JAPAN
Doing business in Japan
Setting up a presence in Japan
Japan: area
comparisons with selected countries
•
•
•
•
•
•
USA
China
France
Japan
Germany
Italy
• Switzerland
9,629,091 sq. km.
9,596,960
547,030
377,835
357,021
301,230
41,293
Japan: population
comparisons with selected countries
Population
•
•
•
•
•
•
•
Japan
Germany
Italy
Switzerland
China
France
USA
127,417,200
82,431,400
58,103,000
7,489,000
1,306,313,800
60,656,200
295,734,100
Density
337
231
192
181
136
111
31
Some other facts about Japan
Islands
6,852
Japan coastline
29,571 km
Active volcanoes
108
Mountains + forests
~ 70% of the total area
Tokyo [agglomeration]:
37 million inhabitants
Tokyo Int’l airport:
38 million passengers / year
[world 5th longest]
[world largest metropolitan area]
[world 5th busiest]
Japan political system: Constitutional monarchy
Japan in the world politics
Japan is member of all important international organizations, such as
-
UN
G7
G8
G20
APEC
WTO
Japan economy
Japan: GDP in billion US$
comparisons with selected countries [2013]
•
•
•
•
•
•
•
•
•
1.
2.
3.
4.
5.
6.
7.
8.
9.
USA
China
Japan
Germany
France
U.K.
Brazil
Russia
Italy
• 20. Switzerland
16,244
9,181
4,901
3,635
2,737
2,535
2,242
2,118
2,071
651
Source: IMF
Japan GDP PPP US$ per capita
selected countries
2012/13
UN data
IMF data
Singapore
64,584
Singapore
78,744
USA
53,101
Switzerland
53,705
Switzerland
46,430
USA
53,143
Germany
40,007
Germany
43,332
Japan
38,899
France
36,908
France
35,784
Japan
36,315
Italy
30,289
Italy
34,303
China
11,904
.
China
9,844
Japan: a major importer and exporter
[billions of US$]
Exporter
1.
2.
3.
4.
China
USA
Germany
UK
5. Japan
22. Switzerland
Importer
2,210
1,575
1,493
813
697
1.
2.
3.
4.
USA
China
Germany
UK
2,273
1,950
1,233
782
5. Japan
766
24. Switzerland
200
229
Japan: one of the most competitive economy in the world
Global Competitiveness Index 2015-2016 World Economic Forum
Japanese companies: among the main investors
FDI in US$ billion
Countries
1.
2.
3.
4.
5.
USA
Hong Kong
China
Japan
Germany
16. Switzerland
2013





2014
328.3
80.7
101.0
135.4
30.1
336.9
142.7
116.0
113.6
112.2
 10.2
16.7

Source: UNCTAD
Recent economic data
Inflation rate
[as of October 2015]
-0.1%
Unemployment rate
[as of October 2015]
3.1%
Economic Freedom 2015
[by Fraiser Institute]
Rank: 26
Switzerland: 4
Germany: 29
France:
70
Switzerland  Japan
Swiss  Japanese
Residents
Tourists
9,000 Japanese citizens live in Switzerland.
300,000 Japanese tourists visit Switzerland
per year.
1,500 Swiss citizens live in Japan.
33,150 - Swiss tourists visited Japan in 2014
- +17% versus 2013
[Source: Japan National Tourism Organization]
Switzerland - Japan
IMPORTS AND EXPORTS 1985 – 2014
SOURCE: SWISSIMPEX
200.0
150.0
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
CUMULATED GROWTH [1985 =100]
SWITZERLAND - JAPAN TRADE 1985 - 2014
350.0
300.0
250.0
EXPORTS
IMPORTS
100.0
50.0
0.0
Switzerland – Japan
January to October 2015 [10 months]
• CH exports to Japan
• CH imports from Japan
• CHF 5,332 million
• CHF 2,532 million
• + 1.5% vs. 2014
• - 7.1% vs. 2014
•
•
Source:
Swiss Customs Administration, 3003 Bern www.swiss-impex-admin.ch
Switzerland – Japan
Imports and exports 2014 - million CHF
Swiss exports to:
•
•
•
•
•
•
•
•
•
Total
1. Germany
2. USA
3. France
4. Italy
5. UK
6. China
7. Hong Kong
8. Austria
• 9. Japan
Swiss imports from:
208,357
38,605
25,878
14,984
13,764
10,049
8,813
6,978
6,209
6,191
•
•
•
•
•
•
•
•
•
•
•
•
Total
1. Germany
2. Italy
3. France
4. China
5. USA
6. Austria
7. Ireland
8. UK
9. Netherlands
10. Spain
11. Belgium
• 12. Japan
178,605
51,267
17,626
14,410
12,148
10,911
8,602
7,196
6,429
5,441
4,560
3,455
3,251
Main imports – exports
[million CHF]
Main exports CH => Japan
Main imports Japan => CH
• Pharmaceutical products
2,241
•
Vehicules
665
• Clocks and watches
1,330
•
Natural or cultural pearls, precious
and semi-precious stones
546
Nuclear reactors, machinery
and mechanical appliances
458
•
Pharmaceutical products
398
•
Electrical machinery and equipment
295
• Optical, precision, medical
and surgical products
•
564
• Nuclear reactors, machinery
and mechanical appliances
405
• Organical chemicals
396
Swiss trade balances 2014
total and selected countries [million CHF]
Total
29,752
1.
