Introduction...Introduction With a long history as the heart of Japan, Kansai (Fukui, Shiga, Kyoto, Osaka, Hyogo, Nara, and Wakayama prefectures ）is home to many traditional and

IntroductionWith a long history as the heart of Japan, Kansai (Fukui, Shiga, Kyoto, Osaka, Hyogo, Nara, and Wakayama prefectures）is home to many traditional and historic cultural resources.

This publication showcases various aspects of Kansai’s business environments. We hope that you will use this brochure as a supporting tool to invest in the region.

Big MarketKansai has an economy that can rival many national economies around the world, with a wide array of industries based here.

Growth EnvironmentWith a high concentration of world-class manufacturing companies, universities, research institutions, traditional high-skilled craftworks and craftsmanship in various fields, Kansai boasts a climate favorable for innovation.

Asian HubAsian countries account for a high percentage of Kansai’s foreign trade and foreign-affiliated companies operating in the region.

Rich CultureAs the birthplace of many traditional Japanese performing arts and cultural histories, Kansai is home to a large number of World Heritage sites, and attracts worldwide attention as a tourist destination.

Cover image: Autumn leaves at Yabu Shrine (Hyogo Prefecture) ©rikky_photographyCreative Commons License (View 4.0 International)https://creativecommons.org/licenses/by/4.0/ 1

https://creativecommons.org/licenses/by/4.0/

2

Introduction

１ What is Kansai? ７ Alluring Sightseeing

１－１ Large Kansai economy 3 ７－１ Kansai, satisfying all kinds of tourists’ interests 16

２ Highly Developed Infrastructure ７－２ Improving the environment for welcoming foreigners in the Kansai region 19

２－１ Kansai connected to the world/Asia by many routes 4 ８ Kansai’s Characteristic Commerce

２－２ Location of the Kansai Region 5 ８－１ Trade Value by Region and Product 20

２－３ Kansai International Airport 6 ９ Diversity of Foreign-Affiliated Companies Entering into Kansai

３ Great Intellectual Cluster ９－１ Foreign-Affiliated Companies Entering into Kansai 21

３－１ University/Research Institute Clusters 7 ９－２ Examples of Foreign-Affiliated Companies in Kansai 22

４ Industries Expected to Grow ９－３ Interviews with Foreign-Affiliated Companies 23

４－１ Green Innovation 8 １０ Support for Foreign Investment in Kansai

４－２ Life Science Innovation 9 １０－１ Foreign Investment Support Systems in Kansai 24

５ Attractive Industries １０－２ Foreign Investment Support Programs by Local Governments 25

５－１ Diverse Industries in the Region of Diversity 10 １０－３ Measures Taken by the Government of Japan to Promote Investment in Japan 26

５－２ New Products/Services Developed in Kansai 11 １０－４ Examples of Incentives Offered by Local Governments 27

５－３ Famous Entrepreneurs from Kansai 12

６ Well-equipped Business Environment Tourism-Related Websites of Kansai 34

６－１ Expo 2025 Osaka, Kansai, Japan 13

６－２ Asia’s Leading International ConferenceLocation 14

６－３ Comfortable Working and Living Environment 15

Contents

１－１ Large Kansai Economy１ What is Kansai ?

3

670.2

783.5

805.9

863.7

932.1

（US$ billion）

Comparable to #17 in the world

22046

21794

21454

20996

20902（1,000）

World’s 8th most populated area

Sao Paulo

Wanderlust“Wanderlust Reader Travel Awards 2020 :Top city”

Mercer | Quality of Living Ranking 2018“City Sanitation Ranking”

Osaka

KyotoKobe

Wakayama

Fukui

ShigaKyoto

Nara

Hyogo

Osaka

100㎞

50㎞

World’s most satisfying tourist cityWorld’s 8th most

sanitary city

Osaka is the third safest city in the world, and the fourth most livable city in the world.

The Economist Intelligence Unit | Safe Cities Index 2019| The global livability index 2019“The ten most livable cities in 2019”

Comparison of GDP:Kansai and other countries

Seoul / Incheon

Mexico City

Guangzhou / Foshan

Indonesia

Turkey

The Netherlands

Switzerland

Sources: Population based on Residential Basic Book (Ministry of Internal Affairs and Communications; as of January 1, 2020), Demographia World Urban Areas 16th Annual Edition 2020.04,2016 National Accounts (Cabinet Office), 2016 Annual Report on Prefecture Accounts (Cabinet Office)

Note: GDP of Kansai = Derived from Fiscal Year 2016 nominal GRP of the regionForeign exchange rate: ¥108.37/USD

The Kansai region, located in the heart of Japan, has a huge market with a population of over 21 million people and a GDP of approximately U.S. $806 billion. The Kansai regional economy is ranked 17th largest in the entire world.

Kansai has international cities, such as Osaka, Kyoto, and Kobe. Kansai’s compactness is another attractive point, as Kyoto and Kobe are only about a 30-minute train ride from Osaka’s city center.

【Details of international passenger flights by destination area】

【Number of cruise ship stays at ports in Kansai】

Kobe : 131 Osaka : 62Maizuru : 34 Shingu: 12Himeji : 7 Wakayama Shimotsu : 3 Ine : 1 Hidaka : 1Sakai Senboku : 1

Europe 35 flights weekly

4Singu Port

Kobe Port

Miyazu Port

Wakayama Shimotsu Port

Himeji Port Osaka Port

Ine Port

Sakai Senboku Port

２－１ Kansai connected to the world/Asia by many routes２ Highly Developed Infrastructure

Hidaka Port

Asia 1,298 flights weekly

Others 46 flights weekly

N. America 54 flights weekly*including 28 flights Hawaii

Source: Compiled based on Kansai Airports materials*Plans for summer 2019 peak schedule (August)

Kansai international Airport

【International Flight Network】

Photos provided by Kansai Airports

Number of airline companies: 73Number of countries (regions) served: 26Number of cities served: 91Number of weekly flights: 1,570

(including freight flights)

【Regular foreign trade containers using Japanese ports】

Asia and near areas：149.6 ships/wk,N. America：7 ships/wk,Europe：1 ship/wk,Others：6.5 ship/wk

*As of May 2019*Total of ports in Kansai served by regular oceangoing containers. Number of foreign trade container ships visiting Japan on regular sea lanes

(ships/week) (MLIT)*Based on port survey by Kansai District Transport and Tourism Bureau, MLITfor January-December 2019

In 2019, the number of flights in service per week reached a record of 1,570. Kansai plays a core role in Asia, with airports and seaports able to handle large volumes

of cargo and large cruise ships as an international trade hub.

Sapporo

Tokyo

NagoyaOsakaHiroshima

Fukuoka

2 hours and 30 minutes

50 minutes

1 hour and20 minutes

2 hours and30 minutes

Osaka

２－２ Location of the Kansai Region２ Highly Developed Infrastructure

【Major transportation networks in Japan】

Aviation

5

1 hour and 50 minutes



Sapporo

Tokyo

Fukuoka

ShinkansenTokyo

Nagoya

Hiroshima

Fukuoka

6 hours



8 hours

Expressway

Time required

【Hanshin Port’s freight collection network】

Takamatsu（１）

Hanshin port

Oita（3）

Yatsushiro（1）

Hakata（3）

Hibiki（4）

Mitajiri-Nakanoseki（6）

Otake（3）

Hososhima（3） Iyomishima（4）

Matsuyama（3）

Iwakuni（4）

Aburatsu（2）

Imari（1）

Moji（7）

Ube（3）

Imabari（1）

Fukuyama（3）

Mizushima（8）

Himeji（3）

Hiroshima（11）

Niihama（2）

Kouchi（1）

Tokushima（1）

Number ofPort calls

102 per week

Wakayama（1）Yokkaichi（1）Nagoya（１）Yokohama（2）Tokyo（2）

Tokyo

Nagoya

Hiroshima

Fukuoka

*Number in parentheses indicate services per week As of January 2019

34

27.8

27

31.2

2.6

1.8

0 20 40 60 80

Entering～Unloading Unloading～DeclarationDeclaration～Permission

【Time required for import customs clearance procedures (Container freight)】

Average time required for ocean container freight

The 12th Survey on the Time Required for Import Customc Clearance Procedures (2018), MOF

63.6 hours（2.7 days）Hanshin port

Keihin port

（Hanshin port：Osaka and Kobe port Keihin port：Tokyo, Yokohama and Kawasaki port）

（hour）Total time required

60.8 hours（2.5 days）

OsakaOsaka

Tokuyama-Kudamatsu（6）

Satsuma-Sendai（1）

Shibushi（3）

Ports and Harbors Bureau, MLIT

Kansai has advanced air, railroad, and road transportation networks. Kansai has highly developed means of transportation, ensuring easy access to everywhere in Kansai and major

domestic cities throughout Japan. Hanshin Port is a major logistics hub located in western Japan, with freight from around the world loaded at this global

port.

