Kyushu Economic Internationalization Data <Summary version>

Transcription

1 Kyushu Economic Internationalization Data 2014 <Summary version>

2 Kyushu Economy Internationalization Data 2014 (main points) Degree of linkage between the Kyushu economy and the Asian economy The degree of Kyushu s economic linkage with Asia is higher than the national average in all six items except import value: namely, export value, the number of Kyushu companies operating in Asia, the number of foreign nationals visiting Kyushu, the number of international flight routes between Kyushu and Asia, and the number of Kyushu municipalities forming sister city affiliations with municipalities in Asia. These all indicate that the Kyushu economy is closely linked to the Asian economy. Trade The aggregate value of trade for Kyushu came to 12,235.6 billion yen in The sum breaks down into 5,620.3 billion yen for exports, up 8.7% from the previous year, and 6,615.4 billion yen for imports, up 17.2%. Exports rose for the first time in two years, but Kyushu incurred a trade deficit for three years in arow. Exports of motor vehicles, a mainstay export item for Kyushu, fell slightly in 2013, marking the first decrease in four years. However, auto exports continued to exceed 1 trillion yen. The United States was the largest export destination for products made in Kyushu, followed by China and the United Arab Emirates. In the import market, mineral fuels accounted for nearly 50% of total imports to Kyushu. Imports of semiconductors, etc., increased sharply. Photocells represented about 60% of total imports of semiconductors, etc. China was the largest importer to Kyushu, accounting for more than 50% of its total imports. China was followed by South Korea and Taiwan. Overseas investment from Kyushu and foreign investment in Kyushu The total number of cases of Kyushu-based companies operating overseas between 1986 and 2013 came to 1,054. Their largest investment destination by region was Asia, accounting for 850 cases, or more than 80% of the total. The largest destination by country was China, which accounted for more than 40% of the total. In 2013 alone, the number of overseas investment cases from Kyushu stood at 28, showing a downtrend that has continued since a peak of 71 cases reported in The number of foreign companies operating in Kyushu stood at 151 as of By prefecture, Fukuoka was the largest investment destination in Kyushu for foreign companies, with 133 such companies operating there. The 151 companies included 53 US companies, 18 German companies, 14 South Korean companies, 14 French companies and 11 Chinese companies. Human-to-human interchange between Kyushu and foreign countries The number of foreign nationals who entered Kyushu in 2013 came to 1.22 million, hitting an all-time high and representing a 15.1% gain from the previous year. South Koreans accounted for the largest 65.3% of the total, followed by 13.9% for Taiwanese people and 6.7% for Chinese people. The number of foreign students who studied in Kyushu in 2013 came to 17,780, rising 1.0% from the preceding year and representing 13.1% of all foreign students who studied in Japan in the same year. A total of 567 foreign students were employed in Kyushu in 2013, accounting for 4.9% of the total foreign students employed in Japan in the same year. [Feature topic] The results of a survey conducted in the current fiscal year on inviting foreign companies to Kyushu were featured in the opening page of the current issue. Internationalization of the Kyushu economy was featured at the end of the current issue.

3 Kyushu Economic Internationalization Data 2014 (contents) Trade (summary) Characteristics of Kyushu (Economic Interchange with Asia) 1 Trade of Kyushu (Summary) 2 Trade Trend of Kyushu by Item 3 Trade Trends of Kyushu by Country and Region 4 Trade Balance of Kyushu 5 Overseas investment from Kyushu and foreign investment in Kyushu Overseas Operations of Kyushu Companies 6 Investment in Kyushu by Foreign Companies 8 Human-to-human interchange between Kyushu and foreign countries Entry of Foreign Nationals into Kyushu 9 Foreign Students in Kyushu 10 Trade (by country and region) General Situation of Yellow Sea Rim Economic Bloc 11 Trend of trade between Kyushu and China 14 Trend of trade between Kyushu and South Korea 15 Trend of trade between Kyushu and Hong Kong 16 Trend of trade between Kyushu and Taiwan 17 Trade trend of Kyushu and ASEAN 18 TrendofTradebetweenKyushuandVietnam 20 TrendofTradebetweenKyushuandThailand 21 Trend of Trade between Kyushu and Singapore 22 Trend of Trade between Kyushu and Malaysia 23 Trend of Trade between Kyushu and the Philippines 24 Trend of Trade between Kyushu and Indonesia 25 Trade (by industry) Motor vehicles 26 Parts of motor vehicles 27 Semiconductors, etc. 28 Iron and steel products 29 Ships and boats 30 Food 31 Opening Feature: Results of a Survey on Inviting Foreign Companies to Kyushu for Investment 32 Topics Exports of fishery products 3 3 Exports of wood and lumber 3 4 Exports of agricultural and stock farm products 3 5 Trade trend of motor vehicle parts 3 6 Imports of semiconductors, etc. 3 7 Exports of medical equipment 3 8 Exports of liquor products 3 9 Imports of mineral fuels 4 0

4 Characteristics of Kyushu (Economic Interchange with Asia) Six items are used to measure how much economic interchange has advanced between Kyushu and Asia. The six items are export value, import value, the number of Kyushu companies operating in Asia, the number of foreign nationals visiting Kyushu, the number of international flight routes between Kyushu and Asia, and the number of Kyushu municipalities forming sister city affiliations with municipalities in Asia. Based on these items, the share of Asian-related economic activities by Kyushu against its total economic activities is regarded as the degree of Kyushu s economic linkage with Asia. The degree of Kyushu s economic linkage with Asia was higher than the national average in 2013 in all six items except import value. This indicates that the Kyushu economy is closely linked to the Asian economy. Comparison between Kyushu and Japan s national average in the degree of economic linkage with Asia Comparison between Kyushu and Japan s national average in the Asian-degree Kyushu (2013) National average (2013) Item Unit Asia World The Asian-degree Asia World The Asian-degree Number of companies operating overseas Number 850 1, % 16,214 26, % Import value 100 million yen 23,806 66, % 359, , % Number of sister city affiliations formed with Asian cities Number % 573 1, % Number of international flights to Asia Flight route % % Number of entries by foreign nationals Person 1,156,446 1,216, % 8,882,100 11,255, % Export value 100 million yen 33,272 56, % 378, , % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics provided by the Ministry of Finance; data provided by the Moji Customs; the 2014 report on overseas operations by Kyushu and Yamaguchi companies, compiled by the Kyushu Economic Research Center; the 2014 report on Japanese companies overseas operations, compiled by Toyo Keizai Inc.; annual immigration control statistics provided by the Ministry of Justice; the March 2014 edition of a JR train timetable, compiled by Transportation News Co., Ltd.; and the website of the Council of Local Authorities for International Relations (CLAIR) 1

