Contents 1. Briefly about FCCJ 2. Finnish companies in ... · Annual budget ca 10 million yen...

Finnish Chamber of Commerce in Japan

FCCJ Information

9 November 2015

Contents

1. Briefly about FCCJ

2. Finnish companies in Japan

3. Trade between Finland and Japan

4. Foreign Chambers Business Confidence Survey


FCCJ Information


The main purpose is to promote trade and economic exchange between The main purpose is to promote trade and economic exchange between The main purpose is to promote trade and economic exchange between Japan and Finland

Japan and Finland Founded in April

Japan and FinlandFounded in April Founded in April 1999

Founded in April Founded in April Founded in April Approved by MITI (now METI) in July Approved by MITI (now METI) in July 1999

Approved by MITI (now METI) in July Approved by MITI (now METI) in July 65

Approved by MITI (now METI) in July Approved by MITI (now METI) in July Approved by MITI (now METI) in July 65 65 corporate members, one special member, corporate members, one special member, corporate members, one special member, 15 15 individualcorporate members, one special member, corporate members, one special member, corporate members, one special member, corporate members, one special member, more than half corporate members, one special member, corporate members, one special member,

more than half more than half of members corporate members, one special member, corporate members, one special member, corporate members, one special member,

of members of members are Japanese individualindividual15 15 15

are Japanese are Japanese companies (at present companies (at present 383838) Annual budget ca Annual budget ca Annual budget ca 10

are Japanese 10 10 million yen

Annual budget ca Annual budget ca Annual budget ca Membership feesMembership feesMembership fees

Membership feesMembership fees Corporate

Membership feesMembership feesCorporate Corporate 150,000 150,000 yen

Corporate Corporate Corporate 150,000 150,000 150,000 Corporate Associate corporate

yen yen yen Associate corporate Associate corporate 75,000 75,000 yen yen (small and/or newly established companies)

Associate corporate Associate corporate Associate corporate Individual

Associate corporate Associate corporate Individual Individual 20,000 Associate corporate 75,000 75,000 Associate corporate Associate corporate

20,000 20,000 yen Staff

Staff Executive Director 40 40 % of full time Executive Director Executive Director Assistant

40 40 35

% of full time40 % of full time35 35 % of full time

9 November 2015


FCCJ Information

9 November 2015

Finnish Companies

in Japan


FCCJ Information

9 November 2015

From the start of trade to the From the start of trade to the 19901990’s Already in the 1930’s Finnish products were exported to Japan, e.g. pulp.

Forest industry products, mainly paper and paper board have been exported in quite large volumes since the 1960’s through importers and agents.

The paper and board business grew significantly in the beginning of the 1970’s when the first Finnish companies were established in Japan; Enso-Gutzeit (now Stora Enso) and Nippon Finnpap (now UPM-Kymmene).

A large part of the Finnish companies now active in Japan established themselves in the 1980’s, i.e. Finnair, Vaisala, Outokumpu, Cultor (Danisco), Valmet, Wärtsila, Tamrock (Sandvik-Toyo), Nordberg (Metso), Neles (ValmetAutomation) and Kone.

Notable newcomers in the 1990’s were Nokia, Honka, Kemira (Kemira-Ube JV, Kemira sold its part in 2008), Konecranes, Elcoteq, Elektrobit, SSH and Savcor.


FCCJ Information

During 2000-2010 the following companies etablished themselves: Biohit, Hantro, M-real (closed in 2005), NetHawk, F-Secure, Perlos, Suunto (Amer), Tamglass (Glaston), Tekla, VTI Technologies (now part of Murata), Okmetic, Visko (now ViskoTeepak), Loparex (now Mondi), Ekahau (closed in 2011).

During the past 5 years: Fastems, Artek, Halton, Blancco, Rovio, Supercell, NIT, Reaktor, All Things Commerce (Moomin), Enevo, Alteams and Picosun.

