Press Release
April 25, 2016
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 2015
[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 centerto promote foreign direct investment in Osaka (Secretariat: International Division, OCCI).

II. FY2015 foreign investment cases - 46 investment cases were seen in the Osaka
region, hitting a record high for the second consecutive year.<Investment trend> Numerous companies from other Asian countries launched businesses
in the Osaka region.
① The number of foreign investment cases in the Osaka region totaled 46 in fiscal 2015,
registering an all-time high for the second year in a row.
② Investment cases by Asian companies, including those from China and South Korea,
accounted for 40 or nearly 90% of the 46 cases seen in the Osaka region in fiscal 2015.
Chinese companies investing in the region, including Hong Kong firms, made up the largest
group at 31, followed by five companies from South Korea and two companies from theUnited States.
③ The number of investment cases in the Osaka region by foreign companies totaled 426
during the 15-year period between 2001, when O-BIC was established, and fiscal 2015.
Chinese companies which invested in the region numbered 148, the largest group, followed
by 71 companies from South Korea and 42 companies from the United States.

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Number of foreign investment cases
led by O-BIC (cumulative total)
No. of new cases
No. of cumulative total<Characteristics> Foreign investments in Osaka grew, aided by inbound effects.
① Full-service Chinese carriers (not low-cost carriers) based in regional cities, including
Sichuan Airlines and Tianjin Airlines, launched flight services to Kansai International Airport
against the background of a sharp increase in the number of Chinese tourists to Japan.
② Of the 46 investment cases in fiscal 2015, the number of import businesses targeting
Japanese markets came to 14 while the number of export businesses involving high-quality
Japanese products also totaled 14. These two trading businesses together represented
60% of the total foreign investment cases for the year. The number of investments for the
recently booming cross-border electronic commerce (EC) market, including use of theOsaka region as a goods procurement location for online shopping and the launch of goods
distribution businesses, came to an impressive 11 against the backdrop of booming Japanbound tourism and the growing popularity of Japanese products in Asian countries,especially China, and the yen’s depreciation against other currencies.
③ Among the 46 cases were Chinese company which launched manufacturing business inJapan—a new move for companies based in China, a place that has been touted as the“factory of the world.” The company decided to manufacture its products in Japan following
the narrowing of production costs between Japan and China amid a surge in labor costs inChina. By making products in Japan, it aims to upgrade product quality at existing factories
in China and at the same time pitch products manufactured in Japan as “made-in-Japan”
with a view to tapping the global market.

2III. The main successful investment cases in fiscal 2015
① Advancement into the Osaka area as a manufacturing base
SHINKO BRUSH Co., Ltd. (Ikuno-ku, Osaka)
The parent company, Shanghai Shenxing Brush-Making Co., Ltd.,was established in 1998 as a company specializing in brushproduction. The company produces 80 million brushes a year,including brushes for home appliances, cosmetic brushes andhair-dying brushes, for shipment to Japan, Germany, France andthe United States. The company created a Japanese subsidiary,
Shinko Brush, in Osaka to add value to its products that are sold as “made-in-Japan” brands.
② Advancement into the Osaka area as a research and development baseGalanz Japan Inc. (Kita-ku, Osaka City)
Galanz Japan is a subsidiary of Guangdong Galanz Enterprises
Co., Ltd., a leading white goods maker established in Guangdong Province in 1978. Guangdong
Galanz manufactures on an original equipment manufacturer (OEM) basis air conditioners,
refrigerators, washing machines and dishwashers as well as microwave ovens, for which thecompany commands the top share in the world. The company set up its Japanese subsidiary asa research and development base, through which it aims to enhance its product brandtechnologies and the company’s presence.

③ Advancement into the Osaka region from emerging countries
TOCONTAP JAPAN K. K. (Higashiyodogawa-ku, Osaka City)
Tocontap Japan K.K. was established in Osaka as a wholly owned subsidiaryof Tocontap Saigon JSC, a state-owned Vietnamese general trading house. The
subsidiary is in charge of managing about 900 technical trainees who aredispatched from Vietnam to Japan to work in a range of fields, including sewing,welding, construction and agriculture.
YOMAFUJI CORPORATION K. K.
(Chuo-ku, Osaka City)
Yomafuji Corporation K.K. is a joint company established by the representative of Myanmar’s
Golden Land Express Ltd. and the representative of an Osaka-based company. Based in Osaka,
the joint venture trades foodstuffs and used cars between Japan and Myanmar, and engages ininternational goods distribution.

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④ Large-scale M&A of an entertainment business operator
SNK PLAYMORE CORPORATION (Suita City, Osaka Prefecture)
SNK Playmore Corporation was established as a multi-entertainmentcompany in Osaka in 2001. In July 2015, a major Chinese online gamecompany and an investment firm together acquired an 81% equity stake in SNK Playmore forabout 8 billion yen. Currently, the company develops and sells game software in mainland China,
Hong Kong, Taiwan and South Korea, while stepping up its licensing business using its own
game content.

