Investing in Japan

Nagasaki

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	1.43 million
Labor force*1	0.69 million
Area*2	4,105 km²
GDP*3	4,310,907 million yen
Major industries	Shipbuilding, general machinery, electronic parts, fisheries, tourism, ceramic
Developing industries	Environment/energy-related industry, welfare/medical treatment-related industry, telecommunications-related industry
Offices overseas	Shanghai, China
Offices in Japan	Tokyo Center for Business Promotion
JETRO office	JETRO Nagasaki

*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

During Japan’s long period of national seclusion, Nagasaki Prefecture was the only official gateway open to the West. The influences of Western culture, which were to play such a key role in the modernization of the Japanese state, were brought in by the Dutch (who were only permitted to land in Nagasaki) and subsequently spread throughout Japan.
Nagasaki has developed a solid foundation for “manufacturing,” including the Nagasaki Shipyard of Mitsubishi Heavy Industries (one of the world’s premier shipbuilders), Sony Semiconductor Kyushu Co., Ltd. (producer of some of the world’s leading semiconductors now used in the PlayStation videogame system), Nagasaki Canon Inc., the digital camera production subsidiary of Canon, the largest digital camera manufacturer in the world, and other powers.
In the telecommunications field as well, a cluster of several companies has already formed in Nagasaki, including a call center base and back office functions of Alico Japan. In addition to manufacturing, the prefecture’s rich agricultural resources, the prosperous fisheries industries supported by Japan’s second longest seacoast and other advantages make Nagasaki a virtual resource treasure house for food-related companies.

Strength of the region's education/research institutes

Serving the approx. 1.43 million residents of Nagasaki Prefecture are 12 in-prefecture universities, 2 technical junior colleges and other technical schools, a considerable number of industrial high schools known for graduating highly trained students and other institutions that support impressive local manpower resources. The prefecture also contains the Nagasaki Prefectural Institute for Environmental Research and Public Health, the Industrial Technology Center of Nagasaki, Ceramic Research Center of Nagasaki, Nagasaki Prefectural Institute of Fisheries, Nagasaki Agricultural and Forestry Technical Development Center and other testing and research institutions that spearhead original R&D, joint research with numerous different companies and other programs.

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

• Marine industry clusters: A number of major shipbuilders have located to Nagasaki, with a large presence of related businesses and other factors qualifying this as one of the world’s top-caliber shipbuilding strongholds. The prefecture also ranks as one of Japan’s leading bases for the fisheries industry (collaborations with universities, national technical colleges, advanced technical colleges, prefectural research institutes and other research and educational institutes are used to heighten corporate technical prowess in this area).

• Promotion of environment and new energy industries: In order to develop the environmental business in a means that mobilizes Nagasaki’s strengths, new projects are being forged in new energy, environment cleanup and creation, resource recycling and related fields to both create and cultivate environment-related industries. Being advanced with particular vigor is a new type of photovoltaic power generation for which the approach is focused on prominent local companies and other renewed local clustering of environment and new energy industries, particularly wind power generation and lithium batteries.

• Promotion of information and electronics industries: A concentration of semiconductor-related companies is advancing in the central part of the prefecture, with this powering efforts to foster semiconductor-related industries matched to the region’s industrial structure in the interest of both cooperation with and differentiation from other regions. The clustering of call centers, back offices and other telecommunications industry functions is underway here, with the focus on Nagasaki City and Sasebo City.

• Automobile industry clustering: Targeting the formation of bases to supply parts to the complete vehicle automakers active in Kyushu, programs are being advanced to both promote local companies in the prefecture and attract new advances by related industries.

Strength of the region's infrastructure

• The main ports are Nagasaki Port, Sasebo Port, Izuhara Port, Fukue Port, and Gonoura Port which handle 560 billion yen in trade annually (2010export: 400 billion yen; import: 160 billion yen). Nagasaki Port offers cargo liner service once per week between Nagasaki and Pusan.

• Located in the center of the prefecture, Nagasaki Airport is utilized every day by about 100 domestic flights, and offers six regular overseas flights weekly (two flights to Shanghai and four flights to Seoul).

<Land>

The motor expressway system serving the Fukuoka district and other key bases of Kyushu has grown extremely advanced, ensuring efficient overland transport. The expressway network in Nagasaki Prefecture has also been enhanced to furnish more reliable travel, resulting in ready access from most points in the prefecture to the major cities of Nagasaki and Sasebo, Nagasaki Airport and the various ports.

<Air>

Nagasaki Airport, the world’s first offshore airport, is located in the central area of Nagasaki Prefecture. The facility boasts a truly extensive range of flight service, including 8 domestic routes (Tokyo, Osaka, Nagoya, etc.) and 2 international routes (Shanghai and Seoul).

<Sea>

The prefecture’s leading ports are Nagasaki Port, Sasebo Port, Izuhara Port, Fukue Port, and Gonoura Port. Nagasaki Port maintains regular route between Nagasaki and Pusan (one passage weekly). There is also regular passenger service linking Tsushima and Pusan, with vessels making 5 to 6 passages weekly.