6

２ Highly Developed Infrastructure

２－３ Kansai International Airport

https://www.kansai-airport.or.jp/en

《Facility dedicated to Business Jet passengers“Premium Gate Tamayura”》

◆Equipped with a dedicated waiting lounge, meeting room, and CIQ area. Provides services with a higher level of privacy.

EntranceLounge

«The only one in Japan!» 24-hour airport with multiple 4,000m-class runways

Features of Terminal 2«Smart Security System»Japan’s first in the reduction of safety inspection time through

smart security!

«Low-temperature warehouse for pharmaceutical products» A large warehouse, dedicated to packing and storing pharmaceutical

products at controlled temperatures, can flexibly handle mass pharmaceutical imports and exports!

Flight network to 89 cities in 25 countries24/7 full scale operation, with reduced lead time by using late-night flights!

*including freight flights Shared temperature-controlled warehouse for pharmaceutical products

Cooling dolly Drug export packaging facility (KIX-Medipac)

Automatic tray-returning system

Rechecking monitor(rechecking baggage once judged to be unacceptable)

Diverter system (Filtering out baggage judged to be unacceptable)

Able to handle the baggage items of four passengers at once

X-ray scanner

Photos provided by Kansai Airports

Kansai International Airport (KIX) is located in the center of Kansai, and as an urban airport, offers a high level of convenience.

KIX provides direct access to 55 cities in Asia, and has 20 international LCCs connecting it to 28 additional cities, the largest network access among all the other domestic airports (as of 2019 summer schedule).

It is a 24/7 international cargo hub, connecting Asia and the rest of the world. In June 2018, a facility for Business Jet passengers was launched in the Terminal 2 Building Domestic Area.

https://www.kansai-airport.or.jp/en

３－１ University/Research Institute Clusters ３ Great Intellectual Cluster

【Saito (International Culture Park)】＜Life Science Park＞・National Institute of Biomedical Innovation, Health and Nutrition (NIBIOHN)・Bio-Incubator (in cooperation with Osaka University, etc.)・Japanese Red Cross Kinki Block Blood Center・Various companies’ R&D facilities

【Kobe Biomedical Innovation Cluster】＜Japan’s largest biomedical cluster＞Cluster of approx. 350 state-of-the-art medical research institutes, advanced specialty hospitals, companies, anduniversities

・RIKEN, Japan・ Supercomputer (Fugaku)

【Harima Science Garden City】＜Large research facility＞・SPring-8・SACLA

【Kansai Cultural and Academic Research City】＜City of knowledge creation that is paving the way to the future＞Cluster of over 140 public and corporate research institutes

・Research Institute of Innovative Technology for the Earth (RITE)・Advanced Telecommunications Research Institute International (ATR)・National Institute of Information and Communications Technology (NICT)・National Institutes for Quantum and Radiological Science and Technology

(QST)

（UK）Oxford UniversityInnovation / OUIJAPAN OFFICE

Kansai produces manyNobel Prize winners

16 out of 28 Japaneselaureates are from

Kansai area

Blue LED

iPScell

SPring-8/SACLA ⓒRIKEN

Kansai24％

2,811

2,184

0 2000 4000

Kansai

Nation

Wide

(Thousand yen)

7Supercomputer (Fugaku) ⓒRIKEN

[Main research and development bases and overseas institutions under industry-university cooperation in Kansai]

[Industry-university joint research spending]In terms of monetary amount, 24% of industry-university joint research throughout Japan is conducted in Kansai, and the amount of money received per research project is higher than the national average.

Industry-university joint research across the nation

(Value-basis)

The amount of money received per research project

【Has produced many Nobel Prize winners】

Ministry of Education, Culture, Sports, Science and Technology Implementation status of industry-university cooperation and performance of joint research(on an institution-by-institution basis) (FY 2018)

© Center for iPS Cell Research and Application, Kyoto University

Kansai is home to a cluster of prestigious universities and research institutions. Distinctive research and development bases have been formed and a large number of prestigious

universities are clustered in the region, and industry-university cooperation is robust and growing. Kansai has produced many Nobel Prize winners. Furthermore, overseas institutions under

industry-university cooperation are located in Kansai.

４－１ Green Innovation ４ Industries Expected to Grow

National LABoratory for advanced energy storage technologies

Kansai is one of the largest hubs for development and production in energy-related industries, including lithium-ion battery makers.

The industrial cluster consists not only of battery manufacturers but also of related component/material and device manufacturers.

8

World's first liquefied hydrogen carrier (liquefied hydrogen storage tank and nloadingterminal)

【Cluster of companies related to lithium-ion batteries that are unique and boast top shares】

Device manufacturerHIRANO TECSEED CO., Ltd

Nishimura MFG. Co., Ltd.Component/

material manufacturerYodogawa Precision Co.,Ltd.

Tanaka Chemical CorpBattery manufacturer

Panasonic Corp.GS YUASA

【 Major companies related to fuel cells in Kansai 】➢Fuel cell manufacturers

Panasonic, Kyocera, Hitachi Zosen

➢Fuel cell-related device and parts manufacturersFujikin, Samtech, NISSHA FIS, Takaishi Industry, TECHNO TAKATSUKI , Yamato H2Energy Japan, KAJl TECHNOLOGY, TOYOBO, NIPPON SHOKUBAI

➢Hydrogen manufactures and storage companiesIwatani Corporation, Kawasaki Heavy Industries, AIR WATER INC., KOBELCO ECO-SOLUTIONS

➢Inspection and evaluation equipment manufacturersShimadzu Corporation, HORIBA LTD., Round Science Inc

Outer appearance and the event space of “Iwatani Hydrogen Station at Kansai International Airport”

Long-life storage cell “Redox Flow Battery”

Home-use fuel cell cogeneration system

National Institute of Technology and Evaluation

The world’s largest constant-temperature battery test and evaluation facility (testing up to container sized storage battery systems)

A hub for innovative venture companiesKansai is home to an accumulation of 1,218 venture companies that create innovation (as of

July 2020, source: "Kansai Venture Company List", Kansai Bureau of Economy, Trade andIndustry). Discovery and development of entrepreneurs and ventures are ongoing, for example inthe "Hack Osaka Global Innovation Conference" (Osaka City) and "500 Kobe Accelerator" (KobeCity).

Inside of the facility

４－２ Life Science Innovation ４ Industries Expected to Grow

Kansai29%

Others71%

(Excluding Fukui)

Kansai20%

Others80%

Kansai has been a base for medicine since ancient times, and continues to be so with a large cluster of pharmaceutical company headquarters.

A large number of foreign companies and medical equipment manufacturers are located in Kansai, where the world’s first therapeutic agent was developed using clinical research that applied iPS cells.

9

A large cluster of pharmaceutical company headquarters

Kaigen Pharma

Ono Pharmaceutical

Santen Pharmaceutical

NIPRO

Omron

Shimadzu Corporation

Sysmex

Medical equipment manufacturers concentrated in this area

A large number of foreign companies are advancing to Kansai as well

Nippon Boehringer Ingelheim

AstraZeneca K.K.

Eli Lilly Japan K.K.

Bayer Yakuhin, Ltd

Concentration of research and development bases and core institutions

Kansai Branch of Pharmaceuticals and Medical Devices Agency (PMDA)

West Japan Supervising Department of Japan Agency for Medical Research and Development (AMED)

Center for iPS Cell Research and Application, Kyoto University

Saito Life Science Park

Kobe Medical Industry Development Project

RIKEN

Regenerative medicine, discovering disease mechanisms, drug discovery, etc.

