Overseas Investment Seminar in Fukuoka
JBIC co-organized Overseas Investment Seminar on March 30 in Fukuoka with the Kyushu Economic Federation and the Fukuoka Chamber of Commerce and Industry.
At the outset of the Seminar, Yasuo Hirota, Head of JBIC's International Finance Department, West Japan, expressed deep sorrow and sympathies for the victims of the Great East Japan Earthquake. Touching on the effect of the quake on the Japanese economy, he gave his view that the western Japan should do what it can to support the Japanese economy. He also urged the participants to make use of this Seminar as a place for obtaining the latest trends in rapidly changing business conditions in China and stated his wish that the Seminar would serve Japanese businesses to consider their strategies for their future overseas business development.
Senior Economist Toshiharu Mimura of JBIC's International Research Office drew on the data from the Survey Report on Overseas Business Operations by Japanese Manufacturing Companies (FY2010 questionnaire survey), an annual poll of Japanese manufacturers “having 3 or more overseas subsidiaries and affiliates,” gave an overview of Japanese firms' earnings trend in the aftermath of the Lehman Shock and their overseas business operations.
In concluding his speech, he expressed his view that over the medium and longer term, no serious adverse effect of the earthquake would be foreseen on Japanese overseas business development in terms of earnings generated in global business activities.
Exective Officer Chikashi Horie, Account & Corporate Planning Department, of Okuma Corporation, an all-round machine tool manufacturer, delivered a speech titled “Okuma's Regional Business Strategy in China and Asia” and gave an account of their business strategy when they expanded operations into the Chinese market in 2001. He stated that before expanding business operations to overseas markets, it would help to conduct “SWOT analysis” that set out the firm's strengths, weaknesses, opportunities and threats.
This was followed by a presentation titled “Business Strategy for China Entering the New Stage: Debate on China Risk” by Prof. Kenji Hattori at Graduate School of Strategic Management, Chuo University. He reported the outcome of the National People's Congress held in Beijing last March and pointed out that it was a time of policy transformation in China with a major pillar designated to domestic demand boost and regional development, while describing the opportunities and risks of the Chinese market. Furthermore, he stated the importance of the Japanese management capacity of the local staff in a strategy for indigenizing business operations.
In the final Q&A and wrap-up session, questions raised from the floor included “the ideas on Business to Business (B to B) strategy,” “whether there is trouble in collecting payments for the products sold,” and “building a sales network.” These questions reflected high interest in Chinese business among the firms participating in the Seminar.
JBIC will continue to disseminate a variety of information about developing overseas business operations to a broad audience through similar events.