JAPAN CHUGOKU REGION 2015 August 2015 The Chugoku Region Investment Promotion Conference

c/o International Affairs Division, Industries Department, Chugoku Bureau of Economy, Trade and Industry 6-30, Kamihatchobori, Naka-ku, Hiroshima 730-8531 Japan Tel: +81-82-224-5659 Fax: +81-82-224-5642 Web: http//: www.chugoku.meti.go.jp 1 JAPAN CHUGOKU REGION 2015 Access

The Chugoku Region borders Kyushu, Shikoku, and 130゜47´E 134゜31´E Kansai regions, making it a transportation hub for all of

western Japan. The infrastructure includes advanced ● airports and seaports, with active movement of people Ulan Bator and goods from this region to other parts of Japan and

overseas. ● Pyongyang ● Beijing ● Seoul 37゜10´N Of the 10 airports in the Chugoku region, 3 airports - ● Yonago, Hiroshima, and Okayama - receive regular Tokyo 33゜43´N scheduled international flights. International charter ● Shanghai flights land at 7 airports - Tottori, Yonago, Izumo, Hagi - Iwami, Okayama, Hiroshima, and Yamaguchi - Ube. Two ● Taipei airports, - Hiroshima and Okayama - have 3,000 - meter ● Hanoi runways, and are capable of accepting large cargo airplanes. ● Manila

Expressways and arterial Roads Tottori In service Yonago Under (re)construction Izumo Planned Interchange Oki Airport

Okayama

Hagi-Iwami

Hiroshima Konan

Hiroshima Heliport

Iwakuni

Yamaguchi-Ube

Flight Time to Major Cities Major Cities Major Cities Airport (hours : minutes) Airport (hours : minutes) (No.of daily flights) (No.of daily flights) Tottori Tokyo(5) 1:15 Narita(3) 1:30 Tokyo(5) 1:20 Tokyo(17) 1:20 Yonago ○Seoul(3/week) 1:40 Sapporo(2) 1:50 Tokyo(5) 1:20 Sendai(2) 1:25 Nagoya(Komaki)(1) 1:00 Okinawa(1) 1:50 Hiroshima Izumo Osaka(Itami)(5) 0:50 ○Seoul(5/week) 1:30 ●Oki(1) 0:30 ○Shanghai(7/week) 1:25 ●Fukuoka(2) 1:15 ○Chengdu(7/week) 6:00 0:55 Oki Osaka(Itami)(1) ○Dalian(5/week) 1:55 ●Izumo(1) 0:35 ○Beijing(5/week) 4:15 Hagi-Iwami Tokyo(2) 1:35 ○Hong Kong(2/week) 3:45 Tokyo(12) 1:10 ○Taipei(9/week) 2:30 Sapporo(1) 1:50 Yamaguchi-Ube Tokyo(10) 1:30 Okayama Okinawa(1) 1:55 Iwakuni Tokyo(4) 1:35 ○Seoul(7/week) 1:35 Current as of Sep. 2015 ○Shanghai(7/week) 2:05 ●Commuter flights ○Regularly scheduled international route Note: Application is necessary for the use of the Hiroshima Heliport. Konan Aerodrome does not receive regular scheduled flights. JAPAN CHUGOKU REGION 2015 2 Access

A Major Port indicates a port that is designated by the government as being a critical point of the international and domestic sea transport network, or as otherwise being strongly related to national interests. The Chugoku region includes 14 such Major Ports. A Specially Designated Major Port indicates a Major Port which is of particular importance as a critical point in the international sea transport network. There are 4 such ports in the Chugoku region - Mizushima Port in Okayama prefecture, Hiroshima Port in Hiroshima prefecture, Shimonoseki Port and Tokuyama Kudamatsu Port in Yamaguchi prefecture. Tottori Sakaiminato Expressways and arterial Roads In service Saigo Under (re)construction Planned Interchange Specially Designated Major Port Major port Hamada Local port Misumi Okayama

Uno Hiroshima Mizushima Fukuyama Onomichi- Otake itozaki Kure Mitajiri Onoda Iwakuni Tokuyama- Kudamatsu Shimonoseki Ube

