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Seeks to Double Foreign Direct Investment in Japan within Five Years
NEW YORK--April 30, 2003 The Japan External Trade Organization New York (JETRO NY) released a newsletter today highlighting new measures to increase foreign direct investment (FDI) in Japan. It can be viewed at: http://www.jetro.org/newyork/focusnewsletter/focus24.html. As part of an ongoing initiative to accelerate FDI, the Expert Committee of the Japan Investment Council (JIC) recently released a number of important recommendations. In a related development, Prime Minister Koizumi announced in a major January 31st policy speech Japan's determination to double the cumulative amount of FDI in Japan within five years. Over the past decade, Japan has come to understand FDI is essential to introducing new capital, resources, know-how and technologies. Nevertheless, FDI inflows remain low. According to UNCTAD, Japan's Inward FDI Potential Index is 14th among 140 countries although its Performance Index is 131st. To address this severe undervaluation, measures must be initiated to enhance Japan's investment attractiveness. This includes: * Welcoming FDI into Japan: Disseminating Information in Japan and Abroad New investment should be welcomed regardless of capital origin and the importance of FDI shown to the Japanese people. Information also must be disseminated internationally to showcase Japan's economic potential. * Smoother Mergers and Acquisitions (M&A): Preparing the Business Environment Today, cross-border investment often takes the form of M&A, rather than new business development. Therefore, it is essential to facilitate the M&A process. * Clear, Simple and Fast Administrative Procedures: Facilitating Regulatory Approvals and Constraints To make administrative procedures better than other countries’, user-oriented ways of thinking need to be adopted. * Securing Necessary Human Resources: Improve Employment and Living Environment Human resources help to drive industrial growth and are essential to develop dynamic businesses. * Local Government Creativity and Ideas: Enlarging the Role of Local Governments Competition of ideas among local governments will help enhance, and demonstrate, the potential of their particular regions. The Expert Committee of the JIC believes the following five points are vital to increase FDI into Japan: * Promoting Public Knowledge of Japan's Attractiveness and Desire for FDI Actively inform international audiences of Japan's desire to welcome FDI; and Seek the understanding of the Japanese people on the importance of FDI. * Improving Japan's Business Environment Improve rules and regulations to facilitate M&A; Enhance transparency and reliability of corporate information; Facilitate new business development; Maximize use of resources of foreign companies; and Improve access to services that support FDI in Japan. * Reviewing Administrative and Regulatory Processes and Procedures Make information available in one-stop form, Simplify and accelerate administrative procedures; and Promote no-action-letter and public comment systems. * Creating a Favorable Employment System and Living Environments Step up reform of Japanese labor market; Improve visa and immigration systems; Improve environment for international education; and Increase ability of foreign doctors to practice in Japan. * Improving Local and National Government Structures and Systems Help local governments to attract foreign investment; Develop designated special zones for structural reform; and Improve national structure for FDI promotion. Contact: Satoshi Miyamoto JETRO NY Tel. 212/997-0416 Fax: 212/997-0464 Satoshi_Miyamoto@jetro.go.jp Focus is published and disseminated by JETRO New York, in coordination with KWR International, Inc., New York, NY 10023, Tel: 212-532-3005, Fax: 212-799-0517, E-mail: kwrintl@kwrintl.com. JETRO New York is registered as an agent of the Japan External Trade Organization, Tokyo, Japan and KWR International, Inc. is registered on behalf of JETRO New York. This material is filed with the Department of Justice where the required registration The preceeding information is provided by: KWR International, Inc. New York, NY 10023 Phone: +1.212.532.3005 Fax: +1.212.799.0517 E-mail: kwrintl@kwrintl.com Website content © 2003 KWR International |