Notable companies that have withdrawn from the market are the banks, KOP/SYP/Merita/ Nordea and Postipankki/Leonia, as well as Ahlström and Sonera (TeliaSonera has had a rep. office 2005-2007). M-real withdrew in 2005, NetHawk in 2006, SSH 2008 (returned in 2015), Perlos and Glaston in 2009, Elcoteq in 2011, Ekahau in 2013 and Kone in 2015.

There are 3-5 newcomers every year.

Only one Finnish company with production in Japan: Wartsila

Currently about 45 companies have their own office in Japan.

2010 the following companies etablished themselves: Biohit,

From the following companies etablished themselves: Biohit, the following companies etablished themselves: Biohit,

From 2000 the following companies etablished themselves: Biohit, the following companies etablished themselves: Biohit,

2000 until today

9 November 2015


FCCJ Information

Largest Finnish Companies in Japan

By number of employees Nokia Networks (ca 1,000, incl. Panasonic Network acquisition 1 Jan. 2015)

Wartsila (ca 320)

Amer Sports (ca 120, incl. other than Finnish brands)

Vaisala (ca 40)

Finnair (ca 30 + 100 cabin crew)

F-Secure (ca 25)

Stora Enso, UPM, Metso, Valmet (ca 15)

Outokumpu, Honka (ca 10)

By business volume (rough guess…) Nokia Networks

Stora Enso

UPM

Wartsila

Finnair

Outokumpu

Vaisala, F-Secure, Valmet, Metso

Honka, Okmetic, Amer Sports (Suunto)

9 November 2015

Trade between

Japan and Finland


FCCJ Information

Trade between Finland and Japan Trade between Finland and Japan 1985

Trade between Finland and Japan 1985 1985 –

Trade between Finland and Japan Trade between Finland and Japan Trade between Finland and Japan –– 2015

Source: Finnish Board of Customs

9 November 2015

Est. July’15


FCCJ Information

Comments to the trade statistics

According to the statistics by Finnish Customs, the trade between Finland and Japan in 2014 in

euros remained almost unchanged from the previous year. Finnish exports to Japan rose by 2%

while Japan’s export to Finland was at the same level as in 2013.

There has been a rather dramatic change in the trade balance (yellow bars). Until 2010 Japan had

a surplus, in the late 1990’s the surplus was almost twice Finland’s export to Japan. But since 2011

Finland has had a growing surplus, in 2014 it was 351 mill. euros.

The main reason for this is changes in the international business. Today, most of the Japanese

cars, electronics and machinery, which makes up for most of Japan’s export to Finland, are

produced close to the markets, i.e. in Finland’s case in Europe.

Same applies naturally in the case of Finnish exports. Large shares of wood, paper, telecom

equipment, metals, instruments, etc. sold by Finnish companies in Japan are today produced

elsewhere than in Finland, in other parts of Europe (e.g. wood, paper and metals) or in Asia (paper,

telecom equipment, instruments).

Therefor trade statistics today only partly reveal the actual business of companies. In the case of

Finnish companies, it is estimated that their business in Japan is about 3.5 times the export volume

from Finland. Substantially more if services (air transport, service in telecom and machinery) and

profit margins are added.

9 November 2015


FCCJ Information


Finland’s Export to Japan Finland’s Export to Japan 1990 1990 –– 2015Finland’s Export to Japan Finland’s Export to Japan Main Product Groups

9 November 2015

Est. July’15


FCCJ Information


Finland’s Export to Japan in Finland’s Export to Japan in 2015Finland’s Export to Japan in (estimated from July statistics)

9 November 2015


FCCJ Information

Foreign Chambers Business Confidence Survey

Fall 2015

To be added on Sunday!