【Share of production of non-pharmaceutical products】

Production Statistics for Pharmaceutical Industry in 2018,” Ministry of Health, Labour and WelfareFigure 1: Pharmaceutical production, import, shipment, and inventory value by prefectureFigure 26: Non-pharmaceutical production, import, shipment, and inventory value by prefecture

【Share of shipment value of pharmaceutical products】

Manufacturing22%

Public administration,

education, human health, and social work

activities16%

Wholesale & retailing

13%Real estate

12%Professional, scientific

& technical, and business support

services7%

Transport & postal services

6%

Construction5%

Other service activities

5%

Others14%

５－１ Diverse Industries in the Region of Diversity５ Attractive Industries

Hyogo- Living products(leather tanning)- Heavy industry(steel industry)

Kyoto- Textiles(dyeing and finishing)

- Electronics &measurement(electronic components)

Shiga- Commerce(wholesale)- Electric machines(electric household appliances)

Nara- Articles for wear(fur, kimono accessories and textiles to wear)

Osaka- Commerce(wholesale)- Services- Machinery(transportmachinery andinstruments)

Fukui- Textiles(knit fabric)

- Traditional industries(lacquer ware)

Wakayama- Textiles(knit fabric)- Petroleum products- Processed food

Textiles(29.4％)Printing and

related(21.2％)

Chemical(20.9％)

Steel(24.3％)

Other manufacturing

(28.0％)

Industrial field by region in KansaiComposition ratio (%) of Kansai Region’s (nominal) GDP by

industry

“We can make anything”: a manufacturing industry hub

10

The industries listed above are those with high coefficients of specialization in terms of the number of people engaged in them, based on 2014 Economic Census for Business Frame by the Statistics Bureau, the Ministry of Internal Affairs and Communications(Processed by the Kansai Bureau of Economy, Trade and Industry)

2016 Report on Prefectural Accounts (by the Cabinet Office)

A variety of industrial fields are concentrated in Kansai, from upstream to downstream,including materials, parts processing, and cutting-edge product manufacturing.

Tanned leather, leathergoods,fur manufacturing

(30.2％)

Electrical machinery manufacturing

(22.8％)General-purpose machinery

manufacturing(27.8％)

National share, value of shipments of

manufactured goods

Source: Regional Statistics Table, "2018 Census of Manufacture", Ministry of Economy, Trade and IndustryNote: parentheses indicate Kansai share within Japan

５－２ New Products/Services Developed in Kansai５ Attractive Industries

1902: Spiral-shaped mosquito coil (Dainihon Jochugiku, Osaka)

The company has greatly contributed to the prevention of malaria and other infectious diseases from mosquitoes. The spiral-shaped product was a revolutionary design by the company.

1912: Make a business of comedy (Yoshimoto Kogyo, Osaka)

Japan’s first company to make a business of comedy. Founded by a pioneering female entrepreneur, it has grown into an

entertainment company with a wide variety of offerings in Asia.

1958: Sushi-go-round (Genroku Sushi, Osaka)Sushi, a representative Japanese food, became available at a sushi-go-round.This has made it possible for people all over the world to enjoy sushi.

1958: Chicken Ramen(Nissin Food Products, Osaka)(The First Instant Noodles in the World)

1971: CUPNOODLES(Nissin Food Products, Osaka)(The First Cup-type Instant Noodles in the World)Loved across the globe, 100 billion units of Cup Noodles are consumed

worldwide each year, helping to improve dietary traditions.

1967: Automated ticket gates system (Tateisi Electric Manufacturing (now Omron), Kyoto)World‘s first system to solve commuting rush hours, which was

a social issue at the time. This system enabled efficient mass transit and has greatly contributed to the modernization of urban cities.

2002: The complete farming of bluefin tuna (A-marine Kindai, Wakayama)A-marine Kindai – the first company in the world that succeeded in the complete farming of bluefin

tuna. This allows the production of tuna that are in popular demand, thus contributing to preventing decrease in the number of tuna.

Photos provided by Dainihon Jochugiku Co., Ltd.

Photos provided by Yoshimoto Kogyo Co., Ltd.Daini Bungeikan theater YOSHIMOTO Sei

Photos provided by Genroku Industry Co., Ltd

Photos provided byNISSIN FOODS HOLDINGS CO., LTD.

Photos provided by OMRON Corporation

Completely cultured bluefin tunaPhotos provided by Kindai University 11

５－３ Famous Entrepreneurs from Kansai※In random order with honorifics omitted

５．Attractive Industries

12

A hub for global top niche corporations

Kanto40%

Kansai27%

Chubu18%

Chugoku/Shikoku

9%

Hokkaido/Tohoku3%

Kyushu/Okinawa3%

NAGAMORI ShigenobuNIDEC CORPORATION

【 General motor manufacturer 】

ASICS Corporation【General sporting goods supplier】

ONITSUKA Kihachiro

DAIKIN INDUSTRIES,LTD【Comprehensive air-conditioning

equipment manufacturer】

INOUE Noriyuki

HORIBA, Ltd.【Analytical/measuring instrument manufacturer】

HORIBA Masao

KYOCERA Corporation【Electronic components manufacturer】

INAMORI Kazuo

NISSIN FOODS HOLDINGS CO., LTD.

【Food manufacturer】

ANDO Momofuku

Nintendo Co., Ltd.【Home leisure equipment manufacturer】

YAMAUCHI Hiroshi

OMRON Corporation【Electronics manufacturer】

TATEISHI Kazuma

Suntory Holdings Limited【Alcoholic/soft drink manufacturer】

TORII ShinjiroSHIMADZU CORPORATION【Analytical/measuring instrument

manufacturer】

SHIMADZU Genzo

Panasonic Corporation【General electronics manufacturer】

MATSUSHITA KonosukeSHIMA SEIKI MFG., LTD.

【Computerized Flat Knitting Machine】

SHIMA Masahiro

Kansai hosts an accumulationof small and mediumenterprises withinternationally-recognizedtechnological capability.

Approximately 30% of globaltop niche corporations with anadvantage in a specificproduct or technology and ahigh global share are locatedin Kansai.

46 companies

31 companies

20 companies

10 companies

3 companies 3 companies

Source: 2020“Global Niche Top Companies Selection 100”, Ministry of Economy, Trade and Industry (June 2020)

International Events

Kansai will host international exchange events that attract global attention, includingExpo 2025 Osaka, Kansai, Japan.

“Designing Future Society for Our Lives”▶Concept

・Venue: Yumeshima area, Osaka・ Period (tentative):

(Sunday) April 13 - (Tuesday) October 13, 2025 Expo 2025 will be held for 184 days.

・Expected number of visitors: Approx. 28 million people

・Economic ripple effects (estimated values): Approx. 400 billion yen for constructionApprox. 500 billion for operationApprox. 1,100 billion yen for consumers spending

Event outline

▶Theme

13

▶ Sub-themes▶Saving Lives▶Empowering Lives▶Connecting Lives

▶ Logo

▶Goals∙ Achievement of SustainableDevelopment Goals (SDGs)

∙ Achievement of Japan’s national strategy Society 5.0

“People’s Living Lab“

６ Well-equipped Business Environment６－１ Expo 2025 Osaka, Kansai, Japan

●May 2021: World Masters Games 2021 Kansai International lifelong sports competition held for the first time in Asia throughout Kansai

●July-August 2021: Games of the XXXII Olympiad (2020/Tokyo)●August-September 2020: Tokyo 2020 Paralympic Games

●April-October 2025: Expo 2025 Osaka, Kansai, Japan

Ministry of Economy, Trade and Industry

492449

273 265193 173 158 145 134 129

Number of international conferences held in Asia and Oceania（2018）

JPN CHN THA TWNKOA AUS IND SGP MYS HKG

*Top 10 countries/regions

Kansai has a large number of leading international conference halls, and is Asia’s leading international conference location.

