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Date: 02-jun-2025 | By: Nuztrend Team
In a bold step toward revitalizing its economy, Japan has announced a significant revision to its foreign direct investment (FDI) strategy. The government now aims to attract 150 trillion yen ($1.05 trillion) in FDI by the mid-2030s—a 50% increase from the previous target of 100 trillion yen set for 2030.
This new target reflects a broader commitment to long-term economic sustainability, enhanced competitiveness, and alignment with global megatrends like decarbonization, digital innovation, and advanced manufacturing.
Japan’s Ministry of Economy, Trade and Industry (METI) and Cabinet Office are revising their FDI strategy amid growing regional competition and internal demographic challenges. With an aging population and a shrinking domestic workforce, Japan sees foreign investment as critical for:
Japan’s updated FDI roadmap prioritizes high-impact sectors that align with both national and global goals. These include:
The new FDI push will be backed by supportive reforms, including:
These reforms aim to make Japan a more attractive destination compared to competing economies in Asia and the West.
The FDI expansion comes at a time when many countries—especially in Asia—are intensifying efforts to attract global investors. Japan’s move is viewed as an attempt to avoid being left behind amid regional powerhouses like China, India, and South Korea.
With economic security and sustainability becoming global priorities, Japan’s focus on “green” and “digital” growth may offer a competitive edge if executed effectively.
Japan's updated FDI target is not just a domestic growth strategy—it is an invitation to the global investor community. With strong legal protections, reliable infrastructure, and a renewed commitment to reform, Japan is positioning itself as a stable and strategic destination for long-term investments.
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