5 Trade of Kyushu (Summary) The aggregate value of trade by Kyushu companies came to 12,235.6 billion yen in The sum breaks down into 5,620.3 billion yen for exports, up 8.7% from the previous year, and 6,615.4 billion yen for imports, up 17.2%. Exports rose for the first time in two years, but Kyushu incurred a trade deficit for three years in a row. Trade by Kyushu has accounted for more than 8% of Japan s total trade both exports and imports in recent years. Mainstay export items for Kyushu with high shares against the national total are listed below. Exports from Kyushu of rails and railway materials account for more than 80% of Japan s total shipments of such products. Exports from Kyushu of five other product items represent more than 40% of Japan s total shipments of each such product, including structural parts, and wood. Change in trade value by Kyushu and the share of trade value by Kyushu against Japan s total trade value Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Export items for Kyushu with high shares against the national total Ranking Export item (sub category) Export value (Kyushu) Export value (Japan) (100 million yen) Share of Kyushu against Japan s total value 1 Rails and railway materials % 2 Structural parts % 3 Wood % 4 Rubber tires and tubes 3,515 7, % 5 Cement % 6 Visual apparatus 2,483 6, % 7 Cokes % 8 Ships and boats 4,085 15, % 9 Metal container % 10 Cycles with engines 766 3, % 11 Antibiotics preparation % 12 Flat-rolled products 4,646 22, % 13 Copper and copper alloys 1,341 7, % 14 Textile yarn and thread 190 1, % 15 Fish (fresh) 192 1, % 16 Pig iron % 17 Semiconductors, etc. 5,030 35, % 18 Semicon machinery, etc. 1,596 12, % 19 Ferrous waste and scrap 451 3, % 20 Antibiotics % 21 Organic chemicals 2,673 25, % 22 Motor vehicles 10, , % 23 Polyethylene 108 1, % 24 Office machines 1,441 16, % 25 Titanium and its alloys % 2

6 Trade Trend of Kyushu by Item The largest export item for Kyushu in terms of value is motor vehicles, followed by semiconductors, etc., flat-rolled products, ships and boats, and rubber tires and tubes. Exports of these five items together accounted for about 50% of the total exports from Kyushu in Organic chemicals contributed most to the export rise for Kyushu in 2013, with a contribution of rate of 1.6%. Shipments of organic chemicals to such countries as China, South Korea and Taiwan increased in the year. Exports of motor vehicles, a mainstay export item for Kyushu, fell slightly in 2013, marking the first decrease in four years. However, auto exports continued to exceed 1 trillion yen. The United States was the largest export destination for products made in Kyushu, followed by China and the United Arab Emirates. In the import market, mineral fuels, such as petroleum, petroleum gas and coal, accounted for nearly 50% of Kyushu s total imports in Mineral fuels were followed by raw materials such as iron ore and concentrates, and nonferrous ores. Petroleum contributedmosttotheriseinimportsforkyushuin2013 with a contribution rate of 7.8%. Imports of petroleum from such countries as Russia, the United Arab Emirates (UAE) and Saudi Arabia increased significantly in the year. Mainstay export items in global trade for Kyushu (sub category) Mainstay import items in global trade for Kyushu (sub category) (Unit: 100 million yen, %) (Unit: 100 million yen, %) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 3

7 Trade Trends of Kyushu by Country and Region Kyushu s largest trading partner is China, followed by South Korea and the United States. (based on trade value) In 2013, exports from Kyushu to China increased due to brisk demand for organic chemicals and motor vehicles, while the region s South Korean-bound exports also grew, reflecting brisk demand for semiconductors, etc. In 2013, China was the largest importer to Kyushu, followed by Australia and Saudi Arabia. Trade with Australia and Saudi Araba, both rich in natural resources, has been increasing in recent years, with Kyushu s demand for mineral fuels and raw materials rising. Imports to Kyushu from such countries as Russia and China also increased in Kyushu has bought more petroleum and petroleum gas from Russia, and more semiconductors, etc., from China. Main countries and regions importing from Kyushu Main countries and regions exporting to Kyushu (Unit: 100 million yen, %) (Unit: 100 million yen, %) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 4

8 Trade Balance of Kyushu Kyushu incurred a trade deficit of billion in The margin of red ink shrank from the previous year s 1,238.6 billion yen but was still significant. (Japan sustained a record trade deficit of 11,468.4 billion yen in the year.) By trade item, transportation equipment and raw materials made in Kyushu posted trade surpluses, whereas substantial deficits were recorded in trading of mineral fuels, such as crude oil and natural gas. Overall, imports exceeded exports in Change in trade balance of Kyushu Trade balance of Kyushu by item (2013) 2013 balance in trade with Kyushu s main trading partners (countries and regions) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance (unit: 100 million yen) Countries and regions Net exports Countries and regions Net imports The US 4,674 Australia -6,257 South Korea 4,196 Saudi Arabia -4,770 China 2,636 The UAE -3,264 Singapore 2,254 Kuwait -3,067 Panama 2,010 Qatar -3,049 Trade balance of Kyushu (2013): deficit of billion yen 5

9 Overseas Operations of Kyushu Companies The total number of cases of Kyushu-based companies operating overseas between 1986 and 2013 came to 1,054. This sum represents 4.0% of all Japanese companies that operated overseas during the period, totaling 26,067. By region, the largest investment destination for Kyushu companies was Asia, accounting for 850 cases or 80.6% of the total. Asia was followed by 99 cases or 9.4% for North America, 64 cases or 6.1% for the European Union (EU) and 41 cases or 3.9% for "Other" regions. Their largest destination by country was China, which accounted for more than 40% of the total. Overseas operations of Kyushu-based companies by country and region Kyushu (Unit: No. of cases, %) Nationwide Unknown As of 2013 Breakdown by country Breakdown by country Breakdown by country Breakdown by country Breakdown by country Breakdown by country Breakdown by country Breakdown by country and region (% ) and region (% ) and region (% ) and region (% ) and region (% ) and region (% ) and region (% ) and region (% ) Breakdown by country Breakdown by country (Cumulative) Publication base and region (% ) and region (% ) Asia , China , Hong Kong , Taiwan South Korea ASEAN , Other Asian countries <ASEAN4> , <Asian NIEs> , North America , EU , Others , World total , , Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on the 2013 report on overseas operations by Kyushu and Yamaguchi companies, compiled by the Kyushu Economic Research Center, and the 2014 report on Japanese companies overseas operations (by country), compiled by Toyo Keizai Inc. 6

10 Overseas Operations of Kyushu Companies 2 In 2013, the number of overseas investment cases from Kyushu stood at 28, showing downtrend that has continued since a peak of 71 cases reported in Their largest investment destination was ASEAN, where nine Kyushu companies operated in the year. ASEAN was followed by China (six cases), and Hong Kong, Taiwan and South Korea (two each). Asia accounted for more than 80% of Kyushu companies' overseas operations. The 2013 statistics showed that Kyushu companies shifted their investment focus from China to ASEAN. The cumulative total of overseas investment from Fukuoka Prefecture came to 717 between 1986 and 2013, occupying nearly 70% of total overseas investment from Kyushu during the period. Fukuoka was followed by Nagasaki Prefecture and Oita Prefecture (69 cases each). Change in investment destinations Number of overseas investment cases by each prefecture in Kyushu (Unit: No. of cases, %) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on the 2013 report on overseas operations by Kyushu and Yamaguchi companies, compiled by the Kyushu Economic Research Center 7

