Countries across the globe are jostling for Japanese investment with Thailand, China and the USA among those aiming to secure deals. Economic uncertainty has increased the need for stable partnerships that can withstand current volatility.
In that context, Japan makes a lot of sense. The country is seen as a reliable partner who has experience working in both advanced and developing economies. Japanese businesses also remain open to pitches that allow them to expand operations, lower costs or enter new markets.
With the race for Japanese investment heating up, here is a brief overview of some notable recent moves.
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Japanese investment competition
Thailand
Japanese companies have found significant success in Thailand over the years and a recent deal signed by Keidanren, the Japan Business Federation, and the Thai Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) will extend relations even further.
One of the critical points of the agreement is a pledge for businesses to shift their production bases from China to Thailand while increasing investments in the bio-, circular and green (BCG) economy and low-carbon sectors. These have been an area of emphasis for the Thai government.
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Vietnam
The city of Da Nang organized a four-day roadshow to state its case for increased investment from Japanese companies. Several MoUs were announced in the aftermath of the event. Japan is Da Nang’s largest foreign direct investment source with firms pumping more than US$1 billion into the region over the years.
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Saudi Arabia
A bilateral forum between Saudi Arabia and Japan closed with nearly 100 Japanese companies pledging investment in the Kingdom. These will take place in the metals, marine, petrochemicals and automotive industries, among others.
China
The Chinese city of Chengdu opened a new center to attract and promote Japanese investment. An estimated 350 Japan-based firms already have operations in the city and there is hope that the China-Japan Reception Hall will build upon pre-existing relationships.
A key focus of these efforts is the Chengdu Hi-tech Industrial Development Zone which caters to automotive and electronics manufacturers. It also comes at a time when China is facing a struggle to retain foreign firms.
United States
In 2021, Japan was the top provider of cumulative direct investment in the United States. However, several indivdiual states want to see that increase further. Governors from Kansas, Michigan and North Carolina were among those to make their pitch during an event organized by the U.S. Commerce Department in May.
