WHY

JAPAN?

5 reasons to invest in JAPAN

Japan External Trade Organization(JETRO)

www.investjapan.org
Copyright (C) 2014 JETRO.All rights reserved.

WHY JAPAN?

5 reasons to invest in JAPAN

Reason

1
Reason

2
Reason

3
Reason

4
Reason

Japan s Re-emergence
Sophisticated Market
Innovation Hub
Business Friendly Infrastructure
Comfortable Living
1

Reason

Reduction of eective corporate tax rate

Japan s Re-emergence

Aiming to reduce the eective corporate tax rate down to the 20% range.

2.4% reduction of eective corporate tax rate from April 2014

The Japanese economy is back on a recovery track after

two lost decades.
Through Abenomics large scale monetary easing, tax reform
and various deregulation, it is showing growth again.

1. Recovery of capital investment level

FY2013 : 67 trillion yen (+3.5% compared to previous year) *Aim for FY2015 : 70 trillion yen
2Q term 2014 : +7.07% compared to previous year
2. Private enterprises updated/reinforced domestic factories in waves
V-shaped turnaround of private nonresidential investment plan
Two-digit increase in FY2014

Recovery of market sentiment

Return to the level before the Lehman Brothers' bankruptcy in 2008
(DI, %Pt)
40

Large rms
non-manufacturing

20

Forecast

0
-20

SMEs non-manufacturing
SMEs manufacturing

-40

Large rms manufacturing

Large rms non-manufacturing
SMEs manufacturing
SMEs non-manufacturing

-60
-80

Actual result
(change)

June Survey

2008

09

10

11

12-5
19-5
1-3
2-6

12

10

Forecast
15
19
3
0

13

14

(Ratio)

1.2
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0

Jobs-to-applicants ratio
Nov 2012
0.82

4.5
4.0

Unemployment rate
Nov 2012
4.1%

2008

09

10

3.5

Jul 2014
3.8%

11

12

13

14

3.0

56

50
22
4

Nikkei Average

NY Dow Jones
Average

08

09

10

11

12

13

14

All industries

Manufacturing

Non-manufacturing

Deregulation/Structural reform
Drove new entries by conducting bold deregulation in elds such as energy, agriculture,
and health care.
(Examples)
Electric power sector
Conducted reform of the power system for the rst time in 60 years with full liberalization of
the retail sales market.
Entry by foreign companies also became possible (law enacted in June 2014, implementation
planned for 2016).
Encouragement of power retail competition across regions/business classications.
Agriculture

10
-10

07

Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

5.5

Stock price increase has been strong compared to major markets (Dec 2012 to Aug 2014)

28

-40

6.0
Jobs-to-applicants ratio
(left scale)
5.0
Unemployment rate
(right scale)

06

-30

6.5

Jul 2014
1.10

05

-20

7.0

Drastic ascent of stock prices

30

-10

Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

70

The ratio of job-oers-to-applicants has risen to 1.10, the highest in the last 22 years.
The unemployment rate has declined to 3% range for the rst time since Oct 2008.

Business Conditions DI (Tankan)

Large rms
manufacturing

20

German DAX

Shanghai
Composite Index

Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

Driving accumulation/consolidation of agricultural land as well as supporting business expansion

to processing/circulation/sales of agricultural/forestry/shery workers.
Companies from dierent industries are entering agriculture-related businesses in waves.
Export sum of agriculture/food is the highest ever.
FY2013: 550.5 billion yen (increased 22.4% compared to previous year)
Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

Reason

Japan s Re-emergence

The appeal of the Japanese market is increasing through

the economic growth of Abenomics.
The government is strengthening its eorts to attract
foreign companies and foreign visitors, aiming to open
the Japanese market and further business expansion.
Attracting foreign companies

Attracting visitors to Japan

Foreign travelers to Japan increasing rapidly

The number of foreign visitors to Japan exceeded 10 million in 2013, a result of new LCC ights
and the easing of requirements for issuing visas. The aim is 20 million by 2020. The growth of
businesses targeting foreign travelers is expected.

