Copyright (C) 2011 JETRO. All rights reserved.
Japan’s Competitive Strengths
April 2011
Overseas Research Department
Copyright (C) 2011 JETRO. All rights reserved.
Japan’s competitiveness has been gradually risingIn top 10 ranking since 2006
2001 2002 2003 2004 2005
1 Finland United States Finland Finland Finland2 United States Finland United States United States United States3 Canada Taiwan Sweden Sweden Sweden4 Singapore Singapore Denmark Taiwan Denmark5 Australia Sweden Taiwan Denmark Taiwan6 Norway Switzerland Singapore Norway Singapore7 Taiwan Australia Switzerland Singapore Iceland8 Netherland Canada Iceland Switzerland Switzerland9 Sweden Norway Norway Japan Norway
10 New Zealand Denmark Australia Iceland Australia11 Ireland United Kingdom Japan United Kingdom Netherlands12 United Kingdom Iceland Netherlands Netherlands Japan13 Hong Kong SAR Japan Germany Germany United Kingdom14 Denmark Germany New Zealand Australia Canada15 Switzerland Netherlands United Kingdom Canada Germany
21 Japan Korea Luxembourg Hong Kong SAR Austria
2006 2007 2008 2009 2010
1 Switzerland United States United States Switzerland Switzerland2 Finland Switzerland Switzerland United States Sweden3 Sweden Denmark Denmark Singapore Singapore4 Denmark Sweden Sweden Sweden United States5 Singapore Germany Singapore Denmark Germany6 United States Finland Finland Finland Japan7 Japan Singapore Germany Germany Finland8 Germany Japan Netherlands Japan Netherlands9 Netherlands United Kingdom Japan Canada Denmark
10 United Kingdom Netherlands Canada Netherlands Canada
Source: World Economic Forum “The Global Competitiveness Report” (various years)2
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Sources of Japan’s competitivenessExistence of diverse high value-added businesses and highly regarded
production processes
3Source: World Economic Forum “The Global Competitiveness Report” 2010
Major developed countries Asian industrialized/industrializing countries / region
3
4
5
6
7
Local supplier quantity
Local supplier quality
State of cluster development
Nature of competitive advantage
Value chain breadth
Control of international distribution
Production process
sophistication
Marketing strategy
Japan
Germany
U.S.
Switzerland
3
4
5
6
7
Local supplier quantity
Local supplier quality
State of cluster
development
Nature of competitiv
e advantage
Value chain
breadth
Control of internation
al distributi…
Production process
sophistication
Marketing strategy
S. Korea
China
Taiwan
Average
Copyright (C) 2011 JETRO. All rights reserved.
4
Sources of Japan’s competitiveness:The private sector’s innovation capacity is highly regarded
Source: World Economic Forum “The Global Competitiveness Report” 2010
Major developed countries Asian industrialized/industrializing countries /region
3
4
5
6Innovation capacity
Private sector R&D investment
Human resource in science and technology
General patents per capita
Quality of scientific research institutions
Government-academia
cooperation
Government procurement of
advanced technological
products
Japan
Germany
U.S.
Switzerland
3
4
5
6
Innovation capacity
Private sector R&D investment
Human resource in science and
technology
General patents per capita
Quality of scientific research
institutions
Government-academia
cooperation
Government procurement of
advanced technological
products
S. Korea
China
Taiwan
Average
Copyright (C) 2011 JETRO. All rights reserved.
The corporate sector is steadily improving:Debt ratio is steadily dropping
60
65
70
75
80
85
90
Source: Ministry of Finance “Financial Statements Statistics of Corporations by Industry”
5
Copyright (C) 2011 JETRO. All rights reserved.
Cash-rich business sector
6
Cash as percentage of total assets (liabilities) of non-financial companies
Sources: Flow of funds statistics from each country
26.2
10.4
12.0
6.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Japan
(June 2010)
US
(June 2010)
Germany(December 2009)
France(December 2008)
(%)
Copyright (C) 2011 JETRO. All rights reserved.
Financial sector is healthy:Bad debt ratio of major countries
Sources: IMF “Global Financial Stability Report” (Oct. 2010); Financial Services Agency7
3.6 3.3
9.0
7.0
1.9 1.5
2.3
5.5
0.4
3.5
5.5
9.5
1.6
2.3
3.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Fran
ce(
Dec
emb
er 2
00
9)
Ger
man
y(D
ecem
ber
2009
)
Gre
ece(
June
201
0)
Ital
y (D
ecem
ber
2009
)
Jap
an (S
epte
mb
er 2
01
0)
Sou
th K
ore
a (
Ma
rch
20
10)
Sing
apor
e(
Sept
embe
r 20
09)
Spai
n(
Apr
il 20
10)
Swit
zerl
an
d(D
ece
mb
er
20
09)
UK(
De
cem
be
r 2
00
9)
US(
Mar
ch 2
010)
Ru
ssia(
July
20
10)
Ch
ina(
De
cem
be
r 20
09)
Ind
ia(
Ma
rch
20
09)
Bra
zil (
Ap
ril 2
01
0)
Developed countries Developing countries
Copyright (C) 2011 JETRO. All rights reserved.
