Japanese experience of investments attraction
Japan is one of the largest investors on the world market, foreign direct investments as of the end of 2013 made 117,7 billion yens. On the other hand, the country is still rather closed for foreign investments, even despite the pursued of openness increase policy: direct investments receipt from abroad for the end of 2013 made about 18 billion yens. Compared to 2012 the parameter did not change almost whereas investments abroad increased by 31%.
In the Doing Business rating in 2014 Japan ranked 29th, having lost two positions compared to the previous year. The weakest point among the characteristics estimated in the rating was the tax system: the number of taxes made 14, and 51% of profit was spent on their payments (compared to Qatar, ranking first according to this characteristic, had only 4 taxes payments which made 11% of profit). Japan also has medium results on complexity of the business start procedure, construction licenses obtaining, property registration and borrowed funds receiving. The bankruptcy procedure received the highest mark - by profitableness of this procedure Japan ranked second.
Japan is attractive to foreign investors as the market with high capacity generated, on the one hand, by significant population number, and on the other — high income level and per capita expenses. Due to this fact, Japan suits well for technically difficult productions with a high value added.
If originally Japan pursued the protectionist policy, limiting foreign investments inflow, then now the closed labor market, system of renewable contracts, high production cost in the country, existence of the closed financial and industrial groups and other business environment features became the obstacle.
The policy of openness increase aimed at investments inflow from abroad increase, assumes improvement of the enterprise environment and decrease of administrative barriers, promotion of Japan as a platform for investments abroad, improvement of foreign workers life quality, specialized organizations development.
In 1987 the Japanese investment advisers association (JIAA) acting as the intermediary between the asset managers and the corresponding authorities, was created, providing the best communication with each other, and promotes creation of more effective regulatory base.
Activities of JIAA include:
- creation and ensuring of the self-regulation rules compliance for the association members;
- representation of the corresponding authorities interests, for example:
- licensed investment consultants were allowed to participate in pension funds assets management;
- investment consultants were allowed to participate in assets of post savings and insurance premiums management;
- at the initiative of JIAA taxation for foreign partners with limited liability in the limited liability companies was reconsidered;
- statistics publication and reference materials preparation;
- consultations and mediation concerning complaints;
- corporate management (presentation of conclusions on corporate management improvement, discussions carrying out for interested parties);
- efforts on personal information protection;
- international information, development exchange;
- training programs and seminars realization;
- creation of sponsor's courses at the universities;
- publications placement in the mass media, public relations actions carrying.
The Japan Industrial Location Center (JILC) the independent public institution operates under the auspices of the Ministry of Economics, trade and industry of Japan.
The sphere of JILC interests includes:
- regional development;
- investment activity assistance;
- business development of at the initial stages assistance (business incubation);
- the human capital development.
JILC operates not only on the territory of Japan, but also abroad: consultants from the center participate in regional development strategy creation, industries development and technologies transfer, using the experience accumulated by JILC. Besides, representatives of the countries of Asia, Eastern Europe and Latin America come to the center for training.
JILC promotes also foreign investments attraction to the country: participates in various actions in the USA and Europe presenting investment opportunities of Japan. The center offers business incubator services for foreign investors, provides the access to the innovations received during the researches conducted by universities and research institutes of Japan. JILC created a network of establishments concerning business development.