Japan

Japan is the world’s second largest economy and its 127 million consumers are the world’s second biggest spending population, with massive purchasing power supported by incomes that rank among the highest in the world. And this huge, affluent market is still growing. Japan’s real GDP grew at the fastest pace (equal to Canada) of all G7 economies in the first quarter of 2003. The Organisation for Economic Co-operation and Development has revised projections for annual GDP growth for 2003 up to 2.7% from 1.0%.

Japan has recently undergone transformations ranging from industry deregulation to increased commitment to FDI. Prime Minister Junichiro Koizumi’s announcement in January 2003 to double FDI in Japan in five years has resulted in increasingly easier conditions for foreign companies to enter the market. A new law, sponsored by the Ministry of Economy, Trade and Industry, has made it possible to found a business in Japan for the next five years with capital of just Ą1 (previously Ą10m) while in April this year Special Zones for Structural Reform were set up with a focus on attracting foreign companies.

Japan’s priority sectors for FDI are biotechnology, medical care, the environment and ICT. However, companies from all areas are welcome to the market and will receive extensive support from the One Stop Centre in Tokyo, which was recently launched by Mr Koizumi.