Regular International Container Lines Port Route (International Ports of Call) Korea route (Busan) Sakaiminato Korea-Russia routes (Donghae,Vladivostok) China route (Shanghai) Korea route (Busan) Hamada Russia route (Vladivostok) Korea routes (Busan, Inchon), (Busan, Pohang), (Busan), (Busan, Ulsan), (Ulsan, Busan, Pohang) Mizushima China routes (Tianjin Xingang, Dalian, Qingdao, Ningbo, Shanghai), (Shanghai), (Dalian, Qingdao), (Xiamen, Fuzhou) Viet Nam routes (Busan, Keelung, Taichung, Kaohsiung, Danang, Ho Chi Minh, Taipei) Korea routes (Busan, Busan Newport), (Busan), (Ulsan, Busan) Fukuyama China routes (Ningbo, Shanghai, Tianjin Xingang, Dalian, Qingdao), (Shanghai), (Dalian, Qingdao) Taiwan-SE Asia routes (Ulsan, Kaohsiung, Hong Kong, Shekou, Hai Phong) Korea routes (Busan), (Ulsan, Busan), (Busan, Busan Newport),(Pohang, Ulsan, Busan) China routes (Ningbo, Shanghai, Tianjin Xingang, Dalian, Qingdao), (Shanghai), (Dalian, Qingdao) Hiroshima Taiwan-SE Asia routes (Ulsan, Kaohsiung, Hong Kong, Shekou, Hai Phong, Zhanjiang, Gaolan) Taiwan routes (Keelung, Kaohsiung) North America routes (America Longbeach , Canada Vancouver, America Everett) Otake Korea route (Busan, Busan Newport) Korea (Busan) routes (Busan, Busan Newport), (Busan/ North Port) Iwakuni China-Taiwan routes (Hong Kong, Taipei, Taichung, Kaohsiung, Nansha, Shekou) China route (Shanghai) Korea (Busan) routes (Busan), (Busan, Busan Newport, Masan), (Busan, Busan Newport) Tokuyama China routes (Shanghai), (Ningbo, Shanghai) Kudamatsu SE Asia (Thailand) routes (Keelung, Kaohsiung, Hong Kong, Shekou, Laem Chabang, Bangkok, Taichung, Taipei) Korea (Busan) route (Busan) Mitajiri China routes (Dalian, Qingdao), (Shanghai) Nakanoseki SE Asia (Manila) routes (Manila, Kaohsiung, Keelung) Ube Korea (Busan) route (Busan) Shimonoseki Korea routes (Busan), (Busan, Masan) Note: Current as of May. 2015 3 JAPAN CHUGOKU REGION 2015 Tax Incentives / Subsidies and Financing

A full set of incentives are available for businesses which are established in the Chugoku region. These include a variety of benefits in terms of national, prefectural, and city / town / village taxes.

