Provisional Translation by the Cabinet Office

Strategy for Promoting Foreign Direct Investment in Japan
June 2, 2021
Adopted by the Council for Promotion of
Foreign Direct Investment in JapanI.

Current Status and Basic Concept of Strategy

1. Current Status of Foreign Direct Investment in Japan
Foreign Direct Investment (FDI) in Japan contributes to the enhancement of the growthpotential of the Japanese economy as a whole and the revitalization of regional economies byattracting high-quality human resources, technologies, and abundant funds from overseas,leading to the creation of innovation and the incorporation of the vitality of overseas economies
into rural areas. In particular, in order to overcome the declining population in Japan andachieve robust growth, it is necessary to leverage FDI in Japan to boldly take in the vitality offoreign countries. It is therefore necessary to set bold targets and take drastic measures inorder to dramatically increase FDI in Japan.
In 2013, the government set a target of "doubling the inward foreign direct investment stocks
to 35 trillion yen by 2020" as a key performance indicator (KPI) 1, and in order to achieve thetarget, the government has been making efforts to expand FDI in Japan such as identifying
and attracting companies that are interested in investment, improving the businessenvironment and the living environment for foreign people working in Japan, and providing
opportunities to find Japanese companies to collaborate with. The inward FDI stocks had been
flat since the latter half of the 2000s, but have continued to increase since 2014, reaching 39.7
trillion yen as of the end of December 2020 (revised value) 2, thereby achieving the above
target.
Meanwhile, the ratio of the inward FDI stocks to the GDP as of the end of December 2020
was 7.4%, which was remarkably low compared to the OECD average of 56.4% (2019) 3.
Looking at the investment source of the inward FDI stocks by region in recent years, Europe
has continued to hold the largest share (47%), but in recent years, the share of Asia has
increased significantly, and is on track to overtake North America (North America: 28% as ofthe end of 2015 → 24% as of the end of 2020, Asia: 17% as of the end of 2015 → 23% as ofthe end of 2020). By industry, growth is highest in the finance and insurance industries, whichhave continued to grow in North America, Europe, and Asia. Growth is increasing also in thetelecommunications, chemical, and pharmaceutical industries. It is necessary to continue toexpand the fields in order to solve issues such as realization of an international financial city,
promotion of digitalization, and improvement of healthcare. On the other hand, growth issignificantly negative in the wholesale and retail trade as the population continues to decline.

123"Japan Revitalization Strategy" (Cabinet Decision, June 14, 2013)
The Ministry of Finance and the Bank of Japan, "International Investment Position of Japan"
The average percentage of inward FDI to nominal GDP among OECD countries comes from "FDI stocks" inOECD Data. The percentage of Japan’s inward FDI to GDP is calculated using "International Investment
Position of Japan" of the Ministry of Finance and the Bank of Japan and "National Accounts of Japan" of the
Cabinet Office.

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Looking at investment destinations by prefecture, as of 2016, approximately 60% of foreignaffiliated companies in our country had their headquarters in Tokyo, Kanagawa, and Osaka 4,
indicating that investment is still concentrated in some metropolitan areas. Therefore, a futureissue is to spread the FDI to rural areas and to thereby revitalize regional economies.
2. Basic Concept of Strategy
Due to the spread of the novel coronavirus infectious disease (hereafter referred to as“COVID-19” ), there is a concern that the amount of international direct investment will decline 5,
but in order to realize sustainable growth, it is still important to attract global investment, humanresources and technology, and it is necessary to continue to develop the environment for thispurpose. Therefore, a new KPI by 2030 will be set, medium- and long-term strategies forpromoting FDI in Japan to achieve it will be formulated, and all policies and efforts to promote
FDI in Japan will be mobilized.
In addition, in considering the way FDI in Japan by 2030 should be, it is necessary to
formulate strategies that take into account the changes toward the post-corona economic
society such as digitalization and the realization of a green society, changes in global trends
such as advancement of global decoupling and changes in global supply chains, and issues
toward building a sustainable economic society including the declining birthrate and aging
population.
In promoting FDI in Japan, it is important to increase the stocks (amount), but the increase
itself is not the ultimate goal, and the most important thing is to contribute to economic growth
and regional economic revitalization through productivity improvement. Under the situation
where a declining population is unavoidable for the time being, in order to achieve sustainablegrowth of our country, it is essential to construct and expand a creative and dynamic"innovation ecosystem" by accepting funds and innovative technologies and know-how fromoverseas through "open innovation" which utilizes the strengths of technological and researchand development capabilities. It is therefore necessary to accelerate the recruitment anddevelopment of highly-skilled human resources and the development of strategic business andliving environments, as well as to create a "new flow toward rural areas" of people, technology,know-how and capital, and to link this with regional resources such as agricultural, forestry,
and fishery products, tourism, etc., as a trigger for the formulation of autonomous regional
revitalization power.
In particular, in order to achieve robust economic growth of our country in the future, it will
be important to actively attract foreign investment and human resources with advanced
technologies and know-how in growth fields such as digital and green, and to construct anecosystem that generates strong innovation in our country. In addition, from the perspective of
economic security, an urgent task is to construct a strong and sustainable supply chain
including the securing of a domestic manufacturing base in cooperation with overseas
companies in relation to important products and cutting-edge technology products such as
semiconductors that are strategically important to our country. From this perspective, it isnecessary for the government to continue to make maximum efforts to develop the domestic
investment environment that will attract foreign investment and human resources while making
4
5

The Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry, "Economic
Census for Business Activity"
For example, UNCTAD estimates that global FDI will decline by up to 40% in 2020 and another 5-10% in 2021
due to the impact of the novel coronavirus (UNCTAD, "World Investment Report 2020").

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the most of the human resources and research and development capabilities of companies
and universities in our country and the potential of regional resources.
It is therefore necessary to comprehensively and integrally promote various policies byministries and agencies to create innovation and revitalize regional economies, as well as
policies to promote FDI in Japan.
Our country will lead the realization of free and fair investment and actively take in the vitalityof overseas economies without falling into protectionism. In addition, based on "Data Free Flowwith Trust (DFFT)" agreed at the G20 Osaka Summit, international rules will be developed topromote the free distribution of data by ensuring "Trust."
In doing so, all possible measures will be taken from the perspective of security, such as
securing the close cooperation between the relevant government ministries and agencies andtaking appropriate measures based on the Foreign Exchange and Foreign Trade Act in orderto ensure that inward FDI does not harm our national security 6. Based on this, the government
will strategically promote FDI in Japan that will lead to the creation of innovation, such as
cutting-edge digital investment and the revitalization of regional economies, thereby
contributing to the economic development of our country.
This strategy has set the following three points as basic pillars based on the points above.
(1) Creation of a New Digital Green Market and Building of an Innovation Ecosystem
Under the situation where the competition is increasingly intense among countries to attract
capital such as risk money and highly-skilled human resources, it is necessary to enhance theattractiveness of our country and companies in our country as investment destinations andcollaboration partners from the perspective of the maturity of the ecosystem that creates newvalue in the fields of active innovation and growth markets.
Therefore, the technological and research and development capabilities of our country will
be utilized to establish multiple bases for an internationally open and attractive innovation
ecosystem, accept foreign funds and innovative technologies and know-how, and stimulate
creative and dynamic innovation activities.
In particular, while the realization of a carbon neutral society by 2050 and digitalization suchas the establishment of digital government and the promotion of DX in the private sector are
strongly promoted as part of our national strategy, we actively accept foreign investment inresearch and development and manufacturing bases in strategic fields such as digital andgreen, promote the construction of resilient supply chains that secure domestic manufacturingbases for semiconductors and other important products that are strategically important fromthe perspective of economic security, and create new growth markets, which are utilized as"driving force" for future growth. In order to take in the ESG funds that are estimated to be3000 trillion yen in total in the world, standards concerning sustainable finance will be
developed and disclosure of climate-related financial information will be enhanced by revising
the Corporate Governance Code, and the development of an international investment

