Japan External Trade Organisation: Your Key to Market Entry

Japan market entry offers immense opportunities but presents unique complexities, making navigation daunting without support. The Japan External Trade Organization (JETRO) serves as an ally, simplifying establishment and growth by offering comprehensive support that, when combined with expert Japan consulting, becomes a game-changer.

What is JETRO?

JETRO is a government-related organization that actively promotes mutual trade and investment between Japan and the rest of the world. Their core mission is attracting Foreign Direct Investment (FDI) in Japan and supporting foreign companies in their market entry and expansion.

With a global network of over 70 offices worldwide and numerous domestic offices across Japan, JETRO provides a critical bridge for international businesses looking to tap into Japan's innovative market.

How JETRO Helps with Setting Up a Business in Japan

JETRO offers services for setting up a business in Japan, including free temporary office space at their Invest Japan Business Support Centers and access to specialized advisors.

• Incorporation & Visa Support: Guides on legal structures and visa applications for foreign executives and employees.
• Market Research & Information: Detailed reports on industries, trends, and competitive landscapes.
• Business Matching & Networking: Introductions to potential Japanese partners, clients, and suppliers.
• Tax & Legal Consultation: Expert advice on Japan's tax system, labor laws, and IP rights.
• Human Resources & Recruitment: Insights into Japanese employment practices and recruitment channels.
• Incentives & Subsidies: Information on national and regional investment incentives.

Key Industries for Investment

Japan's economic strategy targets foreign investment in high-growth, strategic sectors, with JETRO crucial in supporting companies entering these key industries, aligning with national priorities.

• Digital Technology: Japan ranks 8th globally in Digital Competitiveness, making it a hub for innovation. Focus areas include:
  • AI, IoT, big data, cybersecurity, and cloud solutions, with emerging opportunities in MedTech AI and sustainable AI solutions.
• Life Science: As the world's third-largest pharmaceuticals market, Japan offers immense potential in life sciences, covering:
  • Pharmaceuticals, medical devices, regenerative medicine, and biotechnology.
• Sustainability and Energy: Aligned with Japan's ambitious 2050 carbon neutrality goal, there is rapid growth in renewable energy supply (up 75% since FY 2010), signalling robust investment opportunities. This includes:
  • Renewable energy, energy efficiency (e.g., solutions for data centers), smart grids, and environmental technologies (e.g., advanced water treatment).
• Manufacturing: Japan, a manufacturing powerhouse ranking third worldwide in value-added, offers ripe investment opportunities in:
  • Precision engineering, advanced robotics, and highly skilled workforce, especially in advanced materials, semiconductors, and automated production systems.
• Tourism and Hospitality: With foreign visitor spending reaching $35 billion USD in 2023, Japan's tourism sector thrives, offering opportunities in the travel industry. This includes:
  • Developing new tourism infrastructure, hospitality services, and tech solutions that enhance unique cultural experiences.

Optimizing JETRO's Benefits: A Strategic Approach to Japan Entry

• Valuable Knowledge & Cost Efficiency: JETRO offers market knowledge, data, and insights, with free services providing initial savings and optimizing Return on Investment.
• Accelerated Processes & Risk Mitigation: They streamline procedures and connections, boosting acceleration via project management, problem-solving, and expert legal, tax, and HR guidance for compliance.
• Trusted Network & Cultivating Connections: As a government entity, JETRO provides impartial support and introductions, fostering authentic relationships and bridging cultural gaps for effective business connections, such as introductions to major Japanese corporations or key research institutions for strategic partnerships and pilot programs.

Tailored Support for Every Business Size

JETRO adapts its support to the specific needs of diverse businesses:

• Startups: Access to incubation, mentorship, and VC connections.
• Small & Medium Enterprises (SMEs): Benefit from practical guidance, business matching, and potential subsidies up to 1/2 of eligible expenses (max 15 million yen).
• Large corporations: Leverage JETRO's network for strategic partnerships and regulatory navigation, with subsidies up to 1/3 of eligible expenses.

Understanding JETRO Subsidies

JETRO offers project-based subsidies, often for innovative projects in target fields. Eligible expenses typically include machinery/equipment, subcontracting, travel, personnel, advertising, and specialist services (e.g., legal, tax, HR, consulting fees).

Application periods are specific and competitive, involving document review and sometimes presentations. The maximum amounts (e.g., up to 15 million yen) are typically per project, not necessarily annual.

Success Stories

JETRO has a proven track record, supporting over 22,000 investment projects to date, with 2,200+ successfully establishing or expanding their businesses in Japan.

• Startup (SaaS & IT Solutions): An American SaaS startup received JETRO's help with market validation, compliance, and corporate introductions, fostering early pilot programs and partnerships.
• SME (Life Sciences & Biotech): JETRO aided an Australian biotech company in understanding Japan's pharmaceutical regulatory pathways and connecting with research/clinical trial partners, accelerating market entry.
• Large Corporation (High-Tech Manufacturing): JETRO helped a European robotics firm localize Asian production by assisting with factory location, regulations, and supplier connections, significantly cutting time-to-market.

Beyond Entry: Ongoing Support

JETRO supports foreign companies beyond market entry, providing continuous resources for sustained growth even after establishment:

• Business Expansion: Assisting companies looking to expand their operations within Japan, whether through new offices, increased headcount, or venturing into regional markets.
• Troubleshooting & Problem Solving: Providing consultation and connections for ongoing operational challenges, regulatory updates, or specific business issues that may arise.
• Reinvestment & Growth Opportunities: Keeping foreign-affiliated companies informed about new investment opportunities, government initiatives, and collaborative projects.
• Market Intelligence Updates: JETRO regularly publishes reports like the "JETRO Invest Japan Report 2024," showing inward FDI trends:
  • Japan's FDI stock hit a record high of 50.5 trillion yen (approx. $350.6 billion USD) by end-2023, a 9.3% increase from the prior year, making up about 8.5% of Japan's GDP.
  • Greenfield investment receipts more than tripled to $30.8 billion USD in 2023, driven by large projects in sectors like semiconductors and data centers. Japan aims for 100 trillion yen in FDI stock by 2030.

Conclusion

Japan market entry, a strategic move for foreign companies seeking innovation and growth, is greatly supported by JETRO's free, comprehensive aid in establishing businesses and fostering FDI, with tailored Japan consulting further enhancing sustainable success.

At Omnilinks, we offer personalized consultation to guide your Japan market entry journey. While JETRO provides invaluable free resources and official connections, we complement this by providing hands-on, personalized implementation support. Leveraging our deep cultural understanding, strategic expertise, and extensive local networks, we provide ongoing operational guidance for your sustained growth.

Ready to explore your company’s opportunities in Japan?

Get a free consultation to see how.