News & Updates
FY2025 JETRO Survey on Business Conditions of Japanese-Affiliated Companies Overseas (Global Edition)
Dec 26, 2025
-Japanese Companies Steadily Earning Profits Overseas Amid Major Shifts in the Business Environment-
Overview of FY2025 Survey
- From late August to September 2025, JETRO had conducted an online survey on the state of Japanese-affiliated companies (local subsidiaries with at least 10% Japanese investment, branches and representative offices of Japanese companies) in 82 countries/regions selected through JETRO’s overseas office network. Questionnaires for online distribution and collection were sent to 17,708 Japanese companies. 7,485 valid responses were received, resulting in an effective response rate of 42.3%.
- Despite trade disruptions triggered by additional U.S. tariffs, the performance of Japanese companies operating overseas remains solid. This survey highlights their performance outlook across countries and regions, as well as their responses to challenges such as securing human resources.
Key Findings
- 66.5% of companies expect to be profitable in 2025, increasing for the second consecutive year. The proportion exceeded 70% in the Middle East, Southwest Asia, and Latin America, while Africa surpassed 60% for the first time. While over 40% of companies anticipate further improvement in operating profits for 2026, the number of companies forecasting deteriorating performance increased in countries with significant trade ties to the United States, such as Mexico, Brazil, and South Korea.
For future business development, over 80% of companies in India aim to “expand” for the second consecutive year. In Africa, 70% of manufacturers plan to expand. Business expansion continues in the Global South, particularly in the manufacturing industry. By industry, over 70% of companies in Pharmaceuticals and Agriculture, Forestry & Fisheries Products aim to "expand.” - Regarding the impact of additional U.S. tariffs, approximately 40% of all companies exporting to the United States reported significant negative effects, with the figure exceeding 50% in Mexico and China. Across the automotive and auto parts supply chain, roughly half of all companies reported being affected. Notable concerns include declining demand in the U.S. market and intensifying competition from third-country companies, such as those from China, in target markets. Companies exporting to the U.S. are responding by reducing their own costs, diversifying procurement, and strengthening sales networks. Specific countermeasures include efforts to review supply chains, such as increasing local procurement rates, starting local production, and developing sales channels.
- Labor shortages are intensifying. Over the past two years, over 30% of companies reported worsening conditions in securing talent, with notable deterioration in Vietnam, Brazil, and India—countries where business expansion rates are high. While local firms are the primary competitors, Chinese companies came in first in Vietnam. While more than half of companies are enhancing benefits, working conditions, and wages, others are focusing on strengthening recruitment through university partnerships and social media, as well as improving retention by offering skill development programs and organizing internal events.
Progress is evident in human rights initiatives. Over 30% of companies now implement human rights due diligence. In the transportation equipment (Motor vehicles, etc.), implementation exceeded 60%, a significant increase from the 2023 survey. Many companies cited benefits linked to improving their own working environments and employee engagement, with approximately 80% noting "reduction of internal human rights risks" and over 40% citing "improvement in employee working conditions."
(2.0MB)-
Japan External Trade Organization (JETRO)
Research & Analysis Department
International Economy Division
(Representatives: Akira Yasuda and Yoshiyuki Yamada)
Tel: +81-3-3582-5177
