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Japanese enterprises are still highly ambitious for making inroads into other countries, according to the Japan External Trade Organization (JETRO). More companies are now positive about increasing exports, the organization said, adding that more than 60% still intend to reinforce their overseas expansion policies (e.g. making new investments and expanding existing facilities). The survey also revealed that Japanese businesses now have a wait-and-see stance toward China and are making shifts to Southeast Asia.
The JETRO on Feb. 27 disclosed the results of a survey that it had conducted among the 9,800 companies that used JETRO services in November and December 2013 on their efforts to do business abroad. Valid responses were given by 3,471 of the 9,800, which included 2,791 small and medium-sized enterprises.
As for future export policies, 77.2% of the 3,471 respondents indicated that they will work to further increase exports in the future, growing from the 70.1% in the previous survey conducted in 2012. Those intending to continue overseas business expansions accounted for 64.9%, which still remained at a high level, although the figure itself went down from 69.2%.
Regarding where to reinforce business operations, China was pointed out by 57% of the respondents, going down by 2.2 percentage points; Thailand, 47.1%, up by 5.9 points; Indonesia, 35.1%, up by 3.1 points; and Vietnam, 29.6%, up by 3.5 points. On the whole, 74.8% claimed that they will enhance their operations in Southeast Asia, going up by 5.8 points. They held a much larger share than those thinking about expanding their services in China.
In respect to the reorganization of business footholds and functions, the survey results indicated that there is a trend among Japanese enterprises toward relocating business operations from China. Those intending to do so accounted for 21.9%, increasing by a notable 13.3 percentage points from the survey conducted in 2006. Among the 3,471 respondents, 22.9% answered that they will move business footholds and/or facilities to China, plunging by 26.5 percentage points. In contrast, those planning to relocate footholds and/or functions to Southeast Asia accounted for 44.5%, increasing 14.5 points. The JETRO survey said it is obvious that more Japanese companies are eager to do business in Southeast Asia now.
