Investing in Japan

Ibaraki

The information below is as of March 2011.

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• Basic Information
• Regional Profile
• Services for investment in Japan
• Available incentives
• Links to Related Websites

Basic Information

Population*1	2.97 million
Labor force*1	1.5 million
Area*2	6,096 km²
GDP*3	11,515,656 million yen
Major industries	Production machinery, chemical industry, steel, food products
Developing industries	Medical and welfare, information and communications, environmental, biotechnology, semiconductor
Offices overseas	Shanghai, China
Offices in Japan	Tokyo (Tokyo office) / Tokyo (Industry Development Section Tokyo Office) / Osaka (Osaka office)
JETRO office	JETRO Kanto

*1 Population Census 2010, Ministry of Internal Affairs and Communications　*2 Area data 2010, Geospatial Information Authority of Japan *3 Prefectural Citizens' Economic Accounts 2008, Cabinet Office

*Ask the local government for the latest data.

Regional Profile

Strength of the region's industries and economy

Ibaraki Prefecture is located 30 - 160km from Tokyo, has a population around 3 million, and offers wide flat terrain well suited to industrial development. Also, in addition to featuring Japan’s largest science city, Tsukuba; the birthplace of Japan’s electronics industry, Hitachi; and one of the country’s leading chemical complexes, Kashima; Ibaraki serves as an attractive destination for business thanks to its position as the industrial transportation hub for the Tokyo Metropolitan Area, with a land, sea, and air transportation infrastructure which is steadily developing, such as the Tsukuba Express rail line which opened in August 2005 connecting Tsukuba with Akihabara in Tokyo, and the Ibaraki Airport which is scheduled to open in 2010.

Strength of the region's education/research institutes

Approximately 30% of national, etc., research and educational institutions are concentrated in Tsukuba, and when combined the large number of private research institutions and others which have congregated in the surrounding research and development industrial parks, the number of research institutions and companies is roughly 300, making Ibaraki a focal point of Japan’s efforts to develop itself as a nation built on scientific and technological innovation.
J-PARC (Japan Proton Accelerator Research Complex), which uses one of the world’s strongest and most advanced proton beams, began operation in December 2008.

Strength of the region's industry-government-academia collaboration

Ibaraki maintains a special zone for structural reform known as the “Tsukuba, Tokai, Hitachi Knowledge Zone”. Researchers from overseas come to this zone for extended stays, access to national research facilities, etc., is more freely available, and educators and others are able to start up new business during their tenure as instructors. Also, the Tsukuba Center, Inc. was established with the aim of promoting cooperation amongst industry, academia and government. Based on exchange and partnership between researchers in private industry, academia and the government, the Tsukuba Center, Inc. provides a diverse range of rental laboratories and offices; helps cultivate research and development venture companies; creates opportunities for capitalists and ventures to meet; promotes collaboration between public research institutions, universities and companies; and offers information on technological developments in Tsukuba.

Strength of the region's infrastructure

Work on the transportation network infrastructure in Ibaraki is nearing completion, and this infrastructure has already dramatically improved the business environment for companies. For example, the Tsukuba Express, which allows people to travel between Tsukuba and Akihabara in 45 minutes, was completed in 2005; and the Kita-Kanto Expressway connected with the Tohoku Expressway in December 2008; the Metropolitan Inter-City Expressway is scheduled to connect with the Kan-Etsu Expressway, the Tohoku Expressway and the Higashi-Kanto Expressway in mid-2012, allowing travelers to go between Tsukuba and Narita airport in 50 minutes. Also, supporting international distribution, development of the two major ports, Ibaraki Port (Hitachi District, Hitachinaka District, and Oarai District) and the Port of Kashima is continuing to be streamlined while the Ibaraki Airport being opened in March 2010, the third airport for the Tokyo Metropolitan Area after Haneda and Narita.

<Land>

Ibaraki Prefecture continues to work on developing its network of expressways which offer rapid access to Tokyo and the Kanto region. This network provides powerful support for businesses by shortening travel times and allowing a larger amount of freight to be transported.

• Joban Expressway Originates in Tokyo and cuts lengthwise across Ibaraki
• Kita-Kanto Expressway Cuts across and links Ibaraki, Tochigi and Gunma. Provides direct access to the Hitachinaka District of Ibaraki Port
• Higashi-Kanto Expressway Extends from Tokyo and Narita to Mito
• Metropolitan Inter-City Expressway Cuts across the southern and western portions of Ibaraki; links the major cities of the Kanto region in a network

<Air>

In March 2010 Ibaraki Airport opened, becoming the third airport for the Tokyo Metropolitan Area. The airport offers regular scheduled flights to Kobe and Seoul, and it meets the demand in the Tokyo Metropolitan Area for diverse air services including charter flights, low-cost carriers, etc.

