News
From November through December 2011, the Japan External Trade Organization （JETRO） surveyed 9,357 Japanese firms either involved in or interested in business overseas, 82.7% of which were small or medium-sized enterprises （SMEs）. It received valid replies from 2,769 firms, for a response rate of 29.6 %.
1. Overseas business expansion centered on China and other Asian markets
According to the survey, the most cited export destination for firms was China, followed by Thailand, Taiwan, South Korea and the United States. China also accounted for the largest number of locations of overseas facilities, far ahead of the second-place United States and other countries. While the percentage of large firms with facilities in China was high, at 72.6%, the percentage of SMEs with such facilities also was much higher than in other countries, at 28.7%. While the most common forms of such facilities were those of sales and production sites, the number of firms with research and development facilities or regional headquarters located in China is increasing.
2. High export orientation in the food products field
Of all respondent firms, 50.3% reported plans to expand exports in the near future （the next three years or so）, and when combined with the share of respondents indicating that while they were not involved in exporting at present they would like to do so in the future, this indicates that 60% of the firms are motivated to begin or increase exports. China was the target market cited by the highest percentage of respondents, at 68.9%, followed by the US, India, and Indonesia.
A look at results by industry shows that companies in fields such as medical products and cosmetics, precision equipment, and food and beverages have an especially strong desire to export. The food and beverage industry had a particular high rate of companies considering exports in the future.
3. The share of firms planning to expand their overseas businesses continues to rise
The percentage of respondent firms planning to expand their overseas businesses （i.e., new investment or expansion of existing facilities） for the near future （the next three years or so）, was 73.2%, up from 69.0% in the previous survey. This increasing trend has continued since the fiscal 2008 survey, the first for which comparable data was available.
Breaking down by company size, the share of SMEs rose from 66.0% to 71.4%, surpassing the 70% mark for the first time, closing in on the figure for large firms （76.8%）.
Asked about business functions they intend to expand （e.g., sales, production, or R&D）, 76.3% of firms answered that they plan to expand sales functions. A breakdown by country/region shows that the highest percentage of firms is focusing on China, while Thailand came in second on all but a few functions such as regional headquarters.
4. The Great East Japan Earthquake and flooding in Thailand have affected overseas business
The earthquake impacted 41.5% of trading companies. Delays in exports were specifically experienced by 15.8% of firms due to supply-chain disruptions and 14.5% due to import restrictions in destination countries. Damage from the flooding in Thailand affected 67.2% of firms exporting to Thailand or investing directly in the country.
5. Break-even exchange rates （median value among respondent firms） were 85 yen per U.S. dollar and 115 yen per euro.
