JETRO Invest Japan Report 2022
Chapter2. Business Operations of Foreign-affiliated Companies in Japan Section2. Changes in the Business Environment and Business Plan

1. Changes in the Japanese Business Environment

Responses to questions about whether the business environment is “improving,” “no change,” or “worsening” with each of the following items indicate improvements in the living and social environment, such as “ease of living for foreigners” and “readiness of Japanese companies and society to accept foreign-affiliated companies.” On the other hand, as for the business environment, such as “ease of finding business partners” and “ease of raising funds,” responses are mixed with “improving” and “getting worse.” The impact of border control measures against the spread of COVID-19 is considered the reason for the worsening in the “strictness and complexity in the immigration control system” (Chart 2-9).

Chart 2-9: Changes in the Japanese Business Environment

2. Impact of COVID-19 and Future Business Plan

When asked whether they have reviewed or changed business plans in Japan due to the spread of COVID-19, 38.8% of the respondents answered that they have “not reviewed.” It, combined with the response “reviewed and determined that no changes were necessary,” indicates that about 60% of the responded companies have continued their business plans in Japan (Chart 2-10).

52.6% of the respondents said they would “strengthen/expand” their future business plans, with large companies, in particular, showing a positive attitude at 60.7% (Chart 2-11). New Analysis

These results show that many foreign-affiliated companies are aiming to expand their business in Japan in the future, despite the spread of COVID-19.

Chart 2-10: Review/revision of Business Plans in Japan Due to the Spread of COVID-19 New Analysis

Chart 2-11: Future Business Plans in Japan New Analysis

3. Notable Policies for Future Business Activities

When asked about government policies to pay attention to for future business activities in Japan, with multiple answers, "one-stop system and digitalization of labor and tax-related procedures" was the most popular answer chosen by 39.2% of the respondents (Chart 2-12). Interest in "promotion of digital transformation" was strong in the industry of services and others, while interest in "policy for carbon neutral society" was keen in the manufacturing industry, both exceeding 40%.