Why Kanagawa? Business Environment & Investment Incentives International Business Group Investment Promotion and International Business Division 1 Nihon-Odori, Naka-ku, Yokohama, Kanagawa 231-8588 Japan Tel： +81-45-210-5565 http://www.pref.kanagawa.jp/docs/pw3/mlt/f532270/next-kanagawa.html SELECT KANAGAWA NEXT November 2019 Welcome to Kanagawa Kanagawa is adjacent to Japan’s capital, Tokyo, and is a place where world- As mentioned previously, Kanagawa is a very convenient and extremely renowned global companies, as well as a lot of SMEs (Small- and Medium- attractive area not only for business, but for daily life as well, providing an sized Enterprises) with excellent technical capabilities are concentrated. environment that makes it ideal for multinational companies to locate. The reason for this is because Kanagawa has a population of By inviting multinational advanced foreign companies, Kanagawa approximately 9.2 million, has formed a mega-market connected to Tokyo, Prefecture continues to form industrial bases that are open to the world, and and has abundant and diverse human resources. Moreover, in addition to to create innovations through collaboration with companies that are already well-developed roads and railway networks that cover a wide area, it also clustered here. Therefore, the “Select Kanagawa NEXT” program was has good accessibility to the international trade ports of Yokohama, Kawasaki launched in November 2019, a corporative invitation measure with various and Yokosuka, as well as Tokyo International Airport (Haneda Airport). incentives to promote overseas companies to “select” Kanagawa as a base Kanagawa is also blessed with a lush natural environment of green for their business operations. mountains and picturesque coastlines, and features numerous sightseeing Please learn about Kanagawa’s excellent investment environment spots that encapsulate all of Japan’s charms. These include the international and actively consider new business development in Kanagawa by taking port city of Yokohama, the historic and culturally vibrant ancient samurai advantage of “Select Kanagawa NEXT.” capital of Kamakura, and Hakone, the international tourist destination known for its hot springs and magnificent views of Mt. Fuji. Governor of Kanagawa Prefecture Yuji Kuroiwa 1 Why Kanagawa? Business Environment & Investment Incentives 2 Statistics of Kanagawa Prefecture Population (As of July 2019) Area (As of January 2019) Number of Foreign-Affiliated Firms By Region 2 million 2,416.16 km companies 7 9.2 302 7 3838 77 U.S. Taiwan （932.88sq.mi） 88 アメリカ 台湾 96 Germanyドイツ デンマークDenmark 99 96 Franceフランス スウェーデンSweden Number of Foreign-Affiliated Firms 1111 Switzerlandスイス イタリアItaly 1212 U.K.イギリス 韓国South Korea 2500 2428 15 15 China Others 6363 中国 その他 Kanagawa Luxembourg 1818 1818 2000 1500 By Industry Japan’s population: 127 million, No. 43 out of 47 prefectures 1000 No. 2 out of 47 prefectures (5th smallest prefecture) 2nd place following Tokyo 62 Machinery 62 機械 Comparable to the population scale of Comparable to Luxembourg (2,586 sq. km) 92 Transport equipment 92 輸送機器 Austria (8.85 million, 2018) and Israel Electrical equipment 500 電気機器 (8.89 million, 2018) 302 46 Precision machinery 186 46 精密機器 129 86 Information systems, 49 44 27 Software情 報 シ ス テ ム・ソ フ ト 0 27 その他 31 44 Others Tokyo Kanagawa Osaka Hyogo Aichi Chiba Other 31 44 (Source: Toyo Keizai Inc. “Directory of Foreign-owned Companies in Japan 2019”) Size of Economy (As of July 2019) Nominal GNP of Industrial Composition Ratio Kanagawa Prefecture Manufacturing製造業 Tourism Real不動産業 Estate 21.2%21.2% Kanagawa Prefecture is blessed with a wide range 26.9%26.9% Wholesale卸売・小売業 and Retail Trade ¥ trillion Science,専門・科学技術・ Technology, Professional of tourism attractions such as Yokohama, where 34.61 and業務支援サービス業 Technical Services large passenger ships stop and many international 16.1% 保健衛生・社会事業 (approx. $319.4 billion) 5.1%5.1% 16.1% Health, Hygiene, and Social Work conferences are held, Kamakura, where many Information情報通信業 and Communications 5.9%5.9% temples and shrines are lined up, Odawara which is 9.3% Transportation運輸・郵便業 and Postal Services 7.1%7.1% 9.3% その他 famous for Ninjas, and Hakone, where you can enjoy Comparable to Norway ($371.1 billion) 8.4%8.4% Others hot springs while viewing Mt. Fuji. 200 million tourists and Israel ($317.7 billion) (Source: FY2016 Kanagawa Prefecture Citizen's Economic Account) visit Kanagawa Prefecture annually. 