11 Investment in Kyushu by Foreign Companies The number of foreign companies operating in Kyushu, including their branches, stood at 151 as of By prefecture, Fukuoka was the largest investment destination in Kyushu for foreign companies, with 133 such companies operating there. Fukuoka was followed by Miyazaki Prefecture and Kagoshima Prefecture in both of which four foreign companies operated in the year. Foreign companies' investments in Kyushu have tended to increase in recent years, with the number of such investment cases totaling 10 since The main foreign companies which had operated in Kyushu as of 2013 included 53 US companies, 18 German companies, 14 South Korean companies, 14 French companies and 11 Chinese companies. These figures included branches of the foreign companies. The industrial sectors of the parents of these foreign companies are wide ranging manufacturing, import business, retail business and financial services. Conspicuous in recent years have been investments by solar power-related companies. Main foreign-affiliated companies operating in Kyushu (including their branches and sales outlets) (limited to companies starting operation in 2010 or after) Year of investment Prefecture name Country of investing company Main products and services Investment management, investment advice, investment agency service, transactions of type-ii 2010 Fukuoka US financial instruments 2010 Fukuoka Australia Management of service offices 2012 Fukuoka US Asset management business, outsourcing business for investment trust management companies, asset management companies and insurance companies, and agency business for global custody services provided by State Street Corp., a parent company of the investing firm 2012 Fukuoka China Production and sale of ingots, wafers, cells and modules used in solar cells, and mega-solar power generation business 2012 Fukuoka South Korea Production and sale of solar panels 2012 Fukuoka Germany Production of motor vehicle parts 2013 Fukuoka South Korea Banking service 2013 Fukuoka The Netherlands Travel service and cargo service 2013 Fukuoka China Power generation and solar panels 2013 Fukuoka The Netherlands Travel service and cargo service Prefecture-by-prefecture breakdown of investment destinations for foreign companies in Kyushu (including branches and sales outlets) (2013) Prefecture name No. of foreign companies Fukuoka 133 Saga 3 Nagasaki 1 Kumamoto 3 Oita 3 Miyazaki 4 Kagoshima 4 Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry 8

12 Entry of Foreign Nationals into Kyushu The number of foreign nationals who entered Kyushu in 2013 came to 1.22 million, hitting an all-time high and marking a 15.1% gain from the previous year. South Koreans accounted for the largest percentage at 65.3% of the total, followed by 13.9% for Taiwanese people and 6.7% for Chinese people. The number of visits to Kyushu by cruise ships fell dramatically in 2013, resulting in a drop of nearly 20% in the number of Chinese people who enter Kyushu. However, the number of entry by South Koreans surged 15.1% in the year, aided by an increase in the number of sea routes for high-speed craft linking Tsushima and Pusan. Change in the number of foreign nationals entering Kyushu and Japan Kyushu Japan s national average (Unit: person, %) Number of entries in 2013 Breakdown by country and region Growth rate Share of Kyushu against Japan s total value Number of entries in 2012 Breakdown by country and region Number of entries in 2013 Breakdown by country and region Growth rate Number of entries in 2012 Breakdown by country and region (%) (%) (%) (%) (%) (%) (%) Total 1,216, ,056, ,255, ,172, Asia 1,156, , ,882, ,069, South Korea 794, , ,723, ,315, China 81, , ,604, ,626, Taiwan 169, , ,245, ,503, Hong Kong 46, , , , Vietnam 6, , , , Thailand 22, , , , The Philippines 10, , , , Indonesia 3, , , , India 1, , , , Other Asian Countries 20, , , , Europe 20, , , , Africa , , North America 30, , ,015, , South America , , , Oceania 6, , , , Stateless Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on immigration control statistics released by the Ministry of Justice 9

13 Foreign Students in Kyushu The number of foreign students who studied in Kyushu in 2013 came to 17,780, increasing 1.0% from the preceding year and representing 13.1% of all foreign students who studied in Japan in the same year. The number for 2013 was 1.7 times higher than the figure of 10,383 reported 10 years earlier, in 2003, showing an uptrend in the number of foreign students accepted in Kyushu. Students from China accounted for the largest percentage, at 62% of the total number of foreign students in Kyushu in 2013, followed by 9.7% for South Koreans and 7.4% for Vietnamese. A total of 11,647 foreign students were employed in Japan in Of the sum, 567 students, or 4.9%, were employed in Kyushu in the year. Change in the number of foreign students in Kyushu Country-by-country foreign students accepted in Kyushu (Unit: person, %) Change in the number of foreign students employed by companies in Kyushu Number Share against national total Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on the foreign student survey for fiscal 2013, released by the Japan Student Services Organization Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on a 2013 survey on the employment of foreign students in Japan, released by the Immigration Bureau of the Ministry of Justice Country and region Number of persons Kyushu Share of Kyushu Breakdown by against Japan s country and region total value Japan's National average Number of Breakdown by persons country and region Asia 16, % 13.5% 124, % China 11, % 13.5% 81, % South Korea 1, % 11.3% 15, % Taiwan % 6.6% 4, % Vietnam 1, % 21.0% 6, % Thailand % 13.7% 2, % Singapore % 11.0% % Malaysia % 7.4% 2, % The Philippines % 10.1% % Indonesia % 18.0% 2, % Other Asian Countries 1, % 17.0% 8, % Middle East % 5.8% 1, % Africa % 14.8% 1, % Oceania % 10.0% % North America % 7.6% 2, % Latin America % 8.0% % Europe % 8.1% 4, % Total 17, % 13.1% 135, % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on a foreign student survey released by the Japan Student Services Organization 10

14 General Situation of the Yellow Sea Rim Economic Bloc The Yellow Sea Rim Economic Bloc covers Japan s Kyushu, and the coastal areas of South Korea and China facing the Yellow Sea. It is a localized economic bloc formed against the background of real economic activities such as trading, investment and the movement of persons. It is therefore unlike regional economic blocs created under state-to-state pacts, such as the EU and ASEAN. Outline of the Yellow Sea Rim area Population (10,000 persons) Area (10,000 km 2 ) GDP (100 million yen) Each region s GDP share against national GDP (%) Kyushu 1, , % China (Yellow Sea Rim area) 35, ,606, % South Korea (Yellow Sea Rim area) 3, , % Total 39, ,558,372 11

15 General Situation of the Yellow Sea Rim Economic Bloc The population living in the Yellow Sea Rim Economic Bloc is about 400 million. The figure is less than the population of other regional economic blocs. However, the area s aggregate GDP stands at more than 4 trillion dollars, surpassing the GDPs of ASEAN and MERCOSUR. Comparison with other regional economic blocs (2012) Association of Southeast Asian Nations (ASEAN) Membership Population GDP GDP per capita Trade value (10,000 persons) (100 million US dollars) (US dollar) (100 million US dollars) 10 countries 61,000 23,318 3,851 24,724 Yellow Sea Rim area (3 countries) 39,538 44,628 11,287 50,705 European Union (EU) North American Free Trade Agreement (NAFTA) Southern Common Market or Mercado Comun del Sur (MERCOSUR) 27 countries 3 countries 5 countries 50,655 47, , ,450 29,028 32,101 *Overseas economic data (127 page of March 2013 edition) Exchange rate: 1 dollar = yen 32,812 39,631 11, ,452 55,623 8,417 12

16 General Situation of the Yellow Sea Rim Economic Bloc Trade value involving Kyushu, China and South Korea (2013) Among trade activities involving areas covered by the Yellow Sea Rim Economic Bloc, the highest trade value was recorded in exports from South Korea to China, at billion dollars, followed by exports from China to South Korea, valued at billion dollars China 1, South Korea 33.0 The value of trade between Kyushu and China decreased in So did the value of trade between Kyushu and South Korea Kyushu Trade value (100 million US dollars) Change in trade value involving Kyushu, China and South Korea Trade between Kyushu and China Trade between Kyushu and South Korea Trade between China and South Korea (right scale) Trade value (100 million US dollars) 2,500 2,000 Unit: 100 million US dollars (1 dollar = 79.8 yen) Note: Trade between China and South Korea covered the entire areas of the two countries. Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on data provided by the Moji Customs, overseas economic data released by the Cabinet Office, and statistics included in the World Trade Atlas 150 1, , Trade between Kyushu and China Trade between Kyushu and South Korea Trade between China and South Korea (right scale) ,140 1,381 1,653 1,403 1,856 2,171 2,220 2,370 Note: Trade figures for China covered the entire area of the country, and such figures for South Korea also covered the entire area of the country. Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on data provided by the Moji Customs and statistics included in the World Trade Atlas 0 13