Abundant personal financial assets
8Sources: Flow of funds statistics from each country; IMF International Financial Statistics; IMF World Economic Outlook Database (Oct. 2010)
144,250
123,693
82,802
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
U.S. Japan Germany
Personal financial assets per capita (as of end of 2009) (U.S. $)
Copyright (C) 2011 JETRO. All rights reserved.
Abundant foreign currency reserve
9Sources: Central banks and departments of treasury of each country and region
26,483
11,181
4,987 3,805
-
5,000
10,000
15,000
20,000
25,000
30,000
China
(September 2010)
Japan
(October 2010)
Russia
(November 2010)
Taiwan
(September 2010)
(US$ million)
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Vigorous efforts in R&DR&D expenditure as percentage of GDP of major countries
Sources: Ministry of Internal Affairs and Communications “Survey of Research and Development (Designated Statistical Survey)” (2010); OECD “Main Science and Technology Indicator” 2010
10
1.0
1.5
2.0
2.5
3.0
3.5
4.0 9
1
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
Japan US German
France UK China
South Korea
(%)
Copyright (C) 2011 JETRO. All rights reserved.
International opinion about Japan
Note: International opinion poll by BBC World Service begun in 2004. Conducted by GlobeScan Incorporated (Toronto) and the University of Maryland’s Program on International Policy Attitudes. 2010 survey: 28 countries, 29,977 persons. Survey period: Nov. 30, 2009 – Feb. 16, 2010.Source: BBC World Service
Survey of different countries’ impact on the world (2010)
11
59
53
53
52
51
49
46
41
41
36
34
32
30
19
17
16
15
27
29
26
28
35
32
20
36
21
33
39
38
33
31
35
33
29
14
18
21
20
14
19
34
23
38
31
27
30
37
50
48
51
56
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Germany
EU (Avg. of 28 countries)
Japan
U.K.
Canada
France
U.S.
Brazil
China
India
South Africa
South Korea
Russia
Israel
North Korea
Pakistan
Iran
Generally positive Depends on the situation/Neither positive nor negative/Don't know Generally negative
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Growing Interest in Japan’s pop cultureNumber of English articles in newspapers and magazines containing the word “kawaii”
Note: As of Dec. 13, 2010Source: Search result from Factiva.com (Dow Jones & Company’s business information and research tool)
33 34
72
54
81
106
88
147
169
148
384
0
50
100
150
200
250
300
350
400
450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
12
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Japan: Growing together with Asia
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Asia has become the world’s growth center
Source: IMF World Economic Outlook (Oct. 2010) 14
Growth rate and contribution by country/region(%)
