Investing in Japan
WHY JAPAN？ 5 Reasons to Invest in JAPAN
Reason 1: An Ever-growing Economy
Japan's investment environment is improving the government is making greater efforts to attract companies and creating a more open market and facilitating business expansion.
Improving GDP growth rate
Source: Fiscal 2017 Economic Outlook and Basic Stance for Economic and Fiscal Management, Cabinet Office website
Corporate ordinary profits (all industries)
Source: Created from "Financial Statements Statistics of Corporations by Industry, Quarterly," Policy Research Institute, Ministry of Finance of Japan
Unemployment rate and jobs-to-applicants ratio
Source: Created from "Labor force survey," Ministry of internal Affairs and Communications; and "Statistics on Employment Referrals for General Workers," Ministry of Health Labor and Welfare
Effective corporate tax rate reduced to 20% level
Note: Tax rates as of April 2016
Source: Created from "FY2016 Tax Reform (Main Points) (December 2015),"Ministry of Finance and other information on the website
“Earning power” of companies increasing through corporate governance reform
"Japanese Stewardship Code" introduced
- Accepted by 201 institutional investors since February 2014
"Corporate Governance Code" introduced
- Applied to more than 2000 companies on June 1, 2015
Progress in reform of bedrock regulations is attracting new investment into Japan.
Reform of fundamental regulations in the sectors of agriculture, medical care and energy is bringing new entries into the Japanese market.
- Speedy and efficient approval review of advanced medical products
(regenerative medicine, medical devices)
- Promoting practical use of regenerative medicine for medical care
- Implementing a drastic reform of electric power and gas system for the first time in 60 years
- Full liberalization of retail market of electricity (April 2016)
- Full liberalization of retail market of gas (April 2017)
Government target: Increase Japan’s inward investment stock to 35 trillion yen by 2020.
Source: Created from "Balance of Payments," Ministry of Finance
Improving business and living environment for foreign companies and expats
- Removing language barriers
(Display of information in foreign languages at shops and public spaces)
- Improvement of Internet access (Installment of free public wireless LAN [Wi-Fi])
- Acceptance of business jets at local airports
- Enhancement of educational environment for expatriate children (international schools)
- Strengthening consultation services to support foreign businesses
(Investment Advisor Assignment System)
Designation of the National Strategic Special Zones
To promote a wide range of international business and leading-edge industries, 12 National Strategic Special Zones have been designated to bring significant deregulation and reform.
Simplifying regulations and administrative procedures
- Fundamentally simplifying regulations and administrative procedures associated with FDI in Japan.
- The "Tokyo One-Stop Business Establishment Center" provides one-stop services for necessary procedures for starting up in Tokyo. (March 2015)
Attracting global talent
- The period of residence required for Highly Skilled Professionals to apply for a permanent residence
permit will be significantly shortened from the current five years. (“The Japanese Green Card for Highly Skilled Foreign Professionals": One of the world’s most quickly obtainable green cards)
- An online application system related to status of residence is scheduled to begin in FY2018
Source: Created from Cabinet office website page "Invest Japan"
Business expansion in area related to inbound tourism
- Relaxation of visa requirements (Starting from July 2013)
- Expansion of exemption of consumption tax for foreign tourists to cover consumables (May 2016)
- 2020 Tokyo Olympic & Paralympic Games
Source: Created by JETRO from Japan Tourism Agency "Consumption Trend Survey for Foreigners Visiting Japan"