Incentives for Each Region National taxation Regional Agro-industrial Regional Remote Peninsular Under-populated Cluster designations/categories district urban center island region zone Manuf. Road cargo Manuf. Cluster transport Manuf., Manuf., Business industries Applicable industry Warehousing Packaging industry Others Others using ICT, specified in the Wholesale, Others Others "Basic Plan" Exemption for replacement of business assets Special depreciation, Additional depreciation for industrial machinery City / town / village taxes Business taxes Real estate acquisition tax Fixed asset tax Financing Japan Finance Corporation Note：*Financing is listed only those areas that are associated with conditions specified Agro-industrial district (Act on the Promotion of Introduction of Industry into Agricultural Regions) , Regional urban centers (Act on Comprehensive Development of Regional Core Cities with Relocation of Office-Work Function) , Remote islands (Act on Remote Islands Development) , Peninsular regions (Act on Peninsula Development) , Underpopulated regions (Act on Special Measures for Promotion of Independence of Underpopulated Regions) , Cluster zone (Act on Formation and Development of Regional Industrial Clusters through Promotion of Establishment of New Business Facilities, etc.) Tax Incentives (National taxation) Exemption for replacement Special depreciation, Condition (for special depreciation, of special business assets additional depreciation of industrial machinery additional depreciation) If a structure, building or land With the construction of a new Special depreciation until March Acquisition value of industrial outside the applicable region is factory in the regions where this 31, 2017 production equipment transferred and a land, building, applies, special depreciation is (1)Machinery and equipment over 20 million yen Under- structure or mechanical recognized within the first year 10/100 Populated equipment in the applicable for acquisition of industrial (2)Building and related region region is acquired, special taxation machines , and other equipment 6/100 (Special provisions for reduction entry are industrial-use assets which meet Taxation Measure Law Article 45) granted until Mar. 31, 2017. the specified conditions. (Special Taxation Measures Law Article 65-7) With the construction of a new Additional depreciation until Acquisition value of industrial factory in the regions where this March 31, 2017 production equipment applies, additional depreciation (1)Machinery and equipment at least 5 million yen（capital： 10 is recognized within the first year 32/100 million yen or less） Peninsular for acquisition of industrial (2)Building and related at least 10 million yen（capital： machines , and other equipment, and structure over 10 million yen and less than region industrial-use assets which meet 48/100 (Special Taxation Measure or equal to 50 million yen） the specified conditions. Law Article 45) at least 20 million yen（capital： over 50 million yen）

Acquisition value of industrial production equipment at least 5 million yen（capital: 50 million yen or less） Remote at least 10 million yen（capital: island over 50 million yen and less than or equal to 100 million yen） at least 20 million yen（capital: over 100 million yen）

Subsidies and Financing Assistance and Subsidies Government Financial Institutions - Regional Employment Promotion Assistance Fund (Ministry of - Japan Finance Corporation (Loans for Regional Revitalization and Health, Labor and Welfare) Employment Promotion) - Assistance Fund for Establishing New Businesses in Power Supply - Japan Foundation for regional Vitalization(Hometown Loan Regions(Center for Development of Power Supply Regions) (Regional Vitalization Loan)) - Subsidy Program for Projects Promoting Foreign Direct - Cabinet Office(Community Revitalization Assistance Interest Investment, Site Location and Regional Development in Japan（ Subsidies) Ministry of Economy, Trade and Industry） JAPAN CHUGOKU REGION 2015 4 Major Industrial Complexes

Expressways and arterial Roads 9 1 7 In service 8 7 2 6 5 1 3 11 10 11 14 Under (re)construction 10 9 8 13 4 Tottori Planned 2 Interchange 12 7 5 8 Specially Designated Major Port 3

Major port 9 6 Airport 5 Okayama Shimane 6 3 5 1 17 18 12 8 11 4 10 Hiroshima 9 10 11 4 2 12 6 3 4 7 1 13 13 Yamaguchi 14 16 2 15 15 12 14 10 5 8 7 11 3 6 1 9 4 2