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Example measures include: (i) appropriate operation and enforcement of the Foreign Exchange and Foreign
Trade Act from the perspective of appropriate responses to investments that may harm national security whilefurther promoting FDI in Japan that leads to sound economic development, (ii) collection of relevant information
for strengthening the prevention of technology outflow at universities, research institutes, enterprises, etc., fromthe perspective of securing and maintaining our country's technological superiority, and (iii) prevention of theland utilization that impairs the functions of important facilities (such as defense-related facilities) and remoteislands at the border.

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environment in the field of green finance such as the green bond market will be promoted. In
this way, the development of a market environment will be accelerated in which a virtuous cycleof capital and growth is created, where foreign money such as ESG investments is directed to
new markets in our country and joins our country's investment funds and risk money to become
the driving force behind the creation of new industries, and their growth potential will attract
new funds again.
With regard to the open business environment, strength of technology, and the future
potential of markets in our country, FDI in Japan will be promoted by the government by activelytransmitting and disseminating information including the utilization of top-level channels andoverseas offices such as overseas diplomatic missions and JETRO.
(2) Acceleration of the Development of Business Environments in Response to Global
Environmental Changes
In order to enhance our country’s innovation and international competitiveness, it isessential to develop attractive business and living environments that will attract foreign capitaland human resources by responding to global environmental changes and eliminating various"barriers and obstacles" that impede foreign investment in our country. In particular, with regard
to the development of the financial business environment, the reforms to financial and capital
markets that are as attractive as those in other countries and the development of anenvironment to attract highly-skilled foreign financial professionals will be strategicallypromoted, thereby realizing the construction of an international financial city open to the world.
The development of an attractive business environment for global companies will also be
promoted by revising the Corporate Governance Code and promoting the disclosure ofcorporate information in English.
The key to achieving strong growth in the future is the acceptance from overseas of diverse
human resources with excellent ideas and skills to support it. From this perspective, the goals
and a time base as concrete action plans will be specified and then the development of theliving environments including business environment, education, and medical environment inour country will be accelerated. Specifically, for example, the introduction of online
administrative procedures and administrative procedures in English in our country, which has
lagged behind in terms of global standards, will be drastically furthered. Efforts to secure anddevelop global human resources in Japan as a country that accepts human resources will also
be accelerated. In light of the impact of COVID-19, and while taking measures to prevent the
spread of COVID-19, the smooth and appropriate acceptance of foreign nationals will befacilitated by promoting the acceptance and active participation of foreign highly-skilled
professionals, conducting domestic and overseas examinations for specified skilled workers,
and ensuring the proper operation of the Technical Intern Training program based on the"Comprehensive Measures for Acceptance and Coexistence of Foreign Nationals." At thesame time, measures such as the creation of a community where foreign nationals can live
comfortably and the promotion of online application procedures for status of residence will beenhanced.

4(3) Development of an Investment Environment through Public-Private Partnerships
Utilizing Regional Strengths
While the FDI destinations are concentrated in some metropolitan areas, there are a varietyof regional resources in rural areas, such as attractive agricultural, forestry and fishery products,
tourism resources, and numerous small and medium-sized enterprises with technologicalcapabilities. By combining the strengths of each region with the human resources,
technologies, know-how, and capital possessed by foreign companies, the startups andexisting companies that create new products and services are encouraged to improve theirproductivity, and the ability of local communities to create added value will be enhanced, which
will lead to the revitalization of local economies through job creation.
Therefore, the follow-up systems and support systems through public-private partnerships
from a regional perspective will be enhanced and the development of the investment
environment in the region will be accelerated through digitalization. Specifically, measures will
be promoted comprehensively, such as the establishment of "key concepts" that will be theaxes of attraction taking advantage of regional strengths such as green, digital, healthcare,etc., the establishment of the Project for Supporting Regional Brand Building that allocate
specialized human resources and sophisticate attraction strategies, and the promotion of suchprojects in cooperation with the support for the formation of innovation ecosystem bases. In
doing so, sufficient consideration will be given to prevent the outflow of technology and humanresources of our country's middle-scale, small and medium-sized enterprises, and small-scalebusinesses that create high added value.

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II.

Specific Efforts

1. Creation of a New Digital Green Market and Building of an Innovation Ecosystem
An attractive innovation ecosystem that utilizes the technological and research anddevelopment capabilities of our country will be built and disseminated to the world, and newmarkets that are open to the world in such fields as green and cutting-edge digital will becreated. Therefore, the following efforts will be made.
<Formation of international innovation ecosystem base cities>(1) Create international innovation ecosystem cities that are internationally open, centeredaround the top universities in the region, and promote the accumulation of foreign startups,
overseas human resources (teachers, researchers, entrepreneurs, etc.), and investors ina unified and integrated manner. [The Cabinet Office and the Ministry of Economy, Tradeand Industry] <<8 cities by FY 2025 has been set as a target>>• Comprehensively utilize the measures listed below from the "Startup Ecosystem Base
Cities" to form international startup ecosystem base cities where interaction and innovation
are constantly generated between startups and university-originated ventures in our country
and promote the accumulation of foreign startups, overseas human resources (teachers,
researchers, entrepreneurs, etc.) 7, and investors.
- Building of a startup ecosystem base that involves cities and universities to radicallystrengthen entrepreneurship and accelerator functions- "Program for Acceleration of Foreign Direct Investment in Japan," which supports the
expansion of startups to global markets and the attraction of investment from large
overseas companies and overseas venture capitals (VCs)- University Fund for Building World-Class Research Foundations (at a cost of 10 trillion
yen/aiming to start operation in FY 2021)- Startup Company Development Support Program (J-Startup)- Support the utilization of incubation facilities where the environments necessary forstartup companies have been developed (the efforts of Station F 8 in France shall also
be referred to)- Construction of a platform for corporate development that also utilizes former employees
will be considered also with reference to the Silicon Valley model.
• The overseas bases of "Japan Innovation Bridge (J-Bridge)," which is a platform forpromoting cooperation and M & A between Japanese companies and foreign companies
78

The purpose of the position of Coordinator for International Relations (CIR) of the Japan Exchange and Teaching
Programme (JET Programme) implemented in cooperation with the Ministry of Internal Affairs andCommunications, the Ministry of Foreign Affairs, the Ministry of Education, Culture, Sports, Science andTechnology, and the Council of Local Authorities for International Relations (CLAIR) is to assist in international
exchange-related affairs, and there are cases where the CIRs have also contributed to corporate invitation
activities.
One of the world's largest incubation facilities that opened in central Paris in 2017 as part of the "French Tech,"
an initiative by the French government to support startup companies, including large companies and ones inrural areas. More than 1,000 startup companies are using it.

