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Why Invest in Japan: The gate is open for FDI

The Japanese market environment for foreign investment and companies has been improving due to efforts made by the government. In order to encounter the rapid decrease in the population and labour in conjunction with the ageing society, FDI is vital for upturn of the Japanese economy. FDI is promoted in Japan by promising to be ‘the best country in the world to do businesses’.
Japan is targetting a variety of industries with targetted reforms to attract FDI.

Japan remains the third largest economy in the world, and the country possesses both business-friendly infrastructure and a sophisticated market. The economy has been realizing its revitalization that has become the impetus for Japan to attract the inward FDI. In 2016, Europe had the largest FDI stock in Japan with the share of 48.7 pct. This is expected to increase through the FTA concluded between the EU and Japan in early 2017.

Challenges in Japan
Japan targets FDI in a variety of industries, and especially healthcare, renewable energy and smart agriculture are among the fast growing markets in Japan.

The ageing population and the labour shortage are severe factors that could deprive serious consequences to both the society and the economy, including industries and public finance. These features are some of the major factors that have been in focus by the markets in those industries. In an attempt to seek for further prosperity of the Japanese economy, it requires efficient solutions and tactics to face the problems.

Five promises to facilitate FDI
In 2015, the Prime Minister Abe proposed five promises to facilitate foreign investment in Japan. The government has been working to deregulate and simplify regulations and administrative procedure for companies, who are standing in the way to enter into the Japanese market. Abe strongly promotes comprehensive reform on the regulation of agriculture, energy and medical service.

The deregulations in healthcare system such as the assessment period of advanced medical products is expected to be very efficient and timesaving.

There is also an ongoing substantial structural reform in the energy market, where the retail market is being liberalized in both electricity and gas. This change has enhanced the notion of renewable energy as an alternative and sustainable solution in Japan.

The ageing of farmers and rapid decrease in the number of successors in the Japanese agriculture is one of the most significant concerns in Japan. This has been requiring digitalization of agriculture to ease the burden for elderly farmers and to attract younger people to take over the next generation of the Japanese agriculture.

Danish companies can sell into these changes
As a frontrunner for sustainable and efficient solutions and know-how, this is the opportunity for Danish companies to contribute to the challenges and opportunities in Japan. The gate is more open for FDI and foreign companies than ever, and the companies are standing in line to enter the market.

The top industries that have witnessed the biggest structural reforms in Japan are in addition industries, where Danish companies have expertise in providing sustainable and efficient solutions.

DI provides service for companies, who are seeking to enter the Japanese market. For further information, please contact Søren Falck.

This is the best time to invest in Japan

Contact
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Seniorchefkonsulent
Tlf: +45 3377 3484
Mobil: +45 3027 7292
E-mail: srfkdi.dk
As a frontrunner for sustainable and efficient solutions and know-how, this is the opportunity for Danish companies to contribute to the challenges and opportunities in Japan
PUBLICERET: 11-12-2017 OPDATERET: 11-12-2017