17 Trend of trade between Kyushu and China Exports from Kyushu to China increased by 12.9% from the previous year to 1,183.4 billion yen in 2013, marking the first rise in three years. Imports from China to Kyushu grew 18.4% to an all-time high of billion yen, rising for the fourth straight year. The largest export item in trade with China in 2013 was motor vehicles. Motor vehicles were followed by organic chemicals and semiconductors, etc. In the year, overall exports rose significantly on brisk shipments of organic chemicals, motor vehicles and semiconductor machinery, etc.. Kyushu imports a wide range of products from China. In 2013, imports of semiconductors, etc., increased significantly. Other gainers included parts of motor vehicles. Overall, imports from China to Kyushu increased significantly in Change in the value of trade between Kyushu and China Main export and import items in trade between Kyushu and China (sub category) Export item (sub category) Exports (100 million yen) Breakdown by country and region (%) Total 11, % Motor vehicles 2, % Organic chemicals 1, % Semiconductors, etc. 1, % Flat-rolled products % Visual apparatus % Copper and copper alloys % Semicon machinery, etc % Scientific, optical inst % (Ferrous waste and scrap) % Others 3, % Import item (sub category) Imports (100 million yen) Breakdown by country and region (%) Total 9, % Semiconductors, etc % Parts of motor vehicles % Office machines % Audio and visual apparatus % Organic chemicals % Clothing, knitted or clothe % Vegetables % Insulated wire and cable % Plastic % Clothing % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on 14 trade statistics released by the Ministry of Finance Others 5, %

18 Trend of trade between Kyushu and South Korea Exports from Kyushu to South Korea rose 17.6% from the previous year to a record billion yen in 2013, marking the first increase in two years. Imports from South Korea to Kyushu fell 5.0% to billion yen, the first fall in four years. The largest export item (on a sub category basis) in trade with South Korea in 2013 was semiconductors, etc., followed by flat-rolled products and semiconductor machinery, etc. In the year, overall exports to South Korea increased sharply on brisk shipments of semiconductors, etc., power generating machine and organic chemicals. The largest import item in trade with South Korea in 2013 was petroleum products, followed by semiconductors, etc., and flat-rolled products. In the year, overall imports from South Korea fell on slack purchases of semiconductors, etc., and telephony and telegraphy. Change in value of trade between Kyushu and South Korea Main export and import items in trade between Kyushu and South Korea (sub category) Export item (sub category) Exports (100 million yen) Breakdown by country and region (%) Total 7, % Semiconductors, etc. 1, % Flat-rolled products % Semicon machinery, etc % Organic chemicals % Scientific, optical inst % (Ferrous waste and scrap) % Power generating machine % Petroleum products % Motor vehicles % Visual apparatus % Others 2, % Import item (sub category) Imports (100 million yen) Breakdown by country and region (%) Total 3, % Petroleum products % Semiconductors, etc % Flat-rolled products % Parts of motor vehicles % Organic chemicals % Fish (fresh) % Iron and steel wire, bars % Telephony, telegraphy % Insulated wire and cable % Structural parts in iron % Others 1, % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 15

19 Trend of trade between Kyushu and Hong Kong Exports from Kyushu to Hong Kong increased 16.4% from the previous year to 184 billion in 2013, for the second straight year of rise. Imports from Hong Kong to Kyushu grew 101.0% to a record 24.3 billion yen, for the second consecutive year of increase. The largest export item in trade with Hong Kong in 2013 was semiconductors, etc., followed by visual apparatus, then ships and boats. In the year, shipments of these products along with petroleum products increased, resulting in a significant rise in overall exports to Hong Kong. The largest import item in trade with Hong Kong in 2013 was fish (fresh), especially eel fry, which accounted for the bulk of the western Japanese region s imports from Hong Kong, contributing significantly to the overall rise of its imports from the territory. Change in value of trade between Kyushu and Hong Kong Main export and import items in trade between Kyushu and Hong Kong (sub category) Export item (sub category) Exports (100 million yen) Breakdown by country and region (%) Total 1, % Semiconductors, etc % Visual apparatus % Ships and boats % Petroleum products % Organic chemicals % Motor vehicles % Construction machines % Flat-rolled products % Scientific, optical inst % Rubber tires and tubes % Others % Import item (sub category) Imports (100 million yen) Breakdown by country and region (%) Total % Fish (fresh) % Iron and steel scrap 9 3.8% Office machines 3 1.3% Telephony, telegraphy 2 1.0% Electrical power machinery 2 0.7% Electrical apparatus 1 0.6% Others % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 16

20 Trend of trade between Kyushu and Taiwan Exports from Kyushu to Taiwan increased 24.0% from the previous year to billion yen in 2013 for the first gain in three years. Imports from Taiwan to Kyushu fell 11.5% to billion yen for the first decrease in three years. The largest export item in trade with Taiwan in 2013 was semiconductors, etc., followed by motor vehicles and organic chemicals. In the year, overall exports from Taiwan rose sharply on brisk shipments of motor vehicles and organic chemicals. The largest import item in trade with Taiwan in 2013 was semiconductors, etc., followed by scientific and optical instruments and nonferrous metal scrap. In the year, overall imports from Taiwan fell on slack purchases of scientific and optical instruments. Change in value of trade between Kyushu and Taiwan Main export and import items in trade between Kyushu and Taiwan (sub category) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Export item (sub category) Exports (100 million yen) Breakdown by country and region (%) Total 3, % Semiconductors, etc % Motor vehicles % Organic chemicals % Scientific, optical inst % Copper and copper alloys % Flat-rolled products % Semicon machinery, etc % Inorganic chemicals % Electrical measuring % Power generating machine % Others 1, % Import item (sub category) Imports (100 million yen) Breakdown by country and region (%) Total 1, % Semiconductors, etc % Scientific, optical inst % Non-ferrous metal scrap % Telephony, telegraphy % Synthetic rubber % Audio and visual apparatus % Organic chemicals % Plastic % Flat-rolled products % Others % 17

21 Trend of Trade between Kyushu and ASEAN Exports from Kyushu to ASEAN rose 15.0% from the previous year to a record billion in 2013 for the second straight year of gain. Imports from ASEAN to Kyushu grew 11.5% to billion yen for the first increase in two years. Among ASEAN members, the largest importer from Kyushu is Singapore, which mainly buys ships and boats, as well as visual apparatus from the eastern Japan region. In terms of imports, Singapore is followed by Thailand and Malaysia. The largest exporter to Kyushu is Indonesia, which mainly exports petroleum and coal to the Japanese region. Indonesia is followed by Thailand and Malaysia. Change in value of trade between Kyushu and ASEAN Kyushu s exports to ASEAN countries and imports from ASEAN countries Country name Value Exports Breakdown by country and region Growth rate Contribution Share of Kyushu against Japan s total value Value (Unit: 100 million yen, %) Imports Breakdown by country and region Growth rate Contribution Share of Kyushu against Japan s total value Vietnam % 16.7% 2.0% 9.6% % -4.1% -0.5% 6.9% Thailand 1, % 11.7% 2.8% 5.4% 1, % 9.6% 2.0% 8.2% Singapore 2, % 3.7% 1.3% 12.0% % -40.6% -1.7% 2.8% Malaysia 1, % 51.8% 5.8% 8.0% 1, % 43.8% 4.7% 4.2% Brunei 6 0.1% 127.9% 0.1% 4.2% % times 1.5% 2.5% The Philippines % -3.2% -0.2% 5.4% % 47.4% 3.6% 9.9% Indonesia % 26.8% 2.7% 5.3% 3, % 3.9% 1.7% 13.0% Cambodia % 10.0% 0.01% 5.3% % 237.2% 0.3% 6.2% Laos % -67.9% 0.00% 0.1% % 26.0% 0.01% 2.0% Myanmar % 149.3% 0.5% 5.6% % 22.7% 0.03% 1.7% ASEAN total 7, % 15.0% 15.0% 7.4% 8, % 11.5% 11.5% 7.7% (Unit: 100 million yen, %) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 18

