April 25, 2018

Press
To Members of the Osaka Economic Press Club

(cc: Osaka Prefectural Government Press Club, Osaka Municipal Government Press Club)

Joint release by the Osaka Prefectural Government, Osaka Municipal Government
and Osaka Chamber of Commerce and Industry (OCCI)Osaka Business and Investment Center (O-BIC)
Achievements in FY 2017
[Contact]
Ms. Liang and Ms. Fujita
Osaka Business and Investment Center (O-BIC)(International Division, OCCI)TEL: 06-6944-6298

I. About the Osaka Business and Investment Center (O-BIC)○ The Osaka Business & Investment Center (O-BIC) was established in 2001
jointly by the Osaka Prefectural Government, Osaka Municipal Government
and the OCCI as a one-stop support center to promote foreign direct
investment in Osaka (Secretariat: International Division, OCCI).
II. Overview of activities in FY 2017
O-BIC Attracted 42 FDI cases, the second highest level on record.
(1) Inward FDI trend
FDIs from Asian countries accounted for more than 90% of the total, with morethan 50% of these from China.
○ The number of FDI cases totaled 42 in FY 2017, the second highest in O-BIC’shistory. The number has stayed at a high level, hovering from the higher end of30 to above 40 since FY 2014. O-BIC attracted 164 FDI cases over the past fouryears, when the impact of inbound tourists to Japan became remarkable. The total
investment amounted to ¥1,630,080,000 (excluding one large M&A case). The
average investment by each company was around ¥10,000,000.
○ Looking at the investors in the 42 FDI cases by country and region, the largest
number of investors are from China (including Hong Kong) total of 25 cases (15cases in FY 2016), next is South Korea’s 6 cases (9 cases in FY 2016), and then3 cases from Taiwan (6 cases in FY 2016). The number of investors in the Asianregion amounted to 39 cases, making up more than 90% of the total, the same asin FY 2016. In five of the cases (six cases including one company that plans to gopublic), investors were listed companies in their mother countries. This clearlyshows the close economic relationship between Osaka and the Asian region.
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○ Until 2017 O-BIC has attracted a total of 506 FDI cases over the 17 years since
its establishment in 2001. China (188 cases), South Korea (86 cases), and theUnited States (42 cases) are ranked as the top three countries for the cumulative
number of FDI cases. Meanwhile, a building material manufacturer in Russia
opened its showroom in Osaka. This is the first Russian company that has madeinroads into Osaka.

(2) Characteristics of inward FDI for Osaka(i) Inbound tourist-related investment continued to grow steadily. Investors
from other Asian countries arise.
○The number of inbound tourists to Japan from Asian countries, including China
and South Korea, continued rising. With demand for high-quality Japaneseproducts increasing, the amount of inbound tourist-related investment, such asinvestment in the tourist industry, locations for purchasing goods, distribution
service agents, and real estate agents for foreigners, reached 19 cases,accounting for 45% of the total (13 cases in FY 2016).

○A feature of FDI in FY 2017 is that in addition to regular names such as China,Hong Kong, South Korea, and Taiwan, O-BIC attracted investment from other
Asian countries including Thailand, Malaysia, and India. Two companies fromIndia are travel agents. Based in Osaka, they plan to sell Japan sightseeing tour
packages to Indian people.

(ii) Large Taiwanese companies continued to make inroads into Japan thanks
to steady promotion activities.
○A large electrical manufacturer and the largest B2C internet retailer in Taiwan
forayed into Japan. A characteristic of their investment is two-way business:marketing their goods in Japan; and introducing very popular Japanese goods
to people in Taiwan.
○ O-BIC has upgraded its promotion activities over several years. For example,
it has actively received trade missions from Taiwan and has participated three2

years in a row in the “Symposium on Investment in Japan” organized by theJapan External Trade Organization (JETRO) and held in Taiwan. Its efforts
have started paying off.
(iii) Having a personal relationship with people in Osaka was a decisive factor
for overseas major companies to open offices in Osaka○Personal relationships have encouraged leading overseas companies to open
bases in Osaka. These companies have selected Osaka as their first foothold inJapan by placing more weight on personal contacts and business networks inOsaka-Kansai and smooth communication. This is because they have developed
a relationship of trust through transactions with companies and business
partners in Osaka over many years. The personal relationships that companies
and entrepreneurs in Osaka have built up have also played an important role inattracting FDI.