2.
3.
USA
Hong Kong
UK
14,967
5,204
3,621
4.
Japan
2,939
5.
6.
7.
8.
9.
10.
Canada
United Arab Emirates
Russia
Saudi Arabia
Belgium
Australia
2,665
2,488
2,198
2,186
2,161
2,091
China
- 3,334
Germany
-12,661
Source. Swissimpex
Switzerland – Japan
Foreign direct investments
[end of 2013. Source: SNB]
Swiss investments in Japan
Japanese investments in Switzerland
• Capital stock
• Jobs
• Capital stock
• Staff
11,532 mio CHF
46,795
3,162 mio CHF
2,333
Mergers & acquisitions CH < = > JP
[examples : 2011- 2015]
Acquisitions by Japanese companies
Acquisitions by Swiss companies
•
•
Takeda Pharmaceutical
Metalor
» Nycomed AG
•
» Bindera
•
Nabtesco
Credit Suisse
» Kaba Gilgen
•
Toshiba
» Landis + Gyr
•
Tokyo Electron Ltd
» Oerlikon Solar
•
•
DKSH
Fuji Seal International
» Pago Holding AG
Roche
» Bid of US$ 10bn for full
control of Chugai
Tico (Toyota)
» Uster AG
•
•
» Clay and Company Ltd
Citizen
» Prothor Holding
•
» HSBC private banking in
Japan
•
Dukascopy Bank
» [2015]
» Acquired 100% of Alpari
Japan K.K.
Japanese companies in Switzerland
Switzerland – Japan: a long story
Switzerland-Japan:
long relations at highest level
February 06, 1864
February 03, 2014
Signature of the first Swiss-Japanese friendship and
trade agreement.
Swiss President Didier Burkhalter meets with Japan’s
Emperor Akihito and Empress Michiko at the Imperial
Palace in Tokyo.
Picture: Swiss delegation arrives at Yokohama on April 27, 1863
Switzerland - Japan
Agreements and conventions
Tokyo: February 19, 2009
Swiss minister Doris Leuthard and
Japanese Minister Hirofuma Nakasone
signed the Free Trade and Economic Partnership Agreement between
Switzerland and Japan
www.seco.admin.ch/dokumentation/publikation/00008/00023
Japan-Switzerland Free Trade and
Economic Partnershi Agreement
www.s-ge.com/sites/default/files/JSFTEPA_EN_0310_0.pdf
Contents:
- Major elements of the agreement
- Trade in goods
- Technical regulations, standards
- Trade in services
- Movement of persons for business
purposes
- Electronic commerce
- Investments
- Intellectual property
- Government procurement
- Appendices
- Addresses
-....
Protocol amending the Convention between Japan and Switzerland for the
avoidance of double taxation with respect to taxes on income
Source: Ministry of foreign affairs of Japan.
“The Protocol amending the Convention between
Japan and Switzerland for the Avoidance of Double
Taxation with respect to Taxes on Income” (the
Amending Protocol) was signed on 21 May, 2010, in
Bern (Switzerland) between
-
His Excellency Mr. Ichiro Komatsu,
Ambassador Extraordinary and Plenipotentiary
of Japan to Switzerland,
and
-
His Excellency Mr. Hans-Rudolf Merz,
Head of the Federal Department of Finance.
……..
Source: www.admin.ch
Valid from March 01,2012.
0.831.109.463.1
Other agreements
Versions françaises
Deutsche Fassungen
•
Accord du 10.07.2007 entre le Conseil
fédéral suisse et le Gouvernement du
Japon relatif à la coopération scientifique
et technologique.
•
Abkommen vom 10.07.2007 zwischen
den Schw. Bundesrat und der Regierung
von Japan ueber die wissenschaftliche
und technologische Zusammenarbeit.
•
Ordonnance de l’OSAV du 30 mars 2011
sur l’importation de denrées alimentaires
originaires ou en provenance du Japon.
