A UK Trade and Industry (UKTI) sponsored seminar, Doing Business in Japan, scheduled for October 2011 is a reminder that post Tsunami Japan remains a key UK business market.
Nick Cairns, a spokesman for UKTI said, “The Japanese are resourceful and resilient people and are fully engaged in bringing about a recovery from the devastation of the Tsunami and its aftermath. The results are impressive, particularly in the areas of industry and commerce where return to normality is seen as the foundation to the recovery.”
Despite Nick Cairns’s upbeat message much remains to be done in the worst affected areas. A UKTI team recently visited Sendai and other nearby coastal communities and were, “humbled by what had been achieved.” Despite the terrible events of March 2011, the country continues to be an important UK trading partner.
Exporting to Japan
As one of the UK’s Top Trading Partners, Japan stands at number 17 (July 2011) with year-to-date Export General Trade values of £2,534 (millions). Among the country’s market strengths, which have already attracted over 400 British companies are:
- Open economy
- Cutting edge technology – with an emphasis on technologies to deliver a low carbon future and support the ageing population
- Large numbers of patents issued
- A highly educated workforce
- Japan is a springboard into the wider Asian (ASEAN) markets
World Bank – Ease of Doing Business Index
In the World Bank’s Ease of Doing Business Index, with Singapore topping the table, Japan is ranked at number 18 of 183 economies. Its particular strengths are:
- Getting credit
- Protecting investors
- Enforcing contracts
- Closing a business
If the World Bank ratings bring some comfort to those with an interest in the Japanese economy, the recent downgrading of its government bond rating by U.S. credit rating agency Moody’s will certainly make alarm bells ring among those lobbying for fiscal reforms.
Despite this fiscal uncertainty UKTI has identified the following opportunities for those companies interested in exporting to Japan:
- Aerospace
- Automotive
- Bio/pharma
- Chemicals
- Computer software and games
- Creative industries
- Energy
- Fashion
- Financial and legal services
- Food and drink
- Healthcare
- Telecommunications.
Japan External Trade Organisation
For a more detailed investigation of the Japanese market, many UK companies may turn to the substantial support and advice offered by the Japan External Trade Organisation (JETRO). JETRO offer a wide range of very detailed sector reports, categorised by industry, regional enterprises and current market trends as well as advice on market entry.
Of particular interest are the in-depth surveys of five key sectors:
- Automotive
- Retail ICT
- Biotechnology
- Medical Care
- Environment.
For those businesses considering investing in Japan, and looking for information on set-up costs, JETRO present an interesting model of a company’s outlay. It includes staff, office and housing costs. Also available is information on:
- Incorporating a Business
- Visas and Status of Residence
- Human Resource Management
- Trademark and Design Protection Systems.
For British companies contemplating entry to the Japanese market, UKTI injects a cautionary note. Doing business in Japan is a long-term commitment, one that takes time and patience.
Sources:
HM Revenue and Customs, Overseas Trade Statistics, site accessed 17 September 2011
UKTI, Doing Business in Japan, site accessed 17 September 2011
Japan External Trade Organisation – United Kingdom, site accessed 17 September 2011