2003

5.2

million people

2013

2020 (Aim)

million people

million people

20

10.3

Through the designation of National Strategic Special Zones and tax reform, the government
is aiming to double Japan s investment balance from 17.8 trillion to 35 trillion yen by 2020.

Designation of National Strategic Special Zones

6 areas designated as "National Strategic Special Zones" as part of bold regulatory and
institutional reform to promote a range of international business and advanced industries.

Easing the requirements for accepting highly skilled foreign professionals

Requirements for annual income, research achievements, and accompanying parents/domestic
servants have been eased.
Source: Ministry of Justice Immigration Bureau, "Points-based Preferential Immigration Treatment for Highly Skilled Foreign Professionals"

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"

Data source: Japan National Tourist Organization (JNTO)

Decision made to hold Tokyo Olympic Games

and Paralympic Games in 2020
The economic ripple eect is estimated at approximately 3 trillion yen, and job creation
at approximately 150,000 jobs nationwide. People from all around the world will visit Japan,
and a boom in related businesses such as tourism, construction, and services is expected.
Source: Tokyo Metropolitan HP

14.0
%

International comparison of FDI ratios

12.0
Japan

10.0

China

8.0

Korea
6.0
U.S.
4.0

Germany

2.0
0.0

06

07

08

09

10

11

"Note" 1. FDI ratio = This term's direct investment ratio/

foreign direct investment term nal balance x 100 (%)
2. China is until 2012.

12

13

year

Japan s FDI ratio is once

again showing a turnaround.
Recording 7.1% in 2013,
it has surpassed that of
other major countries.
The investment environment
for foreign companies
continues to improve.

The Japanese economy is

emanating new appeal.
Now is the perfect time to invest.

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"

Data source: "BOP, June 2014" (IMF), "Balance of Payment Statistics,"
"National Net International Investment Position"
(Ministry of Finance, Bank of Japan)

Reason

Sophisticated Market

A huge and sophisticated market

exists in Japan.

rd

International comparison of Japanese regional

gross production (nominal, FY2011) (Unit: $1 billion)

Kanto region 2,530.0

U.K.
2,428.7

Chugoku
region
355.3
Thailand 345.7
Kyushu
region
602.5
Switzerland 660.8

in the world

Japan s GDP is nearly 500 trillion yen.

A leading world economy that boasts large-scale economic power.

Shikoku region 175.3

New Zealand
159.5
Source: Cabinet Oce, "Report on Prefectural Accounts 2012" (FY2014)

Tokyo: city with world's largest population

World ranking of megalopolis populations "Tokyo:1st, Kinki area:7th"

Source: Statistics Bureau, Ministry of Internal Aairs and Communications "World Statistics 2014" ; Cabinet Oce

Attractive market for foreign companies

Nearly 60% of foreign companies see

the massive size of the market as
Japan s attractiveness.
112 foreign companies out of 203 cited "size of the market"
as the advantage of Japan s business environment.

Hokkaido/Tohoku
region
717.8
Turkey
774.8

Chubu region 930.4

Netherlands 836.8
Kinki region 981.0
Korea
1,116.2

GDP is ranked 3rd in the world

RANK

Japan s regional economies have GDPs the size of other countries

Source: Ministry of Economy, Trade, and Industry (METI),

"Survey on Attitudes of Foreign-Aliated Companies toward Direct Investment in Japan Report 2014"

City

Country

Tokyo

Population (1,000 people)

Rank

1990

2014

2030

1990

2014

2030

Japan

32,530

37,833

37,190

1
2

Delhi

India

9,726

24,953

36,060

12

Shanghai

China

7,823

22,991

30,751

20

Ciudad de Mxico

Mexico

15,642

20,843

23,865

10
11

Mexico City

So Paulo

Brazil

14,776

20,831

23,444

MumbaiBombay

India

12,436

20,741

27,797

Kinki M.M.AOsaka

Japan

18,389

20,123

19,976

13

Beijing

China

6,788

19,520

27,706

23

New YorkNewark

U.S.

