Strategies of Asian Companies for Investment in Japan and Japan’s Recruiting Policies

ABSTRACT

1. Investment in Japan from various countries is greatly increasing as a result of Japan’s aggressive recruiting of foreign direct investment (inward investment). In reality, however, a majority of this investment is coming from western companies, while investment from Asian companies remains marginal. To further expand investment in Japan, Asian companies must be actively recruited.

2. In line with the economic development of countries in Asia and the region as a whole, Asian companies are responding to their respective development patterns, industry structures and competitive edges by expanding globally and actively increasing foreign investment. Part of this expansion is the investment of Asian companies in Japan, although the pattern differs somewhat from that of companies in developed countries.

3. Asian companies’ investment in Japan can be divided into the fields of investment/property, manufacturing, business-related services and lifestyle-related services, and the goals are capital gain, market/technology acquisition, securing procurement and etc. This investment comes in the form of company takeovers, the establishment of local subsidiaries, the establishment of service/procurement bases and branches and etc.

4. To attract investment from Asia companies, it is necessary to respond to the aims of these companies, to maximize the potential of Japan’s competitive edge as an investment target, and to overcome weaknesses. The first step is to organize priorities concerning investment recruiting. Then, acquiring technology from Asian companies as well as company takeovers should be promoted and encouraged from the perspective of the need to enhance and reorganize Japan’s industries. Last, to promote investment from overseas Chinese companies in Asia, Chinese networks should be utilized and the management of Chinese companies in Japan should be supported.