708-Chaudhari Technical Institute, Gandhinagar - Gujarat ...

NIEs (inc. Korea; Singapore; Hong Kong, China; and Chinese Taipei) down
by 29.5%
United States down by 31.4%
Association of South East Asian Nations down by 34.4%
Middle East down by 50.2%
3. TRENDS IN FOREIGN DIRECT INVESTMENT
The amount of FDI stocks steadily increased until 2008. That in CY2008 was
¥18.5 trillion (3.6% of GDP) and that in CY2009 was ¥18.4 trillion (3.9% of
GDP). As the Ministry of Internal Affairs and Communications reports, the
situation of employment in foreign companies in Japan, according to the
"2006 Establishment and Enterprise Census", approximately 750,000 regular
employees were employed by companies which have more than 1/3 of foreign
equity.
In June 2010, the Cabinet issued its "New Growth Strategy". From that
strategy, it is noted that Japan will double employment and double direct
incoming investment by inviting foreign firms which bring high value-added
products and services into Japan. Some items related to this are given below:
For the purpose of strengthening the competitiveness of companies
operating in Japan and encouraging more foreign companies to set up
business bases in Japan, the effective corporate tax rate will be
reduced to the levels of other major countries, taking into consideration
the need to secure tax revenue sources by expanding the tax base.
With the aim of enabling Japan to revive as an Asian industrial center,
an incentive system containing taxation measures will be considered to
invite foreign firms to set up their Asian head offices and R&D bases in
Japan, which are linked with the degree of their contribution to the
68