16,086

18,591

19,885

14

al-Qhira

Egypt

9,892

18,419

24,502

11

10

Cairo

Tokyo maintains 1st place from surveys previous to 2014,

and will still be 1st in 2030 (projection).
Source: Created from United Nations "World Urbanization Prospects, the 2014 Revision"

Reason

Sophisticated Market

Sophisticated consumers/World standard

Comments on the Japanese market by foreign companies

Philips Electronics Japan, Ltd.

"Currently, you wont become a global market leader unless you succeed in Japan.
If you can achieve the quality Japanese people demand, your products will sell anywhere in the world.
There have been lots of examples where the behavior and demands of Japanese consumers have led
to the development of new products that translate well to other markets."
Danny Risberg
Chief Executive Ocer (CEO) of Philips Electronics Japan, Ltd.
Chief Executive Ocer (CEO) of Philips Respironics GK.
Taken from comments by Danny Risberg, Chief Executive Ocer of Philips Electronics Japan, Ltd, in the The Asashi Shimbun

Danone Japan Co., Ltd.

"Japanese people are prepared to acknowledge high quality and real value and are ready to pay
money for those."

George Leon Zari, then CEO

Source: Comment given on March 25, 2014 at the "Second Expert Advisory Panel Round-Table
Conference on Foreign Direct Investment in Japan" hosted by the Cabinet Oce.

Japan is where global enterprises aggregate

RANK

rd

in the world

57 companies out of the "Fortune Global 500" have their HQ in Japan.

Following the US and China, Japan is ranked 3rd

in the world.

Source: Fortune, "Fortune Global 500 2014"

Japan: market where foreign companies ourish

Foreign companies hold a high share of sales in Japan, particularly in consumer-related
markets.

Soft drinks
1st Coca Cola (USA) 23.2%
Coee

IKEA Japan K.K

"We see that Japan is one of the highest potential markets in the world to grow our business
both from the scale of population and GDP point of views.
We see Japan is the second biggest home furnishing market in the world.
We are learning a lot of things from the Japanese culture and people.
We have only started with our journey and we have so many things to do ahead of us."

Peter List, CEO

Source: Comment given on April 3, 2014 at the "Fourth Expert Advisory Panel Round-Table Conference on Foreign Direct Investment in Japan" hosted by the Cabinet Oce.

Guess Japan, Inc.

"Japanese customers are highly sensitive to fashion and have a rich brand knowledge as well as high
buying motives. We consider the Japanese market as one that allows for new fashion brands like us to
compete."

Tatsuo Yata, Country Manager

Source: JETRO, "Cases of Foreign Companies Expansion into Japan"

1st Nestl (Switzerland) 32.6%

2nd Mondelz International, Inc. (USA) 16.0%
Eyeglasses/Contact lenses

1st Johnson & Johnson (USA) 17.1%

Personal accessories

1st Richemont (Switzerland) 6.5%

2nd LVMH Moet Hennessy Louis Vuitton S.A.
(France)

3rd KERING (formerly PPR) (France) 3.8%

5.9%

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"

Data source: Euromonitor International "Euromonitor International"

Reason

An environment that generates innovation

Innovation Hub

Japan is very aggressive in R&D and innovation, and has led a large number of patents,
many of which have high distribution value internationally.

Japan has an intellectual accumulation

that generates innovation.
World-class in research funding and number of researchers

RANK

Science and technology related research is

conducted spiritedly in Japan.

st

"Research funding as a percentage of GDP" and

"Number of researchers per 10,000 people" are

among the largest in the world.

Number of researchers
per 10,000 people (G8 comparison)

Research
funding

Percentage
of GDP

Rank

Country

Japan

1,636

3.67

Germany

931

2.88

U.S.

4,152

France

Country

Number of
Number of researchers
researchers per 10,000
(unit: 10,000)

people

Japan

64.6

50.8

U.S.

141.3

46.8

2.77

Canada

14.9

43.7

519

2.24

U.K.

26.2

41.8

U.K.

396

1.77

Germany

32.8

40.1

Canada

243

1.74

France

24.0

37.0

Italy

248

1.25

Russia

44.8

31.3

Russia

350

1.09

Italy

10.7

17.6

($100 million)

RANK

st

in the world

Triadic patent families: Ranked 1st in the world

by number of patents registered in patent oces in the US,
Europe, and Japan, an appropriate index of high distribution
value internationally.
Source: OECD "OECD Factbook 2014"

As for number of patents granted per nationality of the

applicant, the number of patents granted to Japanese nationals
is ranked 1st.