In 2018, Japan hosted the most international conferences in Asia, with about 25% of the meetings held in Kansai. *Statistics on international conferences (ICCA)2018, JNTO

City name Number Domesticranking

Int’l ranking

Tokyo 123 1 13

Kyoto 59 2 41

Fukuoka 26 3 103

Yokohama 25 4 110

Sendai 22 5 129

Kobe 21 6 134

Osaka 15 9 196

Nara 13 10 214

Number of international conferences hosted by Japanese cities(2018）

14※2018 ICCA Statistics Report Country & City Rankings Public Abstract

Statistics on international conferences (ICCA)2018, JNTO

６－２ Asia’s Leading International Conference Location６ Well-equipped Business Environment

Kyoto International Conference Center

Provided by Kyoto International Conference Center

Kobe International Conference Center

Provided by Kobe City

Japan’s biggest international exhibition

space, INTEX Osaka

Provided by INTEX Osaka HP

Osaka International Convention Center

(Grand Cube Osaka)

Provided by Osaka Prefecture

Nara Kasugano International ForumIRAKA Noh Theatre

Provided by Nara Prefecture

KobeKyoto

NaraOsaka Venue of the G20

Osaka Summit held in June 2019

６－３ Comfortable Working and Living Environment６ Well-equipped Business Environment

Comfortable Working and Living Environment

“Living in Japan” (JETRO website)https://www.jetro.go.jp/en/invest/living.html

62.6

65.8

80.2

東京

大阪

Labor costs

Office rents

Private housing rents

Costs in Osaka against those in Tokyo assumed as 100

Note) The cost levels in Osaka are used as the representative of Kansai.

CBRE’s “Vacancy Rates and Average Offer Rents Nationwide” (2020 second quarter)“Retail Price Survey (Trend Survey)” of the Statistics Bureau, Ministry of Internal Affairs and Communications (June 2020)“Monthly Labor Survey (Regional Survey)” of the Ministry of Health, Labor and Welfare (averages of 2019)

A collection of living information, including information about hospitals, banks, cell phones, electricity and gas supply, is provided based on the decision by the Council for Promotion of Foreign Direct Investment in Japan.

“ Regional InformationLiving Information for Foreigners ” (JETRO website)

https://www.jetro.go.jp/en/invest/region/living.htmlLiving information by prefecture is also posted.

Comparing business and living costs in Tokyo and OsakaCompared to Tokyo, Osaka office rents are approx. 40%lower, housing rents approx. 30% lower, and labor costsapprox. 20% lower, creating superior cost competitiveness.

Osaka was ranked the #4 most livable city worldwide in 2019(overall rating). Osaka's stability, healthcare, and educationwere highly rated.

Most livable city worldwide in 2019

Source: “The Global Liveability Index 2019”, The Economist Note: Maximum index of 100

0 50 100

15

Ranking City Overall rating Stability Healthcare Culture/

Environment Education Infrastructure

1 Vienna 99.1 100 100 96.3 100 100

2 Melbourne 98.4 95 100 98.6 100 100

3 Sydney 98.1 95 100 97.2 100 100

4 Osaka 97.7 100 100 93.5 100 96.4

5 Calgary 97.5 100 100 90 100 100Osaka

Tokyo

https://www.jetro.go.jp/en/invest/living.html

https://www.jetro.go.jp/en/invest/region/living.html

■Home to many World Cultural Heritage sites

■The birthplace of many artistic & cultural elements

Kansai is home to 71% of National-Treasure-designated structures, and 51% of National-Treasure-designated fine arts and crafts.“Statistical Abstract” of the Ministry of Education, Culture, Sports, Science and Technology (2020)

Photo provided by Himeji City

Photo provided by Nara Visitors Bureau

Noh

Tea ceremony

Photo provided by Kansai Tourism Bureau

Photo provided by Nara Prefecture

Photo provided by WAK JAPAN Co.

For details, please check the multilingual web portal of the Kansai Tourism Bureau: The KANSAI Guide –The Exciting Journey, KANSAI.

https://kansaiguide.jp

Sacred Sites and Pilgrimage Routes in the Kii Mountain

RangeAreas cultivating the spirit of nature

worship since ancient times

Historic Monuments of Ancient Kyoto

（Kyoto City, Uji City, Ohtsu City）

Grand temples, mountain villas, and gardens taking advantage of the undulating

natural landscape

Himeji CastleUnique Japanese castle with

wooden structure surrounded by stone castle walls and white

earthen walls

Historic Monuments of Ancient Nara

Nara Era palace remains, temples, and shrines

Buddhist Monuments in the Horyu-ji Area

The world’s oldest wooden structure

Mozu-Furuichi Kofun Group (Sakai City, Habikino City, Fujiidera City)

Diversity in size and forms

Photo provided by Sakai City

16

７ Alluring Sightseeing

７－１ Kansai, satisfying all kinds of tourist’s interests As the birthplace of a wide variety of performing arts and cultural elements, Kansai boasts

a high concentration of all kinds of tourist attractions, including many World Heritage sites, varied food cultures, seasonal natural beauty, and diverse hands-on activities.

Recipients of the Hanayaka “Increasing the Appeal of KANSAI Award”

https://kansaiguide.jp/

17

■Kansai offers a variety of regional brands thatattract the world.


７－１ Kansai - A Region that Can Meet All Your Travel Needs

■A Guide to Industrial Facilities You Can Visit in KansaiYou can tour about 500 industrial facilities (factories, corporate museums, hands-on craft workshops, and other such institutions and experiences) in the Kansai region.

Udatsu Paper & Craft Museum in Echizen Washi Village

(Echizen City, Fukui Prefecture)

Kyoto Unraku-gama kiln(Kyoto City,

Kyoto Prefecture)

Sakai City Traditional Crafts Museum

(Sakai City,Osaka Prefecture)

Sawanotsuru Sake Museum（Old Japanese Sake Brewery) (Kobe City, Hyogo Prefecture)

YUASA SOY SAUCE LimitedKUYO－GURA

(Yuasa Town, Wakayama Prefecture)https://www.kansai.meti.go.jp/e

nglish/tvlist/tvtopeng.html

Image courtesy of SHOYEIDO INCENSE CO.

Image courtesy of TAKENOKO Yokoyama

Bamboo Products

Image courtesy of Kawashima Selkon Textiles

Co., Ltd.

Throughout the Kansai area, initiatives enable visitors from overseas to experience the advanced craftsmanship, techniques, and technologies of Japanese “monodzukuri” manufacturing companies and interact with craftsmen and manufacturers through factory tours and community-based exchange events.

■Kansai Open Factory Tours

(Kyoto, Uji, Kameoka) Traditional Kyoto Area Craft Techniques

https://designweek-kyoto.com/

Inoue Butsudan Ten(Hikone City,

Shiga Prefecture)

Kinkoen(Nara city,

Nara Prefecture)

In Kansai, many attractive local assets such as local industries, traditional crafts, and agricultural products that make use of regional specialties, are extending their brand presence.

Wakayama knit (Wakayama, Wakayama Prefecture)

Image courtesy of the Wakayama Knits Cooperative Association

Awaji Island onions(Awaji-shima, Hyogo Prefecture)

Image courtesy of the City of Awaji

Tango textiles(Tango region, Kyoto Prefecture)

Image courtesy of JR East Marketing & Communications, Inc. (JEKI)

Senshu towels (the Senshu region, Osaka Prefecture)

Image courtesy of the City of Izumisano

Toyooka Kaban bags(Toyooka, Hyogo Prefecture)

Image courtesy of the Japan Patent Office

Wazuka tea plantations(Wazuka, Kyoto Prefecture)

Image courtesy of the Town of Wazaku

Nara socks (Nara Prefecture)Image courtesy of the Town of Koryo

Sabae Megane(Sabae City, Fukui Prefecture)

Image courtesy of the Fukui Optical Association

Shigaraki ware (Koka, Shiga Prefecture)

Image courtesy of the City of Koka

A Guide to Industrial Facilities You Can Visit in Kansai


https://designweek-kyoto.com/

18


７－１ Kansai, satisfying all kinds of tourist’s interests

■Rich seasonal natural features

Cherry blossoms on Mount Yoshino[Nara Prefecture]

Kitayama River sightseeing raft descent

[Wakayama Prefecture]

Deer in Nara Park[Nara Prefecture]

Mt. Koya in the snow[Wakayama Prefecture]

Photo provided by Kansai Tourism Bureau

■Varied food culture

Kyoto cuisine[Kyoto Prefecture]

Kobe beef[Hyogo Prefecture]

Okonomiyaki[Osaka Prefecture]

Ramen[various places]

■Diverse hands-on activities covering various forms of culture

Samurai and ninjaPhotos provided by

Japan swordfight Road Association

“VR ninja”Photos provided by NINJA VR KYOTO

■Sightseeing experiences that let you interact with local residents

Stay and sight-see in Kayabuki-no-Sato

Image courtesy of the Kyoto Miyama

Tourism Association

Green tourism hands-on experience programs

Image courtesy of the Akizuno

Agricultural Corporation

Accommodations that let you experience local everyday life

Image courtesy of Sekai Hotel Co., Ltd.

