Summary of the 1998(32nd) Survey of Trends in Business Activities of Foreign Affiliates (Gist)

Key findings of the survey

Of the tabulated companies, those established in or entered Japan in fiscal 1997 totaled 92 and marked a sharp drop of 31 from the preceding year.
The companies with Asian roots established in or entered Japan significantly fell in number after continuing steady growth until the preceding year.
The tabulated companies fared well in fiscal 1997, increasing sales, maintaining the profit level higher than that of all incorporated companies and positively making capital investment, research and development. However, their business environment is also being challenged as seen in the year-on-year fall both in recurring profit and the return on sales in fiscal 1997, and an expected 9.4% sales decline in 1998.
Meanwhile, the number of employees at the tabulated companies increased 5.5% year-on-year, but the number per company decreased for the second consecutive year. Also, 15.3% of the surveyed companies reported to have made employment adjustment, mainly by means of staff relocation or recruitment of voluntary retirees.
On the other hand, payment of the return to foreign investors continued strong, hitting an all-time high following the preceding year.
Of the tabulated companies, the ratio of those with future plans to "expand" and "diversify" business in Japan fell by half, while that of those planning to maintain the present state rose by about 3.5 times. However, the majority of those entered Japan recently were planning to expand or diversify business, showing an expansionary inclination in general.

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July 1999

MINISTRY of INTERNATIONAL TRADE and INDUSTRY
ENTERPRISE STATISTICS DIVISION RESEACH and STATISTICS DEPARTMENT,
and INTERNATIONAL BUSINESS AFFAIRS DIVISION INDUSTRIAL POLICY BUREAU

E-Mail:qqcebh@meti.go.jp

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Last Update: January 31, 2008

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511