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“5 reasons to invest in JAPAN W HY J APAN ? Japan External Trade Organization(JETRO) www.investjapan.org Copyright (C) 2014 JETRO. All rights reserved.

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Page 1: 5reasons-en1201

“5 reasons to invest in JAPAN ”

WHYJAPAN?

Japan External Trade Organization(JETRO)www.investjapan.orgCopyright (C) 2014 JETRO. All rights reserved.

Page 2: 5reasons-en1201

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WHY JAPAN? “5 reasons to invest in JAPAN”

1Reason

Japan’s Re-emergence

2Reason

Sophisticated Market

3Reason

Innovation Hub

4Reason

Business Friendly Infrastructure

5Reason

Comfortable Living

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Business Conditions DI (Tankan)40

20

0

-20

-40

-60

-80 2008 09 10 11 12 13 14

(DI, %Pt)

June Survey

Large firms manufacturingLarge firms non-manufacturingSMEs manufacturingSMEs non-manufacturing

Actual result (change)12(-5)19(-5)1(-3)2(-6)

Forecast

151930

Large firmsmanufacturing

SMEs manufacturingSMEs non-manufacturing

Large firmsnon-manufacturing

Forecast

・The ratio of job-offers-to-applicants has risen to 1.10, the highest in the last 22 years.・The unemployment rate has declined to 3% range for the first time since Oct 2008.

2008 09 10 11 12 13 14

1.21.11.00.90.80.70.60.50.40.30.20.10.0

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

(Ratio) (%)

Jobs-to-applicants ratio (left scale)

Jobs-to-applicants ratio (left scale)

Jobs-to-applicants ratioNov 2012 0.82

Jul 20141.10

Unemployment rateNov 20124.1%

Jul 20143.8%

Unemployment rate (right scale)

Unemployment rate (right scale)

Stock price increase has been strong compared to major markets (Dec 2012 to Aug 2014)

56

2822

4

70

50

30

10

-10Nikkei Average NY Dow Jones

AverageGerman DAX Shanghai

Composite Index

(%)

20

10

0

-10

-20

-30

-40

05 06 07 08 09 10 11 12 13 14

All industries Manufacturing Non-manufacturing

V-shaped turnaround of private nonresidential investment planTwo-digit increase in FY2014

Aiming to reduce the effective corporate tax rate down to the 20% range.

Drove new entries by conducting bold deregulation in fields such as energy, agriculture, and health care.

1. Recovery of capital investment level FY2013 : 67 trillion yen (+3.5% compared to previous year) *Aim for FY2015 : 70 trillion yen 2Q term 2014 : +7.07% compared to previous year2. Private enterprises updated/reinforced domestic factories in waves

Electric power sector● Conducted reform of the power system for the first time in 60 years with full liberalization of  the retail sales market.  Entry by foreign companies also became possible (law enacted in June 2014, implementation  planned for 2016). ▶ Encouragement of power retail competition across regions/business classifications.

Agriculture● Driving accumulation/consolidation of agricultural land as well as supporting business expansion  to processing/circulation/sales of agricultural/forestry/fishery workers. ▶ Companies from different industries are entering agriculture-related businesses in waves. ▶ Export sum of agriculture/food is the highest ever.   FY2013: 550.5 billion yen (increased 22.4% compared to previous year)

The Japanese economy is back on a recovery track after two lost decades.Through Abenomics’ large scale monetary easing, tax reform and various deregulation, it is showing growth again.

Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

Recovery of market sentiment Return to the level before the Lehman Brothers' bankruptcy in 2008

Drastic ascent of stock prices

Deregulation/Structural reform

Reduction of effective corporate tax rate

2.4% reduction of effective corporate tax rate from April 2014

1Reason

Japan’s Re-emergence

(Examples)

Source: Prime Minister of Japan and His Cabinet, ""Abenomics" is progressing!, September 2014"

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Japan’s FDI ratio is once again showing a turnaround.Recording 7.1% in 2013,it has surpassed that ofother major countries.The investment environmentfor foreign companies continues to improve.