III. The main successful investment cases in FY 2017
■Large Chinese companies pay attention to the high manufacturing capability
Shenzhen Senior Technology Material and Nantong Haixing Electronics aim to develop
products for the global market through joint development with or capital tie-ups withcompanies in Osaka that have the edge in lithium-ion battery and manufacturing.
Senior Japan Osaka Research Institute (Higashinari-ku,Osaka)
Parent company: Shenzhen Senior Technology Material Co., Ltd.,a listed company that manufactures lithium battery separators inChina.
Business: Research and development
Support: Provision of business information and public relations

Haistar Japan Corporation (Hirano-ku, Osaka)
Parent company: Nantong Haixing Electronics Limited Liabilitycompany, a large company that manufactures and markets highperformance aluminum electrode foils in China.
Business: Investment in manufacturers that have unique
technology and know-how
Support: Legal issues and the establishment of the company,introduction of tax experts, provision of information

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■ Making inroads into Osaka to seek personal relationships
When SAMPO became a local agent for a major electric manufacturer inOsaka 80 years ago, it began to do business with Japanese companies.
The Company has now grown into a listed company that manufactures andmarkets general home electrical appliances. Using its extensive network ofJapanese companies in the field of home electrical appliances andlogistics, the Company plans to expand sales of its high-end products inJapan, including air cleaners that are developed in collaboration withHOSOO, a Kyoto-based textile (Nishijin brocade) company.
SAMPO JAPAN Co., Ltd. (Chuo-ku, Osaka)
Parent company: SAMPO Group in Taiwan, a listed company thatmanufactures and markets general home electrical appliances
Business: Import and marketing of its products in Japan, export andmarketing of OEM-manufactured Japanese products, export &import and marketing of daily commodities, operation ofrestaurants in Taiwan with a large Japanese restaurant operator
Support: Provision of business information and public relations; people
exchange with O-BIC when visiting Osaka as a member of the Third
Wednesday Club, the largest economic organization in Taiwan, which hasa tie-up with Osaka Chamber of Commerce and Industry■ High interest shown by companies in Osaka led to the first subsidiary in Osakaby a Russian company
KARVI has its head office and plant in Sakhalin. The Company is a leading enterprise inSakhalin that manufactures energy-saving windows using Germany technology and claims a70% market share in the market of residential and office building windows in Sakhalin. It
established its Japanese subsidiary and opened its showroom in Sapporo in 2016. Soon after,
the Company began sales activities in Japan, and companies in Osaka-Kansai showed highinterest. Thus, it began full-scale sales activities in western Japan by opening its showroom inATC Imported Housing Promotion Center.
KARVI JAPAN CO., LTD. (Suminoe-ku, Osaka)
Parent company: KARVI LLC in Russia that manufactures energysaving windows
Business: Marketing of energy-saving window systems
Support: Provision of business information, cooperation for sales
promotion activities, and public relations

4IV. Outline of FY 2017 activities

O-BIC’s Activities(1) Promotional activities○ In FY 2017, O-BIC continued to attract FDI to Osaka incollaboration with the Osaka International Business
Promotion Center and the Japan External Trade
Organization (JETRO) Osaka.
○ During FY 2017, O-BIC received 135 inquiries fromforeign investors, provided information about theJapanesemarketandenterpriseestablishment

procedures, and offered individual consultation.
○ O-BIC conducted promotional activities by paying
attention to cutting-edge fields, such as IoT and AI,
which are expected to grow sharply in the future, inaddition to the fields of new energy, life science, andMICE,

whereOsaka-Kansaihasadvantages.

Moreover, O-BIC also focused on enhancing thename recognition of Osaka and publicizing theattractiveness of Osaka, with a campaign in mind towin the right to host the 2025 world exposition (EXPO)
in Osaka.
○ Specifically, in Japan, O-BIC brought in Chinese, American,
Europian

andCanadianbusinesses

andeconomicorganizations from various sectors to promote Osaka as aninvestment

destinationandholdbusiness※Support Program：
O-BIC’s unique incentive forpromoting investment in Osaka byalleviating the burden throughreduction of part of the costs (Ex.
Registration, Visa etc.)（Maximum supportamount:¥150,000 ）matching

sessions for them and local companies in Osaka. O-BIC also interviewed representatives
from foreign companies participating in trade fairs such as “Life Science World” and“Manufacturing World Japan” to find prospective investors. Outside Japan, O-BIC held
seminars and participated in trade fairs in various countries and regions, such as the U.S.,
China, Taiwan, South Korea, Thailand, Vietnam, India, and Chile to introduce Osaka's
investment environment.

