Investing in Japan

Yokohama city

The information below is as of July 2012.

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• Basic Information
• Regional Profile
• Available incentives
• Services for investment in Japan

Basic Information

Population*1	3.69 million
Labor force*1	1.8 million
Area*2	437 km²
GDP*3	Please inquire to your local government for the detailed information about city GDP.
Major industries	Service, real estate, wholesaling/retailing, manufacturing, transportation and telecommunications
Offices overseas	Frankfurt, Germany / Shanghai, China (Operated by Yokohama Industrial Development Corporation (IDEC)) / Mumbai, India (outsourcing)
JETRO office	JETRO Yokohama

*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

Since its port was opened in 1859, Yokohama has contributed greatly to Japan’s modernization and internationalization as a bridge between Japan and the rest of the world, and has continued to grow, its population of 3.69 million making it Japan’s second largest city. In addition to having one of the nation’s busiest international trade ports, Yokohama has a very convenient transport network of railways and roadways and excellent access to Haneda Airport. The verdant living environment, skilled personnel, and the expansive Greater Tokyo market provide the urban conditions needed by business. Yokohama is also a popular tourist destination and convention site where many people from Japan and overseas visit and interact. The city offers some of the most attractive incentives in Japan and a full menu of support to attract companies. By encouraging the expansion of domestic and foreign companies, upgrading existing industries, and creating new industries, the city is building up a concentration of operational functions and cutting-edge technology companies well-matched to the Tokyo Metropolitan Area.

Foreign company(s) operating in the industry

174 foreign companies have set up their head offices in Yokohama (source: Comprehensive List of Foreign Companies 2011, Toyo Keizai Inc.), second only to Tokyo nationwide.

Multiple locations have been set up in the city specifically to facilitate concentration of foreign companies, and these locations help foreign companies lower their location costs when moving into Japan and facilitate their entry into the Japanese market. Furthermore, the city offers incentives such as rent subsidies, etc.

German Industry Park (GIP) , Technology Village Partnership (TVP) , British Industry Center (BIC) , Canadian Industry & Trade Center (CITC) , FEMAC Business Center, Yokohama World Business Support Center (WBC)

Company name	Mueller Japan, Inc
Industry sector	Sales of healthcare items
Date of entry	December 2007
Comments	From the start, we considered Yokohama as one of the major candidate cities for the location of our office because the city not only has excellent access to international airports and Shinkansen bullet train but also has cheaper commodity prices, more abundant nature and better living environment in comparison with Tokyo. However, it was the concerted support provided by the City of Yokohama, Kanagawa Prefecture, and JETRO that made us decide to set up the office in the city. We are extremely grateful for their speedy responses, friendly and enthusiastic advice and start-up offices that enabled us to set up the office in half the time we had originally planned.

Company name	Tata Consultancy Services Japan Limited
Industry sector	IT consultation, as well as software development, operations, maintenance and management
Date of entry	July 2002
Comments	As one of the leaders of the Indian IT industry as well as one of the major vendors in the industry since the establishment of the company in 1968, we have been expanding our business and as a result we have earned high recognition in the global market today. We entered the Japanese market in 1987. We gradually moved our businesses to Yokohama because there were major computer companies nearby and land prices/rents were cheaper than those in Tokyo. We completed the move to Yokohama in 2004.

Available incentives

＜Principal Subsidies and Tax Breaks＞
 Subsidies suited to a diversity of start-up approaches are available, such as up to 3 billion yen for large-scale investments, and up to 400 million yen for tenant programs. Yokohama Specially-designated Area Company Location Promotion Program: Municipal tax breaks and subsidies provided to companies that set up business in the City's specially-designated areas and satisfy certain conditions.
 Small scale rent subsidies: Yokohama Priority Industry Location Promotion Subsidy Program, Yokohama Company Inducement Subsidy Program for Priority Exchange Countries/Regions in Asia, and Yokohama Small Scale Subsidy Program for Inducement of Asian Business— Subsidies to partly cover costs associated with expansion for companies setting up initial operations in Yokohama and meeting certain conditions.
 Providing comprehensive support to companies expanding into the City by assisting in office searches, arranging expert consultations, providing start-up facilities, matching up companies with potential partners/customers, etc.
＜Special Zones＞
Keihin Waterfront Area Life Innovation International Strategic Zone (Designated in December 2011). This zone has been designated to promote the two-pronged objectives of development and manufacturing of innovative medicines/medical devices that respond to the growing need for preventive care and individualized medicine, and the creation of health-care related industries. Arrangements for special provisions associated with new regulations will be put in place, and subsidy programs for taxation and finances to alleviate the difficulties facing start-up companies will be streamlined.

• Industrial location guide: Investing in Yokohama
• Incentive: Incentive Programs

Services for investment in Japan

Providing market information	Advice on market participation, Consulting by external experts and advisers
Support for finding customers	Listing of potential customers and partners, Listing of potential customers and partners
Support for establishing a base	Providing incubation facilities or other facilities, Providing incubation facilities or other facilities, Providing information on procedures for investing in Japan, Arranging the meetings needed to establish a base (real estate, manpower services), Introduction of available properties and advice on hiring personnel, Providing information on permits and licensing procedures, Providing information on subsidy programs

The city has start-up offices and incubation offices available to foreign companies until they set up their own offices.
<Start-up offices>
Name: IBSC Kanagawa (in the JETRO Yokohama Trade Information Center)
Space: approximately 20m²(4 offices)
Tenancy period: 50 business days

<Incubation offices>
Name: Yokohama World Business Support Center (WBC) Incubation Office
Space: 6 - 33m² (22 offices)
Tenancy period: up to 3 years

Both of these facilities offer full support for start-ups by foreign companies, including consultations on launching businesses in Yokohama and the provision of business information.

Database of candidate partners

• Yokohama City & Kanagawa Prefecture Database of Companies: "World Trade Directory"
  

  Searches can be made using keywords pertaining to fundamental conditions (products traded, transaction format, trading partner countries, etc.), company name, or the name of product, or by the name of the corporation.