A publication of the Japan ExternalTrade Organization (JETRO) Manila

JETRO exhibits in Cebu ICT 2007

THE JAPAN EXTERNAL TRADE ORGA-NIZATION (JETRO) exhibited in Cebu ICT2007 last June 26-28 at the Cebu InternationalConvention Center (CICC). The event was thehighlight of the Cebu Business Month (CBM)for 2007, and was hosted by the Cebu Cham-ber of Commerce and Industry for a secondtime. Cebu ICT 2007 focused on the fast-paced fields ofinformation and communications technology(ICT) and business process outsourcing (BPO),carrying the theme “Pioneering Landmark ICTCollaboration in Asia”. The event provided avenue to bring together key stakeholders fromacross Asia to discuss their vision for sustainingand accelerating the transformation of Asia intothe world’s premier IT investment destination andglobal outsourcing center.

i n t h i s i s s u eJETRO NEWS

JETRO exhibits in Cebu ICT 2007

JETRO Biolink Forum 2007

JETRO Bizmatch @ CEATEC Japan 2007

Seminar on Japan’s Tax System Targeting Foreign Firms

JETRO INDUSTRIAL REPORT Wind Power on the Increase in Japan

F A Q

THE JAPANESE LANGUAGE

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JETRO-PhilNITS Information Booth at the Cebu ICT 2007

EVENT HIGHLIGHTS

PLENARY SESSIONSVenue

Date

THE PLENARY SESSIONS BREAKOUT SESSIONSVenue

Date

SUMMIT OF ASIAN IT LEADERSVenue

Date

BUSINESS MATCHINGVenue

Date

EXHIBITIONVenueDate

Marquee, Shangri-La MactanIsland Resort and SpaJune 26, 2007

Rooms 101-103Cebu International Convention CenterJune 27, 2007

Room 104Cebu International Convention CenterJune 27, 2007

Room 105Cebu International Convention CenterJune 26-28, 2007

Cebu International Convention CenterJune 26-28, 2007

m a y - j u n e 2 0 0 7volume 16 no 48

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BIOLINK FORUM is JETRO's international biotech business networking, symposium andbusiness partnering event that provides an opportunity for representatives from biotechcompanies in Japan and abroad to come together for symposiums, networking and one-on-onebusiness talks. Last year's event (BIOLINK 2006) in Osaka attracted close to 400 attendees,including 350 participants from some 60 biotech clusters in 14 countries.

”Given the success of last year's event, and the growing importance of cross-border exchangesand tie-ups in the biotech industry, JETRO will hold BIOLINK FORUM 2007 in Yokohama onSeptember 19th-21st. Biotech companies and organizations are cordially invited to participate inBIOLINK 2007 to discover firsthand why the biotech world is talking about Japan.

Date: ”Symposium: September 19thNetworking: September 20thBusiness Matching: September 19th-21st

Venue: ”Pacifico Yokohama*networking reception will be held at the Yokohama InterContinental Hotel

”Organizers: ”Japan External Trade Organization (JETRO)BioJapan 2007 Organizing Committee

Supported by:Ministry of Economy, Trade and Industry (Tentative)

”Expected range of participants:Representatives from Japanese and overseas biotech companies, industrial organizations, publicand private institutions and local and national governments

Event details:The BIOLINK 2007 symposium will explore recent trends of pharmaceutical and biotechcompanies in the US, Europe and Asia; the cluster networking event will be a great opportunityto build new business relationships with key figures in the global biotech community.

Business Matching: September 19th (Wed.) - 21st (Friday), 2007Participants in BIOLINK 2007 can make use of a special online business matching service tobrowse profiles of other participants and to schedule meetings with prospective partners forjoint research, technical collaboration, licensing, and other business tie-ups. Some 180 biotechfirms from 19 countries took part in the partnering event at BIOLINK 2006.

