Download - Country Overview
-
7/29/2019 Country Overview
1/31
COUNTRY OVERVIEW
(Last updated: 23 Mar 2012)
With a population of 127 million, Japan is the third largest global economy. The
Japanese market is characterised by consumers with high levels of disposable
income, and companies with a strong global orientation and willingness to invest in
sustainable, long-term products and services.
Japanese buyers are drawn to premium, higher end goods and services offering
higher returns on trade investment. Japan has made a name for itself as a nation
of quality and innovation, and has staked its future on this value proposition. Along
with this comes a strong commitment and loyalty to business partners, once
acquired.
The mainstream of the Japanese economy remains cashed up, both in terms of
individual savings and liquidity, and in terms of corporate balance sheets. Japan is
now faced with the dilemma of how best to utilise its significant assets in uncertain
times.
As in hard times in the past, the Japanese are showing resilience and often
demonstrate a stronger predilection for change under pressure. Understanding
where and how the new changes will lead to new opportunities for Australia is both
a challenge but also a unique window of opportunity in itself.
Country facts
Capital city: Tokyo
Surface area: 378,000 sq km
Population: 127.6 million
Official language(s): Japanese
-
7/29/2019 Country Overview
2/31
Head of State: HM Emperor Akihito
Head of Government: Prime Minister HE Mr YoshihikoNoda
Australian exports to Japan: A$46,880 million
Australian imports from Japan: A$16,685 million
Japan's principal exportdestinations:
China, USA, Republic of Korea
Japan's principal import sources: China, USA, Australia
(Source:Department of Foreign Affairs and Trade - Country economic fact sheet)
back to top
Economic climateJapan is currently experiencing an unprecedented period of political and economic
turmoil. The Global Economic Downturn has exposed Japans continuing heavy
reliance on export led growth. Net exports and corporate capital expenditure are
sharply down. Domestic consumption is less affected; however, buoyed also by
government stimulus packages, as elsewhere.
The current upheaval, which has mostly been driven by external factors, is now
starting to have far-reaching effects on certain sectors of the manufacturing
economy and society in general. Most affected are the blue-collar and technical
workers, as is common around the globe. This is likely to have a significant impactin terms of changes in social values, behaviour and consumption patterns.
The Japanese Government has spent several hundred trillion yen on economic
stimulus packages in an effort to spur a recovery. However, the success of these
packages is still in doubt as stagnation continues and Japans banks continue to
hold large non-performing loans.
http://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.austrade.gov.au/Japan-country-overview/default.aspxhttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.dfat.gov.au/geo/fs/jap.pdf -
7/29/2019 Country Overview
3/31
Changes that are evidence of the new economy emerging in Japanese business
practices include:
High interest in IT-based solutions
Demand for innovative cost effective business solutions which can include
imported product and services
Breakdown of traditional interlinked (keiretsu) business relationships
Introduction of business-to-business (B2B) and business-to-consumer (B2C) e-
commerce ventures
Speeding up of the business decision making processes
Introduction of Western management practices
Japan faces a number of challenges going forward, some economic and some
structural. Many of these longer term drivers for change also favour Australia.
Japans ongoing reliance on imported minerals and energy, and growing concernsover food safety and food security (with food self-sufficiency hovering at around 40
per cent) are priorities for them.
In addition, Japans silver generation faces challenges to preserve and grow their
substantial wealth of US$14 trillion in household savings. As the population ages,
Japan is tipped to be the worlds leading test bed for the silver market. Continuing
emphasis on increasing productivity among the declining workforce, the need to
more fully utilise women, increased reliance on technology for competitive edge
and growth in outsourced services are key social and corporate themes.
Corporations are still relatively cashed up from rich profits in recent years, despite
the alarming change in their current circumstances. The macroeconomic situation
for Japan may certainly get worse before it gets better. At the heart of this, Japans
large corporates are looking to invest their way out of the crisis. They continue to
target M & A and greenfields investment opportunities worldwide, benefiting from
low asset prices and a strong yen.
Japanese investors are there for the long-haul. They are looking for environmental
technology, agribusiness, infrastructure and renewable energy opportunities in
Australia alongside more traditional resource investments. Increasingly Japanese
investments in Australia are targeted at the Australian domestic market itself, or
aimed at using Australia as a springboard into Asia.
The prolonged economic slow-down is causing fundamental changes in Japanese
business practice, which will ultimately have a positive impact on demand for
Australian goods and services. These changes are evidence of a new economy
emerging in Japan where companies are being forced by market pressures,
including government deregulation measures, to change traditional business
practices. Despite economic growth stagnation, the sheer tremendous size of the
Japan economy and its regional markets will always present opportunity for
-
7/29/2019 Country Overview
4/31
Australia.
Please also see DFAT's'Great East Japan Earthquake: economic and trade
impact' publication
For the latest key economic indicators and statistics, please see theDepartment of
Foreign Affairs and Trade country economic fact sheet.
back to top
Political climateAlthough the Japanese Government has little direct involvement in the operation of
the private sector, through its ministerial bureaucracies it maintains tight
supervision of firms via regulation and mandatory administrative guidance. It
manages industrial policy by directing various sectors into suggested areas of
enterprise and facilitating their entry by providing seed money and research,
technical and regulatory support.
Under the revised post-war Constitution of 1947, Japan adopted a Westminster
form of government. The Diet (Parliament) consists of a popularly elected House of
Representatives (Lower House 500 seats) and a House of Councillors (Upper
House 252 seats).
There are three tiers of government National, Prefectural (State) and Local. The
key political parties are the:
Liberal Democratic Party
New Komeito
New Conservative Party
Democratic Party of Japan
Social Democratic Party of Japan
Japanese Communist Party
back to top
Trade relations and statisticsAs a world economic power, second only to the USA, Japan remains an important
and influential player in global and regional affairs.Japans foreign policyis
administered by the Ministry of Foreign Affairs.
Japan is an active member of the Asia Pacific Economic Cooperation (APEC) and
the United Nations.
As the largest creditor nation in the world, Japan supplies Overseas Development
Assistance (ODA) to many developing countries and actively participates in
http://www.dfat.gov.au/publications/stats-pubs/great-east-japan-earthquake-economic-and-trade-impact.pdfhttp://www.dfat.gov.au/publications/stats-pubs/great-east-japan-earthquake-economic-and-trade-impact.pdfhttp://www.dfat.gov.au/publications/stats-pubs/great-east-japan-earthquake-economic-and-trade-impact.pdfhttp://www.dfat.gov.au/publications/stats-pubs/great-east-japan-earthquake-economic-and-trade-impact.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.mofa.go.jp/policy/other/bluebook/2000/index.htmlhttp://www.mofa.go.jp/policy/other/bluebook/2000/index.htmlhttp://www.mofa.go.jp/policy/other/bluebook/2000/index.htmlhttp://www.austrade.gov.au/Japan-country-overview/default.aspxhttp://www.austrade.gov.au/Japan-country-overview/default.aspxhttp://www.austrade.gov.au/Japan-country-overview/default.aspxhttp://www.austrade.gov.au/Japan-country-overview/default.aspxhttp://www.mofa.go.jp/policy/other/bluebook/2000/index.htmlhttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.austrade.gov.au/Japan-country-overview/default.aspx#sitetophttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/publications/stats-pubs/great-east-japan-earthquake-economic-and-trade-impact.pdfhttp://www.dfat.gov.au/publications/stats-pubs/great-east-japan-earthquake-economic-and-trade-impact.pdf -
7/29/2019 Country Overview
5/31
humanitarian programs worldwide.