22 Trend of Trade between Kyushu and ASEAN The largest export item in trade with ASEAN in 2013 was flat-rolled products, with Thailand being the largest destination for Kyushu of such products. Flat-rolled products were followed by semiconductors, etc., mainly bound for Vietnam, Singapore, Thailand and Malaysia, and ships and boats, mostly bound for Singapore. In the year, shipments of copper and copper alloys, whose exports to Malaysia rose, and motor vehicles, whose exports to Malaysia and Indonesia gained, scored increases from the previous year. As a result, overall exports to ASEAN advanced significantly. The largest import item in trade with ASEAN in 2013 was petroleum gas, mostly imported from Indonesia and Malaysia. Petroleum gas was followed by petroleum, whose largest supplier to Kyushu was Indonesia, and coal, mostly coming from Indonesia. In the year, imports of petroleum gas increased on higher purchases from Malaysia and Brunei. As a result, overall imports from ASEAN climbed sharply. Main export and import items in trade between Kyushu and ASEAN (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total 7, % Flat-rolled products 1, % Semiconductors, etc. 1, % Ships and boats % Copper and copper alloys % Motor vehicles % Office machines % Visual apparatus % Iron and steel wire, bars % Organic chemicals % Rubber tires and tubes % Structural parts % Others 2, % Import item (sub category) Imports Breakdown by country (100 million yen) and region (%) Total 8, % Petroleum gas 1, % Petroleum 1, % Coal % Natural rubber % Insulated wire and cable % Parts of motor vehicles % Ore of nonferrous % Petroleum products % Semiconductors, etc % Fish (fresh) % Others 3, % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Destinations among ASEAN members of mainstay export items for Kyushu (sub category) Suppliers among ASEAN members of mainstay import items for Kyushu (sub category) 19

23 Trend of Trade between Kyushu and Vietnam Exports from Kyushu to Vietnam increased 16.7% from the previous year to an all-time high of 98.4 billion yen in 2013 for the fourth consecutive year of growth. Imports from Vietnam to Kyushu fell 4.1% to 95.9 billion yen for the first decrease in four years. The largest export item in trade with Vietnam in 2013 was semiconductors, etc., followed by flat-rolled products and office machines. In the year, shipments of semiconductors, etc., and mechanical handling equipment rose, resulting in a significant increase in overall exports to Vietnam. The largest import item in trade with Vietnam in 2013 was petroleum, followed by insulated wire and cable, then pulpwood and the like. In the year, imports of petroleum dropped significantly, resulting in a fall in overall imports from Vietnam. Change in value of trade between Kyushu and Vietnam Main export and import items in trade between Kyushu and Vietnam (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total % Semiconductors, etc % Flat-rolled products % Office machines % Mechanical handling equip % Rubber tires and tubes % Fish (fresh) % Organic chemicals % Copper and copper alloys % Cycles with engines % Iron and steel wire, bars % Others % Import item (sub category) Imports Breakdown by country (100 million yen) and region (%) Total % Petroleum % Insulated wire and cable % Pulpwood and the like % Fish (fresh) % Plastic % Cocks, valves and parts % Parts of motor vehicles % Fish preparation % Scientific, optical inst % Coal % Others % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 20

24 Trend of Trade between Kyushu and Thailand Exports from Kyushu to Thailand surged 11.7% from the previous year to billion yen in 2013 for the second consecutive year of increase. Imports from Thailand to Kyushu gained 9.6% to billion yen for the first rise in two years. The largest export item in trade with Thailand in 2013 was flat-rolled products, followed by semiconductors, etc., then iron and steel wire and bars. In the year, overall exports to Thailand advanced significantly on brisk shipments of copper and copper alloys, and semiconductors, etc. The largest import item in trade with Thailand in 2013 was natural rubber, followed by parts of motor vehicles, then tin and tin alloys. In the year, overall imports from Thailand increased on higher purchases of parts of motor vehicles. Change in value of trade between Kyushu and Thailand Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Main export and import items in trade between Kyushu and Thailand (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total 1, % Flat-rolled products % Semiconductors, etc % Iron and steel wire, bars % Copper and copper alloys % Organic chemicals % Power generating machine % Motor vehicles % Polyethylene % Semicon machinery, etc % Parts of motor vehicles % Others % Import item (sub category) Imports Breakdown by country (100 million yen) and region (%) Total 1, % Natural rubber % Parts of motor vehicles % Tin and tin alloys % Scientific, optical inst % Audio and visual apparatus % Pulpwood and the like % Semiconductors, etc % Pump and centrifuges % Organic chemicals % Plastic % Others % 21

25 Trend of Trade between Kyushu and Singapore Exports from Kyushu to Singapore grew 3.7% from the previous year to billion yen in 2013 for the first increase in three years. Imports from Singapore to Kyushu plunged 40.6% to 20.4 billion yen for the first decrease in four years. The largest export item in trade with Singapore in 2013 was ships and boats, followed by visual apparatus and semiconductors, etc. In the year, overall exports to Singapore increased on buoyant shipments of petroleum products, and ships and boats. The largest import item in trade with Singapore in 2013 was semiconductors, etc., followed by nonferrous metal scrap, and scientific and optical instruments. In the year, overall imports from Singapore dropped significantly due to a sharp fall in imports of semiconductors, etc. Change in value of trade between Kyushu and Singapore Main export and import items in trade between Kyushu and Singapore (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total 2, % Ships and boats % Visual apparatus % Semiconductors, etc % Structural parts % Petroleum products % Office machines % Flat-rolled products % Aluminum % Cement % Others % Import item (sub category) Imports Breakdown by country (100 million yen) and region (%) Total % Semiconductors, etc % Non-ferrous metal scrap % Scientific, optical inst % Synthetic resins 5 2.4% Petroleum products 3 1.7% Wheat beans 2 0.9% Polyethylene 2 0.7% Others % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 22

26 Trend of Trade between Kyushu and Malaysia Exports from Kyushu to Malaysia surged 51.8% from the previous year to billion yen in 2013 for the third consecutive year of rise. Imports from Malaysia to Kyushu soared 43.8% to a record billion yen for the fourth straight year of growth. The largest export item in trade with Malaysia in 2013 was semiconductors, etc., followed by copper and copper alloys, and motor vehicles. In the year, overall exports to Malaysia grew significantly on a sharp gain in exports of coper and copper alloys, and higher shipments of motor vehicles and gold (non-monetary). The largest import item in trade with Malaysia in 2013 was petroleum gas, followed by petroleum products, then plywood and wood panel. In the year, overall imports from Malaysia increased sharply on a substantial gain in imports of petroleum gas and petroleum products. Change in value of trade between Kyushu and Malaysia Main export and import items in trade between Kyushu and Malaysia (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total 1, % Semiconductors, etc % Copper and copper alloys % Motor vehicles % Flat-rolled products % Mechanical handling equip % Glass and glassware % Paints % Power generating machine % Inorganic chemicals % Rubber tires and tubes % Others % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Import item (sub category) Imports Breakdown by country (100 million yen) and region (%) Total 1, % Petroleum gas % Petroleum products % Plywood and wood panel % Audio and visual apparatus % Crude vegetable materials % Scientific, optical inst % Semiconductors, etc % Polyethylene % Parts of motor vehicles % Domestic electrical equip % Others % 23