Among nationalities of the G8 countries, China, and Korea,

Japanese nationals account for 279,000 (32.3% of the total) compared to
149,000 (17.2% of the total) for US nationals and 148,000 (17.1% of total)
for Chinese nationals. Japanese nationals also accounted for an overwhelming
number of patents prior to 2012.
Source: Ministry of Economy, Trade, and Industry (METI) Survey ;
Data source: WIPO (World Intellectual Property Organization) IP statistics
data center/PATENT_Grant for direct applications_Total
count by applicant s origin2014 January"

Accelerating the easing of regulations for patent approval

Research funding by country

and percentage of GDP (G8 comparison)
Rank

Japan s patent track record

(%)

Source: Created from Ministry of Internal Aairs and Communication, "Survey Result on Science and Technology Research 2013"
Data source: OECD "Main Science and Technology Indicators," etc.

With the aims of "achieving a nation built on intellectual property", "actualizing a swift and high quality
examination process, and "helping to obtain and preserve global rights that include developing countries",
as outlined in Japan s Revitalization Strategy, Japan is advancing the speed of approval for new drugs.
Source: Patent Oce, "Subject and Activity of Patent Administration Based on 'Japan Revitalization Strategy'"
Created from Ministry of Health, Labor, and Welfare, "Pharmaceutical Industry Vision 2013"

Comments from foreign companies on

Acquiring highly skilled human resources (specialists)

Japan has an abundance of talent with a high level of expertise in both basic technology
and applied technology. (Asia-based, environment related company)

Accessing R&D partners

Japan is at the forefront of advanced chemistry and possesses excellent R&D resources.
(Europe-based, machine industry related company)

Japan s technology is well developed. Japan disseminates the latest technology and
provides opportunities for manufacturing advanced products to foreign countries.
(Asia-based, manufacturing company)
Source: Ministry of Economy, "Trade, and Industry (METI),
Survey on Attitudes of Foreign-Aliated Companies toward Direct Investment in Japan Report 2014"

Reason

The innovation created in Japan by foreign companies

Innovation Hub

GE: Developing high-tech products through collaboration with

(nationwide)
Japanese enterprises
Currently expanding a "Japan Technology Initiative" project nationwide to advance innovation with
Japanese companies. Established a joint corporation with Nippon Carbon Co., Ltd, and other companies
to develop high-tech inorganic ber for next-generation aircraft engines. Will also develop engines for
small business jets with Honda Motor Co., Ltd.

Innovation from Japan

Supercomputer "K computer" is a world leader.

The next-generation supercomputer, "K computer," was developed in Japan and ranks 1st
in the "Graph 500" international performance index (2014).

Lamborghini: Established laboratory for next-generation materials

In the eld of regenerative medicine, the world focuses on iPS cells.

Established ACSL Japan (Automobili Lamborghini S.p.A. Advanced Composite Structures Laboratory
Japan) with the Nagoya Institute of Technology in 2013. Plans to conduct R&D with a range of Japanese
automobile, aircraft, and other companies using technology to mass-produce lightweight carbon-ber
composite parts in a short time and at low cost.

The "iPS cell" is a new pluripotent stem cell discovered by Professor Shinya Yamanaka of Kyoto
University in 2006. It is thought that this cell, at the center of the world s attention, can be
widely used for regenerative medicine. Professor Yamanaka received

Physiology or Medicine for this achievement.

the Nobel Prize in

22

(Breakdown)
Physics
Chemistry

10
7

Physiology or Medicine 2
Literature

Peace Prize

Prizewinners in recent years

Isamu AKASAKI: 2014 in Physics
Hiroshi AMANO: 2014 in Physics
Shuji NAKAMURA: 2014 in Physics