Growth Rate Contribution Growth Rate Contribution Growth Rate Contribution Growth Rate Contribution Growth Rate Contribution Growth Rate Contribution Growth Rate Contribution
US 2.7 0.6 1.9 0.4 0.0 0.0 △ 2.6 △ 0.5 2.6 0.5 2.3 0.5 3.0 0.6EU27 3.5 0.8 3.2 0.7 0.8 0.2 △ 4.1 △ 0.9 1.7 0.3 1.7 0.3 2.1 0.4
Euro Zone 3.0 0.5 2.9 0.5 0.5 0.1 △ 4.1 △ 0.6 1.7 0.3 1.5 0.2 1.8 0.3UK 2.8 0.1 2.7 0.1 △ 0.1 △ 0.0 △ 4.9 △ 0.2 1.7 0.1 2.0 0.1 2.3 0.1
Japan 2.0 0.1 2.4 0.2 △ 1.2 △ 0.1 △ 5.2 △ 0.3 2.8 0.2 1.5 0.1 2.0 0.1East Asia 9.7 1.7 10.7 1.9 7.0 1.3 5.7 1.1 9.2 1.9 7.9 1.7 7.9 1.8
China 12.7 1.2 14.2 1.4 9.6 1.1 9.1 1.1 10.5 1.4 9.6 1.3 9.5 1.4South Korea 5.2 0.1 5.1 0.1 2.3 0.0 0.2 0.0 6.1 0.1 4.5 0.1 4.2 0.1ASEAN10 6.2 0.3 6.6 0.3 4.5 0.2 1.7 0.1 7.2 0.3 5.4 0.2 5.6 0.3 Thailand 5.1 0.0 4.9 0.0 2.5 0.0 △ 2.2 △ 0.0 7.5 0.1 4.0 0.0 4.3 0.0 Singapore 8.6 0.0 8.5 0.0 1.8 0.0 △ 1.3 △ 0.0 15.0 0.1 4.5 0.0 4.4 0.0 Malaysia 5.8 0.0 6.5 0.0 4.7 0.0 △ 1.7 △ 0.0 6.7 0.0 5.3 0.0 5.2 0.0 Vietnam 8.2 0.0 8.5 0.0 6.3 0.0 5.3 0.0 6.5 0.0 6.8 0.0 7.0 0.0
9.7 0.4 9.9 0.4 6.4 0.3 5.7 0.3 9.7 0.5 8.4 0.5 8.0 0.4Australia 2.6 0.0 4.8 0.1 2.2 0.0 1.2 0.0 3.0 0.0 3.5 0.0 3.5 0.0New Zealand 1.0 0.0 2.8 0.0 △ 0.1 △ 0.0 △ 1.6 △ 0.0 3.0 0.0 3.2 0.0 3.1 0.0
5.6 0.5 5.7 0.5 4.3 0.4 △ 1.7 △ 0.1 5.7 0.5 4.0 0.3 4.2 0.4
Brazil 4.0 0.1 6.1 0.2 5.1 0.1 △ 0.2 △ 0.0 7.5 0.2 4.1 0.1 4.1 0.1
6.5 0.2 5.5 0.2 3.0 0.1 △ 3.6 △ 0.1 3.7 0.1 3.1 0.1 3.8 0.1
Russia 8.2 0.2 8.5 0.3 5.2 0.2 △ 7.9 △ 0.3 4.0 0.1 4.3 0.1 4.4 0.1
5.8 0.3 6.0 0.3 5.0 0.2 2.0 0.1 4.1 0.2 5.1 0.2 4.8 0.2
Sub-Saharan Africa 6.4 0.1 7.0 0.2 5.5 0.1 2.6 0.1 5.0 0.1 5.5 0.1 5.7 0.1South Africa 5.6 0.0 5.5 0.0 3.7 0.0 △ 1.8 △ 0.0 3.0 0.0 3.5 0.0 3.9 0.0
World 5.2 5.2 5.3 5.3 2.8 2.8 △ 0.6 △ 0.6 4.8 4.8 4.2 4.2 4.5 4.5Reference
Developed Countries 3.0 1.8 2.7 1.6 0.2 0.1 △ 3.2 △ 1.8 2.7 1.4 2.2 1.1 2.6 1.4Developing Countries 8.2 3.4 8.7 3.7 6.0 2.6 2.5 1.1 7.1 3.3 6.4 3.1 6.5 3.2Asia and Oceania 7.6 2.2 8.6 2.5 5.2 1.5 3.7 1.1 7.9 2.5 6.8 2.2 6.9 2.3ASEAN+3 7.6 1.7 8.6 2.0 5.1 1.2 3.4 0.8 7.7 2.0 6.7 1.7 6.9 1.8BRICS(IncludingSouth Africa)
9.9 2.0 11.1 2.4 7.6 1.7 4.6 1.1 8.9 2.2 7.9 2.0 7.9 2.1
BRICs(ExcludingSouth Africa)
10.1 2.0 11.3 2.3 7.7 1.7 4.8 1.1 9.1 2.2 8.1 2.0 8.0 2.1
〔Notes〕①The world GDP growth rate is calculated with the IMF's purchasing power parity (PPP). ②Contribution by each country and region is calculated with the weighted PPP for 2009. ③East Asia refers to China, South Korea, Hong Kong, Taiwan and ASEAN. ④Figures may differ from other parts due to the revision of and difference in original statistics. ⑤The definition of developed and developing countries follows the World Economic Outlook (IMF).
India
Central and EasternEurope
Central and SouthAmerica
Middle East and NorthernAfrica
2009 2010 (Estimate) 2011 (Estimate) 2012 (Estimate)2006 2007 2008
Copyright (C) 2011 JETRO. All rights reserved.