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such as startups, will be expanded, foreign companies and startups will be introduced,
business negotiations will be set up, and verification support will be provided to Japanesecompanies regarding the priority fields such as carbon neutral and mobility.
• In addition, initiatives that contribute to the creation and growth of startups, human resource
development, and research and development under industry-academia collaboration will bepromoted.
<Creation of an open and innovative new green market toward the achievement ofcarbon neutrality by 2050>(2) Toward the achievement of carbon neutrality by 2050, an open research and development
system will be established by utilizing the Green Innovation Fund and projects that canenhance incorporation of advanced technologies from overseas and conducting
international joint research/demonstrations will be promoted by the Fund if spillover effects
on the domestic economy are expected. [The Ministry of Economy, Trade and Industry]<<Acceptance of project funding applications started in April 2021>>• With regard to priority areas such as electrification and the greening of electric power (suchas next-generation storage battery technology), realization of a hydrogen society(technology to supply and use large quantities of hydrogen to decarbonize the thermal andelectric power fields), and CO2 fixation and reuse (such as carbon recycling utilizing CO2
as raw material and fuel), continuous support will be provided for the ambitious researchand development activities of companies that show commitments to specific target periods
and targets, with a fund of 2 trillion yen over the next 10 years with the aims of early
establishment and social implementation of innovative technologies in various fields suchas electric power, manufacturing such as steel and chemistry, and transportation such as
automobiles. In this context, if a spillover effect on the domestic economy is expected, theprojects that can cooperate with foreign-affiliated companies, incorporate overseas
advanced technologies, and implement international joint researches and demonstrations
will be promoted.
• J-Bridge will be utilized to promote collaboration between Japanese companies andEuropean and U.S. companies that have strengths in carbon neutral fields such as offshore
wind power. In doing so, they will cooperate with local governments. In addition, taking
advantage of opportunities such as the creation of rapidly advancing new markets in ASEAN
and other countries, cooperation will be enhanced by promoting cooperation between local
companies and Japanese companies that have technological capabilities related todecarbonization.
• In order to respond to the rapid increase in digital demand and data communications volume
in the future, the locations of high-performance and low-power consumption data centerswill be dispersed throughout Japan. In addition, the issues will be strategically consideredalso from the perspective of economic security in order to promote domestic investment in
R & D bases for cutting-edge semiconductors and manufacturing technologies that will
support the digitalization of economic society in our country and to establish a resilient
supply chain that includes the securing of a domestic manufacturing foundation.

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<Further development of the domestic investment environment in the digital and otherfields also from the perspective of economic security>(3) Under the situation where the measures such as support to strengthen resilience of the
supply-chain, funds for post-5G and semiconductor technological innovation, and tax
incentives to promote digital transformation investment are in progress, development of
the investment environment will be further promoted, including support for demonstrations
by foreign-affiliated companies, market research, and new investment in manufacturing
facilities also from the perspective of economic security. [The Ministry of Economy, Tradeand Industry]• In view that the vulnerability of supply chains in our country has become apparent, such as
disruptions in the supply of products whose production bases are highly concentrated inoverseas areas due to the impact of COVID-19, support will be provided to strengthen theresilience of supply chains while analyzing the current state of supply chains in our country.
• Utilizing the funds for post-5G and semiconductor technological innovation, continuous
efforts will be made to develop post-5G information and communications systems andadvanced semiconductor technologies.
• In fields such as cutting-edge semiconductors that are strategically important for our country,
resilient and sustainable supply chains will be built, including the securing of manufacturingbases in Japan in cooperation with overseas companies.
• In order to accelerate the digitalization of the economy, tax measures will be taken from FY
2021 to promote digital-related investment utilizing cloud technology necessary for realizing
digital transformation (DX) and research and development investment related to software
for providing services through the cloud.
• While these efforts are being promoted, even more attractive environments for investment,
research and development, and corporate collaboration will be developed.
<Dissemination of information to the world>(4) Taking advantage of opportunities such as the Japan Business Conference in which top
management of foreign companies participate, held along with the Tokyo 2020 Olympic
and Paralympic Games, and Web Summit Tokyo, one of the largest technology
conferences in the world, continuous transmission and dissemination of information toother countries will be carried out by transmitting information to the world such as the open
business environment of our country, strengths of technologies, and fascination of market
potentials. [The Ministry of Economy, Trade and Industry and the Ministry of Foreign
Affairs] <<Implemented since FY 2021>>• Taking advantage of the opportunity of the London Olympics, the United Kingdom held apublic relations event (The British Business Embassy) to promote direct investment in the
United Kingdom and the overseas expansion of British companies. With reference to theefforts, the Japan Business Conference in which top management of foreign companies
and relevant ministers of our country participate will be held along with the Tokyo 2020
Olympic and Paralympic Games in person or online also in our country, and the open
business environment of our country and efforts toward "carbon neutrality by 2050" will be8transmitted actively to the world.
• "Web Summit," one of the world's largest technology conferences that is the place topromote promising startups in the countries of participants internationally and attract
investment, will be held in Tokyo from 2022.
• Top sales will be conducted at the request of local government heads for particularly
important investment matters such as large-scale investments in priority areas. At the sametime, video messages from persons such as ministers will be produced and used for
activities to attract foreign investment.
• Strengthen public relations through the Contact Point for Promotion of Foreign Direct
Investment towards Japan operated by overseas diplomatic missions.
2. Acceleration of the Development of Business Environments in Response to Global
Environmental Changes
Accelerate the development of business environments that respond to the changes in the
global environment by taking measures such as acceptance of highly-skilled foreign humanresources, reforms to attractive financial and capital markets, introduction of online
administrative procedures, and multilingualization of procedures, life-related information, andlaws and regulations.
<Realization of an international financial city>(1) Environments will continue to be developed for accepting highly-skilled foreign
professionals, and reforms to financial and capital markets that are as attractive as thosein other countries and construction of environments to attract overseas businesses will be
strategically promoted, thereby realizing an international financial city open to the world.
[The Financial Services Agency and the Ministry of Justice] <<Implemented since FY
2021>>• Efforts will be made aiming to make the country attractive as a place to do business using
the financial industry, especially the asset management industry, as a breakthrough bytaking advantage of our country's strengths, such as good public security and living
environments, and personal financial assets of 1,900 trillion yen.
• Efforts will be made further to transmit and disseminate the information on tax measures(corporate, inheritance, and personal income taxes) 9 to make it easier for overseas
businesses and highly-skilled financial professionals to enter and conduct business inJapan.

