Background

Foreign direct investment (FDI) in Japan leads to the attraction of highly skilled foreign professionals, technology, and funds from overseas, which contributes to innovation creation, supply chain resilience, regional revitalization through job creation and wage increases, as well as management sophistication. Although inward FDI stock in Japan has been steadily increasing, it is still much lower than outward FDI stock, and it remains at a significantly low level compared to other countries.
 
However, because of the recent changes in geopolitical risks, Japan’s reputation for FDI is improving since it is recognized as a socially and economically stable investment destination. We see this as an opportunity and thus deem it important to strengthen efforts for FDI. In 2021, the Government of Japan (GOJ) decided to aim to lift its inward FDI stock to 80 trillion yen by 2030 to facilitate the acquisition of positive elements from overseas. In order to reach an even higher goal, the GOJ raised its target to 100 trillion yen by 2030 in the Basic Policy on Economic and Fiscal Management and Reform 2023.
 
To help achieve the target, the Ministry of Economy, Trade and Industry (METI) is making various efforts to promote FDI in Japan, based on the Action Plan for Attracting Human and Financial Resources from Overseas (Decision by the Council for Promotion of Foreign Direct Investment in Japan on April 26, 2023).
 

Division in Charge

Investment Facilitation Division, Economic and Industrial Policy Bureau