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For more information, please contact:High-Tech Industry Division, Industry and Technology DepartmentTel: +81-3-3582-4631 FAX: +81-3-3582-7508E-mail: BIOLINK2007@jetro.go.jp

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Services Offered to Participants- One-on-one pre-arranged business meetings* withpotential Japanese partners.- Each participant will have a dedicated meetingbooth (3m x 3m), equipped with walls, a table, fourchairs, LAN Internet access and electricity outlets- English-Japanese interpreting service for meetings(based on availability)- Short seminar on the Japanese IT market- Invitation to CEATEC’s “International Reception”(evening of October 2nd)- Free admission to CEATEC JAPAN 2007- Publication & promotion (include listing indirectory and website)* In principle, meetings are one hour in length andconducted in English.

About CEATECCEATEC or “Combined Exhibition of AdvancedTechnologies” is Asia’s largest annual technologyand electronics exhibition, providing a platform forcompanies and organizations from all over the worldto showcase their cutting-edge products, servicesand technologies. The event also serves as keyindustry networking and information-gatheringopportunity, with numerous seminars and otheractivities offered during the fair. CEATEC Japan2006 attracted nearly 200,000 visitors, with some807 exhibitors and 140 seminars. For moreinformation on CEATEC, please visit their websiteat http://www.ceatec.com/index.html.

JETRO BIZMATCH @ CEATEC JAPAN 2007

AT CEATEC JAPAN 2007, the Japan ExternalTrade Organization (JETRO) will offer JETROBIZMATCH@CEATEC JAPAN 2007 (October2nd-4th), a business-matching event that connectsrepresentatives from foreign firms with potentialJapanese partners. JETRO coordinates one-on-onepre-arranged business meetings between programparticipants and Japanese companies.

Companies have their own fully equipped meetingbooth and access to English-Japanese interpreters.Participants in BIZMATCH, which also features aseminar on Japan’s IT market, are invited to attendCEATEC’s “International Reception.” A total of 233business meetings were held at last year’sBIZMATCH, many of which led to contracts andother business arrangements. Please see below fordetails and application information.

Event Details (JETRO BIZMATCH@CEATECJAPAN 2007)Location: Makuhari Messe, 2-1 Nakase, Mihama-ku, Chiba, JapanDate: October 2nd (Tuesday)-4th (Thursday), 2007Organizer: Japan External Trade Organization(JETRO)

Supporting Organizers (Tentative): JapanElectronics and Information Technology IndustriesAssociation (JEITA), Communications andInformation Network Association of Japan (CIAJ),Computer Software Association of Japan (CSAJ),Japan Electronics Show Association (JESA)

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For more information, please contact:Mr. Kei TakagiManager, JETRO Tel-AvivTEL: +972-3-6881739, 6882207FAX: +972-3-5379157

This June 21st in Tokyo, JETRO will hold a seminar examining changes in Japan’s tax system, based on FY2007revisions to international tax systems, as well as aspects of Japan’s tax system most relevant to foreign firmsoperating in the country. Invited lecturers include Mr. Nobuyuki Nakamura, Director of the International Tax PolicyDivision in the Ministry of Finance Tax Bureau, Mr. Jonathan Stuart-Smith, a British chartered accountant, and Mr.Yangho Kim, a licensed Japanese tax accountant and US CPA.

All are welcome to attend this special event. Participation is free, but pre-registration is required. Space is limited, soearly application is advised.

Seminar OutlineDate June 21st, 2007 (Thursday) (Seminar: 15:00-17:50, Networking reception 18:00- )

Venue JETRO Headquarters Office 5th floor Exhibition HallArk Mori Building, 1-12-32 Akasaka, Minato-ku

Lecture: “FY07 Revisions of International Tax Systems”Speaker: Mr. Nobuyuki Nakamura, Director of the International TaxPolicy Division in the Ministry of Finance Tax BureauTopics: FY2007 international taxation reforms and their impact onJapan’s tax system (specifically: transfer pricing taxation, corporatereorganization taxation, with reference to recent amendments tointernational treaties)Language: Japanese (simultaneous Japanese-English interpretation willbe available)

Lecture: “Key Features of the Japanese Tax System ThatForeign-affiliated Companies Need to Be Aware of”Speakers: Mr. Jonathan Stuart-Smith, Partner, Tohmatsu Tax Co. / Mr.Yangho Kim, Partner, Tohmatsu Tax Co.Topics: Selection of business entity, overview of the Japanese tax system, the tax environment (including tax audits),structuring investments in Japan, M&A taxation, transfer pricing tax, and personal taxes for secondees to JapanLanguage: English (simultaneous English-Japanese interpretation will be available)

