Towards Enhancement of the Attractiveness of KANSAI March 27, 2017 Kansai Bureau Ministry of Economy, Trade and Industry
Table of contents 1.Social Challenges in Japan 2.Towards Promotion of FDIs to Japan ~Reform 2020 Projects~ 3.Attractiveness and Potential of Kansai 4.Inward FDI to Japan 5.Nationalities and Regions of Foreign Companies in Kansai 6.Transition of the Number of Foreign Visitors to Japan and Foreign Students 7.Kansai Industrial Tourism Expo at Kansai International Airport 8.Future Initiatives by METI-KANSAI 1
Social Challenges in Japan ~Needs for Structural Reforms and Shift to New Fields~ Taking in overseas markets, productivity improvement and development of new growing industries are essential to find a way out of shrinkage of domestic and labor markets. Japan Revitalization Strategy-JAPAN is BACK-(June, 2013) 3 Arrows in Abenomics 1Aggressive monetary policy 2Flexible fiscal policy 3New growth strategy to stimulate private investments Japan Revitalization Strategy2016 (June, 2016) 1-1Cultivation of new promising growing markets Realization of the fourth industrial revolution ~IoT, Big Data, Cloud, Artificial Intelligence (AI), Robot~ Overcoming environment-energy constraints and expansion of investments Changing sports to a growth industry etc. 1-2Enhancement of Local Abenomics Productivity improvement of service industry Renovation of mid-ranking companies, SMEs and microenterprises Tourism oriented country etc. 2 Regulatory and system reforms to realize revolution in productivity 3.Creation of innovation /Development of human resources full of fight 4.Taking in overseas growing markets 5.Utilizing reform momentums 2
Towards Promotion of Foreign Direct Investments to Japan ~Reform 2020 Projects~ Japan aims for expansion of foreign direct investments to Japan and improvement of business environment with the Tokyo Olympic and Paralympic Games in 2020 as a trigger. 2016 2020 Tokyo Olympic and Paralympic Games Rio Olympic and Paralympic Games The World Forum on Sport and Culture (in Kyoto and Tokyo, October 2016) Cooperation with the World Economic Forum 2019 Rugby World Cup (in 12 cities in Japan) Government: Top sales, functional enhancement of JETRO Municipalities: Investment attraction activities in cooperation with the national government and JETRO Japan Business Conference (in Tokyo, 2020) Invitation of CEOs from foreign companies Welcome reception by related ministers Transmission of investment environment Regional Business Conference by municipalities (2019-2020) Cooperation between municipalities active about attracting foreign companies and regional bureaus of the Ministry of Economy, Trade and Industry Improvement of business environment Active transmission of outcomes - KAKEHASHI Project between Silicon Valley and Japan - University reforms to create global ventures Global Venture Summit (in Tokyo, 2020) Invitation of overseas government leaders and international venture capital related persons. Source: Japan Revitalization Strategy; revised in 2015 3
Attractiveness and Potential of Kansai Huge market equal to a national scale Kansai has an economic scale ranked 18 th in the world next to the Netherlands. International flight network centering on East Asia The Kansai International Airport has two 4,000 meter-class long parallel runways and provides 24-hour service. Agglomeration of excellent academic resources Kansai is home to universities, leading-edge research facilities and pioneering research institutes. Cluster of growing industries including life innovation and green innovation Many medical universities, research institutions and business incubation facilities in addition to pharmaceutical manufacturers and medical equipment manufacturers are located in Kansai. Wide variety of cities and concentration of history and culture Various cities including Kyoto, Osaka and Kobe which are different from each other in history and tradition are located extremely close to one another. Source: Study on measures for enhancing Kansai s attractiveness aiming for promotion of foreign direct investments to Japan 2015 (METI-KANSAI) 4
