JAPAN and the WORLD Magazine JULY ISSUE 2015 #Issue 12 | Page 54

METI
BUSINESS ANALYSIS
QA
INTERVIEW:
MR. HIROBUMI IIDA
Ministry of Economy, Trade and Industry
Alluring Investors
Japan’s Effort to Attract Foreign Businesses
日本を魅力的な投資先に
対内直接投資の推進に向けた国内の環境整備
Since the creation of the “Japan
Revitalization Strategy—Japan is Back”
on June 14, 2013, there has been a
stream of promotional activities to
lure foreign direct investment (FDI) to
Japan. Japan and the World magazine
talked with Mr. Hirobumi Iida from
the Ministry of Economy, Trade and
Industry on the country’s recent efforts
to increase foreign direct investment.
With the Olympics approaching, ongoing Q Can you tell us about the “Five
Promises to Attract Foreign
changes will upgrade the business
Businesses to Japan” announced on
environment and make it more appealing
March 17 this year?
for investment.
With the Olympics
approaching, ongoing
changes will upgrade the
business environment and
make it more appealing for
investment.
2013年6月14日に閣議決定された「日本 Q What are the attractions for
investment in Japan?
再興戦略-JAPAN is BACK」以来、対内直接
投資の促進に向けた動きが急ピッチで進 A On a general scale, they include the huge
market, which is third in the world,
んでいる。活発化する対内直接投資の推
meticulously
developed
infrastructure
進活動について、経済産業省貿易経済協
like transportation, electricity and water
力局貿易振興課長の飯田博文氏に話をう
systems, well-educated high quality human
かがった。
resources and great social stability and
Q Please tell us about the background
and the current conditions relating
to foreign direct investment (FDI) in
Japan.
A These are improvement measures to boost up
foreign investment. For each issue discouraging
them to invest here, improvement plans are
listed as the “Five Promises”.
FIVE PROMISES
01 Multi-lingual services in shops,
transportation services and hospitals.
02 Better Wi-Fi environment.
03 Upgraded regional airports able to
receive international business jets.
04
05
Enriched educational services for
expatriate children, and better support for
job searching for foreign students in Japan.
Stronger support for investing foreign
companies.
safety. For R&D, we have well-equipped
research facilities and a great accumulation
Q Can you tell us about the aim and
of
outstanding
achievements.
Also,
the achievements of the METI-REITI
consumers’ high standards for product
(Research Institute of Economy,
quality make Japan a great test market—if
Trade & Industry) Symposium
Japanese consumers are satisfied, so are
“Impact of Inward FDI and its
clients anywhere in the world.
Promotion for Japan’s Economic
Growth” held on March 10, 2015?
A Until recently, Japan didn’t consider deeply
FDI to boost economic development, partly Q What needs to be overcome for
A In Japan, the importance of FDI is still
because of the abundant domestic capital.
further expansion of FDI?
underappreciated. For the Japanese
So, expansion of export was a higher priority
economy to keep growing, foreign
than that of foreign investment. However, A There are two main issues. Firstly, we have
businesses are absolutely necessary to
people gradually recognized the necessity of
to improve various conditions to suit the
strengthen domestic investment and to take
foreign investment, and the Koizumi Cabinet
foreign investors; according to a survey
up their outstanding skills and managerial
(2001-2006) pushed reforms that facilitated
by METI, foreign companies find the
know-how. So, for the effective persuasion
the persuasion of foreign investors. Yet,
business cost too high and want further
of foreign investors, all parties involved need
FDI in Japan was still very low, at only 3.7
deregulations. To meet these challenges and
to fully understand the importance and the
percent of its GDP in 2013 according to the
to promote new businesses, we are gradually
challenges of FDI promotion. Therefore, we
United Nations Conference on Trade and
decreasing corporation tax and relaxing
invited experts in domestic policy making,
Development (UNCTAD) statistics.
some restrictions on a sector by sector basis.
academia and industry to give lectures at the
symposium to share their knowledge.
Japan, however, proves to be an attractive
Secondly, we need to strengthen our
country for investment. The 2013 survey
promotion. It is very important to appeal to
by the Ministry of Economy, Trade and
foreign corporations and to show support
Industry (METI) of companies in Europe,
to individual projects. Last year, we hosted Q Who is in charge of FDI promotion in
the government?
North America and Asia showed Japan as
“Invest Japan” seminars in London and New
their number one choice as potential R&D
York, and Prime Minister himself promoted
A FDI is promoted through multiple
and sales bases.
foreign investments in Japan.
54 // JULY 2015