Asian economies are taking a lead in the world
Source: IMF World Economic Outlook (Oct. 2010)15
1980World: 10.67 trillion dollars
Asian developing countries: 664.4 billion dollars (6.2%)
2000World: 32.15 trillion dollars
Asian developing countries: 2.34 trillion dollars (7.3%)
2010World: 61.96 trillion dollars
Asian developing countries: 9.14 trillion dollars (14.7%)
Each country/region’s share of total GDP (in nominal dollars)
China1.9%
India1.7%
ASEAN2.2%
Other depelop
ing countries in Asia
0.4%Japan9.9%
South Korea0.6%
Taiwan0.4%Hong
Kong0.3%
US26.1%
EU34.2%
Other22.2%
China3.7%
India1.5%
ASEAN1.9%
Other depelopin
g countries
in Asia0.2%
Japan14.5%
South Korea1.7%
Taiwan1.0%
Hong Kong0.5%
US31.0%
EU26.5%
Other17.6%
China9.3%
India2.3%
ASEAN2.9%
Other depeloping countries in
Asia0.3%
Japan8.7% South Korea
1.6%
Taiwan0.7%
Hong Kong0.4%
US23.6%
EU26.0%
Other24.3%
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Imports and exports are both rapidly recovering in China, South Korea and Taiwan
- Recovery of imports outpaces recovery of exports -
Sources: Trade statistics of each country/region
Exports Imports
16
27.225.7
17.3
△15.9
34.0
14.4 14.1 13.6
△13.9
30.4
12.710.2
3.6
△20.3
41.2
18.9
24.9
9.0
△14.6
31.7
△ 30.0
△ 20.0
△ 10.0
0.0
10.0
20.0
30.0
40.0
50.0
2006 2007 2008 2009 2010(1-3Q)
China South Korea
Taiwan Thailand
(Year-on-year, %)
19.9 20.818.3
△11.3
42.7
18.415.3
22.0
△25.8
34.5
11.28.2 9.6
△27.4
51.8
8.9
17.9 19.0
△25.5
44.2
△ 40.0
△ 30.0
△ 20.0
△ 10.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2006 2007 2008 2009 2010(1-3Q)
China South Korea
Taiwan Thailand
(Year-on-year, %)
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Imports from Japan also show steady recoveryGrowth rate of imports into China, South Korea, Taiwan and Thailand (Jan. – Sept. 2010)
Note: The figure on top of each bar indicates the growth rate. ( ) indicates the share among imports from the world. The circled number indicates rank.Sources: Trade statistics of each country/region 17
42.7
34.5
51.8
44.2 38.3
(12.6、①)
35.2
(15.3、②)
53.7
(20.9, ①)
64.8
(20.7,①)
31.9
(16.7、①)
52.7
(13.9,②)52.7
(13.2、②)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
China South Korea Taiwan Thailand
Imports from the world
Imports from Japan
Imports from China
(%)(%)
Copyright (C) 2011 JETRO. All rights reserved.
Majority of imports into major Asian countries are intermediate goods and capital goods
Percentages of imports into major Asian countries/regions that are intermediate goods and final capital goods (Jan. – Sept. 2010)
Note: Categories of goods are based on RIETI categories and UN Broad Economic Categories (BEC)Sources: Trade statistics of each country/region 18
23.0 25.2 28.2 35.9
23.5 14.6
22.2
18.3
16.1
13.2
14.6 13.4
37.3 47.0
35.0 32.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
China South Korea Taiwan Thailand
Others
Final capital goods (excluding transport equipment)
Intermediate goods Capital goods (excluding transport equipment)
Intermediate goods Industrial materials (processed goods)
(%)
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Asia depends on intermediate goods and capital goods imported from Japan (1)
Shares by country of imports of intermediate goods into major Asian countries/regions
Note: Categories of goods are based on RIETI categories and UN Broad Economic Categories. Data as of 3Q 2010. Shaded entries indicate countries/regions possessing top share.Sources: Trade statistics of each country/region 19
1. Intermediate goods - Industrial materials (processed goods)
2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010World 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Japan 19.0 17.4 16.9 26.3 30.8 30.0 29.8 33.4 31.5 22.4 21.5 22.5China 5.0 4.5 4.2 28.7 22.0 22.9 13.5 13.2 13.3 12.3 12.5 12.5S. Korea 14.4 13.8 13.2 - - - 8.1 8.8 9.5 6.0 6.6 7.2Taiwan 12.3 11.1 11.2 2.2 2.6 2.5 - - - 4.1 4.2 3.9Hong Kong 1.1 0.8 0.7 0.6 0.6 0.6 0.7 1.0 0.9 1.8 2.5 1.4ASEAN10 7.2 7.6 8.8 6.1 6.6 6.8 8.2 8.2 8.3 13.3 14.4 13.7
Singapore 1.8 1.7 2.1 0.9 1.3 1.3 2.0 2.0 1.9 3.6 4.0 3.3Thailand 2.1 2.4 2.7 0.7 0.7 0.7 1.3 1.3 1.4 0.6 0.6 0.7Malaysia 1.5 1.5 1.8 1.3 1.5 1.6 1.7 1.7 1.8 4.3 4.8 4.3Indonesia 1.2 1.3 1.2 1.9 1.9 2.1 1.8 2.0 2.0 2.8 2.8 3.3Philippines 0.3 0.3 0.4 0.8 0.6 0.5 0.6 0.5 0.7 0.7 0.8 0.8Vietnam 0.2 0.3 0.4 0.4 0.6 0.7 0.6 0.6 0.6 0.6 0.6 0.6
U.S. 8.4 8.1 8.2 7.6 9.0 9.2 9.1 8.7 8.4 5.8 5.6 5.4EU27 12.5 12.1 11.8 10.2 10.6 9.4 8.8 9.3 8.9 8.6 9.4 7.9
