Why invest in Japan?
Japan – a new, emerging FDI destination
Why invest in Japan?
Foreign direct investment (FDI) in Japan has been increasing since 2011, with inward FDI stock hitting a record high in 2020. What has triggered this positive development?

Rapidly increasing FDI-milao-haath
Japan is transforming – the world’s third largest economy is actively opening its doors to foreign business. It is creating the best possible environment for overseas investors. Let’s take a closer look at the benefits foreign businesses may enjoy in Japan, a new and emerging FDI destination.
Table of Contents
Greater market potential and innovation opportunities
Japan, with its world-leading R&D capabilities and technologies, offers foreign investors path-breaking business opportunities fueled by the growth and distribution strategies of the government to realize a new form of capitalism.

Why invest in Japan? milao-haath
1-Regulatory innovation and a global test bed for emerging technologies
Through regulatory innovation, the Government of Japan is providing foreign investors with a global test bed to facilitate the experimentation, development and success of emerging technologies.
2- Growing start-up ecosystems throughout the country
Government initiatives have helped create an ecosystem of startups across Japan, including in the countryside. Several university startups are springing up across the country and there is a growing drive for open innovation in large Japanese companies, contributing to rapid technological development.
3- Dynamic business opportunities driven by digital transformation
Japan is driving digital transformation in both the public and private sectors to enable greater productivity. Founded in 2021, the digital agency is at the forefront of creating opportunities in the global growth sector such as cloud-based infrastructure and software, cybersecurity, machine learning, and deep learning.
4- An innovation hub to achieve net zero by 2050
Japan has committed to achieving net-zero emissions by 2050 and has set out an ambitious plan to become a global leader in decarbonization. Japan welcomes companies and technologies from around the world to accelerate innovation and develop new solutions to tackle the global problem of climate change.
5- World-leading R&D capabilities and IP assets
Japan, known for its world-leading R&D capabilities with high-quality IP assets, offers new opportunities for foreign companies to create value.
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Why invest in the UK?
We decided to open an office in Japan to serve as a hub back in 2020.
We felt the conditions were right due to our strong network of collaborators and partners as well as the strong signals the Japanese government is putting towards the goal of becoming net zero by 2050.
- Aaron Smith
- Chief Commercial Officer
- Principle Power Inc.
Japan has a phenomenal wealth of hidden technologies, whether it is physics, chemistry or biology.
If one can rightly explore it, it is going to be giving a phenomenal array of solutions for the entire humanity.
- Samuel JK Abraham
- M.D., Ph.D.
- GN Corporation Co., Ltd.
I was actually, personally, really surprised at how far I could develop my business in Japan with my very limited Japanese abilities.
- Tom Brooke
- Founder & CEO
- Qurate Inc.
Quality business environment and globally competitive regulations
Japan’s free, fair and rules-based market creates a productive and promising business environment for foreign investors. Japan is improving transparency in both business practices and administrative procedures. A high-quality business environment and a globally harmonized rule of law offer foreign investors opportunities with low risk and higher added value.

Why invest in Japan? milao-haath
1- Streamlining administrative procedures through digitalization
By streamlining administrative procedures to ensure greater efficiency, the government is making it even easier to start businesses quickly and conveniently in Japan.
2- Fair and open trade and investment opportunities through FTAs and EPAs
Japan’s international investment treaties encourage mutually beneficial investments. Japan’s initiatives to strengthen global economic ties through free trade agreements and EPAs not only ensure that those operating in this market have global access but also help to facilitate investment between partner countries.
3- Effective disclosure and transparency through corporate governance reforms
Japan’s corporate governance reforms promote improved dialogue, more sustainable corporate growth, and increased corporate value for investors.
4- Attractive business environment and high standard of living
Foreign professionals in Japan not only enjoy staying in one of the best countries to live in, but also benefit from a pro-global business environment featuring lower corporate tax and easier visa procedures.
5- Globally harmonized and trustworthy legal system
Foreign businesses in Japan are protected by a fair and globally harmonized legal and regulatory system which covers business areas including IP and data governance.
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GOLD LINE ENTERPRISES Co., Ltd
One of the many reasons we are in Japan is not simply because of digitization today but digitization tomorrow.
We can see where it’s headed, which is a country that’s adaptive, fluid and quick, and meets business needs.
- Loudon Owen
- CEO
- DLT Labs Inc.
I would say that any company within biotech or med tech would really benefit from being in Japan, because Japan is a frontrunner when it comes to healthcare innovations.
- Cecilia Edebo
- CEO
- CELLINK


Great information