economic relationship between eu and japan and jetro’s ... · 3. facilitating world trade and the...
TRANSCRIPT
Economic Relationship between EU and Japan and JETRO’s Activities
November 13th 2018
Tomohiro KanekoDirector General, Planning Department
Copyright © 2018 JETRO. All rights reserved.
Ⅰ. Overview of JETROJapan External Trade Organization (JETRO) Government-related organization to promote mutual trade and investment between Japan and the rest of
the world Established in 1958 Overseas offices: 74 (in 54 countries )* Japan offices: JETRO Headquarters in Tokyo, JETRO Osaka, 46 regional offices, the Institute of Developing
Economies (IDE-JETRO) ** Employees: 1,788 (1,047 in Japan and 741 overseas)***
*As of November 2017** As of July 2018***As of April 2018
JETRO Gunma
46th office
established,
July, 2018
46regional offices
-JETRO’s regional offices, located in 46 out of 47 prefectures, seek out promising local companies, mainly SMEs, and prepare them for international commerce.
JETRO Wakayama45th office established,
October, 2017
JETRO Shiga
44th office established,
July, 2017
Prefectures colored in pink
have JETRO offices. 1
Ⅰ. Overview of JETRO
JETRO’s main activities
1. Promoting Foreign Direct Investment into JapanJETRO Offers a range of support and serviced aimed at helping foreign firms set-up or expand business in Japan, in
particular firms seeing to set-up and manufacturing site, regional HQs or R&D hub. Focus industries include high-growth ones such as future energy, life science, tourism and other sectors with strong employment creation possibilities.
Specific activities include:Offering free temporary office space in key business centers in Japan, called Invest Japan Business Support Centers (IBSC), as well as access to expert advisers and help with establishment procedures and the like.
Providing firms with information on government regulations and highlighting the advantages of the Japanese market through seminars, the internet and other media.
2
Ⅰ. Overview of JETRO2. Supporting the overseas businesses of Japanese companies
Utilizing its well-developed global networks and accumulated know-how, JETRO contributes to the distribution of Japanese foodstuff, high-value added products & services and infrastructure throughout the world. For small and medium-sized enterprises (SMEs) in particular, JETRO creates global business opportunities and facilitates Japanese investment overseas. With these efforts, JETRO promotes win-win business relations between Japan and the rest of the world.
3. Facilitating world trade and the global economy as well as growth in developing countries.
Often in collaboration with international organizations, JETRO conducts research on the world economy, trade and investment, which contributes to the development of free trade systems and international business. To promote global partnerships, JETRO sets up study groups with private sector leaders and partners and presents its findings to governments concerned.
JETRO expert advising on product improvement (the Lao P.D.R.)
African Investment Promotion Forum organized by JETRO
3
11,430
6,749 7,616 7,619
6,501 7,000 7,585
7,985 7,982 8,657
7,292
5,518 5,821 6,411
6,642 7,649 8,169
8,625 8,152
8,754
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
輸出
輸入
Ⅱ. Relationship between EU and Japan
〔Unit: Billion Yen〕
〔Source:Ministry of Finance〕
14,606 16,112
14,851 16,715
20,527
27,307
32,021 35,032
37,971
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2008 2009 2010 2011 2012 2013 2014 2015 2016
Japanese FDI position toward the EU〔Unit: billion yen〕
〔Source :Bank of Japan〕
CAGR 17.8% (2011-2016)
Japan’s trade with the EU
4Copyright © 2018 JETRO. All rights reserved.
