Dr. Keiichiro Oizumi, Senior Economist at The Japan Research Institute, Limited
The Japan Bank for International Cooperation (JBIC) hosted its "Overseas Investment Seminar: Overseas Business Operations by Japanese Manufacturing Companies" on December 13, 2016. From JBIC, Shin Oya, Deputy Director General for Policy and Strategy Office for Financial Operations and Director of the Research Division, presented the results of the FY2016 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies ("Survey Report"), the 28th of an annual survey series that began in 1989. Another presentation was given by Dr. Keiichiro Oizumi, Senior Economist at The Japan Research Institute, Limited, on "Investment in Asia Entering a New Stage". The seminar was a great success, attracting over 80 attendees.
Following opening remarks by Noriyasu Yuge, Deputy Director General for Policy and Strategy Office for Financial Operations, JBIC, Oya explained the results of the Survey Report, which examined status of overseas M&A and challenges, current supply-chain model and roles of production and R&D bases, ongoing competition in the global market, in addition to the regularly covered topics of evaluation of overseas business performance, medium-term business prospects, and promising countries or regions for overseas business operations.
Dr. Oizumi followed with his presentation on the change of production systems and consumer markets in Asia, as well discussing Asia's investment environment entering a new phase, along with the economic growth of emerging countries, especially in urban areas, providing specific examples. He also explained the challenges faced by corporate headquarters and future outlook.
He elaborated on his presentation by pointing out that one of the most significant changes in the environment is that from 2005 Japan's position in Asia has gradually eroded, when the Japanese GDP was outstripped by that of whole Asia (China, Korea, Taiwan, Hong Kong, and ASEAN10), which is currently four times the size of GDP in Japan. Furthermore, he explained that 1) production for the overseas markets has begun to be carried out more often outside of Japan after the division of labor in production processes; 2) regional disparities have emerged between urban and rural areas, creating business opportunities in sectors targeting large-income earners; 3) software industries, utilizing social networking services (SNS), are rapidly growing. Having analyzed such trends, he then emphasized that building and strengthening relationships with local companies and governments will be even more crucial for success in future Asian businesses.
JBIC will continue to provide a broad range of information to help Japanese companies expand their overseas business operations.