Inward Foreign Direct Investment (FDI) to Japan 100 Inward FDI stock has yet stayed calm when compared internationally. 5 Inward FDI stock as of the end of 2015 reached 24.4T JPY, the highest level. (%) Inward FDI ratio to nominal GDP (as the end of 2015) 334.2 40.0 Govermental 政府目標 goal 35.0 (trillion) stock 対日直接投資残高と Inward FDI GDP stock 比率の推移 and ratio to normal GDP Ratio to GDP GDP 比率 (ratio to GDP(%) 9.0 35.0 35.0 8.0 80 30.0 25.0 増加傾向にあったが Financial リーマンショック後伸び悩み 目標未達 Crisis 23.7 24.4 7.0 6.0 60 40 20 0 4.9 11.1 12.7 13.5 31.1 31.9 33.4 51.1 20.0 15.0 10.0 5.0 0.0 6.6 1.3 概ね達成 9.4 9.6 10.1 1.9 1.9 2.0 11.9 12.8 2.4 2.5 5 (* ) 18.518.4 17.5 17.5 17.818.0 4.9 4.9 15.1 3.0 3.7 3.9 3.6 3.7 3.7 3.8 5.0 4.0 3.0 2.0 1.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Balance of Payments, Ministry of Finance National Accounts of Japan, Japan Cabinet Office World Investment Report 2016, UNCTAD Source: Balance of Payments, Ministry of Finance National Accounts of Japan, Japan Cabinet Office (*)Adding standards in statistics changed in 2014. (end of ( 年末 ) the year) 5
Nationalities and Regions of Foreign Companies in Kansai American companies have expanded their business in Kansai the most in number, followed by Germany, China and South Korea. These three countries have higher ratio in Kansai compared to that in the whole Japan. Nationalities and regions of foreign companies (parent companies) (2014) USA Germany China S. Korea France U.K. Netherland Switzerland Taiwan Singapore Denmark percent Australia Canada Hong Kong Sweden Finland Kansai (214 in total) Japan (3,117 in total) Source: Foreign Affiliated Companies in Japan, A Comprehensive Directory 2015, Toyo Keizai Inc. 6
Transition of the Number of Foreign Visitors to Japan and Foreign Students The PMDA-WEST number of foreign の設置 visitors to Japan and foreign students have a trend to increase both nationwide and in Kansai. For further increase of foreign students, the improvement of environment for accepting them is required in Kansai. 25 million 20 15 Foreign Visitors (Japan)(Left-scale) Foreign Visitors (Kansai)(Left-scale) Foreign Students (Japan)(right-scale) Foreign Students (Kansai)(right-scale) 208,379 19,737,409 250 thousand 200 150 (+47.1% compared to 2014) 10 5 0 100 9,039,733 (+62.8% compared to 2014) 33, 777 0 2010 2011 2012 2013 2014 2015 50 Source:Survey on enrollment of foreign students, JASSO (Japan Student Services Organization) (2010-2015) Number of Inbound and Outbound Travelers, JNTO (Japan National Tourism Organization)(2011-2015) Consumption Trend Survey for Foreigners Visiting Japan, Japan Tourism Agency 7
Kansai Industrial Tourism Expo at Kansai International Airport METI-KANSAI and Kansai Head Office of SME Support, Japan held Kansai Industrial Tourism Expo at Kansai International Airport (KIX) aiming to attract more foreign tourists to local areas of Kansai and expand consumption by them. <Opening Ceremony> 10:00 to 17:00 on October 23, 2016 At station concourse South Square <69 exhibition booths by 31 organizations> October 23 to November 21, 2016 At event spaces on 1st and 2nd floor of Terminal 1 8
Future Initiatives by METI-KANSAI Encouraging movements to improve environment for accepting foreigners towards promotion of inward FDI to Kansai Discovering advanced examples of services for foreigners and providing information on them Promoting attraction of foreigners and interaction between foreigners and local residents through dissemination of attractiveness of Kansai centering on industrial tourism facilities Further increase of foreign visitors to Kansai Attractive Kansai where people from all over the world gather and play an active role in a wide range of fields Regional revitalization by taking in overseas demands for tourism in Kansai Revitalization of Kansai economy through attraction of global human resources and companies 9