27 Trend of Trade between Kyushu and the Philippines Exports from Kyushu to the Philippines fell 3.2% from the previous year to 51 billion yen in 2013 for the third consecutive year of decline. Imports from the Philippines to Kyushu soared 47.4% to a record 89.1 billion yen for the first rise in three years. The largest export item in trade with the Philippines in 2013 was flat-rolled products, followed by semiconductors, etc., and motor vehicles. In the year, overall exports to the Philippines declined due to slack shipments of ships and boats. The largest import item in trade with the Philippines in 2013 was insulated wire and cable, followed by nonferrous ores and fruits. In the year, overall imports from the Philippines rose sharply thanks to increased purchases of ships and boats, nonferrous ores, and insulated wire and cable. Change in value of trade between Kyushu and the Philippines Main export and import items in trade between Kyushu and the Philippines (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total % Flat-rolled products % Semiconductors, etc % Motor vehicles % Organic chemicals % Textile yarn and thread % Scientific, optical inst % Office machines % Power generating machine % Cycles with engines 8 1.6% Pump and centrifuges 7 1.5% Others % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Import item (sub category) Imports (100 million yen) Breakdown by country and region (%) Total % Insulated wire and cable % Ore of nonferrous % Fruits % Ships and boats % Semiconductors, etc % Wooden manufactured % Parts of motor vehicles % Electrical power machinery % Non-ferrous metal scrap % Plastic % Others % 24

28 Trend of Trade between Kyushu and Indonesia Exports from Kyushu to Indonesia shot up 26.8% from the previous year to 88.7 billion yen in 2013 for the second consecutive year of increase. Imports from Indonesia to Kyushu rose 3.9% to billion yen for the first rise in two years. The largest export item in trade with Indonesia in 2013 was flat-rolled products, followed by rubber tires and tubes, and copper and copper alloys. In the year, overall exports to Indonesia increased significantly due to brisk shipments of copper and copper alloys, motor vehicles, and flat-rolled products. The largest import item in trade with Indonesia in 2013 was petroleum, followed by coal and petroleum gas. In the year, overall imports from Indonesia increased due to larger purchases of petroleum. Change in value of trade between Kyushu and Indonesia Main export and import items in trade between Kyushu and Indonesia (sub category) Export item (sub category) Exports Breakdown by country (100 million yen) and region (%) Total % Flat-rolled products % Rubber tires and tubes % Copper and copper alloys % Motor vehicles % Organic chemicals % Iron and steel wire, bars % Semiconductors, etc % Inorganic chemicals % Electrical apparatus % Power generating machine % Others % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance Import item (sub category) Imports Breakdown by country (100 million yen) and region (%) Total 3, % Petroleum 1, % Coal % Petroleum gas % Natural rubber % Ore of nonferrous % Insulated wire and cable % Aluminum % Plywood and wood panel % Fish (fresh) % Parts of motor vehicles % Others % 25

29 Trade Trend of Kyushu by Industry Motor Vehicles Exports of motor vehicles from Kyushu decreased 1.4% from the previous year to 1,005.6 billion yen for the first fall in four years. The exports continued to exceed the 1 trillion yen threshold. The largest destination of motor vehicles being shipped from Kyushu was the United States in 2013, followed by China and the United Arab Emirates (UAE). In 2013, overall exports of motor vehicles fell, affected by sluggish shipments to the United States and Russia, which more than offset the brisk exports to China and the UAE. Change in exports of motor vehicles from Kyushu Main countries and regions to which motor vehicles are exported from Kyushu 2013 Unit: 100 million yen, % Value Breakdown by country and region Kyushu The US 3, % China 2, % The UAE % Taiwan % Mexico % Others 2, % Total 10, % Global motor vehicle production Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics provided by the Ministry of Finance and the website of the International Organization of Motor Vehicle Manufacturers 26

30 Trade Trend of Kyushu by Industry Parts of Motor Vehicles Exports of parts of motor vehicles from Kyushu increased 2.7% from the previous year to 45 billion yen in Imports surged 26.1% to billion yen. The largest destination of parts of motor vehicles being shipped from Kyushu was Russia, followed by the United States and China. The largest supplier to Kyushu of parts was China, followed by Thailand and South Korea. In 2013, exports of parts of motor vehicles to the United States and Russia increased, while the exports to Thailand and South Korea slackened. Imports from China increased significantly, resulting in a sharp rise in overall imports into Kyushu of parts of motor vehicles. Change in countries and regions to which parts of motor vehicles are exported from Kyushu Change in value of trade by Kyushu of parts of motor vehicles Change in countries and regions from which parts of motor vehicles are imported into Kyushu Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 27

31 Trade Trend of Kyushu by Industry Semiconductors, etc. Exports of semiconductors, etc., from Kyushu grew 6.3% from the previous year to 503 billion yen in Imports surged 26.9% to billion yen. The largest destination of semiconductors, etc., being shipped from Kyushu was South Korea, followed by China and Hong Kong. The largest supplier to Kyushu of the product was China, followed by Thailand and South Korea. The import rise reflected a significant increase in imports of photocells. In 2013, exports of semiconductors, etc., to South Korea grew significantly. Shipments to Thailand also advanced. However, exports to China and Singapore slumped. Imports from China climbed sharply, while imports from the UK also increased. However, imports from Singapore and South Korea fell. Main countries and regions to which semiconductors, etc., are exported from Kyushu Change in value of trade by Kyushu of semiconductors, etc. Main countries and regions from which semiconductors, etc., are imported into Kyushu Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 28

32 Trade Trend of Kyushu by Industry Iron and Steel Products Exports of iron and steel products from Kyushu increased 9.1% from the previous year to billion yen in The imports edged up 1.8% to 80 billion yen. The largest destination of iron and steel products being shipped from Kyushu was South Korea, followed by China and Thailand. The largest supplier to Kyushu of the products was South Korea, followed by China and Kazakhstan. In 2013, exports of iron and steel products to South Korea, Saudi Arabia and Indonesia advanced. Imports from Kazakhstan and Russia increased but imports from South Korea and Germany declined. Change in value of trade by Kyushu of iron and steel products Main countries and regions to which iron and steel products are exported from Kyushu or from which the products are imported into Kyushu 鉄鋼の主な輸出入国 (Unit: 100 million yen, %) Exports Value Breakdown by country and region Imports Value [Reference] Crude steel production in major countries Breakdown by country and region Kyushu Kyushu South Korea % South Korea % China % China % Thailand % Kazakhstan % The US % South Africa % Mexico % Brazil % Others 2, % Others % Total 5, % Total % (Unit: 1 million tons, %) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance and data released by the Japan Iron and Steel Federation Breakdown by country and region EU % Russia % The US % Japan % Kyushu % China % South Korea % Taiwan % Brazil % Others % World total 1,433 1,537 1,545 1, % 29