Japanese drumsPhotos provided by Taiko-Center Co., Ltd.

Kompeito Candy-Making Workshop

Image courtesy of 4 Osaka-Toka Co., Ltd. (The Kingdom of Compeito)

(Source) Excerpt from companies awarded The Hanayaka“Increasing the Appeal of KANSAI Award”

https://www.kansai.meti.go.jp/3-1toukou/toukou_award_outline.html

７－２ Improving the environment for welcoming foreigners in the Kansai region

App that helps connect your mobile device to a free Wi-Fi network in various places in Kansai

KANSAI Wi-Fi (Official)Image provided by Union of Kansai Governments

Medical interpretation services through tablet PCs

Photo provided by Dream Catcher Inc.

“KANSAI ONE PASS”Image provided by Kansai Tourism Bureau

IC-card-type passenger ticket with special benefits

©Tezuka Productions

Hot-spring inn serving Muslim-friendly (halal) food items

Photo provided by satoyumukashibanashi YUZANSO

Yen-cash withdrawal service

«For cash cards issued abroad»

Images provided by Seven Bank and Japan Post Bank

Hop-on/hop-off loop bus with a concierge

“OSAKA WONDER LOOP BUS”Photo provided by Kansai Inbound Co.,Ltd.

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"Food Pict", a user-friendly, image-based food display and communication tool

Photo provided by FOODPICT Inc.

IC chip emergency tag management system capable of responding to emergencies and disasters

Image provided by mon caramel S.A.

Infrastructure for the Demands of Modern Life Safety and Security Food / Tourism

Recipients of the Hanayaka “Increasing the Appeal of KANSAI Award” Recipients of the Hanayaka “Increasing the Appeal of KANSAI Award”





８－１ Trade Value by Region and Product ８ Kansai’s Characteristic Commerce

Trade Statistics, Osaka Customs Table for Kinki District StatisticsTable for statistics within the Tsuruga Customs Branch (Fukui Prefecture)(2019)

Asia 65.8％(of which China accounts for 24.2％)

Asia 53.7％(of which China accounts for 19.0％)

US14.2％

US19.8％

EU11.1％

EU11.6％

Others9.0％

Others15.0％

関西

全国

Comparison of Exports by Region（2019）

National Export Total Approx. 77.1 trillion yen

Export Total Approx. 16.4 trillion yen

Asia 56.6％(of which China

accounts for 30.8％)

Asia 47.5％(of which China

accounts for 23.5％)

US9.5％

US11.0％

EU12.3％

EU12.4％

Others21.6％

Others29.1％

関西

全国

Comparison of Imports by Region（2019）

Import Total Approx. 14.8 trillion yen

National Import Total Approx. 78.7 trillion yen

Electric appliances, machinery and chemical products constitute a high percentage of exports from Kansai because global manufacturers in the fields of machinery (home appliances, motors, construction/agricultural machinery, etc.) and chemical products (medical products, plastics etc.) are located in the region.

The Asian region represents a large portion of both exports from and imports to Kansai, in comparison to Japan total, and thus Kansai has become a central Asian hub.

20

Electricappliances

29%

Machinery23%Manufactured goods

13%

Chemical products13%

Transportation equipment5%

Mineral fuels2%

Foodstuffs1%

Raw materials1%

Others13%

Total value¥16.4 trillion

Value of Exports from Kansai by Commodity（2019） Value of Imports to Kansai by Commodity（2019）

Electricappliances

15%

Chemical products

15%

Mineral fuels15%Foodstuffs

11%Manufactured goods11%

Machinery9%

Raw materials5%

Transportation equipment

1%

Others18%

Total value14.8 trillion

Kansai

Japan

Kansai

Japan

US21%

Germany15%

China12%UK

6%

SouthKorea6%

Italy5%

France4%

Switzerland4%

Taiwan4%

Hong Kong 3%

Singapore2%

Denmark2%

Others16%

Total224

Other wholesale

12%

Machinery wholesale

12%

Chemicals 7%

Machinery7%Other

manufacturing5%

Information, systems, software

4%Precision machinery

wholesale 4%

Electrical machinerywholesale 4%

Chemicals wholesale

4%

Other services4%

Electrical machinery4%

Pharmaceuticals3%

Foods wholesale3%

Textiles and apparel Wholesale 3%

Others24%

Total224

９－１ Examples of Foreign-affiliated Companies Operating in Kansai U.S. and European companies comprise the largest portion of foreign-affiliated

companies in Kansai. Asian companies also comprise 30% which is larger than the national average of 18%.

By type of industry, foreign-affiliated companies in the manufacturing sector (machinery, chemicals, pharmaceuticals, precision machinery, etc.) comprise approximately 34% of the industry, a significantly larger percentage compared to the national average of 21%.

Companies by country and region (2020) Companies by industry（2020)

※*Foreign-affiliated firms: Foreign capital of 20% or over (including branch offices)Source: Foreign Companies CD-ROM 2020,Toyo Keizai Inc. 21

９ Diversity of Foreign-Affiliated Companies Entering into Kansai

９－２ Examples of Foreign-Affiliated Companies in Kansai【Company name (prefecture(s)): country/region】

22


BASF Japan Ltd. (Osaka, Hyogo): Germany

RECARO Japan Co., Ltd. (Shiga): GermanyEvergrande Neoenergy R&D Institute Japan Co., Ltd. (Osaka) : China

Nestlé Japan Ltd. (Hyogo): Switzerland

Caterpillar Japan LLC (Hyogo): USA

The Procter & Gamble Company of Japan Limited (Hyogo): USA

R&D and production bases

Bayer Yakuhin, Ltd (Shiga, Osaka, Hyogo): Germany

Tornier Japan K.K. (Hyogo): France

AstraZeneca K.K. (Shiga, Kyoto, Osaka, Hyogo): UK

Abbott Japan Co., Ltd. (Kyoto, Osaka, Hyogo): USA

Eli Lilly Japan K.K. (Kyoto, Osaka, Hyogo): USA

PRA Health Sciences K.K. (Osaka): USA

Life science

B&M Japan Co., Ltd (Osaka): Hong Kong

SHOBIDO CO LTD (Osaka): Macau

Chitose Trading Co., Ltd. (Osaka): China

Daiko Trading Co., Ltd. (Osaka): China

Ruten (Osaka): Taiwan

Procurement basesTÜV Rheinland Japan Ltd. (Osaka): Germany

IKEA Japan K.K. (Osaka, Hyogo): Sweden

Decathlon Japan Co., Ltd. (Hyogo): France

Haier Japan Sales Co., Ltd. (Osaka): China

Tata Consultancy Services Japan Limited (Osaka): India

SIA Engineering Japan Corporation (Osaka): Singapore

AIG Japan Holdings KK (Osaka): USA

Salesforce.com Co., Ltd. (Osaka, Wakayama): USA

Distribution and services

Rainmaking Innovation Japan, G.K.（ Osaka）: UK

Plug and Play Japan（ Kyoto, Osaka）： USA

Rising Startups（ Osaka）： USA

Accelerators and Innovation Consulting

Note: The companies listed here have their HQ, a sales base or a research institute in Kansai.

Underlined locations indicate prefectures where the head office of Japanese operations is based.