2020 (Aim)

20million people

Designation of National Strategic Special Zones6 areas designated as "National Strategic Special Zones" as part of bold regulatory and institutional reform to promote a range of international business and advanced industries.

Foreign travelers to Japan increasing rapidlyThe number of foreign visitors to Japan exceeded 10 million in 2013, a result of new LCC flights and the easing of requirements for issuing visas. The aim is 20 million by 2020. The growth of businesses targeting foreign travelers is expected.

The economic ripple effect is estimated at approximately 3 trillion yen, and job creation at approximately 150,000 jobs nationwide. People from all around the world will visit Japan, and a boom in related businesses such as tourism, construction, and services is expected.

Easing the requirements for accepting highly skilled foreign professionalsRequirements for annual income, research achievements, and accompanying parents/domestic servants have been eased.

Through the designation of National Strategic Special Zones and tax reform, the government is aiming to double Japan’s investment balance from 17.8 trillion to 35 trillion yen by 2020.

Source: Tokyo Metropolitan HP

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"Data source: "BOP, June 2014" (IMF), "Balance of Payment Statistics,"

"National Net International Investment Position" (Ministry of Finance, Bank of Japan)

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"Data source: Japan National Tourist Organization (JNTO)

Source: Ministry of Justice Immigration Bureau, "Points-based Preferential Immigration Treatment for Highly Skilled Foreign Professionals"

Attracting foreign companies

Attracting visitors to Japan

Decision made to hold Tokyo Olympic Gamesand Paralympic Games in 2020

(%)

(year)06 07 08 09 10 11 12 13

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

International comparison of FDI ratios

Japan

China

Korea

U.S.

Germany

"Note" 1. FDI ratio = This term's direct investment ratio/ foreign direct investment term final balance x 100 (%) 2. China is until 2012.

The Japanese economy isemanating new appeal.Now is the perfect time to invest.

2013

10.3million people

2003

5.2million people

1Reason

Japan’s Re-emergenceThe appeal of the Japanese market is increasing through the economic growth of Abenomics. The government is strengthening its efforts to attract foreign companies and foreign visitors, aiming to open the Japanese market and further business expansion.

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Japan’s GDP is nearly 500 trillion yen.A leading world economy that boasts large-scale economic power.

112 foreign companies out of 203 cited "size of the market"as the advantage of Japan’s business environment.

Nearly 60% of foreign companies see

the massive size of the market as Japan’s attractiveness.

Source: Statistics Bureau, Ministry of Internal Affairs and Communications "World Statistics 2014" ; Cabinet Office

Source: Ministry of Economy, Trade, and Industry (METI),"Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2014"

Source: Created from United Nations "World Urbanization Prospects, the 2014 Revision"

Source: Cabinet Office, "Report on Prefectural Accounts 2012" (FY2014)

GDP is ranked 3rd in the world

Attractive market for foreign companies

Japan’s regional economies have GDPs the size of other countries

Tokyo: city with world's largest population

2Reason

International comparison of Japanese regionalgross production (nominal, FY2011) (Unit: $1 billion)

Hokkaido/Tohokuregion 717.8 Turkey 774.8

Shikoku region 175.3New Zealand 159.5

Kanto region 2,530.0U.K. 2,428.7Chugoku

region 355.3Thailand 345.7

Kinki region 981.0Korea 1,116.2

Chubu region 930.4Netherlands 836.8

Kyushuregion 602.5Switzerland 660.8

Tokyo

Delhi

Shanghai

São Paulo

Mumbai(Bombay)

Kinki M.M.A(Osaka)

Beijing

New York・Newark

Japan

India

China

Mexico

Brazil

India

Japan

China

U.S.

Egypt

32,530

9,726

7,823

15,642

14,776

12,436

18,389

6,788

16,086

9,892

1990 2014 2030 1990 2014 2030

37,833

24,953

22,991

20,843

20,831

20,741

20,123

19,520

18,591

18,419

37,190

36,060

30,751

23,865

23,444

27,797

19,976

27,706

19,885

24,502

1

12

20

4

5

6

2

23

3

11

1

2

3

4

5

6

7

8

9

10

1

2

3

10

11

4

13

5

14

8

Ciudad de México(Mexico City)

al-Qāhira(Cairo)

City CountryPopulation (1,000 people) Rank

World ranking of megalopolis populations "Tokyo:1st, Kinki area:7th"

Tokyo maintains 1st place from surveys previous to 2014, and will still be 1st in 2030 (projection).

