Foreign Direct Investment

— Latest update: October 2023 —

Foreign Direct Investment (FDI) holds significant importance in the context of Japan. According to the United Nations Conference on Trade and Development's 2023 report, Japan emerged as the second largest investor, with a staggering outflow of over $161 billion, rising by 10 percent of the previous year.

In 2021, according to the Japan External Trade Organization (JETRO), Japan witnessed a significant drop in Foreign Direct Investment (FDI) flows, which amounted to 3.0 trillion yen, marking a 55.0% decrease from the previous year. Yet, it is noteworthy that within this trend, equity capital, representing new investments and capital increases, saw a remarkable increase of 425.0% to 2.6 trillion yen, particularly in Japan.

Contrastingly, more recent data from the United Nations Conference on Trade and Development (UNCTAD) indicates a positive shift: In 2022, FDI flows to Japan rebounded to $33 billion, marking a record high and positioning Japan as the 13th most important global investment destination. This indicates a notable resurgence in FDI in Japan.

UNCTAD, World Investment Report, 2023
JETRO, FDI Trends in the World and Japan, 2022
JETRO, GlobalTrade and Investment Report, 2023

Table of Contents

• Japan Revitalization Strategy
• EU-Japan FDI
• Incentives and Support from JETRO
• Other supports
• Expert Reports
• Annual Report
• Further Reading
• Relevant Organisations