Tottori Prefecture Hiroshima Prefecture 1 Hotei Industrial Park 1 Itsukaichi District of Hiroshima Port 2 Chizu Techno Park 2 Otakekou harumitiku 3 Yamanoue Industrial Park 3 Takehara Industrial and Distribution Park 4 Nishi-Kurayoshi Industrial Park 4 Mihara-Seibu Industrial Park (Sojo Area) 5 Higashisono Inaba Industrial Park 5 Shobara Industrial Park 6 Wadahama Industrial Park 6 Techno Town Higashi-Hiroshima 7 Sakaiminato Takenouchi Industrial Complex 7 Saiki Industrial Park 8 Kishimoto Industrial Park 8 Chiyoda Distribution Park 9 Ohara Industrial Park 9 Hiroshima By-Airport Industrial Park 10 Daisen IC Industrial Park 10 Kui Industrial Park 11 Hayashinomine 3 Industrial Park 11 Shinichi Industrial Park 12 Nakasuge Industrial Park 12 Hiroshima Seifu-Shinto 13 Koebi Industrial Park 13 Naeshiro Industrial Park I 14 Kawahara IC Yamate Industrial Park 14 Naeshiro Industrial Park II 15 Aga marinoporis District Shimane Prefecture 16 Yasuura Industrial Park 1 Asahi Hills Industrial Park 17 Miyoshi Industrial Park II 2 Shimane Research Business Park 18 Miyoshi Industrial Park III 3 Hamada Port Seaside Industrial Park 4 Iwami Rinku Factory Park Yamaguchi Prefecture 5 Hane District Industrial Park 1 Chofu Ogi-machi Industrial Park 6 Gotsu Industrial Park 2 Ube Airfront Intelligent Park 7 Izumo Eastern Industrial Park 3 Ube Techno Park 8 Kawashimo Port Seaside Industrial Park 4 Ube Techno Center 9 Eshima Industrial Park 5 Yamaguchi Techno Park 10 Izumo Hikawa Central Industrial Park 6 Yamaguchi Industrial Distribution Complex 11 Saigo Port Seaside Industrial Park 7 Suzenji Industrial Park 8 Onoda, Kusunoki Industrial Park Okayama Prefecture 9 Hikari Soft Park 1 Okayama Research Park 10 Yonemitsu Industrial Park 2 Mizushima Port (Tamashima District Distribution Facilities Park) 11 Techno Port Shuto 3 Tsuyama Industry Distribution Center 12 Toyohigashi Industrial Park 4 Kasaoka Port (Harbor district) 13 Nishinagato Industrial Park 5 Niimi Industrial Park 14 Leading Plaza Jumonji 6 Kibi Plateau City Industry Ward 15 Mine Techno Park 7 Maniwa Industrial Park 8 Kume Industrial Park 9 Mimasaka Sakuto Industrial Park 10 Shikigaoka Industrial Park 11 Higashiminari Industrial Park 12 Mameda Industrial Park 5 JAPAN CHUGOKU REGION 2015 Research Institutes 3 4 5 6 8 Expressways and arterial Roads 7 1 1 3 In service 7 9 6 9 8 2 5 Under (re)construction 2 4 11 Tottori Planned 20 Interchange 12 21 Specially Designated Major Port 19 Major port 14 14 13 Airport 10 Okayama Shimane 22 1 4 6 7 10 11 17 18 2 9 5 8 3 16 12 Hiroshima 15 4 6 9 1920 13 12 1311 5 21 14 24 8 16 1 27 7 15 3 2 10 22 23 25 26 Yamaguchi 32 28 29 30 31 17 18 7 8 9 10

2 12 11 14 5 3 13 1 6 4

Business Incubation Facilities

Expressways and arterial Roads 3 In service 2 1 Under (re)construction 1 2 Tottori Planned Interchange Specially Designated Major Port Major port 2 Airport Okayama Shimane 3 7 4 9 6 1 Hiroshima 5 8 5 7 1 6 8 Yamaguchi 3 2 4

2 1 3 4

Tottori Prefecture Hiroshima Prefecture 1 Incubation Room, Electron Organic Materials Research Laboratory, Tottori Institute of Industrial Technology 1 Hiroshima Techno Plaza 2 Incubation Room, Mechanical ＆ Material Research Laboratory, Tottori Institute of Industrial Technology 2 Kure Support Core 3 Food Research and Development Laboratory, Tottori Institute of Industrial Technology 3 Kure Challenge Core 4 Kure Jump Core Shimane Prefecture 5 Hiroshin Incubation Center,B-Square 1 Izumo Hikawa-offering Support Center 6 Hiroshima Incubation Center, Create Core 2 Techno Arc Shimane 7 Higashihiroshima Support Center for the Creation of New Industries Okayama Prefecture 8 Shamojin Cube 1 Business Incubator Okayama 2 i−box Niimi Yamaguchi Prefecture 3 Okayama Research Park Incubation Center 1 Yamaguchi Mechanics Electronics Technology Center 4 Okayama Creative Center 2 Shunan Citizens Exchange Center, Business Support Center 5 Kurashiki Venture Office 3 Ube Medical Creative Center 6 Okayama Niteras 4 Shimonoseki city foundation support Facility 7 Okayama Univ. Incubator 8 Designer's Incubation 9 Okayama Medical Innovation Center JAPAN CHUGOKU REGION 2015 6 Research Institutes

The Chugoku region includes research and development businesses in the fields of electronics, biotechnology, and new materials, and is a world leader with its advanced technical capacity. Against this background of industrial concentration, more and more commercial research facilities, including national and other public experimental and research organizations, are being established in the region.

