Japanese investment in South-east Asia.
Japanese foreign direct investment (FDI) in ASEAN states has become a major component of global FDI flows and also one of the most important forces driving dynamic economic growth in South-east Asia. Japan’s FDI to the region is now undergoing far-reaching structural change. After peaking in 2013 it is now declining, and its focus is shifting from the production of low-cost, labour-intensive products to strengthening regional supply chains, developing ASEAN countries’ domestic markets and significantly increasing local production of technologically advanced products.
Growth of South-east Asia's middle class will boost Japanese FDI in production of goods and services for dynamic local markets.
New local industrial clusters will emerge, centred on Japanese firms.
The number of Japanese firms of all sizes will increase.
Japanese FDI, formerly concentrated in Thailand and Singapore, will expand to target a more diverse set of recipient countries.
ASEAN states offer an alternative to Japanese firms wishing to diversify to reduce their reliance on China.
