Why Japan ?
Masashi Nakazono
JETRO Genève
Prepared for Handelskammer beider Basel & JETRO seminar on 4 Nov 2016
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Who are we ?
Japan External Trade Organization (JETRO)
• Governmental organization to promote mutual trade and
investment between Japan and the rest of the world
• Established in 1958
• Overseas offices: 74 (in 55 countries)*
• Japan offices: Tokyo Headquarters, JETRO Osaka,
46 regional offices, the Institute of Developing
Economies (IDE-JETRO) *
• Employees: 1,735 (998 in Japan and 737 overseas)**
*As of April 2016
**As of January 2016
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Who are we ?
JETRO’s Overseas and Domestic Network
46 domestic offices
74 overseas offices
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1. Trade & Investment between Japan and Switzerland
2. Why Japan ?
3. Making Japan the most business-friendly country in the
world
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1. Trade & Investment between Japan and Switzerland
Investment between Japan and Switzerland
9.3 billion USD
(2015 stock)
6.4 billion USD
(2015 stock)
Sources Prepared by JETRO “Japan's Outward and Inward Foreign Direct Investment”
From The Ministry of Finance “Balance of Payment Statistics” and Bank of Japan foreign exchange rates.
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1. Trade & Investment between Japan and Switzerland
Trade between Japan and Switzerland
6.4 billion CHF(2015)
3.0 billion USD(2015)
From Federal Custom Administration (FCA).
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1. Trade&Investment between Japan and Switerland
Inward FDI stock in Japan
(Trillion yen)
25
Approximately
$230 billion
23.3
Central
and
South
America
6%
19.4
20
Inward FDI into Japan by region
15
Oceania
2%
Asia
16%
Europe
10
North
America
29%
6.1
5
47%
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Data Source: Ministry of Finance Japan “International Investment Position of Japan (historical data)”
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1. Trade & Investment between Japan and Switzerland
Inward FDI into Japan
Foreign Direct Investment
Portion by GDP (%)
56.5%
60.0%
50.0%
40.0%
31.1%
25.6%
30.0%
19.3%
20.0%
10.5%
10.0%
12.8%
4.8%
0.0%
Japan
China
Korea
Germany
France
USA
UK
Japan：BOJ: Balance of Payments (Data Based on the BPM6), Cabinet Office SNA (National Accounts of Japan)
Other Countries ：UNCTAD “World Investment Report 2015”, FDI database
Japanese Government commits inward FDI
to expand to 350 B USD by 2020 from 230 B USD in 2014
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1. Trade & Investment between Japan and Switzerland
2. Why Japan ?
3. Making Japan the most business-friendly country in
the world
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2. Why Japan?
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2. Why Japan?
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2. Why Japan?
Improving Economic Indexes Under Abenomics
Before launch of
Abe administration
GDP
(Real GDP seasonally adjusted)
Now
1.9%
Trillion yen
Increase
Trillion yen
Increase
17446.41 yen
(2012)
10230.36 yen
Stock Price
(Nikkei Stock Average)
Business confidence
(Tankan Index of Bank of Japan,
manufactures)
(26 Dec 2012)
Launch of Abe administration
-3
Medium-sized firms -5
SMEs
-12
Large firms
4.3%
(2012 Average)
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(Apr-June 2016)
(28 Oct, 2016 Closing price)
Greatly
Improved
(Dec 2012)
Unemployment rate
530.8
519
Improved
6
Medium-sized firms 3
SMEs
-3
(Sep 2016)
Large firms
3.0%
(Sep 2016)
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2. Why Japan?
Target of Foreign Visitor Arrivals in 2020
40M arrivals in 2020
40'000'000
35'000'000
30'000'000
25'000'000
20'000'000
20M arrivals in 2015
15'000'000
10'000'000
5'000'000
0
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2. Why Japan?
■ Foreign Visitor Arrivals and their Consumption Amount
20 million
3.4 trillion JPY (34 B USD)
The number of foreign visitors to Japan in 2015:
Their Consumption in 2015:
(billion yen)
4'000
25'000
3'477
19'737
Foreign Visitor Arrivals
Consuimption amount (B. yen)
20'000
3'500
3'000
15'000
2'500
13'413
10'000
8'358
2'000
2'028
10'364
1'500
1'417
6'219
1'000
1'085
5'000
814
500
0
0
2011
2012
2013
2014
2015
Source：Japan National Tourism Organization, Press release, Jan. 19, 2016
Japan Tourism Agency, Consumption Trend Survey for Foreigners Visiting Japan, Press release, Jan. 19, 2016
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2. Why Japan?
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2. Why Japan?
World Ranking of GDP
United States
17'419
China
10'360
4'601
Japan
Germany
3'852
UK
2'941
France
2'829
Brazil
2'346
Italy
2'144
India
2'066
Russia
1'860
Canada
1'786
Australia
1'453
0
5'000
10'000
15'000
20'000
Japan’s GDP is Over 500 trillion yen.