3rdRANK

in the world

Sophisticated MarketA huge and sophisticated market exists in Japan.

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Foreign companies hold a high share of sales in Japan, particularly in consumer-related markets.

Soft drinksCoca Cola (USA) 23.2%1st

Eyeglasses/Contact lenses

1st Johnson & Johnson (USA) 17.1%

Coffee1st2nd

Nestlé (Switzerland) 32.6%Mondelēz International, Inc. (USA) 16.0%

Personal accessories1st2nd

3rd

Richemont (Switzerland) 6.5%LVMH Moet Hennessy Louis Vuitton S.A.

(France) 5.9%KERING (formerly PPR) (France) 3.8%

2Reason

Sophisticated Market

Source: Fortune, "Fortune Global 500 2014"

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"Data source: Euromonitor International "Euromonitor International"

Sophisticated consumers/World standard

Japan is where global enterprises aggregate

Japan: market where foreign companies flourish

Comments on the Japanese market by foreign companies

"Japanese people are prepared to acknowledge high quality and real value and are ready to pay money for those."

George Leon Zarifi, then CEO

Danone Japan Co., Ltd.

Source: Comment given on March 25, 2014 at the "Second Expert Advisory Panel Round-TableConference on Foreign Direct Investment in Japan" hosted by the Cabinet Office.

"We see that Japan is one of the highest potential markets in the world to grow our business both from the scale of population and GDP point of views. We see Japan is the second biggest home furnishing market in the world.We are learning a lot of things from the Japanese culture and people. We have only started with our journey and we have so many things to do ahead of us."

Peter List, CEO

IKEA Japan K.K

Source: Comment given on April 3, 2014 at the "Fourth Expert Advisory Panel Round-Table Conference on Foreign Direct Investment in Japan" hosted by the Cabinet Office.

"Currently, you won’t become a global market leader unless you succeed in Japan. If you can achieve the quality Japanese people demand, your products will sell anywhere in the world. …�ere have been lots of examples where the behavior and demands of Japanese consumers have ledto the development of new products that translate well to other markets."

Danny RisbergChief Executive Officer (CEO) of Philips Electronics Japan, Ltd.

Chief Executive Officer (CEO) of Philips Respironics GK.

Philips Electronics Japan, Ltd.

Taken from comments by Danny Risberg, Chief Executive Officer of Philips Electronics Japan, Ltd, in the The Asashi Shimbun

"Japanese customers are highly sensitive to fashion and have a rich brand knowledge as well as high buying motives. We consider the Japanese market as one that allows for new fashion brands like us to compete."

Tatsuo Yata, Country Manager

Guess Japan, Inc.

Source: JETRO, "Cases of Foreign Companies’ Expansion into Japan"

3rdRANK

in the world

57 companies out of the "Fortune Global 500" have their HQ in Japan.

Following the US and China, Japan is ranked 3rd in the world.

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1st

Source: Created from Ministry of Internal Affairs and Communication, "Survey Result on Science and Technology Research 2013"Data source: OECD "Main Science and Technology Indicators," etc.

Source: Ministry of Economy, "Trade, and Industry (METI), Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2014"

Source: OECD "OECD Factbook 2014"

Source: Patent Office, "Subject and Activity of Patent Administration Based on 'Japan Revitalization Strategy'"Created from Ministry of Health, Labor, and Welfare, "Pharmaceutical Industry Vision 2013"

World-class in research funding and number of researchers

An environment that generates innovation

3Reason

Innovation Hub

RANK 1stRANK

in the world

Research funding by countryand percentage of GDP (G8 comparison)

Number of researchersper 10,000 people (G8 comparison)

1

2

3

4

5

6

7

8

Japan

Germany

U.S.

France

U.K.