※Source : Foreign Companies Database 2020 (Toyo Keizai Inc.) and the company data obtained from JETRO and O-BIC

https://www.kansai.meti.go.jp/3-1toukou/invest_kansai/en/e_companies.html

INVEST KANSAI WEB SEARCH

For more info, search

Achieving a cutting-edge work style in a rural area through teleworkingCorporation salesforce.com Co., Ltd. Shirahama Office（Japan Headquarters：Tokyo）

Location Shirahama Town, Wakayama Prefecture

Industry information and communications

Type of presence

greenfield investment (secondary investment)

Parent corporation

salesforce.com, Inc.（USA） HP https://www.salesforce.com/?ir=1

Business overview

Salesforce.com, Inc. develops and markets cloud applications and platforms. Salesforce.com opened itsShirahama Office in Shirahama, Wakayama in October 2015. All Salesforce.com employees, including those whorelocated to Shirahama, use teleworking tools for their inside sales work.

Q. What factors led Salesforce.com to expand to Kansai and what was its appeal?Salesforce.com opened its Shirahama office during its participation in the "Regional

Demonstration Projects to Promote Hometown Telework" promoted by the Ministry of InternalAffairs and Communications. Salesforce.com selected Shirahama out of several candidatelocations due to its convenient access from Tokyo, its stable Internet environment, and theenthusiastic support of Wakayama Prefecture and Shirahama in securing it office space andproviding it with an ongoing support system. The beautiful Shirahama beaches as far as the eyecan see, the resort atmosphere that keeps young employees highly motivated, and the quality ofthe region all combined to make this location highly appealing.

Q. What impact did your expansion to Kansai have?As a result of our pursuit of efficient working practices, we increased our production efficiency by

20% compared to our Tokyo base. In addition, the two-hour time it took to commute in Tokyo wascut to 10 minutes, thereby facilitating a better work-life balance by freeing up 64 hours per month ofpersonal time. Because employees have more time to contribute to their communities, they also feelmore motivated to work, and productivity has grown dramatically. When employees at theShirahama office return to Tokyo, they continue these efforts to improve productivity, achievingsignificant results in work style reforms.

９－３ Interviews with Foreign-Affiliated Companies

Photographs provided by corporation23


The work environment at the Shirahama office.

https://www.salesforce.com/?ir=1

The Council for INVEST KANSAI is comprised of Kansai Economic Federation, JETRO Osaka, Federation of Chambers of Commerce and Industry in the Kansai Area (Osaka Chamber of Commerce and Industry), and Kansai Bureau of Economy, Trade and Industry. Its objective is to promote foreign investment in Kansai.

In the Council, as one-stop support, Invest Japan Business Support Center (IBSC) supports foreigncompanies planning to enter Kansai in various ways, including providing information and individual consultations.

１０－１ Foreign Investment Support Systems in Kansai１０ Support for Foreign Investment in Kansai

Foreign-affiliated companies

Kansai Economic Federation

Kansai Bureau of Economy, Trade

and Industry

Federationof Chambers of

Commerce and Industry in the Kansai Area

(Osaka Chamber of Commerce and Industry)

JETRO Osaka

Council forINVEST KANSAI

Facilities・ Temporary offices (free of charge up to 50 business days)

・ Meeting rooms・ Business libraries

Consulting・ Advice for market access・ Finding human resources

and offices・ Providing information on laws,

various standards and incentives・ Estimation of costs to set up business- One-stop support for investment in Kansai -

JETRO Invest Japan Business Support Center, Osaka (JETRO IBSC Osaka)TEL: +81-6-4705-8660 FAX: +81-6-4705-8650

JETRO Invest Japan Business Support Center, Kobe (JETRO IBSC Kobe)TEL: +81-78-231-3081 FAX: +81-78-232-3439

JETRO FukuiTEL: +81-776-33-1661 FAX: +81-776-33-7110

JETRO ShigaTEL: +81-749-21-2450 FAX: +81-749-27-3750

JETRO KyotoTEL: +81-75-341-1021 FAX: +81-75-341-1023

JETRO NaraTEL：+81-742-23-7550 FAX：+81-742-23-7565

JETRO WakayamaTEL：+81-73-425-7300 FAX：+81-73-425-7310

IBSC

The Council for INVEST KANSAI provides support such as providing information on investment incentives, factory locations etc., as well as finding business partners with local governments, regional business communities and specialists.

Conceptual diagram of the Kansai region’s investment promotion system

INVEST KANSAI

24

Website: INVEST KANSAI WEB https://www.kansai.meti.go.jp/3-1toukou/invest_kansai/en/e_index.html

https://www.kansai.meti.go.jp/3-1toukou/invest_kansai/en/e_index.html

１０－２ Foreign Investment Support Programs by Local Governments１０ Support for Foreign Investment in Kansai

- Information on incentives given by governments- Real estate information- Introductions to experts in corporate registration and the acquisition of residence status- Introductions to the individuals and companies specializing in interpretation, translation, market research, legislation, taxation and accounting- Assistance in public relations

and more

■Osaka Business and Investment Centre

Kyoto Prefecture, Kyoto City, KyotoChamber of Commerce and IndustryKansai Science CityKyoto Research Park (KRP)JETRO Kyoto Trade Information Center

■ Kyoto Foreign Investment Promotion Committee (KIC)

■ Hyogo-Kobe Investment Support Centre(HKIS)

We provide foreign companies, foreign individual business persons and researchers with information and support about Kyoto to help them start doing business in Kyoto.

We offer extensive and detailed support services according to the company’s needs for entering into Osaka, including introduction of potential partners, providing information on investment incentives and temporary offices.

■IBPC Osaka Investment Promotion Project

https://www.kyoto-obc.jp/en/

https://www.investosaka.jp/eng/

https://o-bic.net/

O-BIC provides the following in multiple languages for foreign companies aiming to break into the Japanese market in Osaka, foreign government offices and economic organizations, and foreign-affiliated companies already located in Japan and aiming to expand their business to Osaka:

https://www.hyogo-kobe.jp/best/en/

In Kansai, foreign investment support organizations belonging to local governments offer various kinds of one-stop services.

25

Supporting foreign companies in an extensiveand detailed manner according to their needs

Osaka Prefecture

Osaka City

Osaka Chamber of Commerce

and Industry

HyogoPrefecture

Kobe City andOther

municipalitiesin Hyogo

Prefecture

Commercialreal estate Relevant

localinstitutions

The KobeChamber ofCommerce

and Industry

JETROKobe

Hyogo Economic Development CenterHyogo-Kobe Investment Support Center

One-stop Service

Promoting companies’ advancement in Hyogo and Kobe

Assisting domestic and foreign companies’ advancement in Hyogo Prefecture

Support for opening new and additional factories and offices etc.

We provide various types of information on Hyogo: not only information on industrial estates, suitable sites for factories, vacant land, offices for rent, etc., but also on administrative procedures needed when establishing a business in the area, employment, residences and everyday life.

https://www.investosaka.jp/

https://www.investosaka.jp/eng/

https://o-bic.net/j/

※ See details at → https://www.meti.go.jp/english/policy/external_economy/investment/act_information.html＜ For Inquiries＞Investment Facilitation Division, Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry Tel.: +81 (0)3-3501-1662

For information on other incentives, etc., see JETRO’s website. → https://www.jetro.go.jp/en/invest/incentive_programs.html

Act on Promotion of Japan as an Asian Business Center(Act on Special Measures to Promote Research and Development Business, etc. by Specified Multinational Enterprises)

Investment-related deregulationIn organizing the Working Group for Revising Regulations and Administrative Procedures in the Council for Promotion of Foreign Direct Investment in Japan, the Japanese government is considering simplifying regulations and administrative procedures that may represent hurdles for foreign companies to overcome when investing in Japan. The government’s coordination with related ministries and agencies is underway for that purpose.

* Concrete measures to be implemented by ministries and agencies (formulated on April 24, 2017) Measures related to incorporation and registration Measures related to residence status Establishment of a one-stop service system for administrative procedures Information sharing in non-Japanese languages, and consultation service for foreign companies Import-related measures

Incentives for foreign and foreign-affiliated companies

26

１０－３ Government Efforts to Promote Foreign Investment in Japan １０ Support for Foreign Investment in Kansai

For more details or the latest update, visit: http://www.invest-japan.go.jp/policy/simplify_regulations_and_procedures/en_index.html

Preferential measures, including reduced patent fees for global companies planning to set up a company in Japan to conduct new R&D projects and business operations. «Applications can be filed in English.»