Intended participants:Executives of foreign affiliated companies, foreign branch offices, or foreign satellite offices; those responsible forcorporate planning and/or accounting

Organizer:Japan External Trade Organization (JETRO)

For more information, please contact:Invest Japan Business Support DivisionJapan External Trade Organization (JETRO)Address: Ark Mori Building 6th Floor, 1-12-32 Akasaka, Minato-ku, Tokyo 107-6006TEL: 03-3582-5410 FAX: 03-3584-6024 E-mail: JAD2@jetro.go.jp

JETRO Seminar on Japan's Tax System Targeting Foreign Firms

FY2007 International Tax Revisions and Key Aspects of Japan’s Tax System

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D A T E L I N E May - June 2007page 04

Japan’s Hotel IndustryHotels continue to grow both in scale and number in the Japanese market. In response to growing numbers of bothdomestic and overseas travelers, hotels of varying purposes and prices have appeared since around 2000. The hotelmarket has reached a turning point now that the markets for luxury and accommodation facilities have begun topolarize.

Trends

Foreign Luxury Hotels to Continue OpeningInternational hotel chains have rushed to build and operate luxury hotels with two major openings scheduled for2007. New openings in Tokyo will fall off temporarily after the spring 2009 opening of the Shangri-La Hotel, Tokyo,but luxury hotel openings appear to be spreading to regional cities, such as the Grand Hyatt Fukuoka, NagoyaMarriott Associa Hotel and The Ritz-Carlton, Osaka. The St. Regis, the top luxury brand of the Starwood Hotelsand Resorts group in the U.S., will be invited to operate in Osaka, according to an article in the February 7, 2007issue of Nihon Keizai Shimbun. An InterContinental Hotel is scheduled to open in Okinawa in 2008. Many anticipatethe boom in foreign luxury hotel openings will spread nationwide.

Domestic Airlines Sell off Hotels

All Nippon Airways Co., Ltd. (ANA) announced a capital partnership with InterContinental Hotels Group (IHG) inOctober 2006, resulting in the founding of IHG ANA Hotels Group Japan LLC. to operate the 31 hotels ANA ownsin Japan.1 After the new company began operating in December 2006, it announced the sale of 13 propertiesdirectly operated by ANA. Although ANA hotel operations have maintained solid business results, management willbe delegated to the new company so that ANA can strengthen the competitiveness of its core airline operations.

Japan Airlines (JAL) is also in the process of restructuring. Reports indicate JAL will sell its share in the Hotel NikkoTokyo’s holding company to an American investment fund. JAL also announced it would extricate itself from therisk involved in asset holdings and strengthen its outsourcing operations as part of a medium-term business planreleased in February 2007. It also announced it will concentrate resources on airline operations, and hopes tostrengthen its financial condition and competitiveness by selling off 30% of its shareholdings in JALUX Inc., theoperator of its air terminal shops.

These moves by both airlines are seen as a return to focusing on core businesses, which could serve as a newbusiness model for the Japanese tourism industry.

Spring 2009 (scheduled)MarunouchiShangri-la Hotel, TokyoFall 2007 (scheduled)HibiyaThe Peninsula TokyoMarch 2007RoppongiThe Ritz-Carlton, Tokyo

December 2005NihonbashiMandarin Oriental TokyoJuly 2005ShiodomeConrad TokyoApril 2003Tokyo RoppongiGrand Hyatt

October 2002MarunouchiFour Seasons Hotel Tokyo at Marunouchi

Year OpenedLocationHotel

Spring 2009 (scheduled)MarunouchiShangri-la Hotel, TokyoFall 2007 (scheduled)HibiyaThe Peninsula TokyoMarch 2007RoppongiThe Ritz-Carlton, Tokyo

December 2005NihonbashiMandarin Oriental TokyoJuly 2005ShiodomeConrad TokyoApril 2003Tokyo RoppongiGrand Hyatt