Canada

Italy

Russia

Rank Country

1,636

931

4,152

519

396

243

248

350

3.67

2.88

2.77

2.24

1.77

1.74

1.25

1.09

Researchfunding($100 million)

Percentageof GDP(%)

1

2

3

4

5

6

7

8

Japan

U.S.

Canada

U.K.

Germany

France

Russia

Italy

Rank Country

64.6

141.3

14.9

26.2

32.8

24.0

44.8

10.7

50.8

46.8

43.7

41.8

40.1

37.0

31.3

17.6

Number of researchers(unit: 10,000)

Number ofresearchersper 10,000people

Japan is very aggressive in R&D and innovation, and has filed a large number of patents,many of which have high distribution value internationally.

Among nationalities of the G8 countries, China, and Korea,Japanese nationals account for 279,000 (32.3% of the total) compared to 149,000 (17.2% of the total) for US nationals and 148,000 (17.1% of total) for Chinese nationals. Japanese nationals also accounted for an overwhelming number of patents prior to 2012.

Accelerating the easing of regulations for patent approvalWith the aims of "achieving a nation built on intellectual property", "actualizing a swift and high quality examination process, and "helping to obtain and preserve global rights that include developing countries", as outlined in Japan’s Revitalization Strategy, Japan is advancing the speed of approval for new drugs.

Acquiring highly skilled human resources (specialists)・Japan has an abundance of talent with a high level of expertise in both basic technology and applied technology. (Asia-based, environment related company)

Accessing R&D partners・Japan is at the forefront of advanced chemistry and possesses excellent R&D resources. (Europe-based, machine industry related company)・Japan’s technology is well developed. Japan disseminates the latest technology and provides opportunities for manufacturing advanced products to foreign countries. (Asia-based, manufacturing company)

Comments from foreign companies on

Japan’s patent track record

Science and technology related research isconducted spiritedly in Japan."Research funding as a percentage of GDP" and"Number of researchers per 10,000 people" are

among the largest in the world.

As for number of patents granted per nationality of the applicant, the number of patents granted to Japanese nationals is ranked 1st.

Triadic patent families: Ranked 1st in the worldby number of patents registered in patent offices in the US, Europe, and Japan, an appropriate index of high distribution value internationally.

Japan has an intellectual accumulationthat generates innovation.

Source: Ministry of Economy, Trade, and Industry (METI) Survey ; Data source: WIPO (World Intellectual Property Organization) “IP statistics data center/PATENT_Grant for direct applications_Total count by applicant’ s origin(2014 January)"

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3Reason

Innovation Hub

Source: Created by JETRO from each company's website, press releases, and other information.Source: Official Nobel Prize website (www.nobelprize.org) .otherSource: Japan Science and Technology Agency website

(www.jst.go.jpl)

Innovation from Japan

Many Nobel Prize winners produced

The innovation created in Japan by foreign companies

22Shinya YAMANAKA: 2012 in Physiology or Medicine for research on iPS cells Koichi TANAKA: 2002 in Chemistry for research on mass spectrometric techniqueHideki SHIRAKAWA: 2000 in Chemistry for research on conductive polymer

Isamu AKASAKI: 2014 in Physics Hiroshi AMANO: 2014 in PhysicsShuji NAKAMURA: 2014 in Physics

Physics 10

Chemistry 7

Physiology or Medicine 2

Literature 2

Peace Prize 1

(Breakdown)Nobel Prizewinners (all-time)

Prizewinners in recent years

Currently expanding a "Japan Technology Initiative" project nationwide to advance innovation with Japanese companies. Established a joint corporation with Nippon Carbon Co., Ltd, and other companies to develop high-tech inorganic fiber for next-generation aircraft engines. Will also develop engines for small business jets with Honda Motor Co., Ltd.

GE: Developing high-tech products through collaboration with Japanese enterprises (nationwide)

Established ACSL Japan (Automobili Lamborghini S.p.A. Advanced Composite Structures Laboratory Japan) with the Nagoya Institute of Technology in 2013. Plans to conduct R&D with a range of Japanese automobile, aircraft, and other companies using technology to mass-produce lightweight carbon-fiber composite parts in a short time and at low cost.

