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Japanese investors find ASEAN attractive
Members of the Association of Southeast Asian Nations (ASEAN) have succeeded in luring Japanese businesses over the last two years by improving their investment environments.
The statement was made by Motonobu Sato, chairman of the Federation of Japanese Chambers of Commerce and Industry in ASEAN.
Speaking at the 6th dialogue between the Secretary General of ASEAN and the federation in Ha Noi yesterday, Motonobu said the federation's membership had risen from 4,500 companies to nearly 5,700 since 2010.
It showed Japanese companies' strong commitment to investing in ASEAN, he said, adding that their business engagements are primarily in the automotive and auto-parts, electronic and electrical appliances, chemicals, consumer products and financial services sectors.
After the European Union, Japan is the principal investor in ASEAN in terms of net inflow of foreign direct investment (FDI). The latest statistics indicated that in 2011, Japan invested over US$15 billion in ASEAN, making up 17 per cent of total FDI in the block.
Japanese manufactures in ASEAN have steadily been increasing their local procurement ratios either in their host country or from other ASEAN nations.
According to a survey of Japanese Affiliate Firms in Asia and Oceania last year by Japan External Trade Organisation (Jetro), 50 per cent of raw materials and parts procurement that ASEAN-based Japanese manufacturers used came from ASEAN countries.
Finished and semi-finished products were exported to markets including Japan, ASEAN countries, mainland China and Europe.
At this dialogue, Japanese businesses made suggestions to the ASEAN Secretariat for 2014, including the early elimination of non-tariff barriers/measures which were recognised as bottlenecks for improving business competitiveness, as well as the introduction of the "ASEAN Business Travel Card" scheme.
They also asked for a co-ordinated tax and social security system to avoid double taxation and duplicated social security payments, plus steady negotiations on the Regional Comprehensive Economic Partnership aimed at developing a more business-friendly framework.
At the talk, ASEAN General Secretary Le Luong Minh said despite being hit by the global economic slowdown, Japan was still the second biggest trade partner and FDI contributor to ASEAN.
He said by responding to Japanese companies' requests at previous dialogues, ASEAN had made progress in simplifying customs procedures
Minh said the dialogue was a good mechanism for assessing implementation of comprehensive measures to realise the ASEAN Economic Community goal in 2015.
The Federation of Japanese Chambers of Commerce and Industry in ASEAN was formed in 2008 to facilitate mutual co-ordination and contribute to regional economic development, while improving business environments for Japanese enterprises through dialogue with the ASEAN Secretariat.
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