The Japanese corporate trade network, particularly throughout Asia, is extensive
and these connections potentially hold great opportunities for Australian exporters
particularly linked to Japans ODA program.
Japan has traditionally been seen as a closed or difficult market to enter for foreigncompanies, and during the 1980s it was under considerable pressure (from the
USA particularly), to open up its markets to foreign competition.
Acceptance of foreign imports is increasing as Japanese consumers demand
greater variety and value for money.
At times, Japans bi-lateral relationships with several Asian nations have been
strained for historical reasons. However, as the economies of many Asian
countries are closely linked to their growing trade with Japan, concerted efforts by
each government are assisting in building strong relationships for the new century
in the Asian region.
Australia and Japan enjoy excellent relations built on more than 100 years ofbi-
lateral tradeand exchange.
Japan signed a bilateral trade agreement - a Free Trade Agreement (FTA) with
Singapore in October 2000.
Over the past decade, opportunities for Australian exports to Japan are heading
increasingly through the massive regional markets of the Japanese economic -
including the Kansai (Osaka area), as far north as Hokkaido, and the southern
island of Kyushu.
Australia is one of only a handful of countries in the world that enjoys a tradesurplus with Japan.
Commodities dominate Australias exports to Japan but the mix is becoming
increasingly diversified with processed foods and beverages, ICT-related products
and services and other manufactures increasing.
Austrade Japan has predicated its trade and investment strategy on four pillars
underpinning the medium-term needs of the Japanese economy. These are food
security and safety, energy security, the needs of an ageing society and a strong
reliance on technology as a major driver of intellectual property and competitive
edge.
Austrade in Japan pursues its business plan through the use of six industry teams
with national coverage of priority sectors. These teams are Food and Beverage,
Agribusiness and Clean Energy, Services, Consumer Products, Technology, and
the Creative Arts.
Please see theDepartment of Foreign Affairs and Trade country economic fact
sheetfor key trade statistics.
http://www.dfat.gov.au/geo/japan/japan_brief_bilateral.htmlhttp://www.dfat.gov.au/geo/japan/japan_brief_bilateral.htmlhttp://www.dfat.gov.au/geo/japan/japan_brief_bilateral.htmlhttp://www.dfat.gov.au/geo/japan/japan_brief_bilateral.htmlhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/fs/jap.pdfhttp://www.dfat.gov.au/geo/japan/japan_brief_bilateral.htmlhttp://www.dfat.gov.au/geo/japan/japan_brief_bilateral.html -
7/29/2019 Country Overview
6/31
Business opportunitiesJapan, a key strategic international business partner for Australia
This section is aimed at giving Australian businesses comprehensive insights into
trade and investment opportunities in Japan, and how to make the most of them.
Its almost impossible to overstate the importance of Japan for Australia, in so
many ways. Japan is one of Australias most important and strategic international
business partners with an ever-evolving partnership that extends over 50 years.
With a population of 127 million, the Japanese market is characterised by
consumers with high levels of disposable income, and companies with a strong
global orientation and willingness to invest in sustainable, long-term products and
services. Japan is an active investor in an increasingly diverse range of Australian
industries. These days the Japanese economy is no longer confined to Japan
alone, as their business interests and activities expand globally, especially
throughout the Asia-Pacific region, Japan offers a multitude of partnering
opportunities for savvy Australian companies.
Austrade covers Japan with a network of four offices extending from Sapporo in
the north through to Tokyo, and Osaka and Fukuoka in the south. Staffed by a total
of 47 Australian and Japanese professionals, they deliver a comprehensive range
of in-market services, tailored carefully to your needs.
Whether youd like to tackle Japan for the first time, or take a fresh look at
revitalising your existing business plans, Austrades complete coverage of the
archipelago and inside access to key decision-makers puts you well ahead of the
pack.
Japan has made a name for itself as a nation of quality and innovation, and has
staked its future on this value proposition. With a free trade agreement on the
cards, and with Japans determination to emerge strongly from the economic
downturn, I invite you to take another look at the rapidly changing Japanese
market - you may be pleasantly surprised...
Austrades business development specialists have prepared a range of market
profiles that offer potential to assist in your exporting investigations.Austrades in-
market teams have identified opportunities for Australian exporters in various
industries (see 'Profiled industries in this market' on the left side of this page).
back to top
Business etiquetteBusiness tips
Business etiquette and practices are important in Japan. The Japanese are
extremely polite and place importance on respect and social rank. You will be
http://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetop -
7/29/2019 Country Overview
7/31
showered with elaborate compliments while your host remains humble and plays
down their achievements. Australians who show modesty will be well regarded by
Japanese people.
While business meetings during the day can seem to be slow and often skirting
key issues, night time drinking and dinners are often the time when more useful
information is fed back to you. The Japanese equate being indirect with being
polite. Thus being indirect, such as starting a business meeting with small talk will
help to get the meeting off to a good start. Australians can misunderstand this
indirectness and interpret it as indecisiveness or non-commitment from the
Japanese side. In these situations, it pays to be patient.
English is not widely spoken in business and government , with some
exceptions, such as in trading companies. If a meeting is conducted in English, be
sure to speak slowly and clearly, and do not use Australian idiomatic expressions
or humour. Meetings in English are rare and an interpreter is generally required.
Punctuality is a must in Japan. It is usual to arrive at a meeting at least fiveminutes before the appointed time. In the event that you are running late, it is polite
to call ahead to advise of when approximately you will be arriving. All appointments
should be arranged with companies prior to your arrival in Japan.
Partners - it is inappropriate to take friends, spouses, or children to business
meetings in Japan. It is also not common for spouses to be invited out for business
dinners.
Product brochures and a company profile should be taken with you when you visit
a Japanese company for the first time.
Business cards are handled in both hands and laid carefully on the table. You willneed to bring at least 100 business cards with you to Japan. Business meetings
invariably begin with the exchange of business cards. Don't place the card in your
pocket or write on it. If time allows, have your business cards printed with your
company name and name in Japanese. Don't have your business address
translated to Japanese as this renders it meaningless.
Seating arrangements are used in formal business meetings. The most important
guest sits furthest from the door and the host sits closest to the door. If in doubt,
wait to be seated or ask where you should sit.
Gifts are not necessary and it is inappropriate to offer expensive gifts, particularly
on first meetings. Small gifts, such as company pens or ties, etc. can be presented,once business is ready to commence or has commenced. It is generally
considered impolite to open gifts in front of the giver.