2. Intermediate goods - Capital goods (excluding transport equipment)
2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010World 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0Japan 15.5 14.9 14.4 19.9 17.8 18.0 30.9 23.5 23.0 24.1 24.0 26.2China 17.5 19.3 17.4 22.9 21.7 23.8 28.9 19.2 21.8 14.8 16.8 18.0S. Korea 13.9 14.2 15.7 - - - 5.0 11.7 12.0 4.4 4.9 4.8Taiwan 16.0 16.1 16.5 11.4 12.9 14.8 - - - 7.4 7.4 8.6Hong Kong 1.4 1.2 1.0 1.5 1.1 1.2 0.7 0.5 0.3 1.4 1.5 1.6ASEAN10 17.2 15.7 17.5 16.7 18.7 15.5 6.4 16.0 17.0 28.5 27.7 23.7
Singapore 2.7 2.7 3.0 10.0 10.7 7.3 1.1 6.9 8.1 9.4 8.1 7.2Thailand 2.4 2.6 2.5 1.4 1.6 1.6 1.1 1.7 1.8 2.6 3.0 2.6Malaysia 6.3 7.4 8.7 3.0 3.5 3.5 2.7 4.5 4.5 11.4 12.8 10.3Indonesia 0.4 0.3 0.3 0.2 0.3 0.3 0.3 0.2 0.2 1.3 0.7 0.8Philippines 5.3 2.6 2.6 2.1 2.4 2.6 0.9 2.5 2.3 2.5 2.0 2.1Vietnam 0.1 0.2 0.3 0.0 0.2 0.3 0.2 0.1 0.1 1.4 1.1 0.6
U.S. 5.7 5.4 5.3 12.3 11.7 11.6 14.7 11.0 10.1 9.5 8.5 8.5EU27 9.9 10.1 9.0 11.8 11.6 10.7 9.7 7.4 6.2 7.6 7.3 6.8
China South Korea Taiwan Thailand
China South Korea Taiwan Thailand
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Asia depends on intermediate goods and capital goods imported from Japan (2)
Shares by country of imports of capital goods into major Asian countries/regions
Note: Categories of goods are based on RIETI categories and UN Broad Economic Categories. Data as of 3Q 2010. Shaded entries indicate countries/regions possessing top share.Sources: Trade statistics of each country/region
20
3. Final capital goods (excluding transport equipment)
2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010World 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Japan 19.3 17.5 20.4 24.4 21.4 24.6 34.3 29.4 32.5 27.4 24.2 25.0
China 15.3 15.5 14.6 27.9 30.9 27.5 22.3 26.7 22.1 22.2 25.9 27.0S. Korea 12.0 13.0 13.4 - - - 3.4 4.0 3.7 5.0 4.6 4.8Taiwan 12.7 9.8 11.4 1.8 1.4 2.1 - - - 3.4 3.3 3.3Hong Kong 0.7 0.5 0.5 0.6 0.5 0.5 0.5 0.4 0.5 0.8 0.6 0.6ASEAN10 10.8 12.1 11.4 5.9 5.8 5.8 6.0 7.0 7.7 16.7 17.3 18.1
Singapore 1.9 2.3 1.8 1.5 1.4 1.9 1.5 2.1 2.7 4.5 6.1 4.8Thailand 4.4 4.8 4.3 1.7 1.8 1.5 1.9 2.2 1.9 1.6 2.7 2.0Malaysia 1.8 2.0 2.4 1.4 1.3 1.3 1.5 1.5 2.0 4.7 4.9 7.1Indonesia 0.6 0.6 0.5 0.5 0.4 0.5 0.4 0.4 0.4 4.1 1.5 1.4Philippines 1.8 2.1 2.0 0.6 0.6 0.5 0.6 0.7 0.6 1.0 1.0 1.1Vietnam 0.3 0.3 0.4 0.2 0.2 0.2 0.2 0.2 0.1 0.6 1.0 1.2
U.S. 7.5 7.2 6.7 14.1 13.1 15.9 14.2 14.8 16.5 6.8 7.5 6.9EU27 18.6 20.6 18.4 20.0 20.1 17.0 15.3 14.2 14.1 12.2 12.1 10.7
China S. Korea Taiwan Thailand
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Japan posted gains in intermediate goods and final capital goods
Trade balance of Japan’s intermediate goods and final capital goods
Note: Categories of goods are based on RIETI categories and UN Broad Economic Categories. Data as of 3Q 2010.Source: Ministry of Finance trade statistics
21
1. Intermediate goods -Industrial materials(Processed goods)
(US$ million)2008 2009 2010
World 50,537 54,276 50,940
China 9,256 14,296 11,786
South Korea 18,411 17,001 16,212Taiwan 13,824 11,360 11,797Hong Kong 9,249 6,946 6,813ASEAN10 16,227 11,339 13,494
Singapore 3,927 2,725 2,644Thailand 7,432 4,500 6,032Malaysia 2,055 1,473 1,783Indonesia -870 -415 68Philippines 1,589 1,259 1,305Vietnam 2,019 1,716 1,599
India 373 1,100 934US -557 -856 -1,076EU27 -3,005 -4,101 -3,089Brazil -863 -577 -348
2. Intermediate goods - Parts and accessories of capital goods, except tyransport equipment
(US$ million)
2008 2009 2010
World 77,818 62,248 60,462
China 9,452 10,239 9,600
South Korea 2,654 2,966 2,239Taiwan 1,177 712 1,029Hong Kong 12,326 10,231 9,714ASEAN10 14,062 11,558 13,324
Singapore 4,919 3,152 3,605Thailand 3,965 3,785 4,057Malaysia 1,707 1,339 1,688Indonesia 1,281 1,234 1,959Philippines 1,621 1,519 1,471Vietnam 546 474 523
India 1,277 1,079 1,164US 12,489 8,522 7,768EU27 16,162 10,147 9,496Brazil 976 821 1,010
3. Final goods - Capital goods, except transport equipment
(US$ million)2008 2009 2010
World 94,116 51,751 33,696
China -4,013 -6,202 -7,113
South Korea 7,524 4,198 4,366Taiwan 7,378 4,428 4,113Hong Kong 7,205 5,449 4,139ASEAN10 9,183 5,504 4,416
Singapore 3,682 2,419 1,488Thailand 1,933 1,031 640Malaysia 230 96 102Indonesia 1,595 768 1,195Philippines 73 59 90Vietnam 1,486 996 785
India 2,395 1,608 1,392US 22,347 13,699 7,960EU27 23,345 12,874 7,234Brazil 1,436 910 775
Copyright (C) 2011 JETRO. All rights reserved.
