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Regional Information Miyagi

High Tech Frontier,Miyagi

Your Regional Guide

  • Inquires about investment in Japan.

International Affairs Division, Commerce Industry and Tourism DepartmentExternal site: a new window will open.

3-8-1, Hon-cho, Aoba-Ward, Sendai-city, Miyagi Prefecture, JAPAN 980-8570
Tel: +81-22-211-2972 Fax: +81-22-268-4639
investmiyagi@pref.miyagi.jp

Miyagi

  • If you can't find the information you need, please contact JETRO .
  • Please note that inquires not regarding investment in Japan may not be answered.

The information below is as of January 2017.

Basic Information

Population *1 2.33million
Labor force *1 1.14 million
Area *2 7,282.2 km²
GDP *3 8,816,646 million yen
Major industries Automotive-related, precision machinery, advanced electronics, IT, food manufacturing
Wage *4
Initial wage for university graduates(Average)
199,300yen
Initial wage for college of technology/junior colledge graduates (Average)
164,500yen
Initial wage for upper secondery school graduates (Average)
153,000yen
Scheduled cash eanings (Average)
279,900yen
Land price(for 1m²) *5
Land price for industrial use (Average)
17,900yen
Land Price for Commercial Use (Average)
176,400yen
Number of Establishments *6 98,190
Number of Employees *6 955,780
Offices overseas

Seoul, South Korea / Dalian, China

JETRO office

JETRO Sendai

Regional Profile

Strength of the region's industries and economy

Toyota Motor East Japan and the establishment of an automobile battery manufacturing plant by a joint business venture comprising Toyota Motor Corporation and Panasonic Corporation, Miyagi is expected to develop as one of Japan's main bases for the automotive industry. In fact, it is expected to become the auto industry's third largest regional base in Japan after the Tokai and Kyushu regions.
Miyagi is also gaining attention as a base for the semiconductor industry, since a leading global semiconductor manufacturer, Tokyo Electron, established its manufacturing site and research and development center in the area.
There is also Tohoku University world renowned for its life, semiconductor, and material sciences, and it has high expectations of great deal of resources in R&D.

Related Link
Industrial cluster, project: Miyagi Knowledge based Medical Device ClusterExternal site: a new window will open.
Industrial cluster, project: Next Generation Automobiles in MiyagiExternal site: a new window will open.
Industrial cluster, project: MEMS Park ConsortiumExternal site: a new window will open.

Foreign company(s) operating in the industry

Miyagi offers a wealth of opportunities for businesses to succeed. Leading multinational companies in various sectors have made the decision to invest in Miyagi.

http://www.pref.miyagi.jp/kokusai/investmiyagi/casestudies/index.html

Available incentives

Companies starting business in Miyagi can expect unprecedented contribution to income by utilizing special investment incentives offered as part of the reconstruction program. Companies moving to Miyagi will be eligible for an appropriate and effective preferential treatment system and incentives regardless of their business size. The system and incentives include preferential treatment tax, deregulation of land use, and simplification of various licensing procedures.

Incentive name

Preferential treatment system for the Special Zone for Private Investment Promotion

Incentive type Prefential Tax Treatment
Incentive target industries
  • Automotive-related
  • Clean energy-related
  • Advanced electronic machine-related
  • Medical- and health-related
  • Aerospace-related
  • Food-related
  • Logging-related
  • Vessel-related
  • IT-related
Outline of Incentives (Requirements etc.)

In any designated specific areas,

  • For new building investment, 25% special depreciation or 8% deduction in corporate tax
  • For new investment in machinery and equipment, the amount of the corporate tax is amortized immediately.
  • 10% deduction in corporate tax for employment costs of those affected by the Great Eastern Earthquake (20% deduction max)
  • For research development facilities, 12% deduction in corporate tax and assets for research development purposes can be depreciated instantly.
  • For local taxes, tax exemption in corporate enterprise tax, property tax, and real estate acquisition tax
Incentive name

Miyagi Business Location Incentives

Incentive type Subsidies
Incentive target industries
  • Factories or research facilities related to manufacturers
  • Distribution centers for truck cargo transport, warehousing, packaging, wholesaling or retailing (non-store retailing only)
Outline of Incentives (Requirements etc.)
  • Incentives are provided to manufacturing companies that newly set up or expand facilities for manufacturing, research, and development within the prefecture, depending on their location, investment size, and number of new employees from 1.5% to 20% of fixed assets. (Land is excluded. )
  • Similarly, there is subsidy system for newly setting up or expanding distribution centers for cargo transport, etc.
Incentive name

Business Location Promotion Incentives for information- and communication-related companies

Incentive type Subsidies
Incentive target industries
  • Information services (including mechanical designing companies that use services provided by information services companies)
  • Internet-related services companies or similar companies
Outline of Incentives (Requirements etc.)

Other than new incentives subject to fixed asset value, there is also a subsidy system for office rent and eqipment rental costs.

Incentive name

Subsidy for Companies Creating Jobs in the Affected Areas of Tsunami and Nuclear Disaster

Incentive type Subsidies
Incentive target industries

Manufacturing plant
Logistics facility
Experiment and research facility of manufacturing industry
Facilities that are used as a call centers or data centers

Outline of Incentives (Requirements etc.)

In case a company builds or expands a new designated facility in the designated areas, the company is eligible for a subsidy for the initial investment (land acquisition cost, land development cost, building acquisition cost, and equipment cost) in the setup of the new facility, according to the amount invested in the fixed property and the number of the newly hired employees who live in the neighboring community. The amount of the subsidy is: one third at maximum of the initial investment cost for big companies, half at maximum of the initial investment cost for small and medium-sized companies.

Related Link
Industrial location guide: Invest MiyagiExternal site: a new window will open.
Incentive: Invest MiyagiExternal site: a new window will open.
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