Resolving conflict Japanese people also try hard to avoid open conflict and so
may answer ambiguously or even agree to an offer that they have no intention of
accepting. One productive way of solving this problem is to prepare a brief but
clear memo describing the situation and obligations of both parties and present it
-
7/29/2019 Country Overview
8/31
to the Japanese side as a record of the meeting. This will test the Japanese sides
position on the issue as they will be forced to respond.
back to top
Tariffs and non-tariff barriersTariff
Tariffs are based on the Harmonised System - most duties are ad valorem (per
cent) based on the GATT valuation system approximately cost, insurance and
freight (CIF) value (Incoterms 1990).
Japan has low or zerotariffson most industrial products.
Japan maintains tariffs and restrictions on some agricultural items, which are
relevant to some Australian exporters.
Australian products are entered at the lowest rate notified (preferential ratesexcepted).
Generalised preferences are granted to developing countries.
A self assessment system designed to expedite customs clearance allows prior
calculation of duty by importers.
Customs authority contact details:
Director General
Customs and Tariff Bureau
Ministry of Finance
3-1-1 Kasumigaseki
Chiyoda-ku
Tokyo 100
Tel: +81 3 3581 4111
Fax: +81 3 5251 2122
Non-tariff barriers
Potential exporters to Japan should not be deterred by a widely perceived view
that the Japanese market is closed and heavily regulated. Barriers to market
access for merchandised and value added goods are mainly informal. Examples
of informal barriers include, successful entrance into business networks,maintenance of market presence and product quality assurance.
Formal restrictions - mostly on agricultural produce - do exist, and the Australian
Government has a range of market access issues, which it continues to work on
with the Japanese Government on behalf of Australian industry. Like
Australia,customs laws and regulations, and import processes are strict and need
to be clearly understood by exporters.
http://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.mof.go.jp/english/tariff/tariff.htmhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetop -
7/29/2019 Country Overview
9/31
Import licensing may be required for some imports. Two categories exist:
1. Import Quota (IQ): Quotas set by Ministry of Economy, Trade and Industry
(METI), range from moderately to severely restrictive. Quotas are imposed
on a variety of foods including some dairy products, seafood, cereals and
grains. Importers must obtain an import quota allocation certificate fromMETI, which entitles the importer to receive an import licence on
application to a foreign exchange bank.
2. Import Declaration (ID): a wide range of raw materials, semi-finished
products and manufactured goods can be imported without prior approval
from METI. Completed ID forms are freely verified by authorised foreign
exchange banks on application, prior to import.
Goods must be cleared through customs within the validity period of the licence
(usually six months).
Imports from Australia, which includes most fresh fruits (excluding certain oranges,mangoes, blueberries, Fuji apples, pineapples and green bananas) are subject to
restrictions (see also 'Public health requirements).
back to top
Product certification, labelling and packagingLabelling
Foodstuffs must have a sticker attached to each package after importation showing
a detailed description of contents, including artificial colourings or preservatives,
name and address of importer and date of import or manufacture in Japanese.
Many food products and consumer products are subject to very specific labelling
requirements and importers should always be consulted on proposed labelling.
Containers of canned and bottled goods, soft drinks, small goods, frozen foods and
prepacked foods must be marked and labelled solely in metric measurement by
the Australian exporter, even though responsibility for metric measuring rests with
the Japanese distributor.
Drug usage directions should be printed in Japanese.
Special labelling regulations apply to electrical appliances, soap, aluminium foil,some kitchen utensils, cleaning materials, toilet and bath fittings, plastic film,
certain furniture, hot water bottles and cosmetics.
Packaging
Use of straw packing materials is prohibited.
Proposed packaging should be cleared with importers as they have definite
http://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetop -
7/29/2019 Country Overview
10/31
preferences.
Goods should be marked according to normal commercial practice.
Special certificates
Animals, plants and their products require health certificates issued by an
approved authority in the country of origin.
Frozen vegetables and fruit must be accompanied by a certificate of condition
(Form E46) instead of a phytosanitary certificate.
Meat for human consumption require an additional certificate, issued by an
approved authority in the country of origin, stating that the animals were free from
designated infectious diseases prior to slaughtering and that subsequent
processing was under hygienic conditions.
Imports of food require a food import permit issued by the Ministry of Health and
Welfare.
Spirituous beverages may require a certificate of age.
Electrical appliances must conform with the Electric Appliance Control Law, with
certain goods requiring type approval before being permitted to be offered for sale
in Japan.
Machine tools under a year old must be accompanied by a certificate of date of
manufacture.
back to top
Methods of quoting and paymentNo legislative requirements.
Quotations in Australian dollars are common.
Methods of quoting and payment depend on type of product, quantity and
relationship established between exporter and importer.
Advance payments may be made for some imports.
back to top
Documentary requirementsFax signatures are not permitted. Note: Even minor typing and other errors in
documentation often result in serious delays and complications at point of entry.
Pro-forma invoice
http://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetop -
7/29/2019 Country Overview
11/31
No special requirements.
Commercial invoice
A minimum of three copies are required. Invoices must be signed by the supplier
and should include the following details:
marks and serial numbers of packages
description and quantity of goods
CIF value (Incoterms 1990)
place and date of preparation
destination and consignee
name of vessel
import licence number
conditions of contract relating to determination of the value
It is strongly recommended, whenever possible, to include the HS Commodity
Classification of the goods to be imported. Complete invoices and packing lists
should be forwarded promptly to the importer by airmail, (see also 'Tariff' - self
assessment system, above).
Insurance
Normal commercial practice.
A certificate may be required if customs clearance without invoice is requested (to
assist in appraisal of taxable value/quantity). In such circumstances other
documents covering transportation cost, premium specifications and price list etc.,
may be required.
Bill of lading
For goods dispatched by sea, minimum of three signed originals and two unsigned
copies are required.
For goods sent by air, standard sets of 10 are available (original plus nine copies)
but no strict rules apply.
If made out To Order, it should indicate the name and address of the person to be
notified.
Information required is usually specified in importer's letter of credit but should
include name of shipper, ultimate and intermediate consignees, marking and
number of packages, and description of goods with gross weights and
measurements in metric terms.
Packing list
-
7/29/2019 Country Overview
12/31
Two copies recommended, indicating details of goods, including the weight and
measurement of each package.
Certificate of origin
Required for goods eligible for concessions granted under GATT.
Normally issued by Japanese consular or diplomatic officer at place of production,
purchase or shipment. Certificates issued by Customs, other government agencies
or an approved authority (see 'Guidelines', section 2.3) are acceptable. These
must also be signed by the exporter.
Certificate must show origin, marks and/or numbers of commodities, description
and number of packages and must certify that commodities were produced in
stated country of origin.
Public health requirements
Strict controls govern the manufacture and sale of both fresh and preserved
foodstuffs.
All imports of food must be accompanied by a food import permit, issued by the
Food Sanitary Inspection Service of the Ministry of Health and Welfare. Foods may
also be subject to inspection on arrival.
When imported for the first time, a description of all ingredients and the
manufacturing processes involved will be required for application, along with any
other requested documents, eg. health certificates from the country of origin.
The use of certain substances such as food additives are either strictly controlled
or prohibited.
The use of other food additives is strictly controlled.