Shinya YAMANAKA: 2012 in Physiology or Medicine for

research on iPS cells

Koichi TANAKA: 2002 in Chemistry for research on mass

spectrometric technique

Hideki SHIRAKAWA: 2000 in Chemistry for research on

conductive polymer

Source: Ocial Nobel Prize website (www.nobelprize.org) .other

L'Oreal : Developing advanced cosmetics with Japanese technology

(Kawasaki)

Many Nobel Prize winners produced

Nobel Prize
winners (all-time)

(Nagoya)

"World-changing Blue LED"

In the early 1990s, 3 professors invented the blue

LED semiconductor using gallium nitride. With the
invention/addition of the blue LED to the already
existing red and green colors, the set of 3 primary
colors was complete. This enabled the creation of
the white colored LED that has revolutionized the
lighting industry worldwide. The research also
contributed to the blue light laser diode and the
development of the blu ray disc.
Source: Japan Science and Technology Agency website
(www.jst.go.jpl)

Operating its rst development center for all research phases outside of the company s home country of
France in Kawasaki-shi, Kanagawa Prefecture. Fusing existing technology with technology from Japan,
L'Oreal is developing cosmetic products (hair care, makeup, skin care, and other products) that
incorporate the characteristics and demands of consumers in each country, and taking them worldwide.

BOSCH: Largest safety system research base outside of Germany

(Yokohama)

In 2010, Bosch expanded the amount of oor space and number of employees at its Yokohama Research
and Development Center (established in 1992) to approximately double its size. Conducting R&D on
safety systems such as ABS (anti-lock braking system), airbag, and ESC (electronic stability control), and
taking them worldwide. Besides Yokohama, the company established a technical center in Memanbetsu,
Bosch s largest safety system research and development center outside of Germany.

3M: Established global "Super Hub" base in Yamagata

(Yamagata and other)

Positioning Japan as an "important manufacturing base with world-class quality control capability and
living traditions of craftsmanship," the company established production and R&D centers in Kanagawa,
Yamagata, Iwate, and other prefectures. Yamagata in particular serves as a global "Super Hub" for the 3M
group, supplying products to each 3M company overseas. It is also conducting R&D on reectors, optical
lm, and others.
Source: Created by JETRO from each company's website, press releases, and other information.

Reason

Business Friendly
Infrastructure

Supporting business with well-developed

social infrastructure

Easy environment for business

Business
sophistication

RANK

Foreign companies validate Japan s infrastructure

Nearly 61% of foreign companies see

the well-maintained infrastructure
as an attractiveness of Japan.

123 foreign companies out of 203 cited "well-maintained infrastructure" as an advantage of

Japan s business environment.

Comment by foreign company

Japan excels in few power outages, the high quality of the train system and other public
transportation infrastructure . . . and the high reliability of the postal and delivery service

st

(North America-based, medical device company)

Source: Ministry of Economy, Trade, and Industry (METI),
"Survey on Attitudes of Foreign-Aliated Companies toward Direct Investment in Japan Report 2014"

in the world

(144 countries)

Japan s business environment is highly evaluated in the World Economic Forum s

"The Global Competitiveness Report 2014-2015".

Japan s stable infrastructure service

Ranked 1st in the world for "Business Sophistication".

Evaluated on business network and quality of company operation/strategy.

Source:World Economic Forum, "The Global Competitiveness Report 2014-2015"

Internet

Japan s business environment highly evaluated

by international organizations
An international research organization highly evaluated the quality of workers and
legal system in Japan as contributing factors for the country s attractiveness.

Communication

Japan s Attractiveness
World Bank
Ease of resolving insolvency
Protecting investors
Ease of trading across borders
Ease of getting electricity
Ease of getting credit

International Institute
for Management Development (IMD)
Skilled workforce
Reliable infrastructure
High educational level
Strong R&D culture
Eective labor relations

Water

Wireless broadband subscriptions per 100 inhabitants

ranked 3rd among OECD countries

Average broadband connection speed ranked 2nd among

OECD countries

Percentage of population in mobile phone service area is

99.95

Providing world-class water service on a constant 24-hour

basis. Water leakage rate is only 3% (Tokyo).
Diusion rate of water and sewer service, simple water-supply
system, and private water supply is 100 (Tokyo).
Source:OECD
Source: Ministry of Internal Aairs and Communications, "4th-Generation Mobile Communication System"
Source: Tokyo Metropolitan Government Bureau of Waterworks, "Pursuing Water Loss Reduction," 2012
Source: Ministry of Health, Labor, and Welfare "Water Supply Population and Water Service Diusion Rate 2012"

