Summary of the 52nd Basic Survey on Overseas Business Activities (July 2022 Survey) Compiled

Overview of the results

1. The ratio of overseas affiliates that are in the ASEAN 10 economies has continued to increase.

The total number of overseas affiliates as of the end of FY2021 was 25,325. Of these, 10,902 were in manufacturing industries and 14,423 were in non-manufacturing industries. Looking at the numbers by region, a decrease was seen in such regions as Asia and Europe. In Asia, the ratio in the ASEAN 10 economies (Malaysia, Thailand, Indonesia, the Philippines, Singapore, Brunei Darussalam, Viet Nam, Lao PDR, Myanmar and Cambodia) increased for the 11th consecutive year, while the ratio in China decreased.

2. The number of employees in overseas affiliates increased.

The total number of employees in overseas affiliates as of the end of FY2021 was 5.69 million, an increase of 1.2% from the previous year. Looking at the situation by type of industry, the number employed in non-manufacturing industries was 1.50 million, up 4.6% from the previous year, while that in manufacturing industries was 4.20 million, unchanged from the previous year (i.e., 0.0%). Looking at the situation by region, the figures for North America and Europe increased, and those for Asia decreased. In Asia, the figures for China and the other Asian countries decreased, while those for the ASEAN 10 economies increased.

3. Overseas affiliates' total sales, ordinary profits, and current net profits all increased.

The total sales of overseas affiliates in FY2021 were 303.2 trillion yen, up 25.9% from the previous year. Looking at the sales by type of industry, industries such as wholesale trade and transport machinery showed an increase. Looking at the situation by region, the figures for Asia, North America and Europe all increased. Overseas affiliates' total ordinary profits were 17.1 trillion yen, up 72.9% from the previous year. Their total current net profits were 14.2 trillion yen, up 104.6% from the previous year.

4. The ratios of overseas production by overseas affiliates in the manufacturing industries rose.

Compared to total production by all domestic companies in the manufacturing industries in FY2021, the ratio of overseas production by overseas affiliates was 25.8%, up 2.2 percentage points (pp) from the previous year. Looking at the ratios by type of industry, increases were seen in such industries as transport machinery (47.0%; up 2.6 pp from the previous year) and general-purpose machinery (34.4%; up 4.9 pp from the previous year).

5. The total expenses for research and development and total capital investment by overseas affiliates in the manufacturing industries all increased.

The total expenses for research and development spent by overseas affiliates in the manufacturing industries in FY2021 were 907.5 billion yen, up 27.7% from the previous year. Their total capital investment was 3.7 trillion yen, up 14.0% from the previous year.

Outline of the survey

(1) Purpose

The survey aims to clarify the current situation of Japanese companies' overseas business activities, thereby providing basic data for the planning, preparation, and implementation of a wide variety of measures.

(2) Targets of the survey

The survey targeted Japanese companies (hereinafter referred to as the "headquarters") with overseas affiliates as of the end of March 2022, excluding those in the finance, insurance, and real estate industries. The term "overseas affiliates" in the survey is a collective term for the following: overseas affiliates, meaning overseas corporations in which a Japanese company has been investing at a ratio of 10% or more; and second-tier affiliates, meaning overseas corporations in which an overseas affiliate with a Japanese capital contribution at a ratio of over 50% has been investing at a ratio of over 50%.

(3) How the survey is conducted

METI conducts the survey via written questionnaire sheets, of which it distributes two types (“questionnaire sheet for the headquarters” and “questionnaire sheet for the overseas affiliates”) to the headquarters. The headquarters then sends the completed sheets back to METI by mail or online (through the “Inter-Ministry Information System for Official Statistics” (IMISOS)).

(4) Timing of performance data clarified by the survey

METI conducted the survey on July 1, 2022, targeting the responding companies’ performance as of the following times: [i] the end of March 2022, or the closest preceding closing date of financial accounts in FY2021; and [ii] the end of FY2021.

(5) Data on collection of questionnaire sheets

Collection ratio: 74.8%
Number of target companies (in operation): Headquarters: 7,152; overseas affiliates: 25,325

(6) Notes for using the data

When aggregating the data on the survey items related to the overseas affiliates, METI has adopted the Japanese yen in principle as the currency unit and converted the local currencies to yen using the average exchange rate (period average) in the International Financial Statistics (IFS) released by the International Monetary Fund (IMF). Please note that depending on the survey year, fluctuations in the yen's value against the local currency where a surveyed overseas affiliate operates will be seen when comparing the exchange rates between the two currencies in the current and previous years. For example, the JPY-USD exchange rate was 109.75 yen/dollar in the FY2021 survey, with the yen down 2.8% from the previous year. Meanwhile, the JPY-EUR rate was 129.12 yen/euro, with the yen down 6.4%.

Related Link

• Basic Survey on Overseas Business Activities

Division in Charge

Structural and Enterprise Statistics Office, Research and Statistics Department, Minister’s Secretariat