Flow of northeast Asian trade from the perspective of import statistics
(Trade balance, aggregate amount: 2009)
Sources: Import statistics from each country/region 22
JapanChina
South Korea Taiwan
8,234
27,450
17,927
47,879
662
61,359
(Unit: million dollars)
Copyright (C) 2011 JETRO. All rights reserved.
Flow of northeast Asian trade from the perspective of import statistics
(Trade balance, aggregate amount: 2010)
Sources: Import statistics from each country/region 23
JapanChina
South Korea Taiwan
23,959
35,777
28,954 66,825
2,412
79,740
(Unit: million dollars)
Copyright (C) 2011 JETRO. All rights reserved.
Flow of northeast Asian trade from the perspective of import statistics
(Trade balance, intermediate goods -industrial materials [processed goods]: 2009)
Sources: Import statistics from each country/region24
JapanChina
South Korea Taiwan
21,364
18,376
12,255
16,096
2,084
20,940
(Unit: million dollars)
Copyright (C) 2011 JETRO. All rights reserved.
Sources: Import statistics from each country/region 25
Flow of northeast Asian trade from the perspective of import statistics
(Trade balance, intermediate goods -capital goods [excluding transport equipment]: 2009)
JapanChina
South Korea Taiwan
20,742
3,787
848 23,993
32,427
2,059 (Unit: million dollars)
Copyright (C) 2011 JETRO. All rights reserved.
Flow of northeast Asian trade from the perspective of import statistics
(Final capital goods [excluding transport equipment): 2009)
Sources: Import statistics from each country/region 26
JapanChina
South Korea Taiwan
2,105
5,338 5,256
8,986
368
(Unit: million dollars)
Copyright (C) 2011 JETRO. All rights reserved.
27
Flow of northeast Asian trade from the perspective of import statistics
Sources: Import statistics from each country/region
1. Total exports (US$ million)
Japan China S. Korea Taiwan
Japan - 8,234 27,450 17,927China -8,234 - -47,879 -61,359
South Korea -27,450 47,879 - 662Taiwan -17,927 61,359 -662 -
Imports
Exp
ort
s
2. Intermediate goods - Industrial materials (processed goods) (US$ million)
Japan China S. Korea Taiwan
Japan - 21,364 18,376 12,255China -21,364 - -16,096 -20,940
South Korea -18,376 16,096 - 2,084
Taiwan -12,255 20,940 -2,084 -
Exp
ort
s
Imports
3. Intermediate goods - Capital goods (excluding transport equipment) (US$ million)
Japan China S. Korea Taiwan
Japan - 20,742 3,787 848China -20,742 - -23,993 -32,427
South Korea 3,787 23,993 - -2,059
Taiwan -848 32,427 2,059 -
Exp
ort
s
Imports
4. Final capital goods (excluding transport equipment) (US$ million)
Japan China S. Korea Taiwan
Japan - 2,105 5,338 5,256
China -2,105 - -8,986 -10,031
South Korea -5,338 8,986 - 368Taiwan -5,256 10,031 -368 -
Imports
Exp
ort
s
Copyright (C) 2011 JETRO. All rights reserved.