(2) Support for firm establishment○ O-BIC holds an Osaka Business Networking Club event twice a year to help foreigncompanies operating in Osaka build networks with local companies. O-BIC also informs them
about various networking events hosted by OCCI and other local organizations, such as theKansai International Meishi Exchange. In addition, O-BIC helps them with their promotional
activities and introduces them to market development tools and other useful resources to help
them become firmly established in Osaka.
5○ In FY 2017, the Osaka Business Networking Club held a lecture by the Consul General ofItaly in Osaka, titled “The Benefits of World Expositions: Lessons from the Expo Milano2015” to heighten the momentum to invite the 2025 world exposition (EXPO) to Osaka. Inaddition, it held a lecture by the manager of a leading restaurant chain in Osaka at ahistoric building designated as an important cultural property, a tour of the historic building,and a networking meeting to enhance people’s understanding of Osaka and expand
exchanges with local companies. In total, 123 persons participated in the above events.
＜Reference materials＞①A matrix of O-BIC investment cases in the Osaka region in fiscal 2017
②A matrix of O-BIC investment cases in the Osaka region in fiscal 2001-2017

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Osaka Business and Investment Center (O-BIC)
Matrix of Investment cases in FY2017

Cases of New Entry : 42
Industry
R&D

Manufacturing

Wholesaleand Retail(Export)

Wholesaleand Retail(Import)

finance andinsurance

58(2)

12(1)

11(6)

4

1(2)

1

Transportation

Information andCommunications

Publicagencies/organizations

ServiceTOTAL

Country/Region
China

20(15)

5(1)

(1)

6(9)

(3)

3(6)

22(0)

11(1)

Thailand11(0)Malaysia

11(0)

0(1)

0(1)

0(1)

0(1)

39(36)

1(0)Hong Kong(1)

2(1)

(3)

2

Korea

(1)

1

Taiwan(1)

1(1)

3(1)

India
Singapore
Asia

(1)

(7)

1

Israel(1)Macau(1)Myanmar(1)

Mongolia
Asia/Total(1)
2(2)

2(1)

7(5)

12(13)

Malta

1(0)

0(1)

0(1)

14(12)1(1)1Russia11(0)Denmark

11(0)

0(1)

0(1)

EuropeUK(1)

Portugal
EU/Total
TOTAL

(1)
0(0)

0(1)

0(0)

2(1)

1(0)

0(0)

0(0)

0(0)

0(0)

3(2)

2(2)2(2)7(5)

14(14)

2(0)

0(1)

0(1)

14(12)1(1)42(38)

ACHIEVEMENTS in the last 17 years(April 2001 - March 2018)
Country/Region

Industry
Manufacturing

R&D

Wholesale and Wholesale andRetail (Export) Retail (Import)

Finance andInsurance

Information andTransportation Communications

ServicePublicagencies/organizations

OthersTotalAsia
China

2

538

65

2

13

1032

16

Korea

11941

2

1919

3

Hong Kong

2683

120

24

136414

Shingapore

5India4Indonesia

1Sri Lanka

2118386

131

Taiwan121191730

Thailand

134

Myanmar1113Vietnam

112

Mongolia

1PakistanMacau

1Malaysia

1Philippines

531112121111Hong Kong/Singapore

11Israel

Asia/Total

125758147

521USA

12218

North America Total

12220

142

France1153

Germany216183376

24037313184

141425172

North America
Canada10050Europe
UK

3Ireland81124131Italy

1Switzerland

4192

1113

15Spain22

Denmark

33Finland

1Belgium121

The Czech Republic

Sweden1111212Norway

11Slovakia

1Netherland

11Poland21Portugal

12Malta21Russia
Europe Total

11143033

170716333174

Oceania
New Zealand

1

Australia

1Oceania Total

000

Africa Total

00Total

10121
72003300810000000161202

131848112291506

AfricaCote d'Ivoire

11