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  2. Investing in Japan
  3. WHY JAPAN? 5 Reasons to Invest in JAPAN
  4. Reason 4: Business-Friendly Infrastructure

WHY JAPAN? 5 Reasons to Invest in JAPAN

Reason 4: Business-Friendly Infrastructure

Supporting business with well-developed social infrastructure

Outstanding environment for business

Business sophistication Rank 2nd in the world (138 countries) 1st in Asia

Japan’s business environment was highly rated in the World Economic Forum's "The Global Competitiveness Report 2016-2017."
Evaluated on business network and quality of company operation/strategy.
Source: “The Global Competitiveness Report 2016-2017,” World Economic Forum Competitiveness Report 2016-2017」

Japan’s IT infrastructure highly praised by international organizations

The World Economic Forum "The Global Information Technology Report 2016" ranked Japan 2nd after Singapore among Asian economies in the Networked Readiness Index, which measures readiness, usage and impact of information technology (ICT) of each country.
Source: "The Global Information Technology Report 2016," World Economic Forum

Foreign companies validate Japan’s infrastructure

About 80% of 197 foreign companies see the well-maintained infrastructure
(transportation, logistics, information and communications and energy) as an advantage of Japan's business environment.

Source: Invest Japan Report 2016

Comments by foreign companies

  • We need stable and reliable infrastructure to function as a regional headquarters. You can expect higher stability of infrastructures such as electricity, telecommunications and transportation in Japan compared to other Asian economies. (Europe, information/hi-tech)
  • All basic infrastructure facilities are solid in Japan. (Asia, energy/environment technology)
  • The tele-communication environment and transportation infrastructure are very stable, and a source of confidence in our business. (North America, service/retail)

Source: "Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2016;"Ministry of Economy, Trade, and Industry (METI)

Japan’s stable infrastructure service

Internet

  • Wireless broadband subscriptions per 100 inhabitants ranked 3rd among OECD countries
    Source: OECD

Communication

  • Percentage of population in mobile phone service area is 99.97%
    Source: Ministry of Internal Affairs and Communications (Japanese only)

Water

  • Provision of hygienic drinking water. 1st in the world (access to improved drinking water)
    Source: "The Travel & Tourism Competitiveness Index 2015," World Economic Forum
  • Diffusion rate of water and sewer service, simple water-supply system, and private water supply is 97.8% (national average)
    Source: "Water Supply Population and Water Service Diffusion Rate 2012" (Japanese only)

Low infrastructure fees

Transportation fees
(including land transportation and air freight)

Low infrastructure fees Transportation fees (including land transportation and air freight) Simulated annual costs based on scheduled deliveries from the factory Unit: US$1,000 Japan (929), Germany (1,685), France (1,734), Australia (1,815), US (1,846), UK (2,051)

High-speed internet fees

High-speed internet fees Average monthly internet fees (residential) (Yen/month) Fee per 1Mbps (Downlink speed: Mbps) Tokyo 17.8yen, Downlink speed 200Mbps Seoul 23.8yen, Downlink speed 200Mbps Dusseldorf 53.9yen, Downlink speed: 100Mbps Paris 59.2yen, Downlink speed 100Mbps New York 79.5yen, Downlink speed 100Mbps London 79.7yen, Downlink speed 76Mbps

Source: "Competitive Alternatives 2016," KPMG
Source: "Report on Internal and External Price Difference Related to Telecommunication Service 2015 (June 2016)," Ministry of Internal Affairs and Communications

Japan's reasonable real estate cost compared to the world major cities

Japan's reasonable real estate cost compared to the world major cities Prime office rent in world major cities (Average annual cost per sqft)(US$/sq.ft./year) *New Delhi (Connaught Place-CDB) 105 *Shanghai (Pudong) 117 *Tokyo (Marunouchi/ Otemachi) 127 *New York (Midtown Manhattan) 144 *London (West End) 146 *Beijing (Finance Street) 179 *Hongkong (Central) 264

* As of Q4 2016
Source: "Global Prime Office Rents, March 2017," CBRE

Japan’s convenient transportation infrastructure

Nationwide transportation infrastructure *Shinkansen Hokkaido Shinkansen, Tohoku Shinkansen, Akita Shinkansen, Yamagata Shinkansen, Joetsu Shinkansen, Hokuriku (Nagano) Shinkansen Tokaido Shinkansen, Sanyo Shinkansen, Kyushu Shinkansen *Station name Shin-aomori, Hachinohe, Akita, Morioka, Shinjo, Yamagata, Sendai, Fukushima, Niigata, Nagano, Takasaki, Omiya, Tokyo, Shin-Yokohama, Nagoya, Kyoto, Shin-Osaka, Okayama, Hiroshima, Kokura Hakata, Kumamoto, Kagoshima-Chuo *Hub airports Hub airport: An airport that serves as a hub for the domestic air transportation network or international air transportation network. Wakkanai, Asahikawa, Kushiro, Obihiro, Shin Chitose, Hakodate, Akita, Yamagata, Niigata, Sendai, Narita International, Tokyo International, Chubu International, Osaka International, Kansai International, Takamatsu, Kohchi, Matsuyama, Hiroshima, Yamaguchi Ube, Kitakyushu, Fukuoka, Nagasaki, Kumamoto, Kagoshima, Miyazaki, Oita, Naha,

Source: Created by JETRO based on the websites of the Ministry of Land, Infrastructure, Transport, and Tourism, and railway companies.

World-class transportation infrastructure

Airports

  • Airports with international flights in service: 51
  • Number of arrivals/ departures in 2015: 3rd in the world for international flights with nearly 750,000 arrivals/ departures (Combined total of Haneda and Tokyo Narita Airports)
    Source: "Tokyo/ Osaka Civil Aviation Bureau Outlook Summary Sheet of Airport Utilization Situation 2015," Ministry of Land, Infrastructure and Tourism
    Source: Created from "Tokyo Metropolitan Airport Functional Enhancement" (2014) (provisional translation), Ministry of Land, Infrastructure and Tourism; and "World Airports-Related Information," ANA

Railways

  • Annual passengers: 24.3 billion
    Source: "Railway/ Railroad Passenger Transport Summary Chart Passenger Volume 2016," Ministry of Land, Infrastructure and Tourism

Shinkansen

  • Number of departures from Tokyo station per hour: 15
  • Accidents resulting in injury or death during the past 52 years since the start of service in 1964: 0
  • Average delay time: 36 seconds (annual operation of 120,000 trains)
    Source: JR Tokai website
    Source: Source: "White Paper on Land, Infrastructure, Transport and Tourism in Japan, 2016," Ministry of Land, Infrastructure and Tourism
    Source: Nikkei Business Online, January 2013

Shinkansen: Japan's world-class rapid railway