Tottori Prefecture Hiroshima Prefecture 1 Tottori University Electronic Display Research Center 1 Hiroshima Prefectural Technology Research Institute, Food Technology Research Center 2 Tottori Institute of Industrial Technology, 2 Hiroshima Prefectural Technology Research Institute, Public Health and Environment Center Erectronic and Organic Marerial Research Lab. 3 Hiroshima City Industrial Technology Center 3 Tottori Mycological Institute (TMI) 4 Hiroshima City Institute of Public Health 4 Tottori Institute of Industrial Technology, Mechanical and Material Research Lab. 5 Radiation Effects Research Foundation(RERF) 5 Tottori Bio-Frontier 6 Hiroshima SME University 6 Hyo-on Laboratories Inc. 7 Chugoku Industrial Innovation Center 7 Tottori Institute of Industrial Technology, Food Research and Deveropment Lab. 8 Japanese Standards Association, Hiroshima Office 8 Tottori Prefectural Institute of Public Health and Environmental Science 9 Hiroshima City Industrial Promotion Center 9 Tottori Prefectural Agriculture and Forest Research Institute 10 Hiroshima Institute of Invention and Innovation 11 Organization for Small and Medium Enterprises and Regional Innovation, JAPAN, Chugoku Head Office 12 Hiroshima Intelligent Center Shimane Prefecture 13 JETRO HIROSHIMA 1 Shimane Prefectural Institute of Public Health and Environmental Science 14 Hiroshima Industrial Culture Center 2 Shimane Prefectural Construction Technology Center 15 Hiroshima Industrial Promotion Organization 3 Shimane Institute for Industrial Technology 16 Hiroshima International Center 4 Shimane Industrial Promotion Foundation 17 Hiroshima Prefectural Technology Research Institute, Western Region Industrial Research Center 5 Techno Arc Shimane 18 Kure Industrial Promotion Center 6 Shimane Prefectural intellectual Property Center 19 NARO Western Region Agricultural Research Center 7 Shimane Information Industry Association 20 Hiroshima Prefectural Technology Reseach Institute, Eastern Region Industrial Research Center 8 Shimane Institute of Invention and Innovation 21 Bingo Area Center for the Promotion of Regional Industry 9 JETRO MATSUE 22 National Institute of Advanced Industrial Science and Technology Chugoku 10 Shimane Institute for Industrial Technology, Hamada Branch 23 National Research Institute of Brewing 11 Shimane Institute for Health Science 24 Hiroshima Prefectural Technology Research Institute, Agricultural Technology Research Center 12 Department of Livestock and Grassland Science, 25 Hiroshima Prefectural Technology Research Institute, National Agricultural Research Center for Western Region Western Region Industrial Research Center, Academy for Manufacturing Technology 13 Shimane Prefectural Institute for Promotion of Local Industry in the Sekio Area 26 The Hiroshima Network for College/Corporate Cooperation 14 Shimane Prefecture Mountainous Region Research Center 27 Techno-Frontier Higashi-Hiroshima 28 Hiroshima Incubation Center, Create Core Okayama Prefecture 29 JICA Chugoku International Center 30 HIROSHIMA TECHNOPLAZA CORPORATION 1 Industrial Technology Center of Okayama Prefecture 31 Hiroshima International Center Training Department 2 Okayama Prefectural Construction Technology Center 32 National Research Institute of Fisheries and Environment of Inland Sea, Fisheries Research Agency 3 Okayama Prefectural Institute for Environmental Science and Public Health 4 Okayama University Collaborative Research Center 5 Teleport Okayama Yamaguchi Prefecture 6 System Engineering Okayama 1 JETRO YAMAGUCHI 7 Okayama Institute of Invention and Innovation 2 Yamaguchi Prefectural Mechatronics Technology Center 8 JETRO OKAYAMA 3 Yamaguchi Prefectural Industrial Technology Institute 9 Okayama International Business Association 4 Japan Ultra-high Temperature Materials Research Center 10 Techno−Support Okayama 5 Japan Institute for Advance Dentistry, Ube Laboratory 11 Okayama Prefecture Industrial Promotion Foundation 6 Yamaguchi Technology Licensing Organization Ltd. 12 Sanyo Technology Promotion Society 7 Yamaguchi Prefectural Institute of Health and Environment 13 Kurashiki Fashion Center Co., Ltd. 8 Yamaguchi Industrial Promotion Foundation 14 Tsuyama New Industry Creation Organization 9 Yamaguchi New Media Center Corporation 15 Tamano Industrial Promotion Corporation 10 Yamaguchi Institute of Invention and Innovation 16 Ibara Industrial Promotion Center 11 Shunan Regional Industries Promotion Center, Foundation 17 Okayama Ceramics Center 12 Crafts Industry Promotion Center, Yamaguchi-Hofu Area 18 Okayama Ceramics Research Foundation 13 Yamaguchi Prefectural Mental Health Welfare Center 19 Okayama Research Institute for Forest and Forest Products 14 Sanyo Onoda City Environmental Research Center 20 Japan Atomic Energy Agency, Ningyo−Toge Environmental Engineering Center 21 Forestry and Forest Products Research Institute, Forest Tree Breeding Center, Kansai Regional Breeding Office 22 Research Institute for Biological Sciences, Okayama JAPAN CHUGOKU REGION 2015