Export
Import
Employment Turnover
EU 498,856 34,993
UK 159,205 9,721
Germany 64,613 6,188
Belgium 50,211 5,775
France 41,513 2,923
Italy 35,488 1,222
Netherlands 34,554 4,558
Spain 19,688 1,134
〔Source: MOFA Statistical Survey on the Japanese Nationals Oversea〕
〔Source: METI Basic Survey on Overseas Business Activities〕
Economic Impact by Japanese Companies in the EU (2015)(Unit: person, billion Yen)
Procurement Value by Japanese Companies in the EU(2015)
5,583 billion Yen
4,480
4,710
4,974 5,027
4,810
5,047
5,302
5,512 5,605
4,000
4,200
4,400
4,600
4,800
5,000
5,200
5,400
5,600
5,800
2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of Japanese-affiliated Companies in the EU
5
Ⅱ. Relationship between EU and Japan
Copyright © 2018 JETRO. All rights reserved.
Copyright © 2018 JETRO. All rights reserved.6
Japanese manufacturers in EU procure More than 50% of parts/raw materials from EU
Countries and Regions of Parts & Raw Material Suppliers for Manufacturing (Breakdown Based on Value)
*1This graph shows the companies average response rate given for each procurement source. Each company calculated the percentage of their procurement sources to amount to 100% .*2, ”Local” indicates the country/region listed, Countries where respondents are less than 5 were excluded.*3 Procurement from Russia was 0% in all countries.
〔Source:2017 JETRO Survey on Business Conditions of Japanese Companies in Europe〕
Ⅱ. Relationship between EU and Japan
Copyright © 2018 JETRO. All rights reserved.
Break down of Local Suppliers for Manufacturing (Breakdown Based on Value)
7
* ”Local” indicates the country/region listed, Countries where respondents are less than 5 were excluded
〔Source:2017 JETRO Survey on Business Conditions of Japanese Companies in Europe〕
Weight of Japanese-affiliated suppliers in Central Eastern Europe
Ⅱ. Relationship between EU and Japan
8Source: "International Investment Position of Japan" (Ministry of
Finance), "National Accounts of Japan" (Japan Cabinet Office)
The Japanese Government commits to expand inward FDI to 35 trillion yen by 2020.
The stock of inward FDI and its portion in the nominal GDP
Record high
Goal($ 315 billion)
×3
Ⅲ. Attractiveness of Japanese market
8
Copyright (C) 2017 JETRO. All rights reserved.
Perception of the Business Environment in Japanamong Foreign-affiliated Companies
A questionnaire was sent to about 1,600 companies with focus on foreign-affiliated companies supported by JETRO in their entry into the Japanese market. 260 companies responded.
Foreign-affiliated companies are generally performing well and positive about the economic prospects.
Current business conditions compared with the previous yearOutlook of business conditions in Japan(over the next one or two years)
[Source] JETRO Invest Japan Report 2017
Ⅲ. Attractiveness of Japanese market
9
Copyright (C) 2017 JETRO. All rights reserved.
Attractiveness of doing business in Japan(top three options)
Attractiveness of doing business in Japan is “The Japanese market” and “Stability of nation and society.”
Perception of the Business Environment in Japanamong Foreign-affiliated Companies
n=258
[Source] JETRO Invest Japan Report 2017
Ⅲ. Attractiveness of Japanese market
10
44.0%
25.9%
18.0%
12.1%
EU
North America
Asia
Other Regions
37.0%
37.0%
8.2%
17.8%
EU
North America
Asia
Other Regions
6,825 6,894
6,703 7,314 7,015 7,214
9,941 10,493
12,263
6,832 7,019
6,024 5,652 5,484 5,678
7,080 7,011 7,203
1,514 1,597 1,898 2,069 2,410 2,582
3,677 4,300 5,018
3,285 2,915 2,878 2,513 2,899 2,502 3,050 2,966
3,357
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2008 2009 2010 2011 2012 2013 2014 2015 2016
EU North America Asia Other Regions
〔Source: Bank of Japan〕
Japanese FDI position trend
Japanese FDI position (Regional Breakdown)
(unit:billion Yen)
11
EU’s Foreign Direct Investment in Japan
Copyright © 2018 JETRO. All rights reserved.
