What is Japan External Trade Organization (JETRO)?

Understanding Japan External Trade Organization (JETRO)

(1) What is JETRO?

JETRO, short for Japan External Trade Organization, is an independent administrative agency with the purpose of promoting Japanese trade and investment in both domestic and foreign companies to further enhance economic growth and community involvement.

It operates several overseas branches and conducts research on major trading nations, particularly in developing countries. JETRO has been an independent corporation since 2003, succeeding on an Osaka-based foundation called the Overseas Market Research Institute, which had a history dating back to 1951.

JETRO is managed by the Ministry of Economy, Trade and Industry (METI), and its headquarters is located in Tokyo, and since its predecessor was established in Osaka, there is another headquarters located in that area as well.

JETRO has headquarters in Minato-ku, Tokyo and Osaka City, Osaka Prefecture. As of May 2020, JETRO has 51 offices in Japan and 74 overseas offices in 54 countries, employing over 1,700 staff members, with approximately 1,000 in Japan and 700 overseas.

(2) What does JETRO do?

Their business and responsibility include assisting Japanese companies to expand overseas, promoting inbound investment and attracting foreign companies to Japan, facilitating the export of agricultural, forestry, and fishery products, and conducting research on overseas markets.

Many Japanese companies, especially small and medium-sized enterprises (SMEs), lack overseas connections and the knowledge necessary to expand their business globally.

JETRO plays a vital role in supporting these companies by leveraging its extensive network with foreign entities and sharing expertise on advancing into international markets. In addition to market research, JETRO actively promotes Japan’s strengths through presentations, seminars, and events to attract foreign investors and encourage collaboration with Japanese businesses.

(3) Why is JETRO Important?

While entities with existing overseas connections or those capable of conducting their own business abroad may not require JETRO’s services, the organization is essential for small and medium sized businesses seeking guidance and support especially in the field of agriculture and forestry.

Critics argue that JETRO hampers healthy competition in the private sector, but it has also revitalized businesses that previously lacked attention and enabled them to profit from trade. JETRO’s objective is not to make a profit for themselves; instead, they aim to stimulate business activities for both Japanese and foreign companies, leading to increased profitability and overall economic impact on the country.

JETRO’s Efforts in Promoting Foreign Investment in Japan

(1) Inbound investment for economic revitalization

Promoting inbound investment is one of JETRO’s primary activities.

Currently, the focus of investment tends to be on larger entities or companies based overseas, while small and medium-sized enterprises struggle to attract investors.

It is crucial to provide adequate financial support to local small and medium-sized enterprises to revitalize the Japanese economy.

JETRO actively promotes increasing investment for these local companies with less funds while assisting Japanese entities in expanding their business globally.

(2) Promoting inbound investment through networking

Due to its history of conducting overseas market research, JETRO possesses a robust network with overseas companies, making it a unique institution.

They have personnel with extensive experience working with foreign entities, enabling them to identify new opportunities and provide individual consultations and information to foreign investors interested in Japanese businesses.

JETRO also extends their services to local institutions and governments, offering information, business matching, and guiding parties involved in successful inbound investments.

(3) Dissemination of information on Japanese entities

Public Relations (PR) plays a crucial role in attracting interest in Japanese companies. JETRO organizes symposiums and seminars through its overseas branches in major cities to promote attractive and advantageous investment in Japan, targeting investors and foreign companies. They have also embraced the power of the internet, by launching the website “Investing in Japan” to provide essential information for potential investors in Japanese entities. The website is accessible to anyone and encourages a wide range of foreign investors and companies to consider inward investment opportunities.

(4) JETRO’s other business operations and establishment of new headquarters

JETRO actively manages government-established subsidies for the Asian hub location promotion project. They also focus on increasing inbound investment from Asian countries and have established a new Headquarters for Promotion of Investment in Japan. This headquarters serves as a venue for meetings with foreign companies and government officials, facilitating discussions on key issues that need to be addressed. By adopting a multi-directional approach, JETRO aims to promote investment in Japan and further enhance economic growth.