The use of chemicals whose residue remains in crops or soil or pollutes water is
strictly controlled.
Imports of animals and plants and their products require health certification issued
by an approved authority in the country of origin. In Australia, this is usually the
Australian Quarantine and Inspection Service (AQIS), Agriculture, Fisheries and
Forestry-Australia (AFFA) or the relevant state department of agriculture.
Under Japanese quarantine regulations Australia can supply green bananas,
mangoes, lemons, pineapples and certain oranges and many vegetables (basically
those which do not contain seeds). Recently, blueberries and Fuji apples from
Tasmania have been approved for export to Japan.
A larger range of fruits and vegetables from Tasmania can now be imported into
Japan, as it is now recognised that Tasmania is free from fruit fly.
The official reference for importing and distributing drugs in Japan is the
Pharmaceutical Affairs law. Manufacturers or importers intending to manufacture
-
7/29/2019 Country Overview
13/31
or import drugs, medical equipment, cosmetics and toiletries need to obtain
approval in accordance with the Pharmaceutical Affairs law.
If cosmetic products contain ingredients outside the Comprehensive Licensing
Standards, the approval of Minister of Health and Welfare will be required to import
those products.
back to top
TaxationYou should seek professional advice on taxation is it applies to foreign companies
and operations in Japan. The major international accounting companies operate in
Japan and have English-speaking staff. A five per cent consumption tax is levied
on all purchases in Japan including food. Some hotels charge 8-10 per cent
service tax on accommodation. Businesses operating in Japan will be subject to a
range of taxes including:corporate tax
income tax
withholding tax
local tax
residents tax
Liquor taxes, expressed in specific terms per quantity, are levied on beverages,
whether imported or domestically produced.
Excise tax is levied on tobacco imports.
back to top
Intellectual property protectionAs in Australia, there is the need to protectintellectual propertyrights and be
covered by patent, design and trademark protection. Japanese companies are
experienced international business players and understand the need for
confidentially and non-disclosure agreements when beginning business
discussions. You should act in the same manner as you would in Australia toprotect your business security interests. As discussions progresses, consulting
Australian and Japanese lawyers, with specific expertise is recommended,
particularly in hi-tech and services industries.
Generally, while the paper contract agreement for business is important,
developing and committing to a relationship is more crucial to potential Japanese
business partners. Long legal documentation can often dull the enthusiasm of
http://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://menuopenwnd%28%27http//www.austrade.gov.au/ArticleDocuments/2149/JapanIPfactsheet.pdf.aspx','New_Window','width=450,height=400,top=100,left=100,resizable,%20scrollbars');http://menuopenwnd%28%27http//www.austrade.gov.au/ArticleDocuments/2149/JapanIPfactsheet.pdf.aspx','New_Window','width=450,height=400,top=100,left=100,resizable,%20scrollbars');http://menuopenwnd%28%27http//www.austrade.gov.au/ArticleDocuments/2149/JapanIPfactsheet.pdf.aspx','New_Window','width=450,height=400,top=100,left=100,resizable,%20scrollbars');http://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspxhttp://menuopenwnd%28%27http//www.austrade.gov.au/ArticleDocuments/2149/JapanIPfactsheet.pdf.aspx','New_Window','width=450,height=400,top=100,left=100,resizable,%20scrollbars');http://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetophttp://www.austrade.gov.au/Doing-business-in-Japan/default.aspx#sitetop -
7/29/2019 Country Overview
14/31
potential partners so a balance needs to be reached. Japans recent spate of
bankruptcies means that exporters should exercise due diligence on their business
partners before sending shipments to Japan. Credit service checks of Japanese
companies are available.
For further information please visitIP Australia.
Economy
links
The Japanese economy is one of the third largest in the world. Only the USA and China have ahigher GNP. The Japanese currency is theYen.
Exports: Japan's main export goods are cars, electronic devices and computers. Most importanttrade partners are China and the USA, followed by South Korea, Taiwan, Hong Kong, Singapore,Thailand and Germany.
Imports: Japan has a surplus in its export/import balance. The most important import goods are rawmaterials such as oil, foodstuffs and wood. Major supplier is China, followed by the USA, Australia,Saudia Arabia, South Korea, Indonesia and the United Arab Emirates.
Industries: Manufacturing, construction, distribution, real estate, services, and communication are
Japan's major industries today. Agriculture makes up only about two percent of the GNP. Mostimportant agricultural product isrice. Resources of raw materials are very limited and the miningindustry rather small.
http://www.ipaustralia.gov.au/understanding-intellectual-property/ip-for-business/doing-business-overseas/ip-protection-in-japan/http://www.ipaustralia.gov.au/understanding-intellectual-property/ip-for-business/doing-business-overseas/ip-protection-in-japan/http://www.ipaustralia.gov.au/understanding-intellectual-property/ip-for-business/doing-business-overseas/ip-protection-in-japan/http://www.japan-guide.com/e/e644.html#jump_linkhttp://www.japan-guide.com/e/e644.html#jump_linkhttp://www.japan-guide.com/e/e2196.htmlhttp://www.japan-guide.com/e/e2196.htmlhttp://www.japan-guide.com/e/e2196.htmlhttp://www.japan-guide.com/e/e2043.htmlhttp://www.japan-guide.com/e/e2043.htmlhttp://www.japan-guide.com/e/e2043.htmlhttp://www.japan-guide.com/e/e2043.htmlhttp://www.japan-guide.com/e/e2196.htmlhttp://www.japan-guide.com/e/e644.html#jump_linkhttp://www.ipaustralia.gov.au/understanding-intellectual-property/ip-for-business/doing-business-overseas/ip-protection-in-japan/ -
7/29/2019 Country Overview
15/31
Rice
Rice is Japan's most important crop, and has been cultivated across the country for over2000 years.It is the primary staple food of theJapanese dietand of such fundamental importance to theJapanese culture that it was once used as currency, and the word for cooked rice (gohan) hasbecome synonymous with the general meaning of "meal".
A bowl of cooked rice is a central part of traditionalJapanese meals, but the grain is also processedinto several different types of products including alcohol, vinegar and flour. The following are somecommon rice products and a list of common rice dishes that can be found across the country.
Common types of rice
White Rice (Hakumai)Japanese rice is short grain and becomes sticky when cooked. Themajority of Japanese rice is polished to remove the hard outer skin(rice bran) and consumed as hakumai ("white rice"). White rice is thefoundation of Japanese cooking and is served with most meals.Brown Rice (Genmai)Unpolished rice (genmai) is less commonly sold as it is notconsidered to be as delicious as white rice. However, it has beenrecently gaining popularity as a health food because it is morenutritious than white rice. The outer bran retains much of the vitaminsand minerals that are removed by polishing.
http://www.japan-guide.com/e/e2131.htmlhttp://www.japan-guide.com/e/e2131.htmlhttp://www.japan-guide.com/e/e2131.htmlhttp://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e2035.htmlhttp://www.japan-guide.com/e/e2035.htmlhttp://www.japan-guide.com/e/e2035.htmlhttp://www.japan-guide.com/e/e2035.htmlhttp://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e2131.html -
7/29/2019 Country Overview
16/31
Multigrain RiceOther grains and seeds may be added to white rice to add flavor andnutrients. One variation simply adds barley (resulting in mugi gohan),but more elaborate varieties may include more than a dozen differentadditions. Multigrain rice is usually called by the number of different
grains that are added (e.g. juhachikoku), and is served at somehealth food restaurants andryokan.Glutinous Rice (Mochigome)Glutinous Rice (also known as mochi rice or sticky rice) is the secondmost common variety of Japanese rice. When cooked it is evenstickier than regular Japanese rice and is commonly poundedintorice cakes, made into sweets, or used in rice dishes such assekihan (glutinous rice with red beans).