October 2002MarunouchiFour Seasons Hotel Tokyo at Marunouchi

Year OpenedLocationHotel

Source: Above companies’ Web sites

N E W S S E R I E S M A R K E T

D A T E L I N E May - June 2007page 05

INDUSTRIAL REPORT

F A Q

D A T E L I N E May - June 2007page 06

Japan External Trade OrganizationJETRO Manila

44th Floor Philamlife Tower8767 Paseo de Roxas, Makati City

1226 PhilippinesTel: (+63 2) 892.43.76Fax: (+63 2) 818.74.90

E-mail: jetroinfo@jetro.com.phBSCP email: jetrobscp@jetro.com.ph

www.jetro.go.jp/philippinesBusiness Library hours: Mondays to Fridays

9:00 A.M. to 12:00 noon & 1:30 P.M. to 5:00 P.M.

D A T E L I N E is a monthly newsletter of JETRO Manila

Japanese is believed to be linked to the Altaic language family,which includes Turkish, Mongolian and other languages, butalso shows similarities to Austronesian languages likePolynesian.

Writing:The Japanese writing system consists of three differentcharacter sets: Kanji (several thousands of Chinesecharacters) and Hiragana and Katakana (two syllabaries of 46characters each; together called Kana). Japanese texts canbe written in two ways: In Western style, i.e. in horizontalrows from the top to the bottom of the page, or in traditionalJapanese style, i.e. in vertical columns from the right to theleft side of the page. Both writing styles exist side by sidetoday.

Grammar:Basic Japanese grammar is relatively simple. Complicatingfactors such as gender articles and distinctions betweenplural and singular are missing almost completely. Conjugationrules for verbs and adjectives are simple and almost free ofexceptions. Nouns are not declinated at all, but appearalways in the same form.

Pronunciation:In comparison with other languages, Japanese knowsrelatively few sounds, and pronunciation poses little problemsto most learners. The biggest difficulty are accents, which doexist, but to a much lower extent than in the Chineselanguage. In addition, there are relatively many homonyms,i.e. words that are pronounced the same way, but havedifferent meanings.

Levels of speech:Different words and expressions are used when talking to anunknown person or a superior, as opposed to when talking toa child, family member or a close friend. For instance, thereare more than five different words for the English word “I”,which are used depending on the context. For formalsituations, a honorific language level (keigo) is still in commonuse.

(In this section, we will be including frequently asked questions at the JETRO business library and answers to such queries)

THE JAPANESE LANGUAGE

STUDYING JAPANESEJapanese is considered a difficult language to learn. This iscertainly true for native speakers of European languages, suchas English, because Japanese is fundamentally different fromEuropean languages.

One of the biggest difficulties of the Japanese language is itscomplex writing system. Unless you are already familiar withChinese characters (kanji), many years of study are necessaryto achieve complete literacy. Japanese students learn about2000 kanji until the end of junior high school and continue tolearn more until the end of their school careers. The twosyllabaries Hiragana and Katakana (together about 100 signs),however, can be memorized easily and within a short period oftime.

Another difficulty of the Japanese language is the fact that aperson’s speech can vary depending on the situation and theperson, one is talking to. A student of the Japanese language hasto get familiar with Japanese society and customs in order tounderstand the detailed rules of the different levels of speech.

Compared to many European languages, basic Japanese grammaris relatively simple. Complicating factors such as gender articlesand distinctions between plural and singular are missing almostcompletely. Conjugation rules for verbs and adjectives are simpleand almost free of exceptions. Nouns are not declinated at all,but appear always in the same form. These facts make thelanguage relatively easy for starting students.

JAPANESE PROFICIENCY TESTThe Japanese Language Proficiency Test (Nihongo NoryokuShiken) measures a person’s proficiency in the Japaneselanguage. Test results are widely used by professionals seekingemployment at Japanese companies and students seekingacceptance at Japanese educational institutions to certify theirlanguage proficiency.

The JLPT is held once a year in December in various cities insideand outside of Japan. The test has four levels, the lowest beinglevel 4 for beginners and the highest being level 1 for advancedstudents. Writing, vocabulary, listening, reading and grammarskills are tested.