Business/Government/Assignment Editors

The Japan External Trade Organization New York (JETRO NY) released a newsletter today analyzing foreign direct investment (FDI) in Japan.

It can be viewed at: http://www.jetro.org/newyork/focusnewsletter/focus14.html.

JETRO also invites investors, executives, journalists and other interested individuals to hear from leading experts on this topic at a seminar which will be held at the Intercontinental Hotel (111 E. 48th St.) in NYC on April 25, 2001. This event will be held without charge for qualified individuals. Registration will begin at 8:00 A.M. and itwill conclude at 1:45 P.M. following a luncheon session.

Support will be provided by the American Chamber of Commerce in Japan, U.S.-Japan Business Council and the Japan-U.S. Business Council.

A detailed agenda can be obtained by clicking HERE.


The Critical Importance of FDI in Japan

In recent years there has been a growing realization of the important role that FDI plays in strengthening Japan's domestic economy. It introduces competition, promotes efficiencies and corporate rationalization and helps to restructure the Japanese economy for maximum benefit to investors, consumers and other stakeholders. It also minimizes the threat of rising unemployment.


The Success of Japan's Ongoing Structural Reform Program

Japan's first "Action Plan", adopted in 1997, achieved reforms to: enhance corporate competitiveness; promote small and medium enterprises, start-ups and use of venture capital; help initiate an IT revolution; introduce more labor flexibility; and reduce the cost of doing business in Japan.

Building on the success of this first initiative, a second "Action Plan for New Economic Growth" was adopted in December, 2000. It promises to achieve reforms to: enhance creative economic activities and new business development; promote labor flexibility; maximize productivity; address the aging of Japanese society; and problem arising as a result of non-performing loans.


Seminar on Japan's Changing FDI and Corporate Environment

During their recent summit meeting, Prime Minister Mori and President Bush emphasized the importance of FDI, regulatory reform and restructuring. Based on this recognition, Japan's Ministry of Economy, Trade and Industry (METI), U.S. Department of State,

Japan External Trade Organization (JETRO) and the Conference Board will sponsor a public symposium on April 25, 2001. This event will offer an opportunity to brief business leaders on the implications of these trends and to encourage the public-private sector dialogue needed to enhance Japan's attractiveness as a destination for foreign direct investment.


The American Chamber of Commerce in Japan, U.S.-Japan Business Council and Japan-U.S. Business Council will provide support and speakers from the public and private sector -- including numerous Japanese government ministries and related organizations -- will be in attendance.


Japan Offers Many Attractive Benefits to Foreign Firms and Investors

FDI inflows into Japan have increased significantly in recent years -- rising from 360 billion yen in FY 1993 to 2,400 billion yen in FY 1999 -- an increase of over 700%. This trend has continued to accelerate and in the first eleven months of FY2000, FDI inflows have grown to 2,900 billion yen. M&A transactions have also grown substantially, from 531 transactions in 1995 to 1,241 in 2000.

Major corporations including GE Capital, Renault, General Motors, AXA, Boehringer Ingelheim, Cable & Wireless, and DuPont have expanded their presence and foreign investment banks are making a more extensive commitment to Japan. Some of the advantages they have identified include:

	World's Second Largest Economy: Japan has a population of more than 125 million and one of the highest per capita incomes in the world.
	Deregulation Already Well Underway: Major reforms are now creating exciting commercial opportunities in a wide range of industrial and service sectors.
	Test Market and R&D Center: Japan is a valuable reference market, where companies can conduct research, introduce new products and observe emerging consumer trends.