IV. Outline of FY2015 activities<Promotional activities>① In fiscal 2015, O-BIC continued to step up public-private efforts to attract foreign companies forinvestment in the Osaka region in collaboration with the Osaka International Business Promotion
Center and JETRO Osaka.
② In fiscal 2015, O-BIC received 137 inquiries from foreign companies regarding possible
investment in the Osaka region. In reply, O-BIC provided information on the Osaka marketand procedures for establishing a business entity. O-BIC also gave advice to the inquiring
companies individually.
③ Promotional activities undertaken by O-BIC during fiscal 2015 included a campaign for
publicizing special incentives being given to companies operating in areas designated by
the central government as the Kansai National Strategic Special Zone and the Kansai
Innovation Comprehensive Global Strategic Special Zone. While pitching these special
incentives, O-BIC staged publicity campaign both in Japan and abroad to attract foreigncompanies for investment in competitive fields in Osaka, including the development of newenergy sources and life science-related activities.
④ Specifically, O-BIC interviewed officials of foreign companies which participated in business
fairs held in Japan such as “Smart Energy Week” and “Medical Japan”, and asked themwhether they have any intention to launch businesses in Japan. The interview was part ofO-BIC’s efforts to exploit new foreign investment opportunities. O -BIC also invitedcompanies from China, Britain and Belgium involved in a wide range of fields, and promoted
Osaka to encourage their investment in Osaka, while holding business matching events
between them and Osaka-based Japanese companies. O-BIC also promoted Osaka as aninvestment destination for foreign companies by sponsoring investment seminars andexhibiting in trade fairs in Asia (China, Taiwan, South Korea and Singapore), Europe (Italy),
the United States and the Middle East (Israel). Specifically, O-BIC explained the investment
environment in Osaka and its possible support of foreign companies interested in launchingbusinesses in Osaka through the investment seminars and trade fairs.

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<Support for firm establishment>① O-BIC provides support to foreign companies operating in Osaka to help them build businessnetworks with local companies. Specifically, O-BIC sponsors a meeting of the Osaka BusinessNetworking Club twice a year and promotes business exchange events sponsored by suchbusiness groups as the Osaka Chamber of Commerce and Industry (OCCI), including theKansai International Meishi Exchange. It also helps foreign companies operating in Osaka inregard to PR activities and suggests to them effective promotional tools to exploit new marketingchannels.
② The fiscal 2015 meeting of the Osaka Business Networking Club, held in October 2015 underthe title, “Business trends in foreign companies,” provided business promotional opportunities
to foreign companies that have recently begun operating in Osaka. In March 2016, O-BIC helda business matching event for seven foreign trading houses which began export businesses in
Osaka this fiscal year. Through the event, entitled, “Foreign buyers seek made-in-Japanproducts,” O-BIC helped the seven trading companies in their efforts to expand marketing
channels for overseas-bound Japanese products.

＜Reference materials＞①A matrix of O-BIC investment cases in the Osaka region in fiscal 2015

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Osaka Business and Investment Center (O-BIC)
Matrix of Investment cases in FY2015(April, 2015－March, 2016）

Cases of New Entry : 46

※Figures in brackets（IndustryR&D

Manufacturing）=FY14

Wholesaleand Retail(Export)

Wholesaleand Retail(Import)

10(4)

5(6)

2(2)

1(4)

1(1)

Information andTransportation Communications

Publicagencies/organizations

ServiceTOTALCountry/Region
China11Korea
TaiwanHong Kong

29(14)

5(10)

1(1)

2(3)

(1)

1(2)

(1)

1(1)

1(0)

40(31)

2(1)

0(1)

2(2)

1(4)

0(1)

11(0)

11(0)

3(5)

1(0)

2

4(2)

1(1)

4(2)

2(4)

3(2)

Asia
Vietnam(1)

Shingapore

1

Myanmar1

Asia/Total

1(0)

1(0)

14(6)

USA

9(2)

1(2)

7(8)

3(0)

(1)
(1)

0(0)

0(0)

0(0)

UK

2(1)

0(0)

01

Sweden

(1)

0(3)

(0)

0(0)

(1)

(1)

Europe Portugal
Switzerland
EU/Total

42NorthCanadaAmerica
N.A./Total

(13)

10(0)

0(0)

0(0)

3(1)

0(0)

0(3)

Australia

0(1)

0(0)

1

Oceania
Oceania/Total

TOTAL

0(0)

0(0)

0(0)

0(0)

0(0)

0(0)

1(0)

0(0)

1(0)

1(0)

1(0)

14(6)

14(15)

4(2)

1(6)

8(9)

3(0)

46(38)