Assistance with fund raising

Fund raising assistance offered by Small and Medium Business Investment & Consultation Co., Ltd.(Also applicable to incorporated companies with capital of 300 million yen or more) * Applicable only to SMEs

Acceleration of patent application screening

Shortened investment procedures

Acceleration of residence status examinations

Accelerating patent application screening and proceedings [Ordinarily around 22 months → shortened to about 2 months] (FY2011 result)

Shortened screening period of advance notifications of direct inward investment, etc. in industries subject to regulations [30 days in ordinary cases → 2 weeks]

Accelerating screening for the Certificate of Eligibility for Status of Residence applied by foreign nationals who intend to work in Japan [Ordinarily 1 month → shortened to about 10 days]

https://www.meti.go.jp/english/policy/external_economy/investment/act_information.html

https://www.jetro.go.jp/en/invest/incentive_programs.html

http://www.invest-japan.go.jp/policy/simplify_regulations_and_procedures/en_index.html

http://www.invest-japan.go.jp/policy/simplify_regulations_and_procedures/en_index.html

Business start-up subsidy (financial aid for business activity costs)Subsidies for the business expenses of high-tech or health-and-longevity businesses(Maximum of ¥100 million per year for 3 years)

Subsidy programBusiness start-up subsidy (financial aid for facilities)

Subsidies for equipment acquired for high-tech ,health-and-longevity or food businesses (maximum of ¥3 billion). Subsidies for facility acquisition and new hiring for HQ function (including test research) (maximum of ¥600 million)

Tax cutsReduction in or exemption from business tax, real estate acquisition tax and fixed assets tax in applicable areas for up to 3 years

Fukui

Financing program

Financing to promote establishment of corporate sitesLow-interest loans for businesses to encourage companies to locate in the prefecture and hire local residents

(Rate: 1.2% a year (fixed rate), limit: ¥500 million (¥1 billion if specially approved), duration: 15 years max.)

Business start-up subsidies (financial aid for R&D)Subsidies for the research and development expenses of businesses that plan to establish or expand research facilities in applicable areas (Subsidize 50% of total cost; maximum of ¥100 million/year and an overall total of ¥500 million)

27

Details of incentives⇒ Fukui Business Location Guide http://www.yuchi.pref.fukui.jp/en/index.html

１０－４ Examples of Incentives Offered by Local Governments１０ Support for Foreign Investment in Kansai

＜ As of July 2020 ＞

(Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO.

Kansai Bureau of Economy, Trade and Industry ：https://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/various_incentives.htmlJETRO “Regional Information”: https://www.jetro.go.jp/invest/region/

http://www.yuchi.pref.fukui.jp/en/index.html

https://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/various_incentives.html

https://www.jetro.go.jp/invest/region/

Laws to Promote Future Investment in the RegionReduction / exemption of real estate acquisition tax, etc.

Tax System to Strengthen the Regional CoreThree-year reduction/exemption of business tax; reduction/exemption of real estate acquisition tax, etc. (Applicable to specific areas and projects)

Tax cuts

Shiga

Subsidies for Businesses Establishing New Facilities Near Nuclear Power Plants Assistance with electric power bills paid under the contract for the supply of power to new and added business facilities(Only applicable to specific areas and projects)

Financing programLoan system encouraging business launchLow-interest loan for capital investment in plants, research institutes, etc.

(Interest: 1.25% per year Limit: 200 million yen (100 million yen for land acquisition) Period: Up to 10 years (including deferment period of up to 2 years))

28

Subsidy Program for Promoting Location of Companies Manufacturing Made-in-Shiga ProductsSubsidies for some of the expenses for efforts to secure human resources andimprove the operating environment associated with new capital investment in the prefecture by companies [Maximum amount of subsidies per fiscal year: 5 million yen (for joint projects with multiple companies: 7.5 million yen)]

Subsidy program

１０ー４ Examples of Incentives Offered by Local Governments１０ Support for Foreign Investment in Kansai






KyotoReducing real estate acquisition tax by 50% at maximum, if a factory or the like is built or expanded in an integration promotion area for manufacturingand other industries

29





Low-interest loans for necessary funds for building or expanding a factory or the like applicable to the Special Business Subsidy under Kyoto Industrial Site Strategy 21(Annual interest rate (fixed during the first 10 years): 1.7%; special rate: 1.2%; upper limit: ¥ 2 billion; duration: up to 20 years for equipment fund, and up to 7 years for operating fund)

Special Business Subsidies under Kyoto Industrial Site Strategy 21Subsidizing companies that build or expand a factory or the like in Kyoto Prefecture, to compensate their labor costs for regular employees within the prefecture and their investments in fixed assets

Subsidies for supporting businesses located near nuclear power plants, etc.Subsidizing companies that build or expand a factory or the like in applicable areas, to compensate their electricity charges resulting from their electricity contracts.

Subsidies for developing Kyoto-type top global niche companies: Subsidizing target companies, including companies ranked “A” by the Kyoto City venture business committee, which build or expand business locations, to compensate the fixed asset tax and city planning tax for five years, and to cover archaeological excavation costs and costs for establishing rainwater runoff control facilities in specified exclusive industrial districts

Subsidies for promoting the establishment of corporate facilities in Kyoto City: Subsidizing companies that build or expand their head offices, factories, research institutes, and R&D centers in the city, to compensate the fixed asset tax and city planning tax on the newly acquired assets (for five years for SMEs and for two years for large enterprises with a one-year extension for all enterprises located in specified areas, such as Rakunan Shinto), and to cover archaeological excavation costs and costs for establishing rainwater runoff control facilities in specified exclusive industrial districts

Kyoto City landowner incentives for promoting the establishment of business facilities: Providing owners of land in specifiedindustrial districts with incentives when they sell their land to businesses intending to use the land to establish business facilities

Kyoto City

Tax cuts Financing program

Subsidy program



Osaka

Sakai City Subsidy for Promotion of Company GrowthSubsidies (up to 150 million yen) for the development of head office functions and R & D facilities, and investment that takes on fields that promote growth. 5% to 15% of the investment amount. Subsidy of 200,000 yen per new hire x 3 years.

Subsidies for Siting Business Offices in Core CitiesForeign-affiliated companies opening a new office in a core city will have 40 to 60% of the rent subsidized (up to 5 million yen for 3 years).

30




＜ As of July 2020 ＞Tax cuts

Financing program

Subsidy program

Industrial Promotion Tax System (reduction in real estate acquisition tax)A 50% reduction (up to 200 M yen) of the real estate acquisition tax applied to the acquisition of land andbuildings (factories and research facilities) in an industrialpromotion area

Growth zone tax system (prefectural tax)Reduction in or exemption from the prefectural tax, applicable to the companies expanding into specialzones in the prefecture, gaining approval of their business plans and doing business in the field ofnew energy or life science

In cooperation with Osaka City

Loans based on the proposals made by financial institutions

Loans given to companies so that they can establish (build) factories and research facilities in the prefecture (Requirements vary with financial institutions.)

Sakai City

Preferential City Tax Treatment under the SakaiCity Innovation Investment Promotion Ordinance

Tax reduction of 50-75% of property taxes for companiesthat newly expand or rebuild factories, offices, etc. in the target areas (5 years)

Osaka Prefecture Investment Promotion SubsidyApplicable to:

(1) Investments in the projects of building, expanding or rebuilding factories and R&D facilities in the applicable area (up to 30 M yen)(2) Payment of corporate enterprise tax by the beneficiaries of subsidy (1) above (up to 20 M yen)

Subsidy for Promotion of Foreign-Affiliated Company PenetrationApplicable to foreign-affiliated companies setting up an HQ in Osaka Pref.Building acquired: 5% of the acquisition costs of buildings and equipment, up to 100 M yenBuilding rented: One-third of the rent (for 24 months), up to 60 M yen

Sakai City



Hyogo

Subsidy for office rentForeign companies are subsidized with 50% of their office rents for 3 years (subsidy amount of up to 2 M yen per year)*The maximum amount for applicable areas of Kobe is 20 million yen, and varies depending on the number of new full-time employees.

