What's next in Asia?
Ernst & Young reveals the hot spots for foreign direct investors in Japan When looking at the evolution of the attractiveness of Asia over the last year, 59% of investors note an improvement. Investors are confident in the future development of Asia's attractiveness: 71% of respondents believe the attractiveness of Asia will improve in the next three years.
Japan looks good, but China gets more investment
Japan and China are jointly perceived as the most attractive countries in Asia for foreign direct investment. Each gets a 27% rating. India ranks second, with an 11% citation rate, followed by Hong-Kong and Singapore, joint third (10%).
However, there is a big gap between perceptions and the reality of Japan’s attractiveness: Japan ranks 5th in Asia for actual inward Foreign Direct Investment (FDI) projects. At a global level, China is number one, whilst Japan is in 20th place - behind the Czech Republic.
This first and unique survey, lauched by Ernst & Young at the request of Japan External Trade Organization (JETRO) and Japan’s Ministry of Economy, Trade and Industry (METI), is based on telephone interviews with senior executives of US, European and Asian companies.
Future investment intentions in the Asia region, position and perceptions of Japan, its strengths and weaknesses... are the main key issues of the report.
“While Japan is perceived as attractive to investors, its strong image needs to be turned into actual investment projects. Japan has a card to play with its leadership on quality and connectivity factors to become tomorrow’s Asian hub. But Japan has to convince the international business community of its capacity to play as a gateway to the Asian market rather than a market in itself”, concluded Fabrice Reynaud, Senior Manager, Ernst & Young's ILAS European network.
Japan’s strengths: quality, infrastructure and stability
Japan clearly stands head and shoulders above its Asian competitors on criteria of quality and connectivity criteria: the country is deemed the most attractive for the quality of telecommunications, transport and logistics infrastructure (32% and 33% of citation rate respectively). On research and development (R&D) availability and quality, investors confirm Japan’s image for quality - 39% of them mention it as the most attractive country on this criterion.
On risk related factors, Japan also has a large lead over its Asian competitors. Overall, 32% of investors cite Japan as the most attractive country for political stability. Japan is also ranked as the most attractive location for labor skills, achieving a citation rate of 27%, ahead of China.
Read our press release: Baromètre de l'Attractivité du Japon 2008
About the Japan External Trade Organization
The Japan External Trade Organization (JETRO), is a government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. Originally established in 1958 to promote Japanese exports abroad, JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential.
Why Japan and China are jointly perceived as the most attractive countries in Asia?
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