33 Trade Trend of Kyushu by Industry Ships and Boats Exports of ships and boats from Kyushu decreased 5.8% from the previous year to billion yen in 2013 for the third consecutive year of decline. The largest destination of ships and boats being exported from Kyushu in 2013 was Panama, followed by Singapore and Liberia. Exports from Kyushu accounted for nearly 30% of ships and boats being exported from Japan. Ships and boats constructed in Kyushu accounted for nearly 5% of global ship and boat construction in 2012, making the products mainstay export items for Kyushu. Exports from Kyushu of ships and boats have slackened slightly in recent years, affected by the significant expansion of production capacity in China and South Korea. Change in value of ships and boats exported from Kyushu Countries and regions to which ships and boats are exported from Kyushu (Unit: 100 million yen, %) Change in ships and boats constructed in major shipbuilding countries ,000 gross tons Share 1,000 gross tons Share 1,000 gross tons Share 1,000 gross tons Share 1,000 gross tons Share Japam 18, % 20, % 19, % 17, % 14, % Kyushu 5, % 5, % 5, % 4, % 4, % South Korea 28, % 31, % 35, % 31, % 24, % China 21, % 36, % 39, % 39, % 25, % The Philippines % 1, % 1, % 2, % 1, % Romania % % % % % Vietnam % % % % % Others 5, % 5, % 4, % 3, % 3, % World total 77, % 96, % 101, % 95, % 70, % Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance, data released by the Shipbuilders Association of Japan, and data released by the Kyushu District Transport Bureau Note: Figures for Kyushu represent steel ships built on a fiscal-year basis. 30

34 Trade Trend of Kyushu by Industry Food Exports of food from Kyushu increased 18.4% from the previous year to 33.1 billion yen in Imports shot up 11.0% to billion yen. Food exports from Kyushu to Asia and North America were large, with fish accounting for more than half of the region s overall food exports. Kyushu imports food from various countries in such areas as Asia, North America, Latin America and Oceania. Cereals and fish accounted for the largest portion of Kyushu s overall imports in Change in value of food trade by Kyushu Food exports from Kyushu by item (Unit: 100 million yen, %) Food imports into Kyushu by item (Unit: 100 million yen, %) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 31

35 Opening Feature: Results of a Survey on Inviting Foreign Companies to Kyushu for Investment [Purpose and content of the survey] The Kyushu Bureau of Economy, Trade and Industry has been conducting a survey on foreign companies operating in Kyushu in collaboration with the Kyushu Economic Federation and the Kyushu Economy International, with the aim of promoting direct foreign investment in Kyushu. The survey is designed to grasp the situation concerning foreign companies operating in Kyushu, and their movement and business needs regarding their operations in Kyushu all of which are to be reflected in policy measures taken by Kyushu for foreign companies. Specifically, the survey covered foreign companies operating in Kyushu; Kyushu-based Japanese companies, which were asked about their business tie-ups with the foreign companies; and municipalities in Kyushu (prefectures and major cities). The survey was for the Kyushu Bureau of Economy, Trade and Industry to recognize and grasp the situation regarding foreign companies ( operating in Kyushu, problems standing in their way of conducting business in Kyushu, business linkups between Kyushu companies and foreign companies, and problems faced by local municipalities when they solicit for foreign investment. Results obtained through the survey will be used in interviews with concerned people, which will be conducted to collect further information on foreign companies operating in Kyushu. Based on the survey, the Kyushu Bureau of Economy, Trade and Industry will sort out various business conditions surrounding foreign companies operating in Kyushu and policy measures being taken by local municipalities to support such companies. The bureau will consider compiling a set of measures aimed at encouraging foreign investment in Kyushu, including publishing an investment guidebook for foreign companies. Survey on foreign companies operating in Kyushu Companies surveyed: 75 companies chosen from data possessed by the Kyushu Bureau of Economy, Trade and Industry Survey period: August 18 September 24, 2014 Number of companies which gave a valid reply: 43 companies (collection rate of 57.3%) [Highlights of survey results] Reasons cited by foreign companies for deciding to operate in Kyushu were the region's attractiveness as markets, the concentration of potential clients and relevant companies in the region, and its geographical proximity to Asia. Problems cited by foreign companies as hindering their smooth operations in Kyushu were the difficulty of securing necessary human resources and the relatively small size of Kyushu's market. Only some 30% of the companies polled were found to have taken advantage of incentive programs offered by authorities to encourage foreign investment in Kyushu. The incentive most commonly used by them was a subsidy program. About 40% of the companies polled did not use the subsidy, saying they did not have any knowledge of the program, while 30% said the incentives that were available did not meet their needs. Survey of Kyushu companies regarding their business tie-ups with foreign companies operating in Kyushu Companies surveyed: 876 companies belonging to the Kyushu Economic Federation (federation members in Kyushu excluding incorporated foundations and universities) Survey period: August 18 September 12, 2014 Number of companies which gave a valid reply: 202 companies (collection rate of 23.1%) [Highlights of survey results] About one-fourth of the companies polled were found to have business tie-ups with foreign companies operating in Kyushu, with more than 70% of them based in Fukuoka Prefecture. The industrial sector that accounted for the largest portion of the companies polled was manufacturing, which was followed by construction and services. The industrial sector that represented the largest portion of the foreign companies linking up with the companies polled was financial services including insurance. Business partnership accounted for the largest portion of business linkups formed between the companies polled and foreign companies operating in Kyushu. Survey on local municipalities Municipalities surveyed: Officials in Kyushu prefectures and major cities in charge of inviting foreign companies to Kyushu for investment (officials in seven prefectures and three major cities surveyed) Survey period: August 5 August 11, 2014 Number of municipalities which gave a valid reply: 10 municipalities (seven prefectures and three major cities) (collection rate of 100%) [Highlights of survey results] Three municipalities were found to be taking specific measures to encourage foreign investment in Kyushu. The most commonly taken measure by the municipalities polled to stimulate foreign investment in Kyushu was the compilation of foreign-language pamphlets, followed by follow-up activities to support foreign companies already operating in Kyushu, and the creation of foreign-language websites. Problems facing the municipalities surveyed included lack of information regarding targeted foreign companies and shortage of manpower on the side of municipalities

36 Topics Exports of Fishery Products Fish and fish preparation account for the largest portion of food exports from Kyushu. Exports of such products in 2013 totaled 20.2 billion yen, consisting of 19.2 billion yen for fish (fresh) and 1 billion yen for fish preparation. The largest export destination of fish (fresh) for Kyushu was the United States in 2013, followed by Vietnam and South Korea. The largest export destination of fish preparation was Hong Kong, followed by Canada and South Korea. Change in value of fish and fish preparation exported from Kyushu Countries and regions to which fish (fresh) are exported from Kyushu (Unit: 100 million yen, %) Countries and regions to which fish preparation is exported from Kyushu (Unit: 100 million yen, %) Trend of fishery production in Kyushu Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance, and fishery production values for 2012 released by the Ministry of Agriculture, Forestry and Fisheries 33

37 Topics Exports of Wood Exports of wood from Kyushu grew sharply in 2013, doubling to 3.2 billion yen from the previous year. The sum represented 48% of Japan s total wood and lumber exports in the year. The largest export destination from Japan of wood and lumber was China in 2013, followed by South Korea and the Philippines. The largest export destination from Kyushu of wood and lumber was China in the same year, followed by Taiwan and South Korea. (See circular graphs and.) The port in Kyushu from which the largest shipments of wood and lumber were made in 2013 was Shibushi port, followed by Hososhima port, Hakata port and Yatsushiro port. (See circular graph.) Value of wood exports from Japan by destination Circular graph Value of wood exports from Kyushu by originating port Circular graph Value of wood exports from Kyushu by destination Circular graph Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 34