2 November 2015

Foreign Chambers in Japan

©2015 FCIJ & Finnish Chamber of Commerce in Japan

FCIJ Business Confidence Survey – Fall 2015

1

FCIJ Business Confidence SurveyFCIJ Business Confidence SurveyFall

FCIJ Business Confidence SurveyFCIJ Business Confidence SurveyFall Fall 2015

Survey idea and technical implementation by the Finnish Chamber of Commerce in Japan

Green Ahead for Businesses – Some Orange for the Economy

Commentary by Dr. William Commentary by Dr. William Schrade



FCIJ Business Confidence Survey FCIJ Business Confidence Survey –– Fall Fall 2015

2

Executive SummaryThe Foreign Chambers in Japan (FCIJ) has been conducting Business Confidence surveys online twice a year since 2002 among foreign-affiliated companies in Japan. This, the 28th, survey was conducted between October 20 and 30, 2015, and received 240 valid responses from members of 13 foreign chambers of commerce and business organizations.

Although this survey shows that the sentiments regarding the Japanese economy are less positive than in the Spring 2015 survey, both the reported and forecasted performance figures for the companies were more positive than in the previous survey.

The respondents though still expects the Japanese economy to grow, albeit at a slower rate - the index, on a scale from +2 (strong improvement) to -2 (strong decline) – for the next six months was now +0.31, compared to +0.69 in April. Looking 12 months ahead, the respondents see a similar decline in growth, the index was now +0.47, compared to +0.74 in the previous survey.

The reported performance of the companies continued to improve and on a somewhat higher level than in the April survey. The index for reported sales performance in the past six months was same (+0.71) as in the previous survey. The profitability growth increased, now +0.60 now compared to +0.50 in April.

In the sales forecast for the coming six months the respondents were slightly more optimistic than in April, the index was now +0.94 (previous survey +0.89). The forecast for profitability also grew stronger than in the April survey, from +0.67 to +0.80.

The optimism reflected in the company performance data also clearly show that the strategies of the foreign-affiliated companies in Japan continue to be bullish. 75% (78% in the April survey) are looking for further growth and 21% (18% in April) are expecting to sustain their current level. Only 3% is planning to downsize and only one of the respondents are considering withdrawing from Japan.

This time the survey included two alternating questions. The first was regarding the “Future of Abenomics”, where 59% had the opinion that it will revitalize the economy strongly or somewhat“, 15% thinks it will damage the economy in the long term and 26% responded that it will not have any significant effect. A similar question was asked in the Spring 2013 survey when the opinions were very similar.

The second alternating question was on the views the free trade agreements, the EU-Japan FTA for the European chamber members, TPP for the other. The results for both were astonishingly similar with 51% and 52% thought the agreements were good both for Japan and their business, 18% in both cases responded good for Japan but not for their business while 7% and 5% gave good for their business but not for Japan. The same questions were asked 2.5 years ago, then the sentiments for the EU-Japan FTA were very similar but regarding the TPP there has been a dramatic change, in spring 2013 only 7% though it would be good for both Japan and their business, now 51%,

The next survey will be conducted in April 2016.




5

Participating Organizations

The American Chamber of Commerce in Japan

The Swedish Chamber of Commerce and Industry in Japan

The Finnish Chamber of Commerce in Japan

The German Chamber of Commerce and Industry in Japan

The British Chamber of Commerce in Japan

The Netherlands Chamber of Commerce in Japan

The Belgium-Luxembourg Chamber of Commerce in Japan

The French Chamber of Commerce and Industry in Japan

The Ireland Japan Chamber of Commerce

The South Africa Chamber of Commerce in Japan

The Norwegian Chamber of Commerce in Japan

The Danish Chamber of Commerce in Japan

The Austrian Business Council




02/1 02/2 03/1 03/2 04/1 04/2 05/1 05/2 06/1 06/2 07/1 07/2 08/1 08/2 09/1 09/2 10/1 10/2 11/1 11/2 12/1 12/2 13/1 13/2 14/1 14/2 15/1 15/2Index 0.21 -0.0 -0.0 0.84 1.03 0.75 0.57 0.95 1.12 0.91 0.82 0.54 -0.0 -0.5 0.21 0.66 0.79 0.17 0.08 0.55 0.67 0.19 1.06 0.75 0.70 0.42 0.74 0.47