Lamborghini: Established laboratory for next-generation materials(Nagoya)

Operating its first development center for all research phases outside of the company’s home country of France in Kawasaki-shi, Kanagawa Prefecture. Fusing existing technology with technology from Japan, L'Oreal is developing cosmetic products (hair care, makeup, skin care, and other products) that incorporate the characteristics and demands of consumers in each country, and taking them worldwide.

L'Oreal : Developing advanced cosmetics with Japanese technology(Kawasaki)

In 2010, Bosch expanded the amount of floor space and number of employees at its Yokohama Research and Development Center (established in 1992) to approximately double its size. Conducting R&D on safety systems such as ABS (anti-lock braking system), airbag, and ESC (electronic stability control), and taking them worldwide. Besides Yokohama, the company established a technical center in Memanbetsu, Bosch’s largest safety system research and development center outside of Germany.

BOSCH: Largest safety system research base outside of Germany(Yokohama)

Positioning Japan as an "important manufacturing base with world-class quality control capability and living traditions of craftsmanship," the company established production and R&D centers in Kanagawa, Yamagata, Iwate, and other prefectures. Yamagata in particular serves as a global "Super Hub" for the 3M group, supplying products to each 3M company overseas. It is also conducting R&D on reflectors, optical film, and others.

3M: Established global "Super Hub" base in Yamagata(Yamagata and other)

The next-generation supercomputer, "K computer," was developed in Japan and ranks 1st in the "Graph 500" international performance index (2014).

Supercomputer "K computer" is a world leader.

The "iPS cell" is a new pluripotent stem cell discovered by Professor Shinya Yamanaka of Kyoto University in 2006. It is thought that this cell, at the center of the world’s attention, can be widely used for regenerative medicine. Professor Yamanaka received the Nobel Prize in Physiology or Medicine for this achievement.

In the field of regenerative medicine, the world focuses on iPS cells.

"World-changing Blue LED"In the early 1990s, 3 professors invented the blue LED semiconductor using gallium nitride. With the invention/addition of the blue LED to the already existing red and green colors, the set of 3 primary colors was complete. This enabled the creation of the white colored LED that has revolutionized the lighting industry worldwide. The research also contributed to the blue light laser diode and the development of the blu ray disc.

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Japan’s business environment is highly evaluated in the World Economic Forum’s"The Global Competitiveness Report 2014-2015".Ranked 1st in the world for "Business Sophistication".Evaluated on business network and quality of company operation/strategy.

Source:World Economic Forum, "The Global Competitiveness Report 2014-2015"

Source: JETRO, "JETRO World Trading Investment Report Ver. 2014"Data source: World Bank "Doing Business 2014, IMD "World Competitiveness Yearbook 2013"

Source:OECDSource: Ministry of Internal Affairs and Communications, "4th-Generation Mobile Communication System"Source: Tokyo Metropolitan Government Bureau of Waterworks, "Pursuing Water Loss Reduction," 2012

Source: Ministry of Health, Labor, and Welfare "Water Supply Population and Water Service Diffusion Rate 2012"

Source: Ministry of Economy, Trade, and Industry (METI), "Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2014"

Foreign companies validate Japan’s infrastructure

Japan’s stable infrastructure service

4Reason

Business FriendlyInfrastructure

1 stRANKin the world(144 countries)

Business sophistication

An international research organization highly evaluated the quality of workers andlegal system in Japan as contributing factors for the country’s attractiveness.

Nearly 61% of foreign companies see

the well-maintained infrastructure as an attractiveness of Japan.123 foreign companies out of 203 cited "well-maintained infrastructure" as an advantage of Japan’s business environment.

Japan excels in few power outages, the high quality of the train system and other public transportation infrastructure . . . and the high reliability of the postal and delivery service (North America-based, medical device company)

Comment by foreign company

Internet

Water

Communication

・Wireless broadband subscriptions per 100 inhabitants ranked 3rd among OECD countries・ Average broadband connection speed ranked 2nd among OECD countries

・Providing world-class water service on a constant 24-hour basis. Water leakage rate is only 3% (Tokyo).・Diffusion rate of water and sewer service, simple water-supply system, and private water supply is 100% (Tokyo).