9

Measures have been taken as follows: (i) with regard to corporate tax, for unlisted non-family companies mainly
engaged in the investment management business, performance-based compensation of directors could be
deductible under certain conditions; (ii) with regard to inheritance tax, for foreign persons living in Japan for
purposes including working, regardless of the period of residence, if a foreign person living abroad or a foreign
person staying in Japan for a short period of time becomes an heir, the foreign assets shall be exempt fromtaxation; and (iii) with regard to income tax, it has been clarified that carried interest should be subject toseparate taxation (20% flat) as gains on share transfer in certain cases such as the profit distribution of thecarried interest has economic rationality (carried interest is the profits distributed to a fund manager from a fundin which the manager has equity in excess of the investment ratio depending on the operation result).

9• A system will be established under which investment managers of funds whose main clientsare foreign professional investors can participate through simple procedures (filingnotifications).
• With regard to the status of residence, convenience will be improved implementing special
measures for granting a status of residence in order to enable foreign nationals to starebusinesses in Japan without returning to their home country after entering Japan on the“Temporary Visitor” status of residence, etc.
<Promotion of corporate governance reforms>(2) Corporate governance reforms that assist increasing diversity within companies will befurthered. [The Financial Services Agency] <<Corporate Governance Code scheduled tobe revised in June 2021>>• The Corporate Governance Code will be revised, including requirements for increasing theratio of independent outside directors at companies listed on the Prime Market to one third,
and for presenting policies and voluntary and measurable goals for ensuring diversity in the
promotion to core human resources, such as the promotion of women, foreign nationals
and midcareer hires.
<Securing and development of global human resources>(3) Assistant Language Teachers (ALTs) or staff fluent in English will be allocated to all 20,000
elementary schools in Japan. [The Ministry of Education, Culture, Sports, Science andTechnology] <<Assigned to all elementary schools by FY 2022>>• The goal of the new National Curriculum Standards is to develop the competencies tocommunicate through language activities, and the allocation of external human resources
such as ALTs in elementary schools and staff fluent in English has been promoted. In orderto further improve the environment for foreign language education in elementary schools
and to develop human resources who can play active roles on the global stage, ALTs orexternal human resources fluent in English will be allocated to all elementary schools (About
20,000 schools).
(4) By the end of FY 2025, efforts will be made aiming to ensure that 50% of foreign students
who have graduated or completed institutions of higher education in Japan (except
students entering higher education in Japan) find employment in our country. [The Ministryof Internal Affairs and Communications, the Ministry of Justice, the Ministry of Foreign
Affairs, the Ministry of Education, Culture, Sports, Science and Technology, the Ministry of
Health, Labour and Welfare, the Ministry of Agriculture, Forestry and Fisheries, and theMinistry of Economy, Trade and Industry] <<Ensure that 50% of foreign students in ourcountry find employment in Japan by the end of FY 2025>>• The active participation of foreign students in the Japanese business world is one of thebarometers which show both at home and abroad that Japanese society is a treasure houseof diverse human resources and that Japan has advantages as a base of global business,10

so it is important to actively promote this.
• As for the issue related to the employment of foreign students, some problems of companies
have been pointed out by foreign students such as few job offers for foreign persons andstudents, unclear requirements for human resources sought by companies, and unclear job
content after entering the company. On the other hand, some problems of foreign students
have been pointed out by companies such as insufficient Japanese language proficiency,
insufficient understanding of working styles in Japanese companies, and insufficientindustry and corporate research.
• In order to address these issues, the following measures will be taken.
- Expand the list of companies that are interested in employing highly-skilled foreign
human resources including foreign students posted on "JETRO’s Platform for Promotionof Active Participation by Highly-Skilled Foreign Professionals" (Companies Interested inHighly-Skilled Foreign Professionals) in collaboration with economic organizations.
- In view that Japanese companies including foreign-affiliated companies have strong
hiring needs for digital and engineering human resources, the acceptance of excellent
foreign students who meet the corporate needs in our country will be promoted.
- Support will be provided to enable companies in Japan to contact highly-skilled foreign
human resources by expanding support for Japanese companies to establish endowed
courses at overseas universities with the aim of supporting excellent foreign humanresources to find employment in Japan.
- Efforts will continue to be made based on the "Comprehensive Measures for Acceptanceand Coexistence of Foreign Nationals (revised in FY 2020)" 10.
(5) In order to solve the issue of securing human resources for foreign-affiliated companies
advancing into Japan, exchange meetings between foreign students of major domestic
universities, global human resources, and foreign-affiliated companies will be held andexpanded. Expand opportunities to enable students to have specific images of working at
foreign-affiliated companies through university courses in cooperation with foreignaffiliated companies. [The Ministry of Economy, Trade and Industry] <<Expanded to 10
universities in FY 2021>>• Expand exchange meetings held by JETRO between foreign students of major domestic
universities, global human resources, and foreign-affiliated companies. Expand
opportunities to enable students including Japanese to have specific images of working at
foreign-affiliated companies through university courses held by JETRO in cooperation withforeign-affiliated companies.
(6) Set learning goals to improve practical communication skills in English at junior high andhigh schools. [The Ministry of Education, Culture, Sports, Science and Technology] <<Alljunior high and high schools by the end of FY 2021>>• Learning goals that will enable students to understand "what they will be able to do with
10

Decision of the Ministerial Conference on Acceptance and Coexistence of Foreign Nationals on July 14, 202011

English" will be set at all junior high and high schools in order to help students acquire
practical communication skills in English.

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<Promotion of online procedures and multilingualization>(7) Promote the online procedures for corporate incorporation (application for registration forincorporation of corporation) and support in English. [The Ministry of Justice and theMinistry of Health, Labour and Welfare]• In principle, support should be provided also in English from the time of the next renovation
for the systems related to incorporation of corporation, taking into account costeffectiveness.
• For the procedures related to incorporation of corporation,(i)

guidebooks for applications in English and sample forms will be prepared by the end of
FY 2021.

