Japan Market
2011 Japanese companies overseas investment in equipment increased 50%
Bank of Japan released the large enterprises (more than 1 billion yen capital) equipment investment plan survey, 2011 Japanese companies overseas investment in equipment increased 49.2% over 2010, the biggest increase in a record survey.According to the survey, 2011 annual industry-wide program in Japan amounted to 14.9 trillion yen investment in equipment than the actual investment in 2010 grew 7.3%, after a lapse of four years, returning to positive growth again. The manufacturing sector equipment investment of 5.4 trillion yen, up 12.5%, 14 sub-industries, automotive, general machinery, 11 for the positive growth. Non-manufacturing equipment investment 9.5 trillion yen, up 4.6%, 10 sub-industries, seven of positive growth.
However, growth in equipment investment, the East Japan earthquake damage on the industry in order to "maintain and add maintenance" for the purpose of equipment investment reached a record high proportion of 22.4%. These investments are "far from the forward-looking investment," and the transfer of large-scale movements of overseas investment is very obvious.
As the main source of growth, Japan's 10 major automobile manufacturers equipment investment plans for 2011 of about 2.2 trillion yen, more than 32% surge in 2010, but emerging as the center of overseas investment accounted for more than half. Toyota attaches great importance to domestic production, but still said "In the current circumstances, to maintain domestic production of 300 million units is extremely difficult," shows that it is difficult to increase domestic investment in equipment.
For Japanese companies, the future risk of domestic business is the biggest appreciation of the yen. Generally believed that Japanese exporters to bear bottom line is that "85 yen per dollar," but the reality is that the yen will continue to remain at "1 dollar 76 yen" high. In addition, the Japanese corporate tax effective tax rate and high labor costs, supply chain, confusion, lack of power further weakened the international competitiveness of Japanese companies, but also speed up its overseas investment an important factor.