Reference (breakdown of UN trade statistics)
BEC classification according RIETI-TID 2009
Source: RIETI-TID 2009
Targets of analysis
28
Category SubcategoryBECCode
DescriptionNumber of6-digit HS
CodesPrimary goods 111 Food and beverages (Primary, Mainly for industry) 56
21 Industrial supplies not elsewhere specified (Primary) 33031 Fuels and lubricants (Primary) 9
121 Food and beverages (Processed, Mainly for industry) 8622 Industrial supplies not elsewhere specified (Processed) 230632 Fuels and lubricants (Processed) 242 Parts and accessories of capital goods (except transport equipment) 27653 Parts and accessories of transport equipment 108
Final goods Capital goods 41 Capital goods (except transport equipment) 614521 Other industrial transport equipment 46112 Food and beverages (Primary, Mainly for household consumption) 186122 Food and beverages (Processed, Mainly for household consumption) 27351 Passenger motor cars 8
522 Transport equipment and parts and accessories thereof (Other, Non-industrial) 1961 Durable consumer goods 15962 Semi-durable consumer goods 38463 Non-durable consumer goods 222
Intermediategoods
Consumptiongoods
Parts &components
Processedgoods
Copyright (C) 2011 JETRO. All rights reserved.
Japan is investing not only in China, but also actively in ASEAN, which has high growth potentialBalance of foreign direct investment in China and ASEAN countries
Notes:(1) The geographic classification for country/region follows the classification used by the Ministry of Finance/Bank of Japan's “Balance of Payments.”(2) Figures for Japan, the U.S. and China are based on balance of payments. For South Korea, the figures are for the cumulative amount of remittances by investors since 1960.(3) Figures for Japan are values originally published in yen. Converted to U.S. dollars by applying the Bank of Japan‘s interbank and fiscal year-end exchange rates. Sources: Japan: “Direct Investment Position, breakdown by Region and Industry” (Bank of Japan, May 2010)
U.S.: “U.S. Direct Investment Position Abroad on a Historical-Cost Basis” (U.S. Department of Commerce, June 2010)China: “Statistical Gazette on China's Outward FDI in FY2008 Statistics” (Chinese Ministry of Commerce, September 2009)South Korea: “Overseas Investment Statistics” (Export-Import Bank of Korea, May 2010) 29
55,045
49,403
29,913
0
10,000
20,000
30,000
40,000
50,000
60,000
Japan (2009)
US (2009)
South Korea (March 2010)
China(US$ million
48,44145,506
7,525
1,428
0
10,000
20,000
30,000
40,000
50,000
60,000
Japan (2009)
US (2009)
South Korea (March 2010)
China (2008)
ASEAN4(US$ million)
Copyright (C) 2011 JETRO. All rights reserved.
Japan is earning from trade and investments (1)
Japan’s trade balance and income balance
Source: Ministry of Finance/Bank of Japan “International Balance of Payments Statistics” 30
0
20
40
60
80
100
120
140
160
180
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Trade balance (goods)
Income balance
(US$ billion)
Copyright (C) 2011 JETRO. All rights reserved.
Japan is earnings from trade and investments (2)
Table: Net export, net income balance of major countries as share of nominal GDP (%)
31
Comparison on nominal GDP of net export and net income balance in major economies
Net export Net income balance2007 2008 2009 2007 2008 2009
Japan 1.9% 0.4% 0.5% 3.2% 3.1% 2.6%US △ 5.0% △ 4.8% △ 2.6% 0.7% 1.1% 0.9%UK △ 3.4% △ 3.3% △ 2.7% 1.8% 2.8% 2.7%France △ 1.4% △ 2.1% △ 1.7% 1.7% 1.5% 1.2%Germany 7.2% 6.4% 4.9% 1.8% 1.7% 1.4%Sources: WEO, BOP(IMF)
Copyright (C) 2011 JETRO. All rights reserved.
Earning from Asia through investmentsDirect investment received (by major regions)
Source: Ministry of Finance/Bank of Japan “International Balance of Payments Statistics” 32
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Jan.-Jun.
(Year)
Asia
Oceania
North America
South and Central America
Europe
Other
(US$ million)
Copyright (C) 2011 JETRO. All rights reserved.
Japanese companies are taking part in Asia’s vitalityCorporate earnings of Japanese public companies 1. Percentage breakdown by region 2. Growth rate compared to previous fiscal year
Notes:(1) The data cover listed companies whose fiscal years end between December and March (excluding banks, securities and insurance companies), and whose consolidated financial statements included information
broken down by region.(2) For FY 2009, the data include corporations that had released their consolidated financial results for FY 2009 by June 25, 2010(3) Total sales include inter-segment sales.(4) The data include some listed subsidiaries and thus are duplicated in some cases.(5) "Other" in regions includes data covering multiple regions, such as "Europe and the U.S." or "overseas."(6) Year-on-year growth rates were only calculated for companies whose previous-year figures were available and comparable.Source: Toyo Keizai Inc. "CD-ROM of Corporate Financial Records" (for FY 2005 and earlier years); published consolidated financial statements and securities reports (FY 2006-2009).