(ii) For online application procedures, consideration and determination will be made on
adding an automatic translation system to the registration information system used in
the procedures for applying for incorporation registration by the end of FY 2021.
Moreover, in cooperation with professional experts who offer services to executeprocedures, it will be possible to smoothly submit the applications for incorporation to
the Labour Standards Inspection Office, Hello Work, and the Pension Office after theapplication for registration is filed.
(8) Consider the facilitation and acceleration of the procedures for application for status ofresidence by newly incorporated corporations. [The Ministry of Economy, Trade andIndustry and the Ministry of Justice]• The following points will be considered in light of the opinions of local governments andcompanies.
From the perspective of facilitation and acceleration of the entry procedures for foreign
nationals who start up new businesses in Japan, the procedures for application for statusof residence by newly incorporated corporations will be added to subjects to be madeavailable online through the use of services such as gBizID.
(9) The "Japanese Law Translation Project" will be promoted, which will set the goals fortranslation of new laws and regulations, prioritize them according to the needs of foreign
investors, and accelerate the translation by utilizing machine translation. [The Ministry ofJustice] <<At least 600 new English translations of laws and regulations will be publishedby FY 2025. In addition, efforts will be made aiming to publish 400 more translations oflaws and regulations (1,000 pieces in total) depending on the advancement in translation
technology.>>• More than 500 translations of laws and regulations were published over the five years fromFY 2016 to FY 2020, and at least 100 more translations of laws and regulations will be
published over the next five years. Efforts will be made aiming to publish even moretranslations of laws and regulations (1,000 pieces in total) depending on the advancementin translation technology.

13(10) The Digital Invest Japan Business Support Center (Digital IBSC) will provide one-stop
access to information related to company establishment and provide consultations inEnglish and online. Access to corporate and policy support information on the Investingin Japan website will also be improved from the viewpoint of users. [The Ministry of
Economy, Trade and Industry] <<Implemented since FY 2021>>• The "Digital Invest Japan Business Support Center (Digital IBSC)" which provides
consultations online and in English on investment matters such as company establishment,labor relations, and residence status was established in JETRO in February 2021 (alsoavailable from abroad), and the utilization will be further promoted, including the provisionof information on regulations as well as investment procedures.
• With regard to the Investing in Japan website, convenience will be improved from theviewpoint of users by creating videos explaining investment-related procedures in Japaneseand English, providing two-click access to information (make the information you wantaccessible with two clicks), and introducing chatbots in Japanese and English.
• JETRO will support local governments in providing information to foreign companies when
they establish one-stop centers to provide support related to startups. At the time ofestablishment, reference should be made to the efforts of Fukuoka City Opening One-Stop
Center where experts such as certified administrative procedures legal specialists support
the online procedures for registration, tax affairs, social insurance, etc.
<Realization of a comfortable environment for foreign nationals to live in>(11) Efforts will be made to increase the number of medical institutions where services canbe provided in foreign languages and to develop a medical environment that is easy forforeign nationals to use. [The Ministry of Health, Labour and Welfare] <<More than 1,000
hospitals where services can be provided in multiple languages will be secured by FY
2025>>• With regard to the system for accepting foreign patients at medical institutions, the numberof medical institutions where services can be provided in multiple languages will be
increased, manuals for the smooth acceptance of foreign patients will be disseminated, andmedical environments will be developed that are easy for foreign nationals to use.
(12) The educational environment for foreign students will be improved by allowing all
elementary and junior high school children who require Japanese language support toreceive it. [The Ministry of Education, Culture, Sports, Science and Technology] <<Make
instructions in Japanese available to all students who need them by FY 2022>>• The target was set that Japanese language support would be available to all elementaryand junior high school children who require it by FY 2020 (available to approx. 80% as of
FY 2014) 11, but the ratio as of FY 2018 remained approx. 80% due to changes in theenvironment such as an unexpected increase in the number of foreign students and thediversified mother tongues of foreign national students.
11

Follow-up items of the Policy Package for Promoting Foreign Direct Investment into Japan to Make Japan a
Global Hub (adopted by the Council for Promotion of Foreign Direct Investment in Japan on May 20, 2016)14

• Efforts will be made toward the achievement of the targets by systematically taking
necessary measures to cope with such environmental changes.
(13) Provide consultation support for employment management to the employers who employ
foreign nationals and a multilingual consultation support system for foreign job seekers
at Hello Work. [The Ministry of Health, Labour and Welfare] <<Continuously implemented
since FY 2020>>• At Hello Work, systems will be promoted through the allocation of human resources suchas professional consultants and interpreters in order to provide consultation support for
employment management to the employers who employ foreign nationals and consultation
support for foreign job seekers, and multilingual information dissemination systems will bepromoted in order to promptly and accurately provide employment information to foreign
workers. In particular, the system of vocational consultation desks will be promoted bycontinuously allocating interpreters for consultations for foreign job seekers who have been
forced to leave their jobs.
(14) Enhancement of functions will be considered so that reception of requests from foreignaffiliated companies on regulations and administrative procedures (at IBSC in JETRO)
will lead to concrete institutional reforms. [The Cabinet Office and the Ministry of
Economy, Trade and Industry] <<Considered in FY 2021>>• The Invest Japan Business Support Center (IBSC) in JETRO will be positioned as anintegrated window for receiving requests concerning regulations and systems as well as
various consultations on living matters from foreign and foreign-affiliated companies in
multiple languages, and operated in an integral manner with functions such as "Invest Japan
Hotline" (requests for regulatory reforms from foreign-affiliated companies to JETRO areconnected to relevant ministries and agencies) and "COVID-19 Helpline" (consultations
related to COVID-19).
• In light of operation conditions of the existing "Invest Japan Hotline" and "The Office of
INVEST JAPAN" (window for relevant ministries and agencies), the Ministry of Economy,
Trade and Industry and JETRO will sort out the current situation and issues concerning theenhancement of the function of receiving requests from foreign-affiliated companies
regarding regulations and administrative procedures. Then, the measures to enhance thefunctions of IBSC will be considered in FY 2021 so that it will lead to the effective use of
relevant existing systems such as the National Strategic Special Zones and the Regulatory
Reform Promotion Council in cooperation with relevant ministries and agencies, asnecessary.
• In addition, support will be provided for foreign-affiliated companies to use the System toRemove Gray Zone Areas to confirm whether or not regulations are applied in advance, bydisseminating and promoting the use of the system.

