News & Updates

“Survey on Business Operations ブラッククイーンブラックジャック Foreign-affiliated Companies in Japan” Summary ブラッククイーンブラックジャック Survey Results

Mar 29, 2022

JETRO conducted a survey ブラッククイーンブラックジャック 6,582 foreign-affiliated companies based in Japan from September to October 2021, and received valid responses from 1,315 companies (valid response rate: 20.0%). This survey was conducted by JETRO for the first time this fiscal year to assess the current status ブラッククイーンブラックジャック foreign-affiliated companies in Japan, the Japanese business environment, and the state ブラッククイーンブラックジャック collaboration/cooperation with Japanese companies and other entities. The key findings ブラッククイーンブラックジャック the survey will be presented as follows: 1) Current status and trends ブラッククイーンブラックジャック foreign-affiliated companies in Japan, 2) Attractiveness and challenges ブラッククイーンブラックジャック the business environment in Japan and support needed, and 3) Collaboration/cooperation with Japanese companies and other entities.

Three points ブラッククイーンブラックジャック the survey results

1.Current status and trends ブラッククイーンブラックジャック foreign-affiliated companies in Japan

Companies ブラッククイーンブラックジャック wholesale trade / general trade industry accounted for the highest percentage ブラッククイーンブラックジャック the responded foreign-affiliated companies at 38.6%, followed by services and others at 30.3%, manufacturing at 15.0%, and retail trade at 3.8%.
As to the foreign parent company ブラッククイーンブラックジャック the responded foreign-affiliated companies, US companies accounted for the highest at 20.1%, followed by German companies at 12.7% and Chinese companies at 10.3%. By region, 40% are from Europe, over 30% from Asia, and 20% from North America.
Over 70% ブラッククイーンブラックジャック the head ブラッククイーンブラックジャックfices ブラッククイーンブラックジャック the responded foreign-affiliated companies in Japan are located in the Kanto region, and nearly 60% ブラッククイーンブラックジャック them are concentrated in Tokyo. In addition, nearly 80% ブラッククイーンブラックジャック their corporate planning and management functions are concentrated in the Kanto region.
Looking at sales for the most recent fiscal year by timing ブラッククイーンブラックジャック entry (i.e. when the company was established or invested) , about 70% ブラッククイーンブラックジャック the companies that entered the market in or before 1980 had sales ブラッククイーンブラックジャック "over JPY 1 billion," while 20% ブラッククイーンブラックジャック them had sales ブラッククイーンブラックジャック "over JPY 10 billion." On the other hand, about half ブラッククイーンブラックジャック the companies that entered in or after 2016 had sales ブラッククイーンブラックジャック "JPY 100 million or less", indicating that companies that have been in the market for longer tend to have larger sales.
As for future business plans in Japan, about 50% to over 60% ブラッククイーンブラックジャック the respondents answered that they would "strengthen or expand" regardless ブラッククイーンブラックジャック company size, and the percentage was over 90% when including "maintaining the status quo."

2.Attractiveness and challenges ブラッククイーンブラックジャック the business environment in Japan, and support needed

Regarding the attractiveness ブラッククイーンブラックジャック the Japanese business environment, "Japanese market size" was the most common response at 60%. On the other hand, "growth potential ブラッククイーンブラックジャック the Japanese market" accounted for just over 30%, with some industries tending to rate it even lower.
As for changes in the Japanese business environment perceived over the past year or two, more than 70% ブラッククイーンブラックジャック companies responded "no change" for most ブラッククイーンブラックジャック the nine items surveyed, while more than 20% ブラッククイーンブラックジャック respondents answered that "Strictness and complexity in the immigration control system" and "ease ブラッククイーンブラックジャック securing human resources" are getting worse.
Around 90% ブラッククイーンブラックジャック the respondents, regardless ブラッククイーンブラックジャック industry or company size, answered that they are "recruiting Japanese mid-career workers in Japan," indicating a strong preference for hiring industry-ready workers.
Among government measures, "one-stop system and digitization ブラッククイーンブラックジャック labor and tax-related procedures" attracted attention from a wide range ブラッククイーンブラックジャック respondents, regardless ブラッククイーンブラックジャック industry or company size. "Promotion ブラッククイーンブラックジャック digital transformation (DX)" and "policies for a carbon-neutral society" also received more than 30% ブラッククイーンブラックジャック the attention, and both exceeded 50% especially among large enterprises.
Overall, the top public support services that have been used or intended to use were "subsidies and incentives," "provision ブラッククイーンブラックジャック information," and "arrangement for recruiting human resources."

3.Collaboration/cooperation with Japanese companies and other entities

More than half ブラッククイーンブラックジャック the large enterprises are implementing or considering collaboration/cooperation with Japanese companies and other entities. Overall, 22.5% ブラッククイーンブラックジャック respondents answered that they "have implemented" collaboration/ cooperation.
Regarding partners for collaboration/cooperation (including those under consideration), "small and medium-sized enterprises," "universities," and "large enterprises" were all at the 40% level. "Small and medium-sized enterprises" was the most common partner for Asian companies at over 50%, while "universities" was the most common for North American companies at over 50%. More than half (52.6%) ブラッククイーンブラックジャック the respondents selected "strong technological capabilities" as a factor they look for in a partner.
The biggest challenge in conducting collaboration/cooperation was "gathering information about potential partners. “Delay in decision-making ブラッククイーンブラックジャック partners" and "lack ブラッククイーンブラックジャック partners' communication skills aside from Japanese" were also cited as challenges, especially among relatively small and new companies.

Attachment: "Survey on Business Operations ブラッククイーンブラックジャック Foreign-affiliated Companies in Japan" Summary ブラッククイーンブラックジャック Survey Results (PowerPoint slide deck)