Japan Aims to Double Foreign Investment by 2030

Japan has unveiled an ambitious target of doubling foreign investment by 2030 to JPY80 trillion (US$531.8 billion), as announced by the Ministry of Foreign Affairs. This target, measured in foreign direct investment (FDI) stocks, reflects the value of equity in and net loans to Japanese companies by foreign investors.

Building on the success of its Japan Revitalising Policy 2013, which saw FDI stocks doubling by 2020, reaching JPY35 trillion (US$327.8 billion), Japan aims to further boost its FDI stocks to account for an estimated 12% of the country’s GDP.

Recent trends show increased foreign investment in various sectors, including accommodations, offices, warehouses, and logistics facilities, as global investors seek stability amidst political and economic uncertainties in other regions.

To attract more foreign entrepreneurs and investors, Japan is contemplating relaxing residency rules and lowering investment and staffing thresholds, particularly to encourage the establishment of small enterprises. Additionally, measures like easing entry requirements for private jets and collaborating with local ports to accommodate large yachts aim to appeal to high-net-worth individuals.

Furthermore, Japan has set an ambitious target of welcoming 60 million annual tourist arrivals by 2030, nearly doubling the current figures, signalling its commitment to enhancing its attractiveness on the global stage.