15

(15) The "Investment Advisor Assignment System" is utilized in which State Ministers provide
consultation to foreign companies that make important investments in Japan. [TheCabinet Office, the Ministry of Economy, Trade and Industry, the Ministry of Health,Labour and Welfare, and the Ministry of Foreign Affairs] <<Implemented since FY
2021>>• The "Investment Advisor Assignment System" 12 will continue to be used in which State
Ministers etc. are assigned for the purpose of establishing a system that helps foreigncompanies that have made important investments in Japan to consult with the Japanese
government. Based on the size of foreign companies and the amount of investment, topdown and prompt measures will be taken, such as response at the ministerial level.
(16) Information dissemination will be enhanced that contributes to the livelihood andbusiness setup of foreign nationals, including bank accounts, real estate, hospitals, andschools (including international schools). [The Ministry of Economy, Trade and Industry,
the Ministry of Education, Culture, Sports, Science and Technology, and the Financial
Services Agency] <<Implemented since FY 2021>>• The number of institutions posted on the JETRO website will be further increased to provide
information that contributes to daily lives and business setup, such as banks where accountopening procedures can be completed in English, real estate brokers, certified public
accountants, labor and social security attorneys, interpretation companies, and consulting
companies that can provide services in English, in major regions of Japan.
• Strengthen the dissemination of information on international schools and consider
countermeasures against issues obtained through surveys.
In addition, institutional reforms that will contribute to the development of the domestic
investment environment, such as facilitation of labor transfer to new fields, will be considered
and implemented.
3. Development of an Investment Environment through Public-Private Partnerships
Utilizing Regional Strengths
The development of an investment environment that takes advantage of regional strengths
will be accelerated through digitalization, and a follow-up system through public-private
partnerships from a regional perspective will be established.
<Enhancement of the regional investment follow-up system>(1) The current framework of the "Block Council for Promotion of Foreign Direct Investment
in Japan" which consists only of national and local governments will be expanded, and a
new forum will be established to discuss measures to promote FDI in Japan with theparticipation of local economic organizations, financial institutions, and accelerators. [TheMinistry of Economy, Trade and Industry] <<Implemented since FY 2021 (the frequency
12

Decision of the Task Force for Promotion of Foreign Direct Investment in Japan on January 7, 201616

of meetings is determined in accordance with requests from local governments)>>• In the past, the Block Council for Promotion of Foreign Direct Investment in Japan was
limited to the sharing of information on measures related to FDI in Japan between thenational and local governments, but the Council will expand its framework to include theparticipation of the national and local governments, as well as regional economic
organizations, financial institutions, VCs, accelerators, etc., and establish a new forum forbringing together various knowledge and discussing measures to promote FDI in Japan
based on the needs of the region.
<Support for enhancement of regional branding>(2) The "key concepts" which are the axes of attraction of the region will be considered fromthe viewpoint of foreign companies and the "Project for Supporting Regional Brand
Building" will be implemented to sophisticate the key concepts and attraction strategies
with advice from consulting companies. [The Ministry of Economy, Trade and Industry]<<Established and implemented since FY 2021>>• (i) JETRO will secure consulting companies and check "whether they are attractive targets"and "whether the public relations method can fully convey the attraction" from the viewpointof foreign companies. (ii) Based on advice from consulting companies, the key concepts 13
of local governments will be determined and attraction strategies will be refined, including
strategy fields (green, digital, healthcare, etc.) and the countries and regions to accept. (iii)
Based on the attraction strategies, JETRO will work with local governments to publicize key
concepts and draw attention of foreign and foreign-affiliated companies to the region.
• In doing so, a coordinator assigned by JETRO to the region to attract foreign companies
will support it.
<Implementation of intensive and medium- to long-term support>(3) The "Regional Business Conference (RBC) Projects" will be implemented over multiple
fiscal years while using the "key concepts" of the Project for Supporting Regional Brand
Building and enhancing the matching between foreign and foreign-affiliated companies,
and local governments and local companies. [The Ministry of Economy, Trade andIndustry] <<Implemented since FY 2021>>• Based on the results of online matching between the applicant local governments, andforeign and foreign-affiliated companies on the themes (such as health tech) set inconsideration of the needs of both the government and foreign and foreign-affiliatedcompanies, programs to invite and inspect foreign and foreign-affiliated companies which
are expected to cooperate in the target domestic cities and establish bases in the future will
be implemented, as will business negotiations between domestic and foreign companies.
Moreover, 11 projects were implemented from FY 2018 to FY 2020, in which 126 foreignand foreign-affiliated companies participated. 28 of them are still discussing matters toward
establishment of bases and cooperation and collaboration.
13

For example, "resistance to disaster," "resistance to COVID-19," "rich tourism resources," etc.

17• In implementing the RBC projects, in order to more effectively promote each region, the key
concepts of local governments formulated by the Project for Supporting Regional Brand
Building will be utilized by inputting them to participating foreign and foreign-affiliatedcompanies, etc.
(4) For priority municipalities that have clearly defined their attraction strategies and havereached the stage of implementing their attraction activities, support will continue to beprovided in an intensive and prioritized manner, including attraction promotion both inJapan and overseas. [The Ministry of Economy, Trade and Industry] <<Implemented in FY
2021>>• Attraction activities of 30 municipalities 14 have been supported as participating
municipalities in the "Support Program for the FDI in the regions of Japan."• In addition to continuous implementation of training aimed at improving the skills of local
government employees involved in attraction activities, the basis for attraction of local
governments will be strengthened through activities such as the Project for Supporting
Regional Brand Building. Moreover, intensive support will be provided for RBC projects andattraction promotions at home and abroad for local governments that have reached thestage of implementing the attraction activities. Furthermore, the results of the efforts will betransmitted widely and efforts to accept FDI in each region of Japan will be encouraged.
(5) JETRO will follow investment projects by foreign companies in the regions and use
information obtained from surveys of foreign-affiliated companies to grasp the status ofinvestment in Japan including in the regions. [The Ministry of Economy, Trade andIndustry] <<Implemented since FY 2021>>• In order to promptly grasp the status of FDI in the regions of Japan, questionnaire surveys
of foreign-affiliated companies will be periodically conducted.
<Enhancement of innovation co-creation between domestic universities and foreignand foreign-affiliated companies>(6) The functions will be enhanced in cooperation with J-Bridge etc., for the "Global Open
Innovation Enhancement Project" that supports the matching between the seeds oftechnologies and research results of domestic universities and university-originatedventures, and the foreign and foreign-affiliated companies and overseas universities that
expect cooperation and collaboration with Japanese companies and universities. [TheMinistry of Economy, Trade and Industry] <<In collaboration since FY 2021>>

