JETRO Invest Japan Report 2025
Chapter2. Trends in Inward FDI to Japan Section2. Inward FDI to Japan by Country and Region

1. Net Flows

Net investment declined for the second consecutive year, primarily due to significant net withdrawals from the U.S.

Looking at the flow of FDI in Japan (the asset/liability principle) in 2024 by region, net investment inflows were recorded in Europe (2.3 trillion yen), Asia (1.5 trillion yen), and Oceania (0.3 trillion yen) (Chart 2-3). On the other hand, net withdrawals were recorded in North America (1.4 trillion yen) and in Latin America (0.2 trillion yen), resulting in a total net withdrawal of 1.7 trillion yen—the largest since the current statistical standards were adopted in 2014. By country, Switzerland recorded the highest amount at 933.8 billion yen, a sharp rebound from 700 million yen in 2023 (Chart 2-4). Meanwhile, the United States saw both execution and recovery reach record highs [Note] at 21.6 trillion yen and 23.1 trillion yen, respectively, resulting in a net withdrawal of 1.6 trillion yen. This may have been influenced by factors such as the repayment of intercompany loans (debt instruments) and the sale of Japanese subsidiaries by U.S. companies.

[Note]

This refers to the period from 2014 onwards, after changing to the comparable statistical standard currently in use.

A stacked bar chart showing the transition of inward FDI amounts by region (Asia, North America, Latin America, Oceania, Europe, Middle East, Africa) from 2014 to 2024. The vertical axis represents the amount (in 100 millions of yen), ranging from −20,000 to 80,000, and the horizontal axis represents each year. The graph is composed of seven regional categories, with the total amount for each year displayed numerically at the top of the graph. * 2014–2016: The amount was 20,745 (in 100 millions of yen) in 2014. It dropped to 6,272 in 2015 but strongly recovered to 44,915 in 2016. During this period, Asia, North America, and Europe were the primary sources of investment. * 2017–2019: An upward trend with 21,144 (2017), 27,949 (2018), and 43,659 (2019). Investment from North America expanded significantly in 2019 in particular. * 2020–2022: The period when investment reached its peak. It recorded a record high of 67,015 in 2020, with Europe accounting for the majority. It decreased to 38,140 in 2021 but returned to a high level of 63,043 in 2022. While Europe turned negative (withdrawals) in 2021, North America and Asia provided underlying support. * 2023–2024: A downward trend with 28,861 in 2023 and 24,930 in 2024. In 2024, Asia (15,215) and Europe (23,040) maintained positive figures, while North America (−14,281) and Latin America (−2,365) recorded significant negative figures, acting as major downward factors for the total. Overall, it visually demonstrates that investment fluctuations have been volatile since 2020, and the investment trends of specific regions like Europe and North America have significantly impacted the total amount in certain years. — Chart 2-3: Trends in Inward FDI to Japan by Region (Net Flows)

Source:

Based on "Balance of Payments" by MOF and BOJ

Chart 2-4: Top 10 Countries and Regions for inward FDI to Japan (Net Flows) （100 million Yen, ％） Note: Items marked with * in the table are not shown as one of the comparative data is negative.
Ranking	Investor Country/Region	2024	2024 Growth rate (YoY)	2024 Share
1	Switzerland	9,338	140,824.0	37.5
2	Netherlands	7,405	*	29.7
3	Hong Kong	5,241	88.2	21.0
4	Singapore	4,099	-50.0	16.4
5	Australia	3,276	*	13.1
6	Taiwan	2,480	5.2	9.9
7	China	2,051	13.6	8.2
8	France	2,043	-35.8	8.2
9	Canada	1,332	145.5	5.3
10	Belgium	1,095	50.0	4.4
—	United Kingdom	-1,678	*	*
—	Cayman Islands	-3,237	*	*
—	United States	-15,613	*	*
Total		24,930	-13.6	100.0

Note:

Items marked with * in the table are not shown as one of the comparative data is negative.
Source:

Based on "Balance of Payments" by MOF and BOJ

2. Stock

Due to substantial net withdrawals of the U.S., Asia has surpassed North America by region, rising to second place for the first time in two years

Looking at inward FDI stock in Japan (the asset/liability principle) at the end of 2024, Europe had the largest share at 23.1 trillion yen (43.4%), followed by Asia at 13.8 trillion yen (25.9%), and North America at 11.7 trillion yen (22.0%) (Chart 2-5). By country and region, as the U.S. saw its first net decrease in the stock since 2014, when this data became available, Asia surpassed North America for the first time in two years in regional ranking, although the United States still maintained the highest position at 10.6 trillion yen (20.0%) (Chart 2-6). This was followed by the United Kingdom at 9.1 trillion yen (17.0%) and Singapore at 6.1 trillion yen (11.4%) (Chart 2-6). France, which ranked fourth in 2023, saw only a slight increase from the previous year to 3.3 trillion yen, while the Netherlands, which ranked fifth last year, increased 10.9% to 3.7 trillion yen, swapping positions with France. The share of the top ten countries and regions fell slightly from 85.8% in 2023 to 83.2%.

A pie chart showing the breakdown of the inward FDI balance by region as of the end of 2024. The amount (in trillions of yen) and the composition ratio (%) of each region relative to the total are shown. * Europe: Accounts for 23.1 trillion yen (43.4%), making it the largest source of investment. * Asia: Stands at 13.8 trillion yen (25.9%), the second largest after Europe. * North America: Accounts for 11.7 trillion yen (22.0%). * Latin America: Stands at 3.1 trillion yen (5.9%). * Others: Accounts for 1.6 trillion yen (3.0%). The graph as a whole visually indicates that the three regions of Europe, Asia, and North America account for about 90% of the total, with Europe in particular holding a major share of over 40%. — Chart 2-5: Inward FDI Stock in Japan by Region (End of 2024)

Chart 2-6: Top 20 Countries/Regions for inward FDI Stock in Japan (End of 2024) （100 million yen, %）
Ranking	Country/Region	Stock	Growth rate (YoY)	Ratio
1	United States	106,369	-14.3	20.0
2	United Kingdom	90,870	3.9	17.0
3	Singapore	60,746	14.6	11.4
4	Netherlands	36,931	10.9	6.9
5	France	33,289	1.0	6.2
6	Hong Kong	32,590	17.0	6.1
7	Switzerland	29,202	37.3	5.5
8	Cayman Islands	24,501	-9.6	4.6
9	Taiwan	14,870	15.0	2.8
10	Germany	14,121	0.8	2.6
11	China	13,251	8.6	2.5
12	Australia	10,840	27.4	2.0
13	Canada	10,682	18.6	2.0
14	Korea	9,519	2.2	1.8
15	Luxembourg	8,778	-4.6	1.6
16	Thailand	3,533	9.4	0.7
17	Belgium	2,953	61.8	0.6
18	Italy	2,101	17.2	0.4
19	Malaysia	1,893	-0.1	0.4
20	Spain	1,098	33.5	0.2
―	Others	24,855	36.1	4.7
Total		532,991	4.5	100.0

Source:

Based on "Balance of Payments" by MOF and BOJ

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