Common rice products
Rice Wine (Nihonshu or Sake)(more info)Rice wine, commonly known as nihonshu orsake(sake also beingused as a general term foralcohol), is an alcoholic drink made byfermenting rice. Sake comes in several varieties and may be servedhot or cold. It is not traditionally drunk together with rice dishes as itis considered to be rice itself. Produced in a similar way, mirin is asweet rice wine that is widely used in cooking. Rice VinegarVinegar can also be produced from rice, and is used in dressings,pickles, marinades and for preparingsushi rice. Most Japanese ricevinegar is light in color and flavor and only mildly acidic. Darkvinegars are also produced and drank as a health drink.
Rice FlourRice flour, made from ground up white or glutinous rice, is used tomake various Japanese sweets and rice crackers (senbei), as athickening agent in cooking, or as substitute for wheat flour to makebread. Rice flour is gluten free.
Rice Bran (Nuka)Rice bran, or nuka, is the hard outer skin of the rice grains that isremoved when polishing brown rice to make white rice. Rice branhas a high nutritional value and is used in a variety of ways inJapanese cooking, most commonly to make a typeofpickle(nukazuke).
http://www.japan-guide.com/e/e2029.htmlhttp://www.japan-guide.com/e/e2029.htmlhttp://www.japan-guide.com/e/e2029.htmlhttp://www.japan-guide.com/e/e2043.html#mochihttp://www.japan-guide.com/e/e2043.html#mochihttp://www.japan-guide.com/e/e2043.html#mochihttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2037.htmlhttp://www.japan-guide.com/e/e2043.html#mochihttp://www.japan-guide.com/e/e2029.html -
7/29/2019 Country Overview
17/31
Common rice dishes
Cooked Rice (Gohan)A bowl of rice forms the basis of mostJapanese meals. It is often the
central dish of meals such as with a Japanese breakfast or set meal(teishoku) in which the other dishes are traditionally consideredaccompaniments to the rice. A bowl of rice is commonly served as aset with miso soup andpickles. At Western style restaurants, cookedrice is served as an alternative to bread. Rice Cakes (Mochi)Rice cakes (mochi or omochi) are traditionally made from steamedand pounded glutinous rice. They are traditionally eaten onNewYear, but have become a popular dish throughout the year. Ricecakes are prepared in a variety of ways and may be eaten fresh,grilled, fried or served in soups like dumplings.Rice Balls (Onigiri)Rice balls, or onigiri, are made of cooked rice and are commonlywrapped in noriseaweed. They are usually lightly seasoned with saltand often contain a filling such asumeboshi(pickled Japaneseplum), okaka (dried bonito shavings and konbu) or salmon. Rice ballsare a popular and inexpensive snack available atconveniencestores, but are also commonly served atgeneralrestaurantsandizakaya.Tamago Kake GohanTamago kake gohan is a common breakfast dish consisting of a rawegg mixed into a bowl of rice. There are many variations on thissimple comfort food, but most often it is seasoned with bit of soysauce. Eggs are commonly eaten raw or partially cooked in Japan.
ChazukeChazuke, or ochazuke, is another simple comfort food consisting ofhot water, tea, or light fish stock poured over rice (sometimes madewith leftover rice). Chazuke is often garnished with toppings suchasumeboshi, grilled salmon orpickles. Chazuke is commonly servedatizakayaand is a popular dish to eat after drinking.
http://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e620.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2064.htmlhttp://www.japan-guide.com/e/e2064.htmlhttp://www.japan-guide.com/e/e2064.htmlhttp://www.japan-guide.com/e/e2064.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2071.htmlhttp://www.japan-guide.com/e/e2071.htmlhttp://www.japan-guide.com/e/e2071.htmlhttp://www.japan-guide.com/e/e2071.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2036.htmlhttp://www.japan-guide.com/e/e2071.htmlhttp://www.japan-guide.com/e/e2071.htmlhttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2064.htmlhttp://www.japan-guide.com/e/e2064.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e620.html -
7/29/2019 Country Overview
18/31
KayuKayu, or okayu, is Japanese rice porridge made by slowly cookingrice in lots of water. It tends to be thicker than other types of riceporridge or gruel and is a suitable dish for using left over rice. Kayu isoften garnished withumeboshiand is commonly served to sick
people because it is easily digestible.Donburi(more info)Donburi refers to a bowl of plain cooked rice with some other food ontop of it.Donburiare served at specialty restaurants, but they arealso a common dish that can be found on all kinds of restaurants'menus. Some of the most popular varieties aregyudon(stewedbeef), katsudon (tonkatsu), tendon (tempura), oyakodon (chickenand egg), tekkadon (tuna) and kaisendon (raw seafood). Sushi(more info)Sushican be defined as a dish that contains sushi rice, cooked whiterice flavored with vinegar. There are various kinds of sushi dishes,such as nigirizushi (hand formed sushi), makizushi (rolled sushi), andchirashizushi (sushi rice topped with raw fish). Sushi is the mostfamous Japanese dish outside of Japan, and one of the most populardishes among the Japanese themselves.Fried Rice (Chahan)Fried rice, or chahan, is a dish that was originally introduced fromChina. There are an infinite variety of ingredients that can be addedto fried rice. Some common ones are peas, egg, green onions (negi),carrots and pork. Chahan is a suitable dish for using left over rice.
OmuraisuOmuraisu, short for omelet rice, is fried rice wrapped in a thin eggomelet. Omuraisu is usually shaped like an American football andmay be garnished with ketchup or demi-glace sauce. It is a commondiner or cafe food, although specialty omuraisu restaurants alsoexist.
