JETRO Invest Japan Report 2023
Chapter2. Trends in Inward FDI in Japan Section 2. Trends in Inward FDI to Japan by Country and Region

Breaking down FDI flow to Japan (asset and liability principle) in 2022 by region, North America accounted for the highest amount at 2.0 trillion yen, up 73.2% from the previous year, followed by Europe at 1.9 trillion yen, recovering from -0.8 trillion yen in 2021, and Asia at 1.8 trillion yen, down 27.2% from the previous year (Chart 2-3). In North America, which was the largest, the U.S. increased by 25.9% from the previous year to 1.4 trillion yen, making it the largest among all countries and regions in the world. Canada increased significantly to 0.6 trillion yen from 50 billion yen in 2021. In Europe, the second largest by country and region, negative net inflow in 2021 turned to be positive, as mentioned above, with the U.K. at 1.1 trillion yen, Switzerland at 0.4 trillion yen, and France at 0.2 trillion yen. In Asia, Singapore decreased -1.1% year-on-year to 0.8 trillion yen, Hong Kong saw a significant decrease to 0.4 trillion yen from 1.3 trillion yen in 2021, and Taiwan increased to 0.2 trillion yen from 25 billion yen in 2021 (Chart 2-4).

Looking at the FDI stock at the end of 2022 (asset and liability principle), Europe was the largest at 19.8 trillion yen and accounted for 42.8% of the total, followed Asia and North America at 11.1 trillion yen (24.1% of the total) (Chart 2-5). In Europe, the overall composition ratio fell slightly from the previous year's ratio of 44.0% due to the decline in stock in the Netherlands (down 14.7% year-on-year) and sluggish growth in France (up 2.0% year-on-year). By country and region, the U.S. was the largest at 10.3 trillion yen (22.3% of the total), followed by the U.K. at 7.7 trillion yen (16.7% of the total) (Chart 2-6). The top 10 countries/regions accounted for 84.9% of the total FDI stock in Japan and were mainly taken up by Europe and Asia other than the U.S.