31





Tax cuts

Subsidy program

The following reduction applicable to HQ relocation from one of the three major cities in Japan or from overseas or business establishments in specific areasA 1/2 reduction in corporate enterprise tax for 5 yearsA 50% reduction in real estate acquisition tax (up to 200 M yen)

The following reductions in fixed asset tax and business facility tax- Strategic industries: 2/3 for 5 years

(5 more years for large-scale businesses) (no limit of amount)

- Other industries: 1/2

Subsidy for the Promotion of Industrial Siting (based on employment)

Applicable to new regular employment of locals(0.3 M yen per hire, up to 300 M yen)

Subsidy for Establishment SupportFinancial assistance for market research and corporate registration (Up to 50%, up to 1 M yen for market research and 0.2 M yen for corporate registration)

Financial assistance for HQ relocation from one of the three major cities in Japan or from overseasE.g., up to 5% of capital investment

Subsidy for start-upPartial coverage of office opening and operation costs to encourage business start-up(Covering 50% of office rents, telecommunication fees and building refurbishment costs)

Kobe City

Financial assistance for HQ relocation to Kobe from outside(but not from any of the 23 wards of Tokyo*) including:- Up to 4% of building acquisition costs- Employment assistance (0.3 M yen per hire)* The national government offers preferential treatment for relocation

from any of the 23 wards of Tokyo.

In cooperation with the cities of Kobe and Himeji

Kobe City

In cooperation with Kobe City



Nara

Business start-up subsidyGrants to companies that locate their factories and research institutes within the prefecture(up to ¥2 billion for large-scale lots, ¥1 billion for medium sized lots).

Subsidies to promote the location of telecommunications-related businessesSubsidizing capital investment and rent for the establishment of telecommunications businesses.

32





Tax cuts

Subsidy program

Exemption of real estate acquisition taxReduction of business tax ( 75% for 3 years)

Subsidy to promote strengthening of local sitesGranted to companies investing in the relocation of HQs from the outside of the prefecture or in the expansion of HQs within the prefecture(maximum of ¥100 million)



Wakayama

Incentive Plan to Promote the Growth of Accommodation Facilities Incentives are granted to businesses that open luxury accommodation facilitieswithin the prefecture that meet specific requirements (up to 300 million yen).

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Tax cuts Financing program

Subsidy program

Up to 15% of the fixed assets of applicable businesses employing local people in the prefecture (up to ¥9 billion in the case of employing 1,000 or more people).

Granted to businesses constructing applicable facilities and employing local people in the prefecture (up to ¥1 billion in the case of employing 100 or more people).

Exemption of business tax, real estate acquisition tax, fixed asset tax, etc. in specific areas for up to 3 years

Low-interest loans for businesses located in the prefecture employing local residents (rate: long-term prime rate ×3/4%; limit: ¥200 million; duration: Up to 10 years).



The KANSAI Guide is a web portal for incoming tourists run by the Kansai

Tourism Bureau, a region-wide destination marketing organization (DMO) in

Kansai. The Kansai Guide provides one-stop information on a variety of

attractions scattered throughout the ten prefectures of the Kansai region,

and even includes a portal to assist tourists with booking accommodations.

In addition, the Kansai Tourism Bureau's focus on the development of

accommodation-style residential areas and its “One More Destination”

(“Plus One Trip”) campaign also encourages the creation of customer-

tailored e-commerce tour packages that take visitors farther afield. The

Kansai Guide also provides a wealth of viewable sightseeing content

showcasing 8K videos that were produced by the Kansai Tourism Bureau

and were screened at the reception of last year’s G20 Osaka Summit.

In order to build an inbound website that will appeal to people around the

world, The Kansai Guide website focuses on the “perspective of the

international tourist” reflecting feedback from surveys of travelers to Japan.

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Please visit our site

(Reference) Tourism-Related Websites of Kansai

Union of Kansai

Governments

Kansai Sightseeing Web https://www.kouiki-kansai.jp/tourist_info/en/

FUKUI Fukui Prefectural Tourism Federatiohttps://www.fuku-e.com/lang/english/

SHIGA Biwako Visitors Bureauhttps://en.biwako-visitors.jp/

KYOTO

Kyoto Tourism Federationhttp://www.kyototourism.org/en/

Kyoto City Tourism Associationhttps://kyoto.travel/en

OSAKA

Osaka Convention & Tourism Bureauhttps://osaka-info.jp/en/page/octb-top

Sakai Tourism & Convention Bureauhttps://www.sakai-tcb.or.jp/en/

HYOGO

Hyogo Tourism Bureauhttps://www.travelhyogo.org.e.aas.hp.transer.com/

Kobe Tourism Bureauhttp://plus.feel-kobe.jp/en/

NARA Nara Visitors Bureauhttps://www.visitnara.jp/

WAKAYAMA Wakayama Tourism Federationhttps://en.visitwakayama.jp/

https://kansaiguide.jp

(Printed in September 2020）You may quote freely from this brochure by indicating the source.However, you may not reproduce or copy pictures used in this brochure. Please contact us for more information.

Contact information about foreign investment in Kansai

OSAKAJETRO Invest Japan Business Support Center, Osaka (JETRO IBSC Osaka) Address: Osaka-Kokusai Bldg. 29F, 2-3-13, Azuchi-machi, Chuo-ku, Osaka, Osaka 541-0052TEL: +81-6-4705-8660 (domestic call: 06-4705-8660) FAX: +81-6-4705-8650 (domestic call: 06-4705-8650)URL: https://www.jetro.go.jp/osaka

FUKUIJETRO FukuiAddress: Fukui CCI Bldg.6F, 2-8-1, Nishikida, Fukui 918-8004TEL: +81-776-33-1661 (domestic call: 0776-33-1661) FAX: +81-776-33-7110 (domestic call: 0776-33-7110)URL: https://www.jetro.go.jp/Fukui

SHIGAJETRO ShigaAddress: Hikone CCI 1F, 3-8 Chuo-cho, Hikone, Shiga 522-0063TEL: +81-749-21-2450 (domestic call: 0749-21-2450) FAX: +81-749-27-3750 (domestic call: 0749-27-3750)URL: https://www.jetro.go.jp/shiga

KYOTOJETRO KyotoAddress: Kyoto Keizai Center Bld.3F,78,Kankoboko-cho, Shijo-dori, Muromachi-higashi-iru, Shimogyo-ku, KYOTO 600-8009TEL: +81-75-341-1021 (domestic call: 075-341-1021) FAX: +81-75-341-1023(domestic call: 075-341-1023)URL: https://www.jetro.go.jp/Kyoto

KOBEJETRO Invest Japan Business Support Center, Kobe( JETRO IBSC Kobe)Address: Kobe C.I.T. Center Bldg.4F, 5-1-14 Hamabedori, Chuo-ku, Kobe 651-0083TEL: +81-78-231-3081 (domestic call: 078-231-3081) FAX: +81-78-232-3439 (domestic call: 078-232-3439)URL: https://www.jetro.go.jp/kobe

NARAJETRO NaraAddress: 2F Small and Medium Enterprises Hall of Nara Prefecture 38-1 Noborioji-cho,Nara 630-8213TEL: +81-742-23-7550 (domestic call: 0742-23-7550) FAX: +81-742-23-7565 (domestic call: 0742-23-7565)URL: https://www.jetro.go.jp/nara

WAKAYAMA

JETRO WakayamaAddress: Wakayama Prefectural Office Higashi-Bekkan 2F, 1-1, Komatsubaradori, Wakayama City, Wakayama 640-8269TEL： +81-73-425-7300 (domestic call: 073-425-7300) FAX： +81-73-425-7310 (domestic call: 073-425-7310)URL： https://www.jetro.go.jp/wakayama

Contact information about this brochureInternational Investment Promotion Division,

Kansai Bureau of the Ministry of Economy, Trade and IndustryAddress: 1-5-44 Otemae, Chuo-ku, Osaka, 540-8535TEL: +81-6-6966-6033 (domestic call: 06-6966-6033) FAX: +81-6-6966-6087 (domestic call: 06-6966-6087)E-mail: [email protected]: https://www.kansai.meti.go.jp/english/index.html

One-window support for investment in Kansai

INVEST KANSAI WEB

Documents

Introduction...Introduction With a long history as the heart of Japan, Kansai (Fukui, Shiga, Kyoto, Osaka, Hyogo, Nara, and Wakayama prefectures ）is home to many traditional and