<Sea>

Ibaraki Prefecture is promoting enhanced international distribution by continuing development of its two major ports, Ibaraki Port (Hitachi District, Hitachinaka District, and Oarai District) and the Port of Kashima as hubs in a global network.

• Hitachi District: Used to import completed automobiles from Europe. In May 2010 exports of completed automobiles to North America commenced. Domestically, large RORO vessels travel the Hokkaido route to Kushiro Port (every day) and the Kitakyushu route (three times a week).
• Hitachinaka District: An international distribution hub with direct access to the Kita-Kanto Expressway. Container ships travel to the United States (twice a month), and to South Korea and China (once a week), and ships travel on a domestic feeder route connecting to Southeast Asian sea routes, etc. (once a week). It is used for exports of construction machinery to North America, Europe, etc., exports of used cars to South Africa, South America, etc., imports of aluminum from Russia, etc. Domestically, ships travel the Hokkaido route to Port of Tomakomai (twice a day excluding Sundays) and the Shikoku container ship route (once a week).
• Port of Kashima: A world-class artificially-excavated port. It provides distribution support to the Kashima seaside industrial zone. Ships travel on the domestic feeder sea route connecting to Southeast Asian sea routes, etc. (once a week).

<Railway>

• Tsukuba Express: Allows travel between Akihabara Station and Tsukuba Station in 45 minutes, providing a strong push for business growth. The line features attractive subdivisions of sites for new businesses and residential districts created by land readjustment projects. There is a lot of excitement about the new jobs and living opportunities that this rail line is creating.
• JR Joban Line: Work on bringing this line into Tokyo Station began in May 2008 and is scheduled to be completed in 2013.

(Related information)

• Research / Technical support: Tsukuba Center, Inc
• Research / Technical support: Hitachi Regional Technical Support Center

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Advice on market participation	No	Available through the Ibaraki Corporation for Small and Medium Enterprise Promotion (only in Japanese)
Consulting by external experts and advisers	Fees may apply	Available through the Ibaraki Corporation for Small and Medium Enterprise Promotion (only in Japanese)
Support for finding customers
Listing of potential customers and partners	No	Available through the Ibaraki Corporation for Small and Medium Enterprise Promotion (manufacturing industry (particularly machine-related))
Listing of potential customers and partners	No	Business conferences held by the Ibaraki Corporation for Small and Medium Enterprise Promotion
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Available through the Tsukuba Center, Inc.; Hitachinaka Techno Center, Inc.; and the Hitachi Regional Technical Support Center
Arranging the meetings needed to establish a base (real estate, manpower services)	No	Available through the Ibaraki Industrial Promotion Tokyo Headquarters; Ibaraki Business Promotion Office, Osaka Office; Ibaraki Employment Support Center; and the Ibaraki Corporation for Small and Medium Enterprise Promotion
Introduction of available properties and advice on hiring personnel	No	Available through the Ibaraki Industrial Promotion Tokyo Headquarters
Providing information on permits and licensing procedures	No	Available through the Ibaraki Industrial Promotion Tokyo Headquarters
Providing information on subsidy programs	No	Available through the Ibaraki Industrial Promotion Tokyo Headquarters

The Ibaraki Industrial Promotion Tokyo Headquarters and Ibaraki Business Promotion Office offer support to foreign firms considering investment in Ibaraki.

Available incentives

• Exemption from prefectural taxes: Exemption from corporate enterprise taxes and real estate acquisition taxs accompanying the establishment or expansion of factories, offices, etc.
• Reduction or exemption from municipal taxes: Reduction or exemption from fixed asset taxes accompanying the establishment or expansion of factories, offices, etc.
• Introduction of a leasing system: Introduction of a leasing system for land allotments within industrial parks managed by the Ibaraki government and Ibaraki Development Public Corporation.
• Reduction or exemption of industrial water charges: Cost allowance of 1/2 of industrial water charges for applicable areas
• Indirect leasing: Introduction of indirect leasing for land allotments within industrial parks managed by the Ibaraki government and Ibaraki Development Public

Corporation. (Prefecture to lease managers / SPC, etc. to companies)

Links to Related Websites

Local governments and related organizations

• Official website: IBARAKI Prefectural Government

Research and development

• Tsukuba Center, Inc
• Hitachi Regional Technical Support Center

Transportation / living

• Healthcare: Ibaraki Emergency Medical Information System
• International exchange: Ibaraki International Associaｔion