14

Hokkaido, Asahikawa Regional Industrial Development Council, Sapporo City in Hokkaido, Miyagi Prefecture,
Sendai City in Miyagi Prefecture, Fukushima Prefecture, Ibaraki Prefecture, Tsukuba City in Ibaraki Prefecture,
Chiba Prefecture, Kanagawa Prefecture, Yokohama City in Kanagawa Prefecture, Komoro City in Nagano
Prefecture, Aichi Prefecture, Nagoya City in Aichi Prefecture, Mie Prefecture, Matsusaka City in Mie Prefecture,
Iga City in Mie Prefecture, Kyoto Prefecture, Kyoto City in Kyoto Prefecture, Osaka City in Osaka Prefecture,
Kobe City in Hyogo Prefecture, Wakayama Prefecture, Higashihiroshima City in Hiroshima Prefecture, Fukuoka
Prefecture, Kitakyushu City in Fukuoka Prefecture, Fukuoka City in Fukuoka Prefecture, Kurume City inFukuoka Prefecture, Karatsu City in Saga Prefecture, Kumamoto Prefecture, Okinawa Prefecture18• In order to enhance the cooperation and collaboration between foreign and foreign-affiliatedcompanies and overseas universities with domestic universities as the bases, domestic
universities and JETRO collaborate closely, in cooperation with J-Bridge etc., to enhance
the functions of the "Global Open Innovation Enhancement Project" that supports thematching between the seeds of various technologies and research results of domestic
universities and university-originated ventures, and foreign-affiliated companies anduniversities that expect cooperation and collaboration with Japanese companies anduniversities.
<Development of teleworking and digital environments>(7) The establishment of "new normal" will be promoted by promoting telework that
contributes to regional revitalization, workation, and two-area residence such as thedevelopment and operation of facilities including satellite offices and by developing digital
environments in rural areas, which will accelerate the efforts of local governments to create
new flows of people to rural areas and rectify the overconcentration of people in Tokyo. In
addition, measures such as telemedicine will be utilized to improve the rural medical
environment. [The Cabinet Office, the Ministry of Land, Infrastructure, Transport andTourism, the Ministry of Internal Affairs and Communications, and the Ministry of Health,Labour and Welfare] <<Implementation in full-scale since FY 2021>>• Support will be provided for the development of satellite offices through the utilization ofRegional Revitalization Telework Grants, fiscal investment and loans, and subsidies.
• Subsidies will be provided through prefectures for the development of computer equipment
and communication devices necessary for the implementation of telemedicine(telepathology, diagnosis and consultation by remote imaging, and telemedicine for patients
at home).
(8) The implementation of Smart Cities, FDI in Japan through National Strategic Special
Zones, and development of business environments will be promoted. [The Cabinet Office,the Ministry of Internal Affairs and Communications, the Ministry of Economy, Trade andIndustry, and the Ministry of Land, Infrastructure, Transport and Tourism] <<The numberof Smart Cities implemented (the number of local governments and regional organizations
that implement technologies and coordinate and connect data between fields:
approximately 100 (2025)>>• The development of business environments that facilitate the utilization of new technologies
such as ICT will be accelerated from the perspective of promoting innovation.
• In addition to building Data Linkage Platform in Super Cities, the implementation of Smart
Cities as the core of wide-area and multi district cooperation will be further promoted
through public-private partnership.
• The development of the Smart City Security Guideline prepared in 2020 will be promoted,
and security guarantees for Smart City construction will be supported.
• The utilization of international standards related to Smart Cities will be promoted incooperation with domestic and international standards experts.
19• The regulatory reforms through the National Strategic Special Zones will continue to bepromoted, and the environment for accepting the FDI in Japan will be developed.
<Support for utilization of tourism resources and revitalization of inbound tourism>(9) Support will be provided for efforts to develop the reception environment foraccommodation facilities and public transportation, infrastructure will be developed toward
the recovery of tourism demand after the impact of COVID-19, and leading-edge
technologies such as electronic gates for customs procedures will be introduced andexpanded to realize prompt and smooth customs clearance for foreign visitors.
<<Implemented in full-scale since FY 2021>> The development of international MICE
business and trips of foreign visitors to Japan in response to long-term stays will bepromoted through the development of IR. [The Ministry of Land, Infrastructure, Transport
and Tourism and the Ministry of Finance]• Countermeasures against COVID-19 in accommodation facilities and public transportation
will be promoted, efforts to develop reception environments in accommodation facilities andpublic transportation will be supported, demonstration projects to accept tourists on a trial
basis from countries and regions where the infection has calmed down will be implemented,
and a basis for taking measures to recover tourism demand will be developed.
• In response to foreign visitors who are expected to gradually recover, cutting-edge
technologies such as the introduction and expansion of electronic gates in customs
procedures will be utilized to realize non-contact and more stress-free travel and support
economic activities while taking countermeasures against COVID-19.
<Promotion of collaboration and M & A with overseas startups in the field of agriculture>(10) Matching events will be held between Japanese agricultural workers or Japanesecompanies related to the fields such as agricultural machinery and overseas startups,
research institutes, and universities in the fields such as agri tech and food tech. [TheMinistry of Agriculture, Forestry and Fisheries and the Ministry of Economy, Trade andIndustry] <<Implemented since FY 2021>>>• In order to improve productivity through the promotion of transformation such as DX of
agriculture in our country, J-Bridge will be used to hold matching events between
representatives of overseas companies and universities and domestic companies related
to the fields such as leading agricultural machinery.
• For promising collaborative projects that have been developed through industry-academiagovernment collaborative efforts for open innovation (Field for Knowledge Integration andInnovation) and international exhibitions, measures to utilize them in domestic agricultural
fields will be considered.

20

<Attraction of foreign and foreign-affiliated companies to Fukushima Prefecture>(11) In order to attract investment from foreign and foreign-affiliated companies by making
use of the various preferential measures in Fukushima Prefecture, the formulation of
attraction strategies for the formation of concrete projects will be considered in the"Liaison Conference on the Promotion of Fukushima Reconstruction and the Attractionof Overseas Companies" in cooperation with relevant organizations related to attractionof overseas companies such as JETRO, and attraction systems will be developed andevents will be held. [The Reconstruction Agency] <<Implemented since FY 2021>>• In certain areas of Fukushima Prefecture, a variety of preferential measures have beentaken that are not available elsewhere, but the measures are not fully recognized by foreignand foreign-affiliated companies.
• Therefore, the formulation of attraction strategies for the formulation of concrete projects
will be considered in the "Liaison Conference on the Promotion of Fukushima
Reconstruction and the Attraction of Overseas Companies" established with JETRO andother relevant organizations involved in attracting overseas companies as members. In
addition, based on the strategies in cooperation with the relevant organizations, themeasures will be disseminated to foreign companies, and foreign and foreign-affiliatedcompanies will be invited to Fukushima Prefecture to hold matching events.

21

III.

Policy target (Key Performance Indicator) and auxiliary indicators

As mentioned in Chapter I. (Current Status and Basic Concept of Strategy), it is necessary
to continue promoting FDI in Japan from the perspective of enhancing the growth potential of
the Japanese economy as a whole and revitalizing regional economies. Therefore, a newpolicy target (KPI) to be achieved by 2030 will be set.
Furthermore, in promoting FDI in Japan, it is important that foreign investment in Japanleads to the creation of innovation and the revitalization of regional economies, not only setting
the stocks as an ultimate goal. In light of this, in addition to the KPI, indicators to show theextent of FDI in Japan to the regions and auxiliary indicators to show the uptake of sources ofinnovation will be set, which will also be followed up.
1.