38 Topics Exports of Agricultural and Livestock products Various agricultural and livestock products are produced in Kyushu, where the climate is warm and nature is rich. Production of agricultural and livestock products totaled 1,660.1 billion yen in Kyushu in 2012, accounting for nearly 20% of Japan s total production of such products. By region, Kyushu was the second largest producer of agricultural and livestock products in the year, following Kanto. Agricultural and livestock products produced in Kyushu are shipped to Kanto, Kansai and other regions in Japan, with some of them being shipped overseas. Export trends for 2012 and 2013 of agricultural and livestock products produced in Kyushu and with high market shares in terms of production value are shown below by item. Value of agricultural and livestock products exported from Kyushu (2012 and 2013) Meat of bovine animals (HS code: ) <2013 share of export value against national total (26.9%)> Meat of swine (HS code: 0203) <2013 share of export value against national total (28.5%)> Tomatoes (HS code: ) <2013 share of export value against national total (55.1%)> Strawberries (HS code: ) <2013 share of export value against national total (67.9%)> Sweet potatoes (HS code: ) <2013 share of export value against national total (55.4%)> Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 35

39 Topics Trade trend of parts of motor vehicles Exports of parts of motor vehicles from Kyushu came to billion yen in 2013, with their largest destination being the United States, followed by Russia and the United Arab Emirates (UAE). (Circular graph ) Imports of such products into Kyushu totaled billion yen in the year, with the largest supplier being China, followed by Thailand and the Philippines. (Circular graph ) Topping the list of parts of motor vehicles exported from Kyushu were rubber pneumatic tires for motor cars, followed by rubber pneumatic tires for buses and lorries, and sparking plugs. (Table ) Topping the import list were ignition wiring sets for vehicles, followed by car body parts, other parts and accessories, and safety airbags and their parts. (Table ) Circular graph Circular graph List of top export items among parts of motor vehicles Table Unit: 100 million yen Total 2,839 1 Rubber pneumatic tires for motor cars Rubber pneumatic tires for buses and lorries Sparking plugs (not specified for use in vehicles) Parts of gasoline engines for vehicles of Chapter Car body parts, other parts and accessories Parts, accessories and others 73 Internal combustion engines (for vehicles of Chapter 87, and motorcycles with an engine displacement exceeding 7 1,000 cc, and excluding those of Chapter 87) 71 8 Safety airbags (limited to those equipped with an inflator system) and their parts 55 9 Transmission shafts (including cam shafts and crank shafts), and cranks (not specified for use in vehicles) Car body parts (for motor cars) Drive axles (with differential), non-driving axles and their parts Internal combustion engines (with a cylinder capacity between 250 cc and 1,000 cc, and for vehicles of Chapter 87) Suspension systems and their parts (including shock absorbers) 23 Table List of top import items among parts of motor vehicles Unit: 100 million yen Total 2,541 1 Ignition wiring sets for vehicles Car body, other parts and accessories (others) Safety airbags (limited to those equipped with an inflator system) and their parts Gear boxes and their parts Rubber pneumatic tires for motor cars with a width exceeding mm Parts, accessories and others Road wheels, their parts and accessories, excluding those for tractors Brakes, servo-brakes and their parts, excluding brake linings 70 9 Rear-view mirrors for vehicles Generators (for internal combustion engines) Steering wheels, steering columns and steering boxes, and their parts Safety seatbelts 50 Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 36

40 Topics Imports of semiconductors, etc. Imports of semiconductors, etc., into Kyushu surged 26.9% from the previous year to billion yen in Photocells accounted for about 60% of total imports in the year. (Bar graph ) By country, buying from China constituted the bulk of total imports. (Circular graph ) Behind the uptrend of the imports was the establishment in July 2012 of the feed-in tariff system, in which renewable energy is bought at fixed prices to encourage corporate investment in renewable energy technologies, which has led to larger domestic shipments of solar battery modules, helping expand imports of semiconductors, etc. (Bar graph ) [Bar graph ] Value of semiconductors, etc., imported into Kyushu by item ( ) [Bar graph ] Shipments of solar battery modules in Japan (Unit: 100 million yen) (Unit: 10,000 kw) (127.7 billion yen) (162.8 billion yen ) (206.6 billion yen ) [Circular graph ] Countries and regions from which Kyushu imports photocells and the like (2013) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics provided by the Ministry of Finance and data released by Japan Photovoltaic Energy Association (JPEA) (Unit: 100 million yen, %) 37

41 Topics Exports of Medical Equipment Exports of medical equipment from Japan totaled billion yen in 2013, with those from Kyushu standing at about 2 billion yen. The largest destination of medical equipment from Japan was the United States in 2013, followed by China, Germany, the Netherlands and South Korea. (Bar graph ) The largest destination of medical equipment from Kyushu in the year was Vietnam, followed by China, Hong Kong, Taiwan and Singapore. Exports of medical equipment to Vietnam from Kyushu accounted for 12.42% of Japan s total such exports to Vietnam, and those to Mongolia, 19.42%. (Bar graph ) The largest port in Kyushu is Hososhima port, which ranks 17th in Japan and handles 45% of the total shipments from Kyushu. Many medical equipment makers related to a special economic zone being set up under the eastern Kyushu medical valley system operate in the neighborhood of the port. (Circular graph ) Bar Graph Unit: 100 million yen Bar Graph Circular graph Unit: 100 million yen Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics provided by the Ministry of Finance 38

42 Topics Exports of Liquor Products The largest destination of sake from Japan in 2013 was the United States, with 3.87 billion yen of the product being shipped there. In terms of volume, the United States was also the largest importer of sake from Japan in the year, with 4,489 kl of the product being shipped there. The largest destination of sake from Kyushu was South Korea, with million yen of the product being shipped there. In terms of volume, South Korea was the largest importer of sake from Kyushu in the year, with 230 kl of the product being shipped there. (Bar graphs and ) The largest destination of shochu from Japan in 2013 was China, with 450 million yen of the product being shipped there. In terms of volume, China was also the largest importer of shochu from Japan in the year, with 843 kl of the product being shipped there. The largest destination of shochu from Kyushu was China, with 260 million yen of the product being shipped there. In terms of volume, China was the largest importer of shochu from Kyushu in the year, with 493 kl of the product being shipped there. (Bar graphs and ) Bar Graph Bar Graph Bar Graph Bar Graph Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 39

43 Topics Imports of Mineral Fuels In Japan, demand for mineral fuels used in fossil-fuel power stations has been growing since the 2011 disaster. Under these circumstances, imports of such fuels into Kyushu have been increasing in terms of value, resulting in a larger trade deficit for the region. (Figure ) Behind the increased imports of mineral fuels in terms of value are larger imports in volume (Figure ), and rising import prices (Figure ) due to higher crude oil and LNG prices, and the yen s depreciation. The share of value-based mineral fuels imported into Kyushu against the region s overall imports is higher than the share of value-based mineral fuels imported into Japan against its overall imports. (Figure ) This means that the increase in the value of mineral fuels imported into Kyushu has been significantly responsible for the worsening of the region s trade balance. Change in value of mineral fuels imported into Kyushu and trade balance (Figure ) Change in import prices of main mineral fuels imported into Kyushu (Figure ) Share of value of mineral fuel imports against overall imports for Kyushu and Japan (Figure ) Change in volume of main mineral fuels imported into Kyushu (Figure ) Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on trade statistics released by the Ministry of Finance 40