<Railway>

Utilizing Japan Railways (JR) provides ready access from Nagasaki to the main cities in other prefectures. The decision has also been made to launch construction on the Nagasaki Shinkansen, which will further enhance access to destinations both within and outside of the prefecture in the near future.

Foreign company(s) operating in the industry

Several firms have located in Nagasaki Prefecture including the American International Group (AIG)* which has located its call center and back office functions in the prefecture. One of the key reasons cited for the decision to locate in Nagasaki is the supply of outstanding human resources. For example, serving the residents of Nagasaki Prefecture are 12 universities, junior colleges and technical colleges; two vocational schools; and a large number of industrial high schools.
* American Life Insurance Co., AIG Star Insurance Co., and AIG Edison Life Insurance Company are currently located in Nagasaki
Examples of foreign companies locating in Nagasaki Prefecture: Yashiki-Trienekens Co., Ltd., (mercury, glass, metal), Geotechtor Japan Inc. (ground strong agent), Shin-Etsu Quartz Products Co., Ltd. (quartz glass products), etc.

Company name	Amelican Life Insyurance Company
Industry sector	Insurance, financing service
Date of entry	2001
Motivation for selecting region	Highly talented workers can be hired for long periods. Labor costs are low. Nagasaki Prefecture takes a very proactive approach towards attracting new companies and offers benefit packages to such companies.
Support provided by local government or JETRO	Various types of information concerning business advances (infrastructure, etc.), detailed support for recruiting personnel. As investment incentives, Nagasaki has adopted attractive subsidy systems ranking it within Japan’s very best (grants to allay personal costs, communications spending, leasing fees, capital investment outlays etc.).

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Providing market information
Advice on market participation	No	The Nagasaki Industrial Promotion Foundation furnishes companies locating in Nagasaki with lists of customers and potential partners matched to their particular industry type (manufacturing industry) whilst also providing support in finding good matches.
Consulting by external experts and advisers	Yes	The prefecture provides complimentary consultation services to the greatest extent possible. When the need arises, however, screening and introductions will also be arranged to highly reputable legal offices, tax accountants, patent offices and other outside experts and advisors.
Arranging appointments with potential customers and partners	Free (In some cases, charged)	Customized market reports will be prepared free of charge for companies expressing the volition to invest in Nagasaki Prefecture (fees will be charged in cases that require outsourcing to external institutions in order to gather more specialized information).
Support for finding customers
Monitoring surveys (evaluation of products and services)	Yes	Nagasaki Prefecture and the Nagasaki Industrial Promotion Foundation furnish support for monitoring studies.
Listing of potential customers and partners	No	The networks of companies, universities, research institutes and other entities establishing bases in the prefecture are harnessed to provide introductions. Cooperation with other support organizations is also mobilized to supply pertinent information.
Listing of potential customers and partners	No	The Nagasaki Industrial Promotion Foundation is responsible for this.
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Startup offices inside the prefecture supplied at cut-rate prices.
Providing incubation facilities or other facilities	No	Supplied by the Nagasaki Industrial Promotion Foundation.
Providing information on procedures for investing in Japan	No	Supplied by the Nagasaki Industrial Promotion Foundation.
Arranging the meetings needed to establish a base (real estate, manpower services)	No	Supplied by the Nagasaki Industrial Promotion Foundation.
Introduction of available properties and advice on hiring personnel	No	Supplied by the Nagasaki Industrial Promotion Foundation.
Providing information on permits and licensing procedures	No	Supplied by the Nagasaki Industrial Promotion Foundation.
Providing information on subsidy programs	No	Supplied by the Nagasaki Industrial Promotion Foundation.

The Nagasaki Industrial Promotion Foundation assumes responsibilities for furnishing assistance to overseas companies and foreign-owned businesses studying possible investment in Nagasaki Prefecture. Useful information and advice on the wide range of required procedures, real estate, potential technical tie-up partners (universities, companies) and other aspects of such ventures is supplied on a complimentary basis. In addition to this, sustained and detailed services will also be provided to assist in the procedures and incentives pertinent to locating business operations in Nagasaki, along with support for hiring personnel and other follow-up needs of companies advancing to the prefecture.

Available incentives

<Subsidy system for investments>
Maximum subsidy of 3 billion yen per project (subsidy rate rises proportional to employment scale)

<Low-interest financing>
Access to low-interest financing system offered by Nagasaki Prefecture. Financing of 200 million yen per project

<Reduction of initial costs>
A program in which the Nagasaki Industrial Promotion Foundation purchases a factory built by the company locating in Nagasaki and rents it to that company

<Installment sales & leases>
Underwriting costs of up to 60 million yen per project for machinery and equipment
Operating leases may also be used to lower lease expenses

• Industrial location guide: Invest In Nagasaki

Links to Related Websites

Local governments and related organizations

• Official website: Nagasaki Prefecture
• Industrial location guide: Invest In Nagasaki