A summary of the survey results is as follows.
（1）Continued searching amid uncertainty in the environment surrounding overseas business, with a declining attitude toward strengthening and expanding future overseas business development
In this year’s survey, both the overseas production ratio (36.0%) and the overseas sales ratio (40.0%) in FY2023 maintained an upward trend from the previous fiscal year, with the overseas sales ratio reaching a record high (Attachment 1). However, with regard to the companies' strategies for strengthening and expanding their overseas business development in the future, the upward trend after the COVID-19 pandemic turned negative. This can be seen as a result of the slowdown in global demand, the slowdown in the Chinese economy, increasing geopolitical risks, and intensified competition from foreign and local companies.
（2）India maintained the top position in the ranking for promising countries for three consecutive years. China clearly moving out from the group of top promising countries, with its rank dropping to sixth place.
In terms of promising business destinations over the next three years, India’s vote share increased by more than 10 points from the previous year to take the top spot for three years in a row, standing far ahead of the second place (Attachment 2). China, which ranked third last year, lost a large share of votes, which flowed to India. Vietnam, which is also expected to be a recipient of the ex-China market, maintained second place for two years in a row. Although the U.S. lost votes due to concerns about the current rise in labor costs, it came in third place due to its reputation as a market and expectations as a center of innovation.
（3）Supply chains are reviewed for restructuring. While there is a movement away from China, there is also a movement for companies to expand their sourcing to China.
There is a growing trend among manufacturing companies to review their supply chains due to economic rationality and rising geopolitical risks, including U.S.–China conflict. There are moves to strengthen supply chains by moving "out of China" with respect to manufacturing and sales bases and raw material suppliers while including Japan and other countries. Nevertheless, some companies in certain industries are transferring their manufacturing and sales bases and raw material suppliers from Japan to China due to the need to reduce costs and to respond to the demand from the Chinese market.
（4）Business transformation efforts to expand to the U.S., China and ASEAN countries
Approximately 90% of the companies that participated in this survey are working toward business transformation, and more than 30% are pursuing this goal through M&A or collaboration with overseas companies, research institutions, and startups. In particular, the largest number of cases of collaboration with startups were from the U.S., with cooperation in such areas as the latest AI-based technologies and renewable energy, confirming the growing recognition of the U.S. as a frontier of innovation. Other examples of M&A and collaboration with research institutions were also seen in China and ASEAN, where companies are making extensive efforts to expand their business areas and localize their operations.
（5）Progress has been made in addressing decarbonization and the circular economy. Efforts to address biodiversity and human rights issues are limited.
About 65% of the companies are taking steps to decarbonize through energy-saving products, and about 45% are working to transition to a circular economy through recycling and other measures. However, overseas efforts are limited, at around 20%, and it was found that the acceptance of increased costs and the lack of subsidies are barriers to overseas efforts. Manufacturing companies are also aware of the future transition to a decarbonized society and a circular economy, and they expect growth opportunities in areas such as automobiles and storage batteries, biomass and other resource recycling, renewable energy, and hydrogen and ammonia. However, no progress has been made on biodiversity and human rights issues since the previous year, and there are differences in efforts depending on the size of the company.