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"

Data source: World Bank "Doing Business 2014, IMD "World Competitiveness Yearbook 2013"

Reason

Japan s convenient transportation infrastructure

Business Friendly
Infrastructure

Nationwide transportation
infrastructure

Wakkanai

Asahikawa

Akita Shinkansen
Joetsu Shinkansen

Low infrastructure fees

Unit: US$1,000

100.0

2,000
1,500

2,284

2,646

200

200

100

100

100

1,240

20.0

55.1

23.0

37.6

Fukuoka

44.7

NewYork

Dusseldorf

Seoul

Paris

Stockholm

Store/showroom rent
in the city center(monthly)per sq.m

46

Housing rent for expatriates(monthly)

2,761

Hiroshima

Shanghai Hong Kong

52
206

109
368
2,966

Tokyo
Shin-Yokohama

Pacic Ocean
Narita International
Tokyo International

Chubu International
Kansai International
Takamatsu
Kohchi
Matsuyama

Naha

Oita

Miyazaki

* Hub airport: Airport that serves as a hub for the domestic air transportation network or international air transportation network.
Source: Created by JETRO based on the websites of the Ministry of Land, Infrastructure, Transport, and Tourism, and railway companies.

World-class transportation infrastructure

Airports with international ights in service: 51
Goal for number of arrivals/departures for 2015: 3rd in the world
Airports
for international ights with nearly 750,000 arrivals/departures
(Combined total for Haneda and Tokyo Narita Airports)

Seoul

Singapore

57

66

32

309

2,167

4,654

Source: Nikkei Business Online, January 2013

2,703

Takasaki

Nagoya

Sendai

Fukushima

Shin-Osaka

Kumamoto

Low-cost real estate compared to major cities in Asia

(Shanghai, Hong Kong, Seoul, Singapore) (Unit: $)
35

Kokura

Kyoto

Kumamoto

Nagasaki

Source: Ministry of Internal Aairs and Communications,

"Report on Internal and External Price Dierence Related
to Telecommunication Service 2013 (July 2014)"

Tokyo

Hakata

Sendai

Omiya
Okayama

Kagoshima-Chuo
Kagoshima

London

UK

Australia

France

Germany

US

Japan

Source: KPMG report "Competitive Alternatives 2014"

16.0

32.2

Nagano

Yamaguchi Ube
Kitakyushu

Tokyo

0.0

Oce rent(monthly)per sq.m)

Osaka International

88.9

40.0

1,000

Yamagata
Niigata
Niigata
Hiroshima

80.0
60.0

Yamagata

Hub airport

150

Morioka

Shinjo

Sea of Japan

Major expressways

downlink speed: Mbps

100

Akita

Akita

Kyushu Shinkansen

Average monthly internet feesresidential

Fee per 1Mbps

2,188

Sanyo Shinkansen

High-speed internet fees

Annual costs simulating scheduled

deliveries from the factory

2,112

Hachinohe

Tokaido Shinkansen

Transportation fees

2,500

Shin-aomori

HokurikuNaganoShinkansen

(including land transportation/air freight)

2,501

Obihiro

Hakodate

Yamagata Shinkansen

3,000

Kushiro

Shin Chitose

Tohoku Shinkansen

Source: Ministry of Economy, Trade, and Industry (METI), "Survey on Attitudes of Foreign-Aliated
Companies toward Direct Investment in Japan Report 2014"
Data source: Created from JETRO "24th Investment-Related Cost Comparison of Major 33 Cities/Areas in Asia (May 2014)"

Railways

Annual passengers : 23 billion

Number of departures from Tokyo station

Shinkansen

per hour: 15

Accidents resulting in injury or death

since the start of service in 1964: 0

Average delay time:

World-class Japanese rapid-transit

railway "Shinkansen"

36 seconds(120,000 trains annually)

