Supporting the Overseas Expansion of Japanese Mid-Tier Enterprises And
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国 際 協 力 銀 行 の 広 報 誌 Special Issue Aiming to provide JBIC’s unique support to Japanese mid-tier enterprises and SMEs with plans to expand business overseas 4-1, Ohtemachi, 1-chome Chiyoda-ku, Tokyo 100-8144, Japan Tel. +81-3-5218-3100 URL: http://www.jbic.go.jp/en/ Press and External Affairs Division, Corporate Planning Department, Group, Japan Bank for International Cooperation Industry Finance Group Industry Finance Group Finance Office for SMEs Our Global Challenges Executive Officer for West Japan Hidetou Usuyama Toshiyuki Suzuki Director General In July 2017, Hidetou Usuyama was appointed as Executive Officer and Executive Officer for West Japan and Toshiyuki Suzuki was Special Issue appointed as Director General of Finance Office for SMEs. They were both involved in supporting Japanese mid-tier enterprises and SMEs in their years as young and mid-career employees. They talk about their aspirations for JBIC’s future support. Under the new management team, JBIC will support Japanese mid-tier enterprises and SMEs which wish to expand to foreign countries. Supporting the ▶Usuyama I have come back to the West Japan and Indonesia. Besides being very energetic, needs of mid-tier enterprises and SMEs Office as Executive Officer, where I used to many mid-tier enterprise and SME owners through our efforts to improve their aware- work as a staff member 21 years ago. Back have their own unique philosophies. I found ness of JBIC’s financial products and services, then, I worked with Director General Suzuki there is much to learn by visiting those business while strengthening cooperation with regional and we worked very hard. owners and talking directly with them. Some financial institutions which have established Overseas Expansion of ▶Suzuki We had a strict mentor, didn’t we? ten years ago, I worked in the West Japan close relations with them. At the same time, I (Laughter) Office and helped mid-tier enterprises and strongly feel we need to actively communicate ▶Usuyama I have been visiting as many compa- SMEs to expand their business overseas. Since JBIC’s support for mid-tier enterprises and nies, financial institutions, and economic orga- those days, I feel that, regardless of business SMEs to the public by obtaining their under- Japanese Mid-tier nizations as possible since I was assigned and area or enterprise size, more Japanese compa- standing of our public relations (PR) activity. have gathered their opinions, including various nies have been continuing to shift their focus to This PR activity will not only help to make management problems and their needs for expanding business overseas because of their JBIC’s financial support for mid-tier JBIC. Japanese mid-tier enterprises and SMEs corporate strategies aimed at benefitting from enterprises and SMEs more widely known to expressed their needs of investment informa- the growth of emerging countries. the public, but also to show more people Enterprises and SMEs tion on emerging countries, which have grown ▶Usuyama One of JBIC's strengths is the about how vigorous mid-tier enterprises and much more diverse over the last 21 years. At ability to support mid-tier enterprises and SMEs are in foraying into overseas markets. the same time, I found out that many mid-tier SMEs in entering into overseas markets by ▶Usuyama In the West Japan Office, I will enterprises and SMEs face the same business offering long-term foreign currency denomi- make various efforts to support Japanese mid- challenges, such as how to cope with the major nated loans. Especially in recent years, there tier enterprises and SMEs in starting their busi- structural changes of the global market and has been increasing demand for borrowings in ness overseas by capitalizing on our flexibility in their business succession in Japan. I wish to help local currencies, such as Thai baht and Indian meeting their wide range of financing needs. I them to address such business challenges not rupee in addition to the U.S. dollar and euro. would like to provide our financing support in a only by providing our financial support, but also Under such circumstances, we have gradually more creative and innovative way, such as by by making the best use of our information, been increasing our experience in providing developing new financing schemes where knowledge and overseas networks. I am deter- financing in local currencies. On the other necessary to proactively address their financing mined to tackle such business challenges with hand, some mid-tier enterprises and SMEs are needs or providing business matching services. mid-tier enterprises and SMEs and grow hand not yet aware that they can utilize our financial If those efforts are implemented, I will