Ⅲ. Attractiveness of Japanese market
0
5,000
10,000
15,000
20,000
25,000
30,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
European
American
Asian
57.0%28.3%
11.0%
3.8%
European
American
Asian
OtherRegions
Turnover of Foreign-Affiliated Companies in Japan
〔Source: METI Survey of Trends in Business Activities of Foreign Affiliates〕
Turnover breakdown of Foreign-Affiliated in Japan(2015) Unit: billion Yen
Turnover of Foreign-Affiliated per company European Companies earn more than companies from
any other regions!
12
European-affiliated companies’ performance in Japan
(Unit: million Yen)
Copyright © 2018 JETRO. All rights reserved.
0
5,000
10,000
15,000
20,000
25,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
European
American
mean
Asian
Ⅲ. Attractiveness of Japanese market
Copyright (C) 2017 JETRO. All rights reserved.
Achievements of JETRO (FY2003-2017)
Successful investment projects supported by JETRO(by industry, top 5 industries)
Successful investment projects supported by JETRO(by country/region, top 10 countries/regions)
Investment Promotion Activities of JETRO
Ⅲ. Attractiveness of Japanese market
13
FY2017 FY2003-2017
Successful startups/business
expansion193 projects 1,772 projects
Supported projects 1,741 projects 17,713 projects
No. Country No. of Projects
1 US 488
2 China 231
3 Germany 143
4 Korea 124
5 UK 102
6 France 90
7 Taiwan 62
8 Singapore 60
9 Australia 56
10 Hong Kong 50
Others 366
Asia35%
Europe30%
North America30%
Oceania3%
Middle East and
Africa1%
Central and South America
1%
1.Services (food and beverage, retail, consulting, other)
425
2.ICT & telecommunications 400
3.Electrical and electronic equipment, parts 172
4.Industrial machinery, parts 141
5.Pharmaceuticals and medical equipment, related services
102
〔Source : European Commission, Ministry of Foreign Affairs of Japan〕
Japan will recognize 210 EU’s GIs.This protects European farmers and producers selling abroad.
The deal will show commitments to internationally recognized environment and labour standards.
The deal will open up Japan’s services market to EU firms.
Expanding business opportunities will- Improve productivity- Accelerate GDP growth- create EU jobs – every €1 billion in EU exports supports
14,000 jobs in EU.
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The deal will promote Japan’s foreign direct investment in
EU because;
- of improvement of investment climate
- Japanese companies would feel more familiar to EU
market as a result of closer trade relationship.
6. Promoting Investment
The deal will, especially in agricultural and motor vehicle sectors, enable two parties to;- discuss how to address issues when the two sides'
regulations diverge or are incompatible.- work more closely together on developing international
standards
The deal will expand the opportunities for EU suppliers to
participate in open tenders in Japan– Central and Sub-central.
In railways sector, the deal will also improve market access to
Japan for EU companies.
1. Improvement of Market Access
2. Protection of Geographical Indication
3. Government Procurement
5. Regulatory Cooperation
4. Trade in Service 7. Trade and Sustainable Development
Ⅳ. Advantages of Japan-EU EPA for the EU
Copyright © 2018 JETRO. All rights reserved.
Liberalization: approximately 94 % of goods in Japan
Liberalization: approximately 99 % of goods in EU
Copyright © 2018 JETRO. All rights reserved.15
More than half of Japanese companies expect benefits from
Japan-EU EPA
〔Source:2017 JETRO Survey on Business Conditions of Japanese Companies in Europe〕
Impact of EPAs/FTAs
Ⅳ. Advantages of Japan-EU EPA for Japan
No. of companies responding thatJapan-EU EPA would bring major advantages
16.5 points UP!!
