Tractus in Japan

Japan presents unique opportunities for stable trade and investment in an increasingly complex world

Japan has representative government, transparency in laws, rules, and regulations – and most importantly boasts the third largest economy in the world with GDP crossing the $5 trillion mark in 2019. Successful companies in market generally exhibit a rare combination of discipline, ingenuity and place a high value on long-term partnerships.

Japanese business culture is conservative, formal, and requires knowledge and observance of traditional rules and norms. And though in today’s world a solid business offering can do much to overcome cultural differences, the building and fomenting of relationships is still essential.

Japan itself is facing challenges and undertaking initiatives that present myriad opportunities for partnerships with overseas firms. Japan imports much more than fifty percent of its fuel, as well as more than fifty percent of its food staples, and is confronting a demographic shift that is resulting in an aging population. Specific industry clusters that present intriguing opportunities include alternative energy, agricultural and processed food products, advanced agricultural technologies, biotech and pharmaceutical products, and disaster mitigation and response. As Japan continues to shape and integrate technological advancement in every facet its society, there is especially keen interest in advanced manufacturing industries such as next-generation mobility & automotive technology, AI and machine learning. Japan also a leader in the sophisticated consumer goods market that craves high-end goods and is rapidly developing and integrating e-commerce platforms.

Tractus has practice areas that are relevant across the entire Japanese economy.

Economic Development

Economic Development Organizations (EDOs), government organizations that typically assist small and medium enterprises with overseas business, continue to target the Japanese market, attracted by opportunities to participate in its advanced industries and its wealthy consumer goods market. The Tractus team has utilized its private sector knowledge to work with US, Canadian, and EU-based EDOs to identify partners in a variety of markets and to provide visibility on market dynamics that often go unseen from afar.

Strategy & Execution

Tractus’ broad experience advising clients across geographies and sectors allows our clients to identify opportunities, assess risks and challenges, and optimize business strategy under our Strategy and Execution practice.

The Tractus team has decades of experience working with clients to execute market entry with long-term business objectives in mind. From market assessment, to route-to-market, to identifying business partners, to site selection and project management, Tractus has expertise across the entire range of these strategy and execution activities.

Tractus conducts due diligence on regulatory structures, site locations, individuals, and business activities to ensure that our clients make informed decisions about where to locate, the facilities they secure, as well as persons and companies with whom they may be dealing with.

Regardless of the market entry or investment strategy chosen, the Tractus team has the expertise and experience to support our clients, from registration of the legal entity to recruitment of key management personnel and identification and selection of professional service providers.

Site Selection

The site selection process is initiated with gaining an understanding of market dynamics. Japan has a highly educated workforce and a deep well of engineering and technical talent that can contribute to the success of projects, and it has expertise in infrastructure projects across Asia, should a MNC intend to partner with Japanese firms.

The Japanese government is actively encouraging foreign investment outside the Tokyo Metropolitan area. Different prefectures offer different programs, but typically the programs include tax forgiveness, long-term leasing of property, salary assistance for initial hires, and technical and regulatory assistance.