Source: Ministry of Land, Infrastructure, Transport, and Tourism, "Tokyo/Osaka Civil Aviation Bureau Outlook Summary Sheet of Airport Utilization Situation 2013"
Source: Ministry of Land, Infrastructure, Transport, and Tourism, "Civil Aviation Bureau Ideal of the Future Metropolitan Airport 2013"
Source: Ministry of Land, Infrastructure, Transport, and Tourism, "Railway/Railroad Passenger Transport Summary Chart Passenger Volume 2014"
Source: Material from the "Expert Advisory Panel Round-Table Conference on the Construction of the New Grand Design of the Country " hosted by the Ministry of Land, Infrastructure on November 27, 2013"
Source: Ministry of Land, Infrastructure, Transport, and Tourism, "White Paper on Land, Infrastructure, Transport and Tourism in Japan, 2013"
Source: Nikkei Business Online, January 2013

Reason

A country where you can live with peace of mind

Comfortable Living

A country where you can live safely

and pleasantly
A safe and peaceful country

Global Peace Index 2014

RANK

st

in Asia

Measured in 22 categories such as crime rate,

terrorism, and homicides
Ranked 1st in Asia

Longest life expectancy in the world

Average life expectancy is ranked 1st in the world.
Expectancy for women (87 years) is ranked 1st in the world.
Expectancy for men (80 years) is ranked 8th in the world.
Source: World Health Organization (WHO) "World Health Statistics 2014"

OECD Better Life Index

"Safe" category

RANK

An environment where everyone from newborns to

the elderly can live well.

st

in the world

Infant mortality rate of newborns (under one year of age) is ranked 2nd
among OECD countries.
Source:OECD "OECD Factbook 2014"

Well-developed medical infrastructure

Number of hospital beds per 1,000
people (13.4) is ranked 1st among
OECD countries.
Source:OECD

Ranked 1st for "Safe", scoring

9.9 points out of 10
Source:OECD "Better Life Index(2013)"

Source:INSTITUTE FOR ECONOMICS & PEACE

"Global Peace Index 2014"

Social stability

Nearly 40% of foreign companies see

social stability as an attractiveness of Japan.

Abundance of nurses
Ratio of nurses to number of
physicians is ranked 1st among
OECD countries.
Source:OECD "OECD Factbook 2014"

78 foreign companies out of 203 cited "social stability" as a strength of Japan s business
environment.
Source: Ministry of Economy, Trade, and Industry (METI),
"Survey on Attitudes of Foreign-Aliated Companies toward Direct Investment in Japan Report 2014"

10

Reason

Comfortable Living

Most
livable Japanese cities as chosen by the world
3 Japanese cities were ranked in the top 10 among cities listed in the "25

Most Livable Cities Index" published by UK magazine MONOCLE.

RANK

2nd

Tokyo

RANK

9th

Kyoto

RANK

10th

Fukuoka

*An index ranking which indicates not only economic, social, and functional aspects, but also the city s livability and
level of happiness of its residents.
Source: MONOCLE, UK.

Comment from foreign company on Japan's

excellent living environment
In a survey conducted by the government, many foreign companies cited the high quality of
Japan s living environment. Following are some comments on "residential environment",
"educational environment", and others.

Safety and social stability

"Crime rate lower than in other countries."
(North America-based, manufacturing company)

Educational environment
"Able to get good school education."
(North America-based, environment related company)

"Sophisticated cultural environment." (Asia-based, transportation company)

Medical environment
"Access to hospitals in major cities is convenient, and able to get advanced
medical treatment." (North America-based, pharmaceutical company)

Residential environment
"Everything including transportation is convenient."
(Asia-based, electronics company)

"Living environment is safe, comfortable, and convenient."

(North America-based, pharmaceuticals company)

"Owing to high living standards, food, and culture, there are many people
who wish to stay in Japan." (North America-based, chemical company)
"Everything is clean." (Europe-based, electronics company)
Source: Ministry of Economy, Trade, and Industry (METI),
"Survey on Attitudes of Foreign-Aliated Companies toward Direct Investment in Japan Report 2014"

11
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Oct. 2014 ver.