Rice Crackers (Senbei)Senbei are baked or grilled crackers made from rice flower. Theycome in many different shapes and sizes, and there are both savoryand sweet varieties. Some of the most popular are flavored withasoy sauceglaze or wrapped inseaweed.
http://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2349.html#umeboshihttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2345.htmlhttp://www.japan-guide.com/e/e2345.htmlhttp://www.japan-guide.com/e/e2345.htmlhttp://www.japan-guide.com/r/e106.htmlhttp://www.japan-guide.com/r/e106.htmlhttp://www.japan-guide.com/r/e106.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2045.htmlhttp://www.japan-guide.com/e/e2045.htmlhttp://www.japan-guide.com/e/e2045.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2310.htmlhttp://www.japan-guide.com/e/e2045.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/e/e2038.htmlhttp://www.japan-guide.com/r/e106.htmlhttp://www.japan-guide.com/e/e2345.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2342.htmlhttp://www.japan-guide.com/e/e2349.html#umeboshi -
7/29/2019 Country Overview
19/31
SweetsRice flour and pounded glutinous rice (mochi) are among the mostcommon ingredients of Japanese sweets alongside sweet beans.Some common sweets made with rice products include daifuku(sweetened red bean paste wrapped in mochi), kushi-dango (mochi
dumplings on skewers) and ohagi (red bean paste wrapped in coarsepounded mochi rice).Rice Bran Pickles (Nukazuke)Rice bran pickles are common householdpicklesfermented in amixture of roasted rice bran (nuka), salt and other ingredients.Wholevegetablesare stirred into the mash and allowed to cureanywhere from a day to several months. The resulting crisp, saltyand tangy pickles are then rinsed clean, sliced and served.Nukazuke are rich in lactobacillus and said to aid in digestion.
Rice Bread (Komepan)Rice flour can be used to make a variety of different types of bread.Rice bread (komepan) is sold at many bakeries andsupermarkets,and is good gluten free substitute for regular wheat flour bread.
Rice Manners
Pick up your rice bowl with your hand while eating from it.It is considered polite to finish every grain of rice that you have been served. It is not common to pour soy sauce directly over rice. Do not leave your chopsticks standing up vertically in your rice. This is done at funerals.
Rice fields
Rice fields are a common sight in the Japanese countryside and an image of nostalgia for manypeople. The fields start as flooded patties in the early summer and turn into seas of green and goldwaves as the rice grows and matures through the season. The crop of rice is then usually harvestedin the fall, although some southern regions may plant more than one crop per year.
Some places famous for particularly nice rice patty landscapes include theNotoPeninsula,Shodoshimaand theEchigo Tsumariregion inNiigata Prefecture.
http://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2349.htmlhttp://www.japan-guide.com/e/e2346.htmlhttp://www.japan-guide.com/e/e2346.htmlhttp://www.japan-guide.com/e/e2346.htmlhttp://www.japan-guide.com/e/e2073.htmlhttp://www.japan-guide.com/e/e2073.htmlhttp://www.japan-guide.com/e/e2073.htmlhttp://www.japan-guide.com/e/e4250.htmlhttp://www.japan-guide.com/e/e4250.htmlhttp://www.japan-guide.com/e/e4250.htmlhttp://www.japan-guide.com/e/e5430.htmlhttp://www.japan-guide.com/e/e5430.htmlhttp://www.japan-guide.com/e/e5430.htmlhttp://www.japan-guide.com/e/e7650.htmlhttp://www.japan-guide.com/e/e7650.htmlhttp://www.japan-guide.com/e/e7650.htmlhttp://www.japan-guide.com/list/e1207.htmlhttp://www.japan-guide.com/list/e1207.htmlhttp://www.japan-guide.com/list/e1207.htmlhttp://www.japan-guide.com/list/e1207.htmlhttp://www.japan-guide.com/e/e7650.htmlhttp://www.japan-guide.com/e/e5430.htmlhttp://www.japan-guide.com/e/e4250.htmlhttp://www.japan-guide.com/e/e4250.htmlhttp://www.japan-guide.com/e/e2073.htmlhttp://www.japan-guide.com/e/e2346.htmlhttp://www.japan-guide.com/e/e2349.html -
7/29/2019 Country Overview
20/31
Senmaida rice fields on the Noto Peninsula
-
7/29/2019 Country Overview
21/31
http://en.j-cast.com/2004/11/01000023.html
Japanese Business Overview11, 01. 2004
Overall Condition of the Economy and Industries
The waterfront in Tokyo
Current StateOut of the Long Tunnel of Recession
In 2004, Japanese industry made a comeback out of the dark tunnel ofrecession it found itself in after the bursting of the economic bubble. Industriesare treading a full-fledged path of recovery, and extreme pessimism regarding
the future has all but disappeared. Management is beginning to regainconfidence.
Skyscraper buildings newly built in Shiodome Area, Tokyo
http://en.j-cast.com/2004/11/01000023.htmlhttp://en.j-cast.com/2004/11/01000023.htmlhttp://en.j-cast.com/2004/11/01000023.html -
7/29/2019 Country Overview
22/31
With the exception of just a few industry sectors like construction, virtually allsectors saw growth, with the automotive industry as the biggest driver ofgrowth. The three top Japanese automobile manufacturers -Toyota Motor
Corporation,Nissan Motor Co., Ltd.andHonda Motor Co., Ltd.- togetheraccounted for FY2003 current income that surpassed two trillion yen. Digitalindustries centering on mobile phones and electronics, also became pillarsthat supported economic recovery. Even major consumer electronicsmanufacturers, which saw sustained stagnation, achieved profitability. Thiswave also hit the industrial materials manufacturing industry, with specialistsestimating that steel and chemical engineering is seeing the highest levelssince 1990 - 1991. The growth of global demand, centering on China, isbehind this.
On the other hand, the construction industry is still in the doldrums. It is
being affected by lowered public works spending that has resulted from thegovernment's fiscal crunch. Another cause of this stagnation is said to be thefall in construction tender prices resulting from the fact that it has becomedifficult in recent years to form Dango cartels.
Dango (bid rigging), in which contractors privately form an agreement inadvance on bid prices, etc. used to be a habitual practice of the Japaneseconstruction industry. Industries that are heavily dependant on governmentsubsidies and aid are also still seeing a downturn. The agro-industry is aprime example of this.
The Automotive Industry Drives the Japanese Economy
The production line of Nissan Motor where robot machines stand in rows in Tochigi Plant
There was a time when production, that is to say the Japanese manufacturingindustry, was so overwhelmingly strong that Japan was said to be the "factory
http://www.toyota.co.jp/en/http://www.toyota.co.jp/en/http://www.toyota.co.jp/en/http://www.toyota.co.jp/en/http://www.nissan.co.jp/EN/http://www.nissan.co.jp/EN/http://world.honda.com/http://world.honda.com/http://world.honda.com/http://world.honda.com/http://www.nissan.co.jp/EN/http://www.toyota.co.jp/en/http://www.toyota.co.jp/en/ -
7/29/2019 Country Overview
23/31
of the world." It began shortly after World War II with the textile industry,followed by the steel and chemical industries. From the post-war economicboom onward, consumer and industrial electronics gained strength. However,Taiwan, Korea, and now China caught up with Japan in terms of consumerelectronics, and we have seen, for example, related Japanese plants being
moved overseas or scaled down.
During the 1980s, Japan was the world leader in semiconductors. At onepoint, it had an 80% share of the world market for Dynamic Random AccessMemory (DRAM) storage elements. But, with the rapid growth of Koreanmanufacturers and the recovery of American firms, major Japanese playerspulled out of this market, one by one. There are no longer any remnants ofwhat used to be an industry that was closely associated with Japan. Thesame is happening in the case of personal computers. The exception in thisfield is digital cameras. When OEM (Original Equipment Manufacturer;
production under the brand name of another company) is included, digitalcameras manufactured in Japan account for a 75% share of the globalmarket.