-0.80

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.600.801.001.20

1.40

11

TOTAL FOR THIS SURVEYTOTAL FOR THIS SURVEY

1.2FCIJ Business Confidence Survey FCIJ Business Confidence Survey FCIJ Business Confidence Survey

1.2. Japan's economic situation for the next . Japan's economic situation for the next 122222 months

INDEX +0.47 (+0.74)

0 25 50 75

European companiesNorth American companies

0 25 50 75

+0.42 (+0.74)+0.61 (+0.73)

COMPARISON BY AREA

Response Number Percent Strong improvement 7 9 %Some improvement 47 61 %No change 10 13 %Some decline 12 16 %Strong decline 1 1 %

Number of responses: 77

15/20.47

COMPARED TO PREVIOUS SURVEYS



Response Number Percent

Strong improvement 21 9 %

Some improvement 114 49 %

No change 59 25 %

Some decline 35 15 %

Strong decline 5 2 %

Total number of responses: 234 0 25 50




02/1 02/2 03/1 03/2 04/1 04/2 05/1 05/2 06/1 06/2 07/1 07/2 08/1 08/2 09/1 09/2 10/1 10/2 11/1 11/2 12/1 12/2 13/1 13/2 14/1 14/2 15/1 15/2Index 0.78 0.61 0.66 0.86 1.01 0.98 0.94 0.94 1.07 0.98 0.95 0.84 0.60 -0.0 0.15 0.47 0.88 0.68 -0.1 0.73 0.81 0.57 0.71 0.87 0.79 0.82 0.89 0.94

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

15

TOTAL FOR THIS SURVEYTOTAL FOR THIS SURVEY

FCIJ Business Confidence Survey 2.2

FCIJ Business Confidence Survey FCIJ Business Confidence Survey 2.2. Sales forecast for the

FCIJ Business Confidence Survey FCIJ Business Confidence Survey . Sales forecast for the next

FCIJ Business Confidence Survey FCIJ Business Confidence Survey xt 6

FCIJ Business Confidence Survey 6 6 months

INDEX +0.94 (+0.89)

0 25 50 75

European companiesNorth American companies

0 25 50 75

COMPARISON BY AREA

+0.91 (+0.86)+1.06 (+0.96)Response Number Percent Strong improvement 35 23 %Some improvement 78 52 %No change 30 20 %Some decline 6 4 %Strong decline 2 1 %




15/20.94



Strong improvement 56 24 %

Some improvement 124 53 %

No change 39 17 %

Some decline 12 5 %

Strong decline 2 1 %

Total number of responses: 233 0 25 50




0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Growth

Sustain current

Downsizing

Consider withdrawal

25

0 25 50 75

TOTAL FOR SURVEY

FCIJ Business Confidence Survey 5

FCIJ Business Confidence Survey FCIJ Business Confidence Survey FCIJ Business Confidence Survey 5. Strategies in Japan

0 25 50 75

European companies

0 25 50 75

North American companiesResponse Number Percent

Growth 57 75 %

Sustain current 15 20 %

Downsizing 4 5 %

Consider withdrawal 0 0 %



Growth 118 76 %


Downsizing 3 2 %




Growth 177 75 %


Downsizing 8 3 %


Total number of responses: 235





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This survey has been supported by:

The Survey Report and additional comments from respondents are available in pdf format at:

http://www.fcc.or.jp/fcij/bcs.html

The next survey will be conducted in April 2016.

www.asiantigers-japan.comwww.mostaxcorp.jp

Contents 1. Briefly about FCCJ 2. Finnish companies in ... · Annual budget ca 10 million yen...

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Transcript of Contents 1. Briefly about FCCJ 2. Finnish companies in ... · Annual budget ca 10 million yen...