JAPAN Doing business in Japan Setting up a
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 5 th longest] [world largest metropolitan area] [world 5 th busiest]
Japan political system: Constitutional monarchy
Japan in the world politics Japan is member of all important international organizations, such as - UN G 7 G 8 G 20 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 USA 53, 101 Switzerland 53, 705 USA 53, 143 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 Germany 46, 430 78, 744 . 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 Ø 10. 2 16. 7 Ø Ø Ø 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 – 2015 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 2015 SWITZERLAND - JAPAN TRADE 1985 - 2015 350. 0 300. 0 250. 0 EXPORT S IMPORT S 100. 0 50. 0
Switzerland – Japan 2015 • CH exports to Japan • CH imports from Japan • CHF 6, 370, 183, 438 • CHF 2, 971, 200, 593 • + 2. 9% vs. 2014 • - 8. 6% vs. 2014 • • Source: Swiss Customs Administration, 3003 Bern www. swiss-impex-admin. ch [Switzerland 7 th main export market] Trade balance [in favor of Switzerland]: CHF 3, 398, 982, 845 4 th largest after: 1. USA 2. UK 3. Hong Kong 15, 813, 814, 677 5, 114, 207, 980 4, 371, 971, 630
Switzerland – Japan Imports and exports 2015 - million CHF Swiss exports to: Swiss imports from: • • • Total 202, 900 1. Germany 36, 647 2. USA 27, 436 3. France 13, 970 4. Italy 12, 769 5. UK 11, 678 6. China 8, 933 7. Japan 6, 370 • • Total 166, 291 1. Germany 47023 2. Italy 16, 063 3. France 13275 4. China 12, 338 5. USA 11, 622 6. Austria 7, 328 7. Ireland 7, 007
Main imports – exports [2015 - million CHF] Main exports CH => Japan Main imports Japan => CH • Pharmaceutical products [30] 2, 361 • • Clocks and watches [91] 1, 305 • Vehicles [87] 634 Pearls, precious metals and stones, jewellery [71] 459 • Optical, precision, medical and surgical products [90] 603 • • • 475 • Pearls, precious metals and stones, jewellery [71] Nuclear reactors, machinery and mechanical appliances [84] 446 Pharmaceutical products [30] 420 Nuclear reactors, machinery and mechanical appliances 396 • [84] Electrical machinery & equipment [ 85] 295
Swiss trade balances 2015 total and selected countries [million CHF] Total 1. 2. 3. USA H. K. Hong Kong 4. Japan 5. 6. 7. 8. 9. 10. Canada Saudi Arabia Belgium United Arab Emirates Australia South Korea Italy China Ireland Germany 36, 608 15, 813 5, 114 4, 371 3, 398 2, 774 2, 710 2, 311 2, 290 2, 052 2, 040 - 3, 294 - 3, 405 - 6, 040 - 10, 375 Source. Swissimpex
Switzerland – Japan Foreign direct investments [end of 2014. Source: SNB] Swiss investments in Japanese investments in Switzerland • Capital stock CHF • Jobs • Capital stock CHF • Staff 9, 183 mio 34, 741 13, 473 mio 9, 800
Mergers & acquisitions CH < = > JP [examples : 2011 - 2015] Acquisitions by Japanese companies • Takeda Pharmaceutical Acquisitions by Swiss companies • Metalor » Nycomed AG • Nabtesco » Bindera • Credit Suisse » Kaba Gilgen • • • Toshiba » Landis + Gyr • » Prothor Holding • Citizen Tokyo Electron Ltd » Oerlikon Solar • Fuji Seal International » Pago Holding AG DKSH » Clay and Company Ltd Roche » Bid of US$ 10 bn for full control of Chugai Tico (Toyota) » Uster AG • » HSBC private banking in Japan • Dukascopy Bank » [2015] » Acquired 100% of Alpari Japan K. K.
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 Japan
www. seco. admin. ch/dokumentation/publikation/00008/00023
Japan-Switzerland Free Trade and Economic Partnershi Agreement www. sge. 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
What is JETRO? JETRO: Japan External Trade Organization u Established in 1958 u Government-related organization Main activities: u Assisting foreign businesses in Japan u Supporting the overseas business of Japanese firms u Facilitating economic growth in developing countries through trade promotion Copyright (C) 2014 JETRO. All rights reserved. 41
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 =>. 3 rd most important market of the world. Large population with high purchasing power. Location in growing Asia - Pacific economic area. Favorable business climate 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_survey 152. 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. USA 2. Netherlands 3. France 4. U. K. 5. Singapore 6. Switzerland 7. Germany 8. Cayman Islands 9. Taiwan 10. Luxembourg US$ million [1996 - 2014] % of total 55, 827 25, 490 23, 353 15, 009 14, 393 9, 175 8, 891 8, 788 7, 345 5, 241 28. 65 13. 08 11. 98 7. 70 7. 39 4. 71 4. 56 4. 51 3. 77 2. 69 Total Top 10 173, 512 89. 05 World 194, 857 Source: www. jetro. go. jp/en/reports/statistics/ 100. 00
Swiss-owned companies in Japan • • 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
• • • 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
• • • 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.
• • 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 Mobile: +41 79 230 24 25 Fax: +41 43 260 92 41 albert. maillard@bluewin. ch Thank you for your attention
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