・Percentage of population in mobile phone service area is

99.95%

Supporting business with well-developedsocial infrastructureEasy environment for business

International Institute for Management Development (IMD)

Japan’s business environment highly evaluated by international organizations

World Bank

Japan’s Attractiveness

1.Ease of resolving insolvency2.Protecting investors3.Ease of trading across borders4.Ease of getting electricity5.Ease of getting credit

1.Skilled workforce2.Reliable infrastructure3.High educational level4.Strong R&D culture5.Effective labor relations

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* Hub airport: Airport that serves as a hub for the domestic air transportation network or international air transportation network.Source: Created by JETRO based on the websites of the Ministry of Land, Infrastructure, Transport, and Tourism, and railway companies.

Source: KPMG report "Competitive Alternatives 2014" Source: Ministry of Internal Affairs and Communications, "Report on Internal and External Price Difference Related to Telecommunication Service 2013 (July 2014)"

Source: Ministry of Economy, Trade, and Industry (METI), "Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2014"

Data source: Created from JETRO "24th Investment-Related Cost Comparison of Major 33 Cities/Areas in Asia (May 2014)"

Source: Nikkei Business Online, January 2013

Source: Ministry of Land, Infrastructure, Transport, and Tourism, "Tokyo/Osaka Civil Aviation Bureau Outlook Summary Sheet of Airport Utilization Situation 2013"Source: Ministry of Land, Infrastructure, Transport, and Tourism, "Civil Aviation Bureau Ideal of the Future Metropolitan Airport 2013"

Source: Ministry of Land, Infrastructure, Transport, and Tourism, "Railway/Railroad Passenger Transport Summary Chart Passenger Volume 2014"Source: Material from the "Expert Advisory Panel Round-Table Conference on the Construction of the New ’Grand Design of the Country’ " hosted by the Ministry of Land, Infrastructure on November 27, 2013"

Source: Ministry of Land, Infrastructure, Transport, and Tourism, "White Paper on Land, Infrastructure, Transport and Tourism in Japan, 2013"Source: Nikkei Business Online, January 2013

Japan’s convenient transportation infrastructure

Nationwide transportation infrastructure

Airports

・Airports with international flights in service: 51・Goal for number of arrivals/departures for 2015: 3rd in the world for international flights with nearly 750,000 arrivals/departures (Combined total for Haneda and Tokyo Narita Airports)

Railways

Shinkansen

・Annual passengers : 23 billion

・Number of departures from Tokyo station per hour: 15・Accidents resulting in injury or death since the start of service in 1964: 0 ・Average delay time: 36 seconds(120,000 trains annually)

Annual costs simulating scheduled deliveries from the factory

Average monthly internet fees(residential)

3,000

2,500

2,000

1,500

1,000

Japan

US Germany

France

Australia

UK

Tokyo

London

Stockholm

Paris

Seoul

Dusseldorf

NewYork

(Unit: US$1,000)

Low-cost real estate compared to major cities in Asia (Shanghai, Hong Kong, Seoul, Singapore) (Unit: $)

35

46

2,761

Office rent(monthly)(per sq.m)

Store/showroom rentin the city center(monthly)(per sq.m)

Housing rent for expatriates(monthly)

Tokyo

52

206

2,703

Shanghai

109

368

2,966

Hong Kong

57

32

2,167

Seoul

66

309

4,654

Singapore

World-class transportation infrastructure

Fee per 1Mbps

100.0

80.0

60.0

40.0

20.0

0.0

(downlink speed: Mbps)100

44.7

200

16.0

150

88.9

200

23.0

100

37.6

100

55.1

100

32.2

Low infrastructure fees

4Reason

Business FriendlyInfrastructure

Transportation fees (including land transportation/air freight)

1,240

2,112 2,188 2,2842,501

2,646

World-class Japanese rapid-transit railway "Shinkansen"