For Inquiries ;

Tottori Prefectural Government, Commerce Physical Distribution Division 1-220 Higashi-machi, Tottori 680-8570 Tel: +81-857-26-7220 Fax: +81-857-21-0609 E-mail: [email protected] Web: www.pref.tottori.lg.jp/shoukou/

Shimane Prefectural Government, Industrial Land Development Division 1 Tono-machi, Matsue 690-8501 Tel: +81-852-22-5295 Fax: +81-852-22-6080 E-mail: [email protected] Web: www.pref.shimane.lg.jp/krichi/

Okayama Prefectural Government, Industrial Location Promotion Division 2-4-6 Uchisange, Okayama 700-8570 Tel: +81-86-226-7374 Fax: +81-86-225-3449 E-mail: [email protected] Web: www.pref.okayama.jp/soshiki/42/

Hiroshima Prefectural Government, Foreign Business Division 10-52 Moto-machi, Naka-ku, Hiroshima 730-8511 Tel: +81-82-222-0207 Fax: +81-82-223-2137 E-mail: [email protected] Web: www.pref.hiroshima.lg.jp

Yamaguchi Prefectural Government, Enterprise Induction Promotion Division 1-1 Taki-machi, Yamaguchi 753-8501 Tel: +81-83-933-3145 Fax: +81-83-933-3178 E-mail: [email protected] Web: www.pref.yamaguchi.lg.jp/gyosei/kigyo-r/index.htm

The City of Okayama, Industry Promotion and the Employment Promotion Division 1-1-1 Daiku, Kita-ku, Okayama city, Okayama 700-8544 Tel: +81-86-803-1328 Fax: +81-86-803-1738 E-mail: [email protected] Web: www.city.okayama.jp

The City of Hiroshima, Business Placement Promotion Division 1-6-34 Kokutaiji-machi, Naka-ku, Hiroshima 730-8586 Tel: +81-82-504-2241 Fax: +81-82-504-2259 E-mail: [email protected] Web: www.city.hiroshima.lg.jp/business/econ/index.html

Chugoku Bureau of Economy, Trade and Industry, International Affairs Division, Industries Department, 6-30 Kamihatchobori, Naka-ku, Hiroshima 730-8531 Tel: +81-82-224-5659 Fax: +81-82-224-5642 E-mail: [email protected] Web: www.chugoku.meti.go.jp