A leading world economy that boasts
large-scale economic power.
(source: Statistics Bureau, Ministry of internal Affaires and
Communications “World Statistics 2014”, Cabinet Office)
Gross domestic product 2013 (US dollars, Billions)
World Development Indicators database, World Bank, 18 Sep. 2015
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2. Why Japan?
International comparison of regional GDP in Japan
(nominal, FY2013) (Unit $1 billion)
Nagoya region
Osaka region
Tokyo region
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2. Why Japan?
Sophisticated Market
“The reason why P&G tests its new disposable diapers in Japan is
because Japanese housewives are the strictest
consumers.”-----------------Prof. Michael E. Porter
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2. Why Japan?
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2. Why Japan?
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2. Why Japan?
Innovation Hub
Science and technology related research is conducted spiritedly in Japan. “Research funding as a percentage
of GDP” and “Number of researchers per 10,000 people” are among the largest in the world.
Research funding percentage of GDP
(G7 comparison)
Number of researchers per 10,000 people
(G7 comparison)
Rank
Country
Number of
researchers per
10,000 people
Rank
Country
Percentage
of GDP (%)
1
Japan
3.75
1
Japan
52.0
2
German
2.98
2
Canada
45.6
3
U.S.
2.79
3
German
42.5
4th - France (2.29%), 5th - UK (1.73%),
6th - Canada(1.69%), 7th - Italy (1.27%),
8th - Russia (1.12%)
4th - US (40.2), 5th - UK (39.7),
6th - France(38.3), 7th - Russia (31.0),
8th - Italy (12.7)
Source: Created from Ministry of Internal Affairs and Communication, “Survey Result on Science and Technology Indicators 2014 ”
Date source: OECD “Main Science and Technology Indicators, ” etc.
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2. Why Japan?
25
11
4
Yoshinori OHSUMI: 2016 in Physiology or Medicne on the discoveries of mechanisms for autophagy
Satoshi OMURA: 2015 in Physiology or Medicne on the therapy against infections caused by roundworm parasites
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2. Why Japan?
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2. Why Japan?
Business-Friendly Infrastructure
Easy environment for business
2
nd
Source: World Economic Forum, “The Global Competitiveness Report 2016-2017”
Foreign companies validate Japan’s infrastructure
Source: Ministry of Economy, Trade, and Industry(METI), “Survey on Attitudes of
Foreign Companies toward Direct Investment in Japan Report 2014”
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2. Why Japan?
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2. Why Japan?
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2. Why Japan?
Japan’s Business Cost
Source : JETRO
Office rent (monthly/per sq.m)
(USD)
Hong Kong
London
Singapore
Paris
Seoul
Mumbai
Brussels
Tokyo
0
20
40
60
80
100
120
140
160
180
Housing rent for expatriates (monthly)
(USD)
Singapore
London
Mumbai
Hong Kong
Paris
Seoul
Brussels
Source : JETRO
Tokyo
0
500
1000
1500
2000
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2500
3000
3500
4000
4500
5000
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2. Why Japan?
Excellent Japanese transport infrastructure spreading
throughout Japan
Nearly 100 airports
operate nationwide
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2. Why Japan?
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2. Why Japan?
6th in the world.
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2. Why Japan?
Comfortable Living
Most livable Japanese cities as chosen by the world
RANK
1. Tokyo
2. Vienna
3. Berlin
4.
5.
6.
7.
8.
Melbourne
Sydney
Stockholm
Vancouver
Helsinki
：
12.Fukuoka
14.Kyoto
Source: MONOCLE, UK
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2. Why Japan?
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32
1. Trade & Investment between Japan and Switzerland
2. Why Japan ?
3. Making Japan the most business-friendly country in
the world
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3. Making Japan the most business-friendly country in the world
Challenges in doing business in Japan
Rank
2013 Survey
2015 Survey
1
High business costs
Complicated business systems
and structures
2
Particularities of Japanese
market
Difficulty in finding human
resources
3
Difficulty in communicating
in non-Japanese languages
Difficulty in communicating in
non-Japanese languages
(in business)
4
Complicated business
systems and structures
Particularities of Japanese
market
5
Difficulty in finding human
resources
High business costs
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3. Making Japan the most business-friendly country in the world
Structural Reform
Opening up
Regulatory reforms
the electricity of Medicine and
medical equipment
market
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Corporate
Tax Reform
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2. Why Japan?
Reduction of the
corporate tax rate
Down to the
20% range
from this April
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JETRO Genève
80 Rue de Lausanne, 1202 Genève
[email protected]
https://www.jetro.go.jp/switzerland/
Tel. +41 22 732 1304
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