Even under such a climate, the automotive industry retains a top globalposition. It is an industry that is representative of Japan in every aspect.Statistics announced by the JapaneseMinistry of Economy, Trade andIndustryshow that value of the domestic production of automobiles hasreached nearly 38 trillion yen, accounting for 13% total output by theJapanese manufacturing industry.The Japan Automobile Manufacturers
Associationestimates that more than 10% of Japanese workers, or roughly 7million people, are employed in fields related to automobile manufacturing.The number of cars produced in Japan in 2002 reached 8.62 million, ascompared with 5.12 million in Germany and 5.02 million in the Untied States.Japan is truly the world's top manufacturer of cars.
There are several reasons why automotives have come to represent strongindustry in Japan today and show outstanding performance while othertraditional manufacturing industries are struggling. An automobile iscomprised of twenty to thirty thousand parts, and combined strength in many
fields, such as machine tools, metal molding, robotics and electronics,become essential. In this sense, conditions were favorable for Japan, whichhas a broad industrial base. Furthermore, the spread of the Just-in-Timeproduction system originated by Toyota, Japan's technological developmentcapabilities as represented by hybrid cars, and the success of offshoreproduction in the US as well as Europe are some of the other reasons.
http://www.meti.go.jp/english/index.htmlhttp://www.meti.go.jp/english/index.htmlhttp://www.meti.go.jp/english/index.htmlhttp://www.meti.go.jp/english/index.htmlhttp://www.jama-english.jp/http://www.jama-english.jp/http://www.jama-english.jp/http://www.jama-english.jp/http://www.jama-english.jp/http://www.jama-english.jp/http://www.meti.go.jp/english/index.htmlhttp://www.meti.go.jp/english/index.html -
7/29/2019 Country Overview
24/31
A Weak Software Industry; Video Games an Exception
Japanese video games are popular among youngster
Software is one of industries that are weak in Japan. Domestic firms are farbehind those of the United States in the development and production ofcomputer software as well as movies and other visual content. The exceptionis video games, which continues to maintain a high share of the global market.Japanese videogame software accounts for the greater majority of popularvideogames in the U.S. As for videogame hardware, more than 70% of sold in
America are those of Japanese manufacturers.
The high quality of Japanese manga (comics) and anime (animation) and theplentitude of related human resources are supporting the Japanese
videogame software industry. The biggest weak point of Japanese industry,which is basically maintaining favorable conditions, is the financial servicesindustry centering on banking. Through decades following the end of WorldWar II, Japanese banks and financial services were under the strict guidanceand supervision of the Ministry of Finance. Banks were not permitted toconduct other financial services, and vice versa. There was no room forindividual companies to create and devise original products. A delay in
-
7/29/2019 Country Overview
25/31
Japan's implementation of deregulation and liberalization resulted in Japanfalling behind the U.S. and Europe in terms of competitiveness in this field.Furthermore, even major financial institutions faced the threat of bankruptcydue to the enormous amounts of non-performing loans that were left after thebursting of the economic bubble.
It was not until around 2000 that the move towards the merger, acquisition orpartnerships of and between financial institutions was accelerated. As of theautumn of 2004, the Japanese financial services industry has beenreorganized into seven major financial services/banking groups:Mizuho,Mitsubishi Tokyo,Mitsui Sumitomo, UFJ, Resona,Mitsui TrustandSumitomoTrust and Banking. The financial industry, nevertheless, has not yetcompletely recovered from the effects of the bursting of the economic bubble.UFJ and Resona both recorded losses for FY2003.
It is said that productivity in industries such as agriculture, construction, foods,energy, wholesale and retail, remain at a level that is about two-thirds of theU.S. This is because companies that should otherwise have left the marketare lingering through subsidies and protective administration.
The reduction of official regulations leads to a lowering of the burden placedon the people. Administration is streamlined and made more efficient,providing a greater forum for the private sector to exert their strengths. Withthis as a basic policy, Japan has been earnestly launching on deregulationsince the 1980s. The results of such efforts are gradually being seen, but
resistance forces still remain strong. The privatization of the Japan HighwayPublic Corporation has already been decided, and the postal service isscheduled to be privatized in 2007. Whether the privatization of the postalservice will proceed smoothly is likely to become a key, for the time being, toforecasting the future of Japan.
HistoryDemand Created by the Korean War Boosts the Japanese
Economy
In the last stages of the Pacific War, Japan was pretty much reduced to ruinsas a result of bombing by U.S. Forces, with its industrial infrastructureseverely damaged. After the end of the War, there was a serious shortage ofsupplies, which led to hyperinflation and deflation to counter it. The economysaw continued stagnation. However, the Korean War, which erupted in June1950, gave a boost that paved the way for the revival of the Japaneseeconomy. A broad spectrum of demand was created by this war, from heavy
http://www.mizuho-fg.co.jp/english/http://www.mizuho-fg.co.jp/english/http://www.mizuho-fg.co.jp/english/http://www.smfg.co.jp/english/index.htmlhttp://www.smfg.co.jp/english/index.htmlhttp://www.smfg.co.jp/english/index.htmlhttp://www.mitsuitrust-fg.co.jp/english/index.htmlhttp://www.mitsuitrust-fg.co.jp/english/index.htmlhttp://www.mitsuitrust-fg.co.jp/english/index.htmlhttp://www.sumitomotrust.co.jp/IR/company/index_en.htmlhttp://www.sumitomotrust.co.jp/IR/company/index_en.htmlhttp://www.sumitomotrust.co.jp/IR/company/index_en.htmlhttp://www.sumitomotrust.co.jp/IR/company/index_en.htmlhttp://www.sumitomotrust.co.jp/IR/company/index_en.htmlhttp://www.sumitomotrust.co.jp/IR/company/index_en.htmlhttp://www.mitsuitrust-fg.co.jp/english/index.htmlhttp://www.smfg.co.jp/english/index.htmlhttp://www.mizuho-fg.co.jp/english/ -
7/29/2019 Country Overview
26/31
industry products such as military trucks, locomotives, rail-track materials, oildrums, barbed wire and iron pillars, to services such as transportation andcommunications. This gave Japan the momentum for it to enter into its era ofhigh growth.
Consumer Boom for the "Three Sacred Treasures" ofJapanese Households
A bullet train of the Shinkansen moving towards the high-speed run
Consumer consumption, which had been repressed during World War IIthrough slogans such as, "Extravagance is the Enemy," and "We Shall NotWant until We Win," exploded when post-war chaos settled down in the1950s. In particular, there was great demand for consumer electronic productssuch as television sets (monochrome), washing machines and refrigerators.
These three items represented an affluent lifestyle and were called the "threesacred treasures." In October 1964, the Tokaido Shinkansen (bullet train) Linecommenced operations between Tokyo and Osaka.
This was just prior to the opening of the Tokyo Olympic Games. Consumerdemand from the latter half of the 60s shifted to the "three Cs," cars, coolers(air conditioners), and color TVs, and related industries experienced rapidgrowth.