Policy target (KPI)

Aim to double the inward foreign direct investment stocks to 80 trillion yen by 2030 and reach
12% of GDP. (The Ministry of Finance and the Bank of Japan, "Balance of Payments")
The inward FDI stocks, which show the trend of FDI in Japan as a whole, will be set as a
KPI. The KPI to "double the inward foreign direct investment stocks to 35 trillion yen by 2020"
set in 2013 has been achieved, and without losing the momentum, "Aim to double the inward
foreign direct investment stocks to 80 trillion yen by 2030 and reach 12% of GDP ” will be set
as a target by 2030, and efforts will be made to further expand FDI in Japan also in the next
10 years. In doing so, "60 trillion yen and 10% of GDP" by 2025 will be set as milestones, andan interim evaluation will be implemented at an appropriate time to enhance its effectiveness.
In addition, as mentioned in Chapter I, in order to overcome the declining population in
Japan and achieve robust growth, it is necessary to leverage the FDI in Japan to boldly takein the vitality of foreign countries, such as superior human resources and ample funds. From
this perspective, necessary efforts will have to be advanced without clinging to precedents inorder to achieve as high a level as possible while bearing in mind the levels of the UnitedStates and Europe.
In doing so, all possible measures will be taken from the perspective of security, such as
securing close cooperation between the relevant government ministries and agencies andtaking appropriate measures based on the Foreign Exchange and Foreign Trade Act in orderto ensure that the FDI in Japan does not harm our national security.

22

The targets of the inward FDI stocks and the ratio to GDP
New policy target(KPI)(Trillions of yen)Intermediate
evaluation

Inward FDI stocks (Achievements)
Ratio of inward FDI stocks to GDP (Achievements)[Right axis]

80 trillion yen

Approx. 63 trillion yen will
have been achieved by 2030
if estimated based on thetrends from 2012 to 2020

60 trillion yen

Current target
35 trillion yen by
2020(Doubled since2012)

Source: Prepared from "International Investment Position of Japan" of the Ministry of Finance and the Bank of Japan, and"National Accounts of Japan" of the Cabinet Office.
Note)
The inward FDI stocks are based on the Balance of Payments Manual, 6th edition (new standard) since 2014, andin and before 2013 was based on the Balance of Payments Manual, 5th edition (old standard).

2.

(Year’s end)

Auxiliary indicators

Auxiliary indicators will be set in order to grasp FDI in Japan not only from the perspectiveof stocks that is a quantitative expansion but also from multifaceted perspectives such as
regional economies and innovation, and their status will be followed up.
<Macro>(1) The added values of foreign-affiliated companies [The Ministry of Economy, Trade andIndustry, "Basic Survey of Japanese Business Structure and Activities"]
The economic values produced by foreign-affiliated companies are estimated from theadded values 15 as one of the economic effects of FDI in Japan. The inward FDI stocks set as
a KPI shows the degree to which foreign companies and foreign-affiliated companies havestarted or expanded their business in Japan, and does not grasp the results of their business
15

Added value = Operating profit + Total salaries+ Depreciation expenses + Welfare expenses + Rent for personal
and real estate + Taxes and public dues23

activities. Therefore, the added value that is the result of business activities shall be grasped.
The added values of foreign-affiliated companies are measured every year in the "Basic
Survey of Japanese Business Structure and Activities" published by the Ministry of Economy,
Trade and Industry, and the added value was 12.9 trillion yen in FY 2012, which increased to17.0 trillion yen in FY 2018. 34 trillion yen will be set as a target by FY 2030, and the situation
will be followed up.
However, it should be noted that the target industries are limited and the companies arelimited to entities with 50 or more employees and capital or investment of 30 million yen or
more, making it difficult to grasp the trends such as startups.
<Region>(2) Number of foreign-affiliated companies (by prefecture) [The Ministry of Internal Affairs andCommunications and the Ministry of Economy, Trade and Industry, "Economic Census"]
The expansion situations of foreign-affiliated companies into each region will be grasped byreferring to the number of foreign-affiliated companies by prefecture. As mentioned above, FDI
in Japan by prefecture is concentrated in some metropolitan areas, with Tokyo accounting for
42.9% (as of 2016), which is outstanding. Therefore, the number and proportion of foreignaffiliated companies in prefectures other than Tokyo will be focused on from the perspective ofregional expansion. 10,000 companies (2.4 times the 4,262 companies in 2016) in prefecturesother than Tokyo will be set as a target by 2026, and the situation will be followed up.
In addition, questionnaire surveys will be periodically conducted with foreign-affiliatedcompanies in order to grasp the status of FDI in the regions of Japan, because the "Economic
Census" survey is conducted once every five years (the latest survey was conducted in 2016
and the next one will be conducted in 2021) and because there are data limitations that thelocations of the head offices of foreign-affiliated companies are covered and the statuses ofregional businesses are not reflected.
<Innovation>(3) The number of human resources with managerial or administrative skills entering Japan
from overseas [The Ministry of Justice, "Statistics on Legal Migrants"]
One of the purposes of promoting the FDI in Japan is to attract highly-skilled global humanresources and strengthen the innovation and international competitiveness of our country.
Attracting highly-skilled foreign human resources to Japan is important in terms of capturing
the source of innovation from overseas. Therefore, while keeping in mind the data limitations
that highly-skilled foreign workers do not necessarily work for foreign-affiliated companies, thenumber of human resources with managerial or administrative skills (Including highly-skilled
professionals (Points-based System for Highly-Skilled Foreign Professionals)) entering Japan
from overseas will be followed up as an auxiliary indicator. The number of human resources
with managerial or administrative skills entering Japan from overseas was approx. 70,000 asof 2016, and increased to approx. 95,000 as of 2019. 200,000 people will be set as a target by2030, and the situation will be followed up.

24

Auxiliary indicators and targets
Added values offoreign-affiliatedcompanies*1

Grasp the resultsof businessactivities

17 trillion
yen in FY
2018

34 trillion yen(doubled)
2030

RegionNumber of foreignaffiliated companies(in prefectures otherthan Tokyo)*2

Grasp thesituations of the
expansion intorural areas andthe relaxation ofconcentration in
Tokyo

4,262
companies
in 2016

10,000companies(more thandoubled)2026

Innovation

Number of humanresources withmanagerial oradministrative skills
entering Japan fromoverseas*3

Grasp thesituation of
acceptance ofinnovators

95,000people in2019

200,000 people(doubled)
2030

Macro

*1 The Ministry of Economy, Trade and Industry, "Basic Survey of JapaneseBusiness Structure and Activities"*2 The Ministry of Internal Affairs and Communications and the Ministry of
Economy, Trade and Industry, "Economic Census for Business Activity"*3 The Ministry of Justice, "Statistics on Legal Migrants"<Other>
The possibility of using the data in the "Basic Survey of Japanese Business Structure andActivities" will be examined for the amount of R & D investment by foreign-affiliated companies.
In addition, the possibility of using the indicators will be examined from various perspectives,
such as data showing precedence.

25