33
(Year-on year, %)
World
Americas EuropeAsia/
OceaniaOther
FY 1998 (556) △ 7.0 △ 7.5 △ 5.8 10.9 3.0 △ 21.6 △ 29.3FY 1999 (576) △ 3.6 △ 2.9 △ 5.3 △ 7.9 △ 9.6 11.5 △ 10.1FY 2000 (620) 4.2 3.0 7.5 7.4 1.2 22.2 △ 3.8FY 2001 (650) △ 2.7 △ 6.0 5.8 7.6 4.8 1.2 9.1FY 2002 (683) 2.4 0.0 7.7 2.3 11.3 16.8 6.4FY 2003 (694) △ 0.4 △ 0.9 0.9 △ 4.9 5.4 3.6 7.5FY 2004 (710) 7.4 6.1 10.0 2.9 11.7 17.1 15.1FY 2005 (748) 10.3 7.8 15.4 13.7 10.5 28.0 4.2FY 2006 (773) 13.9 14.3 13.0 10.3 18.7 16.7 3.9FY 2007 (786) 7.9 6.4 10.5 7.5 19.1 15.0 △ 8.5FY 2008 (841) △ 13.0 △ 12.3 △ 14.2 △ 18.8 △ 16.0 △ 11.1 △ 7.4FY 2009 (854) △ 12.8 △ 12.5 △ 13.4 △ 12.8 △ 22.0 △ 8.0 △ 15.2
World
Americas EuropeAsia/
OceaniaOther
FY 1998 (556) △ 20.0 △ 23.7 △ 8.0 12.9 14.9 △ 26.4 △ 45.7FY 1999 (576) 7.8 9.7 2.7 13.1 △ 50.6 22.0 10.9FY 2000 (620) 26.8 34.8 2.9 △ 4.7 △ 58.5 51.4 2.1FY 2001 (650) △ 31.3 △ 35.6 △ 14.6 △ 13.2 △ 33.0 △ 22.1 △ 0.2FY 2002 (683) 40.2 35.7 54.0 40.8 389.8 49.0 38.1FY 2003 (694) 15.5 15.7 15.2 △ 0.4 86.3 24.4 2.6FY 2004 (710) 15.4 14.4 18.0 17.6 6.7 21.1 26.3FY 2005 (748) 14.6 12.4 20.3 16.1 18.2 33.7 5.4FY 2006 (773) 28.2 33.4 14.9 6.5 38.2 2.9 47.8FY 2007 (786) 11.3 7.4 20.3 △ 10.0 55.0 41.2 12.5FY 2008 (841) △ 55.0 △ 65.5 △ 38.7 △ 89.8 △ 69.9 △ 20.0 △ 10.8FY 2009 (854) 20.1 25.2 14.1 335.5 △ 19.7 7.1 △ 28.4
Fiscal Year(Number ofcompanies)
Growth rate of operationg profit
Domestic Overseas
Fiscal Year(Number ofcompanies)
Growth rate of sales
Domestic Overseas
(%)
Americas EuropeAsia/
OceaniaOther
FY 1997 (582) 71.4 28.6 11.3 5.4 5.8 6.1FY 1998 (593) 71.1 28.9 13.4 6.0 4.9 4.6FY 1999 (643) 72.5 27.5 12.4 5.4 5.5 4.2FY 2000 (668) 71.9 28.1 12.6 5.2 6.4 3.9FY 2001 (715) 69.7 30.3 13.7 5.5 6.7 4.4FY 2002 (728) 68.0 32.0 13.7 6.0 7.8 4.6FY 2003 (738) 67.9 32.1 12.9 6.1 8.2 4.9FY 2004 (774) 67.3 32.7 12.2 6.4 8.8 5.3FY 2005 (804) 66.1 33.9 12.5 6.3 10.1 5.0FY 2006 (832) 66.2 33.8 12.6 6.9 10.3 4.1FY 2007 (866) 63.1 36.9 13.0 8.5 12.0 3.5FY 2008 (890) 63.8 36.2 11.0 7.0 14.8 3.4FY 2009 (887) 65.0 35.0 11.1 6.9 13.3 3.7
Americas EuropeAsia/
OceaniaOther
FY 1997 (582) 76.6 23.4 9.8 3.4 4.8 5.3FY 1998 (593) 73.4 26.6 13.8 4.8 4.4 3.6FY 1999 (643) 75.0 25.0 14.1 2.1 5.0 3.7FY 2000 (668) 79.9 20.1 10.4 0.7 6.0 3.0FY 2001 (715) 76.0 24.0 12.4 0.6 6.7 4.2FY 2002 (728) 72.9 27.1 13.0 2.8 7.2 4.1FY 2003 (738) 73.3 26.7 11.1 4.3 7.5 3.7FY 2004 (774) 71.8 28.2 10.9 4.7 8.6 4.0FY 2005 (804) 70.8 29.2 10.8 4.7 10.0 3.7FY 2006 (832) 73.5 26.5 9.1 4.1 8.3 5.1FY 2007 (866) 67.1 32.9 8.7 6.8 12.2 5.2FY 2008 (890) 47.5 52.5 1.9 3.6 39.4 7.6FY 2009 (887) 56.5 43.5 9.5 3.0 23.8 7.1
Fiscal Year(Number ofcompanies)
Operating profit share by region
Domestic Overseas
Fiscal Year(Number ofcompanies)
Share of sales by region
OverseasDomestic