection examinations for non-Japanese personnel scheduled to work at approved companies (reduction to about 10
○ Investment at a set level or more during the plan period<R&D> Annual R&D spending of 100 million yen or more.<Headquarters> Capitalization of 100 million yen or more, with additional investment in domestic group companies totaling 500 million yen or more by the end of the plan term.
to work at approved companies (reduction to about 10 days of examinations normally requiring one month).
C h i Gl b l Attracting Foreign
Progress Schedule
Government budget bill, D b
2010
<Comprehensive Special Zones> 26
Fiscal 2011 General Outline for Tax Reform(December 16, 2010)
Comprehensive Global Strategic Special Zones (Corporate Tax)
S l ti li ti f f ll i
Prepared by JETRO Invest Japan Division based upon “Comprehensive Special Zones,” Cabinet Secretariat Regional Reactivation Bureau, etc. (December 2010)
Implemented as comprehensive policy package of regulation preferential measures, tax system, fiscal and financial support measures, etc.
Comprehensive Global Strategic Special Zones
Pioneering approaches to cultivate industries and functions serving as engines for Japan’s economic growth
Careful selection of regions
Attracting Foreign Companies decision on General
Outline for Tax Reform December
End January ~ Submit bill to Diet
2011
○ Investment tax credits or special depreciation
Establishment of system enabling special depreciation or tax credits when acquiring machinery, buildings, etc. in comprehensive special zones for supply for use in businesses corresponding to the strategies in the said special zones, and actually supplying those items for use in the businesses.
~ Selective application of following measures ~
EnvironmentGeneration Next-Generation Energy
International International Bases
Bio Life Sciences
yFebruary
MarchPassage of bill and budget
(assumption)
• Special depreciation ratio: 50% of acquisition price (25% for buildings, etc.)
• Tax credit ratio: 15% of acquisition price (8% for buildings, etc.)
• Credit surplus carryover limit: 1 year• Deadline to designate business and acquire
equipment, etc.: March 31, 2014
○ Income deductions
Agriculture
R&D International International Ports
Conventions
International International Distribution
April Determination and
announcement of basic policies
Establishment of system exclusively for companies conducting businesses, etc. receiving preferential measures for regulations applied at comprehensive special zones, enabling taxable income deductions of 20% of the income generated by the said businesses.
• Application period: 5 years from date of business designation
• Deadline for business designation: March 31, 2014.
Comprehensive Special Zones for Regional Revitalization
Pioneering regional revitalization visions maximizing use of regional resources
Resolving regional problems
Solicitation of comprehensive special zone
proposals
g• Number of comprehensive global strategic special zone
designations to be strictly limited to a small number.• Local public entities also to conduct measures aimed at
reducing economic burdens of parties implementing businesses (reduced local taxes, granting of subsidies, etc.).
Fiscal preferential measures in comprehensive special zones
~ FY2011 budget (proposal)/establishment of
May
Examinations by comprehensive special zone June
Environment Tourism & Culture
Next Generation Next-Generation Energy
Biomass
Agriculture and
distribution
Agriculture andagriculture combined
with product processing and
distribution
Designation of comprehensive
FY2011 budget (proposal)/establishment of comprehensive special zone system ~
To support realization of plans concerning comprehensive special zones based upon regional strategies and proposals, in cases when shortages remain even after high-priority use of the budgeting systems of individual ministries, creation of comprehensive special zone promotion coordinating costs to be flexibly supplemented until responses under individual ministry budget systems become possible. 15.1 billion yen
p pworking group
June
July
Organizing of comprehensive special zone promotion
headquarters
Education & Childcare
Finance & Social Finance & Social Business Medical
Care, Nursing Care, Health
Distribution & Transportation
Designation of comprehensive special zones
Establish “deliberation forum” by government and project promoters for advancing discussions.
Development of comprehensive special zone utilizing preferential measures and support measures
Establishment of comprehensive special zone support interest subsidies to support private sector businesses based upon plans concerning comprehensive special zones. 150 million yen
August ~
Please ContactJETRO Global Network
27
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39 offices
Rajadamri Road, Bangkok 10330,
Tel: 66‐2‐253‐6441
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