3 Why Kanagawa? Business Environment & Investment Incentives 4 Five Benefits of Doing Business in Kanagawa Convenient Transport System Cost Performance Kanagawa Prefecture is equipped with high speed transportation infrastructure such as the Office rental costs in Kanagawa Prefecture are only about half of those in Tokyo, while Shinkansen (Bullet Trains) and expressways. In addition to excellent domestic transportation being close to central Tokyo, an approximately 30-minute train ride away. As costs are even accessibility, Haneda Airport, which operates flights to 31 cities overseas, is conveniently lower in comparison with other major Asian cities, Kanagawa enables foreign companies to located approximately 30 minutes by car or train from Yokohama. establish their Asian headquarters with less costs. 1 2 Market Rent Rates in Major Asian Cities Joetsu Shinkansen Line Tohoku Shinkansen Line (Bullet Train) (Bullet Train) Beijing Joban Ken-o Expressway Kan-etsu Expressway $131–197/㎡ Expressway Tohoku Seoul 60Km Expressway Higashi-Kanto $57/㎡ Expressway Tokyo Gaikan Expressway Japan 30Km $61/㎡ China Shanghai Yokohama, Tokyo Tokyo Tokyo Wangan Narita Airport Road Kanagawa Chuo Expressway Station Tomei $28–32/㎡ Expressway Port of Tokyo $28/㎡ Sagami Jukan Haneda Airport Yangon Expressway Shin-Yokohama Kawasaki Hong Kong Station Station $40/㎡ Kanagawa Port of Kawasaki Mumbai $7–206/㎡ Prefecture Yokohama Tokyo Bay Aqua-Line Mount Fuji Station $31-43/㎡ Port of Yokohama Ho Chi Minh $25-43/㎡ Odawara Port of Yokosuka Station Singapore Tokaido Shinkansen Line (Bullet Train) $62-95/㎡ (Source: “Investment cost comparison, Japan External Trade Organization (JETRO)” (June, 2019)) Travel Time to Haneda Airport by Train Cities Serviced by International Flights from Haneda Airport Kawasaki Station 14min Abundant Human Resources International Service to Cities Shin-Yokohama Station 38min 31 Kanagawa Prefecture has 80000 As of June 2019 roughly 63,000 people (Source: 2014 Economic Census Odawara Station h min Source: 62,907 for Business Frame of Japan) 1 14 Haneda Airport International Passenger Terminal website working at academic and R&D 60000 institutions, and this is the highest number in Japan. It also Domestic Travel Time (in case of the fastest ride time) 39,838 has the second most R&D labs 40000 and offices in the nation. 27,811 From Yokohama Station (train) From Shin-Yokohama (Shinkansen) 20000 16,221 15,198 14,944 25 minutes to Tokyo Station Nagoya 1 hour 16 minutes 3 Kyoto 1 hour 50 minutes 0 Shin-Osaka 2 hours 04 minutes Kanagawa Tokyo Ibaraki Saitama Tochigi Osaka 5 Why Kanagawa? Business Environment & Investment Incentives 6 Five Benefits of Doing Business in Kanagawa Kanagawa Initiatives al Strategic Sp Driving the Local Economic Engine! tion ecia Na l Z e on 3 Special Zones Th e Haneda Airport Corporate Clusters Sagami Kanagawa Prefecture has three special Jukan Large multinational corporations such as Nissan Motors, Fuji Xerox, Sony, and Takeda zones: the “National Strategic Special Zone,” Expressway Pharmaceutical have also established bases in Kanagawa Prefecture. As a particularly covering the entire prefecture, the “Sagami large number of research labs are situated in Kanagawa Prefecture, companies are able to collaborate in cutting-edge technologies. Robotics Industry Special Zone,” centered on the Sagami Jukan Expressway, and the “Keihin The Sagami The Keihin Coastal Coastal Area Life Innovation Comprehensive Robotics Industry Automobile Energy, Electronics, Computers Biotechnology Special Zone Area Life Innovation 4and Machinery Environmental and and Information and Life Science Special Zone,” centered around Yokohama and Comprehensive Industries Material Industries Technology Industries Special Zone Kawasaki. Kanagawa Prefecture also offers various supportive incentive systems. Healthcare New Frontier Policy Initiatives ①Nissan Motor Co., Ltd. ②Solar Frontier K.K (Atsugi) ⑤Sony Corporation (Atsugi) ⑨Takeda Pharmaceutical (Atsugi) Company Limited (Fujisawa・Kamakura) To overcome the challenges of a Super-Aging Society, Kanagawa Prefecture has united the two approaches of “Pursuing Bosch Corporation Advanced Medical Treatments and Technologies” and “Curing ME-BYO ＊ ”, promoting unique policies that will realize health (Yokohama) and longevity and create new markets and industries. Daimler AG (Kawasaki) In the effort to advancing the policy, Kanagawa Prefecture has established the following bases that contributes to industrial Isuzu Motors Limited (Fujisawa) development in the cutting-edge medical field and plays a part in attracting companies to Kanagawa Prefecture. ③FUJIFILM Corporation NHK Spring Co., Ltd. (Kaisei) ＊ ME-BYO (Presymptomatic State) : The philosophy behind Eastern medicine includes the concept that there are (Yokohama) ⑩Ajinomoto Co., Inc. gradations between health and illness. In this approach, lifestyle habits are improved before illness manifests Healthy Sick Mitsubishi Fuso Truck and ⑥Fuji Xerox ⑦Ricoh (Kawasaki) in order to maintain good health. Bus Corporation (Kawasaki) Co., Ltd. Company, (Yokohama) Ltd. (Ebina)