High-speed internet fees

Shin-aomoriHachinohe

MoriokaAkita

Shinjo

Yamagata

Niigata

Sendai

Fukushima

Omiya

TokyoShin-YokohamaNagoyaKyotoOkayama

HiroshimaKokura

Hakata

Kumamoto

Kagoshima-Chuo

Shin-Osaka

TakasakiNagano

Yamaguchi Ube

Hiroshima

Niigata

Yamagata

Akita

Hakodate

Shin Chitose

Asahikawa

Wakkanai

Osaka International

Kitakyushu

Fukuoka

Nagasaki

Kumamoto

Kagoshima

Miyazaki OitaMatsuyama

Kohchi

Takamatsu

Kansai International

Chubu International

Tokyo International

Obihiro

Narita International

Naha

Sendai

Kushiro

Sea of Japan

Pacific Ocean

Tohoku Shinkansen

Akita Shinkansen

Yamagata Shinkansen

Joetsu Shinkansen

Hokuriku(Nagano)Shinkansen

Tokaido Shinkansen

Sanyo Shinkansen

Kyushu Shinkansen

Major expressways

Hub airport

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Source:OECD "Better Life Index(2013)"

A safe and peaceful country

5Reason

1stRANK

in Asia

Global Peace Index 2014

Source: Ministry of Economy, Trade, and Industry (METI), "Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2014"

78 foreign companies out of 203 cited "social stability" as a strength of Japan’s business environment.

Nearly 40% of foreign companies see

social stability as an attractiveness of Japan.

Social stability

Source: World Health Organization (WHO) "World Health Statistics 2014"

Source:OECD "OECD Factbook 2014"

A country where you can live with peace of mind

An environment where everyone from newborns to the elderly can live well.Longest life expectancy in the world・ Average life expectancy is ranked 1st in the world. Expectancy for women (87 years) is ranked 1st in the world. Expectancy for men (80 years) is ranked 8th in the world.

Source:OECD

Well-developed medical infrastructure・ Number of hospital beds per 1,000 people (13.4) is ranked 1st among OECD countries.

Source:OECD "OECD Factbook 2014"

Abundance of nurses・ Ratio of nurses to number of physicians is ranked 1st among OECD countries.

・ Infant mortality rate of newborns (under one year of age) is ranked 2nd among OECD countries.

1stRANK

in the world

OECD Better Life Index "Safe" category

Comfortable Living

Ranked 1st for "Safe", scoring 9.9 points out of 10

Source:INSTITUTE FOR ECONOMICS & PEACE "Global Peace Index 2014"

Measured in 22 categories such as crime rate, terrorism, and homicides

Ranked 1st in Asia

A country where you can live safely and pleasantly

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世界が選ぶ住みやすい日本の都市

Source: Ministry of Economy, Trade, and Industry (METI), "Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2014"

Source: MONOCLE, UK.

Comment from foreign company on Japan's excellent living environment

"Crime rate lower than in other countries." (North America-based, manufacturing company)

Safety and social stability

"Able to get good school education." (North America-based, environment related company)

"Sophisticated cultural environment." (Asia-based, transportation company)

Educational environment

"Access to hospitals in major cities is convenient, and able to get advanced medical treatment." (North America-based, pharmaceutical company)

Medical environment

"Everything including transportation is convenient." (Asia-based, electronics company)"Living environment is safe, comfortable, and convenient." (North America-based, pharmaceuticals company)

"Owing to high living standards, food, and culture, there are many people who wish to stay in Japan." (North America-based, chemical company)"Everything is clean." (Europe-based, electronics company)

Residential environment

In a survey conducted by the government, many foreign companies cited the high quality of Japan’s living environment. Following are some comments on "residential environment", "educational environment", and others.

3 Japanese cities were ranked in the top 10 among cities listed in the "25 Most Livable Cities Index" published by UK magazine MONOCLE.

*An index ranking which indicates not only economic, social, and functional aspects, but also the city’s livability and level of happiness of its residents.

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Most livable Japanese cities as chosen by the world 

5Reason

Comfortable Living5Reason

Comfortable Living

Oct. 2014 ver.

9thKyoto

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10thFukuoka

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2ndTokyo

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