Copyright © 2018 JETRO. All rights reserved.16
More than half of Japanese companies expect benefits from EU-Japan EPA
〔Source:2017 JETRO Survey on Business Conditions of Japanese Companies in Europe〕
Impact of Japan-EU EPA:Issues EU-based companies regarded as “major advantages”
Tariff Reduction/Abolition for imports from Japan
Expanding Business Opportunities
Ⅳ. Advantages of Japan-EU EPA for Japan
Ⅴ. JETRO’s promotion of trade and investment between EU and Japan
1. Contributing to EU economy and in enhancing investment and creating jobs by assisting Japanese companies in entering and operating within EU and exporting to the EU
Middle and Eastern Europe Investment SeminarSeminars were held in cities such as London and Vienna in order to disseminate information on local business primarily on the frontier markets of Central and Eastern Europe.
Dispatch of investment missions helping Japanese companies enter the EU marketJETRO arranged missions to learn about the actual conditions of local markets.
Individual support for entry to EU marketJETRO specialist individually supports Japanese companies from planning a strategy for entry to the EU market to implementing the strategy. This support program will be expanded to include EU member countries in addition to those of TPP11.
Dispatch of Japanese start-upsJETRO will facilitate collaboration between EU and Japanese start-ups.
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Agricultural, Forestry and Fishery Products and Food・SIAL・ANUGA
IoT・CeBIT・Start-ups
Media Contents・Marché du Film・MIDEM
Design and Fashion・TRANOÏ Paris・Maison e Objet・Ambiente
Life Science・MEDICA・BioEurope
Ⅴ. JETRO’s promotion of trade and investment between EU and Japan
JETRO helps to forge partnerships between EU and Japanese companies through the following activities: setting up Japan Pavilion, participation to major trade fairs.
18
Ⅴ. JETRO’s promotion of trade and investment between EU and Japan
In EU-Japan EPA seminars and related events within Japan and Europe, JETRO promotes the utilization of the EU-Japan EPA between both sides
2. EU-Japan EPA Dissemination Seminar
EU-Japan EPA Forum in Copenhagen in April 2018
EU Japan Business Round Table in Brussels in May 2018
Since December 2017In Japan: 40 times (Tokyo, Kyoto, Osaka, and other local cities)In Europe: 21 times (Paris, Copenhagen, Brussels, Düsseldorf, Bucharest, Budapest, Madrid, and so on)
Ms. Malmström from the European Commission participated in both events
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Disseminating information on the attractiveness of the Japanese market (business opportunities and how to establish a corporation in Japan)
Providing individual consultation services through JETRO’s specialists with extensive experience with legal matters, accounting and market analysis
Offering tentative free office space for overseas companies preparing business bases in Japan.
3. Assisting EU companies in investing in Japan
Ⅴ. JETRO’s promotion of trade and investment between EU and Japan
→ JETRO has so far assisted more than 486 European companies in entering Japan.
JETRO assists EU affiliated companies to enter the Japanese market and expand business throughout local regions.
20
To facilitate international collaboration between local SMEs through the Regional Industry Tie-up (RIT) Program, JETRO supports business exchange between SME clusters with advanced technology and industrial SME clusters in Europe, on a group basis.
Such activities facilitate exports, technological tie-ups and joint product development.
4. Contributing to vitalizing local industries both in the EU and Japan in the future
Ⅴ. JETRO’s promotion of trade and investment between EU and Japan
<Tie-ups in FY2018>
Japan EU Industry
Tokai and Hokuriku region Germany (Niedersachsen and other states)
Composite materials
Fukushima Germany (NRW) Renewable energy
Nagasaki UK (Scotland) Marine Renewable energy
Toyama Spain (Madrid) Pharmaceuticals
YamanashiGermany (Western and Southern parts)
Machinery-relatedindustry
Kitakyushu-city Germany (Bremerhaven)Offshore wind Power
21
Holding events in Africa and Asia to promote collaboration in third countries
In cooperation with Business France, JETRO held networking events between French and Japanese companies who are based in Africa/Asia
(Past Events)
Africa: Johannesburg, Nairobi, Abidjan
Asia: Tokyo, Ho Chi Minh
5. Holding events for collaboration in third countries
Ⅴ. JETRO’s promotion of trade and investment between EU and Japan
22