Investing in Japan
WHY JAPAN? 5 Reasons to Invest in JAPAN Reason1. An Ever-growing Economy
Japan's investment environment is improving due to government eﬀorts. The Japanese economy is growing.
GDP is steadily headed toward 600 trillion yen
Source: “ABENOMICS”, JAPAN GOV, September 2018
Original data: “Fiscal 2018 Economic Outlook and Basic Stance for Economic and Fiscal Management", Cabinet Oﬃce
Corporate ordinary income (all industries)
Source: “ABENOMICS”, JAPAN GOV, September 2018
Original data: "Financial Statements Statistics of Corporations by Industry, Quarterly," Policy Research Institute, Ministry of Finance of Japan
Highly profitable market
Source: “FDI in Figures”, OECD, April 2016
Original date: OECD International Direct Investment statistics database
Effective corporate tax rate reduced to 20% level
Source: Created by JETRO from "Materials on Corporate Taxation”, "Ministry of Finance”
Note: Tax rates as of January 2018
- "Japanese Stewardship Code" introduced and revised
Accepted by 233 institutional investors as of August 2018
Source: Financial Services Agency
- "Corporate Governance Code" introduced
Applied to 2,540 companies as of July 2017
Source: “Corporate Governance” Japan Exchange Group, Inc.
- 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.
- Healthcare system
Speedy and efficient approval review of advanced medical products
(regenerative medicine, medical devices)
- Promoting practical use of regenerative medicine for medical care
- Energy market
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)
Source: Created from "Abenomics is progressing!, April 2016," Cabinet Office
- Regulatory reform by project
"Japanese Stewardship Code" introduced and revised
- Verifying a possibility for practical use by utilizing innovative technologies, etc. and leveraging data gained through demonstration experiments for the regulatory system reform
- Enabling companies to conduct demonstration experiments of new technologies or business models in speciﬁc areas for a certain period
- No limitation on business types. Taking 2 months at the earliest until the announcement of a certiﬁcation result.
Reference: GOJ’s Regulatory Sandbox Team within the Japan Economic Revitalization Bureau of the Cabinet Secretariat
The government is making greater eﬀorts to attract companies and visitors from overseas, while creating a more open market and facilitating business expansion.
Government target: Increase inward FDI stock in Japan to 35 trillion yen by 2020.
Source: Created by JETRO 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, 10 National Strategic Special Zones have been designated to bring significant deregulation and reform.
- Simplifying regulations and administrative procedures/Aiming for the world's highest level of appropriate and prompt processing
- 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.
- Promoting online and one-stop procedures for incorporation.
- Attracting global talent
- The period of residence required for Highly Skilled Professionals to apply for a permanent residence permit was significantly reduced from five years to one at the earliest (“The Japanese Green Card for Highly Skilled Foreign Professionals,“ one of the world’s fastest obtainable green cards)
- An online application system related to status of residence will start by the end of FY2018.
Source: Created from Cabinet office website page "Invest Japan"
- Business expansion related to inbound tourism
- Relaxation of visa requirements (Starting from July 2013)
- Expansion of exemption of consumption tax for consumables purchased by inbound tourists (October 2014)
- Tokyo Olympic & Paralympic Games in 2020
Source: Created by JETRO from “Consumption Trend Survey for Foreigners Visiting Japan FY2017 (2015~2017) Annual numbers (ﬁnal ﬁgures)", Japan Tourism Agency