The Arab Oil Shock and Demise of the Post-war "Japanese
Miracle"In August 1971, U.S. President Richard Nixon announced the New EconomicPolicy as measures to defend the U.S. dollar. The "Nixon Shock," whichtemporarily suspended the convertibility of the gold to the dollar as well asintroduced new import surcharges, had a swift global impact. The value of theyen, which had been favorable for Japan in terms of exports, was forced to
-
7/29/2019 Country Overview
27/31
appreciate. This was followed by the first oil shock. The Fourth Arab-IsraeliWar broke out in October 1973, and Arab oil producers raised the price ofcrude oil by 70% and imposed an embargo on countries that supported Israel.This had a major impact on Japan, which had been consuming large amountsof oil. The price of not only oil products but also almost all daily commodities
rose sharply. Consumers resorted to stockpiling while retailers held back onsales. It was a period of hysteria that saw a double-digit annual increase incommodity prices.
Trade Friction as a Result of Over-dependence on Exports
The second oil shock occurred in 1979. The structure of Japanese industrychanged greatly through the two oil crises, and it saw the rise of thefabricating industry which consumed less amounts of energy. The main playershifted from industrial materials manufacturing, with its consumption of a large
amount of energy, to the machine industry such as automotives, electronicand electric machinery, and precision instruments.
New cars loaded into an exclusive transport ship at the wharf of Oppama Plant of Nissan Motor,
Yokosuka-shi
It was during this time that the world saw the end of the era of Japan's rapidgrowth. Japan ceased to record the nearly 10 percent annual growth-averages of past years. It not only moved into a period of low economicgrowth but became ever more dependant on exports. This was not only
because domestic consumption was at a standstill but also due to theslowdown in investments. Japan looked abroad for demand. Exports,centering on Europe and the United States, rose sharply while there was littlegrowth in imports. It was difficult for foreign products to cut into the Japanesemarket because of stagnant domestic consumption, countless restrictivelegislation that remained toward imports, and a complex distributionmechanism. With Japan enjoying a trade surplus while its partners recorded
-
7/29/2019 Country Overview
28/31
deficits, Japan became the target of global criticism and the root of economicfriction with other countries. Issues related to the structure of Japaneseindustry, including closed trade practices which did not welcome entry bynewcomers and the high number of government regulations, were singled outfor criticism by abroad.
The Bursting of the Economic Bubble and its Repercussions
Japan's path to stabilized growth seemed assured in the late 1980s afterJapan had overcome two oil shocks, and Japan re-entered a state of supereconomic growth. Ear-pleasing phrases such as "Japan as number one" and"the 21st century would be Japan's century" abounded, while share and landprices rose sharply in a short period of time. The Japanese went on a buyingspree, snatching up shares, bonds, real estate, and even works of art aroundthe world. The bubble economy, which began in November 1986, continued
for 51 months and lasted until February 1991, during which time banks put outloans indiscriminately, and money games of unprecedented scales wereunfolded.
Brooks Brothers opened in Marunouchi Area, the center of the business town in Tokyo
The repercussions were disastrous. When the bubble burst, financialinstitutions found themselves strapped with massive bad loans and wereabsorbed or went under. The ballooning amount of nonperforming loansgradually began to drain corporate stamina. The once highly-admired
Japanese management style, with lifetime employment as one of its majorpillars, became an anachronism. The Japanese economy continued toworsen, excess facilities were disposed, and corporate downsizing became aboom. Instability continued, and when it looked at times as if the economywas on the upturn, it would immediately revert to a downward trend.
-
7/29/2019 Country Overview
29/31
When deflation and a decrease in consumer prices hit Japan, pessimisticviews forecasting that "Japan would sink" was heard. The 1990s was dubbed"the lost decade" for Japan in the sense that the country was too busycleaning up after the economic bubble to implement any forward-lookingmeasures to revive its economy.
ForecastThree Key Points towards the FuturePoint 1
Aim to Become the Global Leader in Nanotechnology
The Government of Japan andthe Nippon Keidanrenand other economicorganizations have identified leading-edge industries, especiallynanotechnology, as priority fields that major investment should be made in.Nanotechnology is thought to lead to "dream-like inventions" such as
medication that zeros in on cancer cells, portable fuel cells or resin that willnot tear despite its thinness. The Japanese government estimates that thedomestic market for nanotech products will reach 20 to 30 trillion yen by 2010.Japan is currently a global leader in the research and development ofnanomaterials. In the 1980s, the U.S. Government shifted to a pro-patent(pro-intellectual property) policy, and high federal budget priority was placedon fundamental fields. A similar move by Japan did not come until about 20years later. For this and other reasons, Japan has been repeatedly sufferingbitter experiences in the cutting-edge field research and development race.Genomes (genetic codes) are a prime example. In the decoding of the humangenome sequence, completed in 2000, the U.S. contributed roughly 70percent of the basic map and Great Britain about 20 percent, while Japanaccounted for a mere 6 to 7 percent. Japan will draw on this experience as ittackles the nanotechnology development race.
Point 2
Information Appliances Show Potential to Become a Major Hit
There is a big surge in sales of information appliances such as flat-screenTVs, DVD recorder/players, and mobile phones equipped with digital
cameras. The information appliance market is expected to surpass 1 trillionyen in 2006, and it looks like the market will become even bigger as productsthat completely integrate consumer electronics, computers and networks arelaunched in the future. The Japanese Ministry of Internal Affairs andCommunications announced in February 2004 that it will begin draftingcommunications standards for the connection of all information appliancesused in homes.
http://www.keidanren.or.jp/index.htmlhttp://www.keidanren.or.jp/index.htmlhttp://www.keidanren.or.jp/index.htmlhttp://www.keidanren.or.jp/index.html -
7/29/2019 Country Overview
30/31
Screen board of a securities firm in the town which compares Japan-U.S. stock price
Point 3
The Falling Birthrate and Growth of the Elderly Industry
It is estimated that that the elderly 65 and older will comprise 35.7 percent ofthe Japanese population by 2050. As of 2004, home-based services thatutilize Japan's Long-term Care Insurance System as well as nursing homesand other facility services are beginning to mark sharp growth. Services forthe elderly will, without doubt, become a major industry in Japan.
"Freeter" Estimates in Japan
On the reverse side of the coin in the long-term, Japan's falling birthrate will
become the Achilles' heel of Japanese industry. Fewer and fewer children arebeing born in Japan, and its birthrate in 2003 was a mere 1.29 per woman.This is, of course, not only below the birthrate of the United States but also ofnorthern European countries. The proportion of the working-age population(between 15 and 64) has already been declining since 1996. While theworking-age population declines sharply, there is a big surge in pension,healthcare and nursing care expenditures. It is certain that the economy and
-
7/29/2019 Country Overview
31/31
industry will weaken as a result. One solution is to accept more foreignworkers, something that Japan has shown reluctance in up to now. Accordingto one UN estimate, Japan will need to accept an average 160 thousandimmigrants per year in order to maintain its working-age population once afull-fledged era of low-birthrates hits. Another solution is to increase the
number of women in the workforce. Measures such as enhancing child-careservices and providing support for part-time work styles are underconsideration.