•
Verordungn des BAG ueber die Einfuhr
von Lebensmittenl mit Ursprung oder
Herkunft Japan
JETRO Activities for Promoting
Direct Investment in Japan
June 2014
What is JETRO?
JETRO: Japan External Trade Organization
 Established in 1958
 Government-related organization
Main activities:
 Assisting foreign businesses in Japan
 Supporting the overseas business of Japanese firms
 Facilitating economic growth in developing countries
through trade promotion
Copyright (C) 2014 JETRO. All rights reserved.
43
Setting up a presence in Japan?
Many questions …
• Legal forms / requirements
• Human resources
• Market regulations
• Taxation
• Location
• Cost estimation
• … and many others
• Talk to JETRO first!
• Market and industry information
• Establishing an office
• Cost estimates
• Taxation, labor and legal issues
• Requesting Deregulation
• Translation of subsidy application
• Information on incentives from national and local governments
• Information on relevant legal systems
• Networking with potential business partners
• Finding human resources
• Finding an office location
• Arranging meetings with government authorities
－Free individual consultation
for your company－
－ Temporary office
space offered
free of charge－
JETRO Invest Business Support Centers
Why doing business in Japan?
Why investing in Japan ?
Many reasons =>
. 3rd most important market of the world
. Large population with high purchasing power
. Location in growing Asia - Pacific economic area
. Favorable business climate for foreign investors
.
. The positive experiences of foreign-affiliated
companies already established in Japan.
Survey conducted
- between October 20 to 30, 2015
- by 13 foreign chambers of commerce and business organizations in Japan
- 240 valid replies
- full report at www.fcc.or.jp/fcij_survey152.pdf
FCIJ Business Confidence Survey Fall 2015:
Strategies of foreign-affiliated companies in Japan:
Switzerland – Japan
Cultures: big differences
Japan:
- Hiragana
- Katagana
- Kanji
Western world:
- one alphabet
- 26 letters
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
46
46
1006 primary school
but also some similarities, such as hard working …
Source: Japan Embassy, Bern
and safe places
Japan total inward FDI by country
• Main FDI sources
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
USA
Netherlands
France
Singapore
U.K.
Switzerland
Cayman Islands
Germany
Taiwan
Luxembourg
Total Top 10
World
Source: www.jetro.go.jp/en/reports/statistics/
US$ million
[end of 2013]
% of total
52,402
27,664
14,249
13,360
13,115
10,169
9,407
6,438
5,449
3,367
30.72
16.22
8.35
7.83
7.69
5.96
5.51
3.77
3.19
1.97
155,620
91.22
170,597
100.00
Swiss-owned companies in Japan
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ABB K.K.
Actelion Pharmaceuticals Japan Ltd
Bally Japan Ltd
Bühler K.K.
Clariant (Japan) K.K.
Credit Suisse Securities (Japan) Ltd
DKSH Japan K.K.
Egon Zehnder International Co. Ltd
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•
•
•
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Franke Japan Inc.
Givaudan Japan K.K.
Habasit Nippon K.K.
Hiestand Nippon Co. Ltd
Hilti (Japan) Ltd
La Pairie Japan K.K.
Lombard Odier (Trust) Ltd
Lonza Japan Ltd
Maxon Japan Corporation
Nestlé Japan Ltd
•
•
•
•
•
•
•
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•
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Nihon Firmenich K.K.
Novartis Pharma K.K.
Panalpina World Transport (Japan) Ltd
Pictet Asset Management (Japan) Ltd
Reishauer K.K.
Richemont K.K.
Roche Diagnostics K.K.
Rolex (Japan) K.K.
Sika Ltd
Straumann Japan K.K.
•
•
•
•
•
•
•
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Sulzer Metco (Japan) Ltd
Swiss Re International Japan Branch
Swissôtel Nankai Osaka
Syngenta Japan K.K.
The Swatch Group (Japan) K.K.
UBS Group
Victorinox Japan Inc.
Zurich Insurance Company Ltd Japan Branch
• and more than 100 other companies
• and you soon ?
Decision to facilitate the establishment of
foreign-owned subsidiaries in Japan [March 16, 2015]
Opening of the Tokyo One-Stop Business
Establishment Center [April 01, 2015]
For more details about our services and to download our brochures and reports,
please visit our web sites:
JETRO headquarters, Tokyo
www.jetro.go.jp
JETRO Switzerland, Geneva
www.jetro.go.jp/switzerland
or, even better, contact us at
JETRO SWITZERLAND
Rue de Lausanne 80-82
1200 Geneva
022 732 13 04
or directly:
Albert Maillard
+41 79 230 24 25
albert.maillard@bluewin.ch
Thank you for your attention