give in hand with them. support. One of our challenges is to make feedback of the results to the Head Office. ▶Suzuki I have also been very busy visiting JBIC’s presence and financing support services ▶Usuyama and Suzuki We, in collaboration mid-tier enterprises and SMEs across Japan widely known among those mid-tier enter- with regional financial institutions, will make since I was assigned. I even visited their over- prises and SMEs. our best efforts to support Japanese mid-tier seas offices in countries where many of them ▶Suzuki I totally agree with you on that enterprises and SMEs in expanding their busi- have already started business, such as Thailand point. I would like to identify the potential ness overseas with a sense of security. JBIC’s Financial Support for Japanese Mid-tier Enterprises and SMEs with Diverse Financing Needs JBIC’s financial support schemes for Japanese mid-tier Promoting alliance between local financial institutions in enterprises and SMEs developing countries and Japanese regional financial institutions JBIC offers the following financial support schemes to respond to the diverse financing needs of Japanese mid-tier enterprises and small and 01. 02. medium-sized enterprises (SMEs) by strengthening the alliance with Japanese private-sector financial institutions and local banks in countries or Establishing Japan Desk and Providing overseas regions where those Japanese companies plan to start a business. organizing follow-up seminars investment information JBIC signed memoranda of understanding (MOUs) for business cooperation JBIC provides Japanese mid-tier enterprises and SMEs with overseas with local banks in the countries of Asia as well as local banks and state investment information, such as by organizing consultation sessions and Basic Financing Scheme governments of Mexico with an aim to establishing a specialized contact point investment seminars across Japan. for Japanese enterprises (“Japan Desk”) in those local banks which provides a wide range of financial products, services and consultancy for Japanese mid-tier Overseas project enterprises and SMEs when they arrange financing outside Japan. Overseas investment seminars Under the MOUs, those local banks and state governments have established and Investment, capital increase, JBIC holds overseas investment seminars across Japan to provide Parent company expanded their Japan Desks to assist Japanese overseas subsidiaries in loan from a parent company information about the current state of overseas expansion by Japanese Overseas subsidiary (in Japan) coordinating financing for their business by providing them with financial companies which is gathered through the JBIC’s survey on overseas services such as account opening, foreign exchange and remittance transactions. investments by Japanese companies This has eventually resulted in creating new business between those local JBIC also organizes investment seminars focusing on investments in banks and Japanese overseas subsidiaries. Domestic financing promising emerging countries such as India, China, Indonesia, Vietnam and In addition, JBIC organizes follow-up seminars on a regular basis inviting staff Thailand. members from Japanese regional financial institutions and the Japan Desks of Direct financing (in USD, JPY, EUR, or other currencies) Japanese financial foreign local banks, which have signed MOUs with JBIC for business institution cooperation. The purpose of these follow-up seminars is to deepen mutual understanding of business partnership between those local banks and Japanese Advisory services on overseas investments regional financial institutions through the discussions of issues and challenges JBIC provides advisory services to projects which JBIC has financed by faced by the Japan Desks of those local banks, including the dispatch of external professionals at the early stage of the project development process, trainees, and the shape of their business alliance. covering the following fields, in the following countries or regions: Advisory fields: (1) Taxation and accounting, (2) Law Two-step Financing Scheme Two-step Financing Scheme Recent follow-up seminars Countries or regions: (1) China, (2) India, (3) 10 ASEAN countries* (through a Japanese financial institution) (through a leasing company) Second follow-up meeting and seminar with Kasikornbank (May 2016 in Tokyo) (*Indonesia, Singapore, Thailand, the Philippines, Malaysia, Brunei, Vietnam, Myanmar, Laos, Second follow-up meeting and seminar with Metropolitan Bank Cambodia), (4) North America, Latin America, the Middle East (July 2016 in Tokyo and Osaka) Overseas project Overseas project First follow-up meeting and seminar with Mexican state governments and bank (November 2016 in Tokyo and Osaka) Overseas subsidiary Overseas subsidiary First follow-up meeting and seminar