TOKYO (Nikkei)--The Ministry of Economy, Trade and Industry plans to switch to electronic certificates of origin, which domestic goods need to receive preferential customs treatment in countries with which Japan has economic partnership agreements.
The certificates will go into a METI-run online system that customs authorities in partner countries can access. Malaysia-bound exports will be the first to go over to digital certification. Japan and Malaysia are in talks to make the changeover sometime in the current fiscal year.
The certification process starts with an application to the Japan Chamber of Commerce and Industry, which conducts the necessary review. With the digital system, Malaysian authorities will have access to certificate details as soon as a review is complete. Exporters receive the original certificates at a later date and submit them to the authorities. Until now, the issuance process alone has taken at least two days.
About 8,000 certificates of origin were issued for Malaysia-bound Japanese exports in fiscal 2010, 30% more than a year earlier. The total number of certificates for Japanese exports rose 50% to around 100,000. Switching to an online system will help speed exports to their destination and grow Japanese business in EPA countries.
Source:The Nikkei June 7,2011
TOKYO (Nikkei)--The value of agricultural, marine and forestry products exported in April tumbled 14.7% on the year due to import restrictions introduced by other countries over radiation concerns, according to government data released on Monday.
Exports totaled 37.6 billion yen, said the Ministry of Agriculture, Forestry and Fisheries. Shipments of vegetables, meat and other farm products sank 18.5% while seafood exports shrank 11.7%. Exports of such forestry products as lumber, which are small in absolute terms, surged 43.4% partly due to an increase in demand in typhoon-stricken Taiwan.
By geographical area, shipments to China plunged 46.9% to 2.6 billion yen, exports to the European Union slid 27.1% to 1.7 billion yen and shipments to South Korea slipped 13.8% to 4 billion yen.
Roughly 40 nations and regions have restricted imports of agricultural, marine and forestry products from Japan in response to the accident at the Fukushima Daiichi nuclear power plant. With few having moved to relax such restrictions, the ministry expects that such actions have continued to have an impact on exports in May.
Source:The Nikkei June 7,2011
TOKYO (Nikkei)--Operating profit generated by major Japanese companies in Asia hit a record high for the year ended March and topped the amount they earned in Japan, a recent Nikkei survey shows. The survey covered 130 listed firms that published region-by-region profit data.
The firms' operating profit generated in other Asian markets and Oceania rose 30% on the year to a highest-ever 1.2462 trillion yen in fiscal 2010, driven by the region's brisk growth. The figure exceeded those for Europe and the U.S., as well as the 740 billion yen profit generated in Japan, reflecting the fact that these economies are still in recovery mode.
The figure for Asia even surpassed the 1.23 trillion yen logged in fiscal 2007, when the global economy was in the midst of an expansion that ended with the financial crisis the following year. Japanese companies are also generating more of their sales abroad, with the fiscal 2010 overseas sales ratio for the surveyed firms rising 1.2 percentage points to 50.4%, topping 50% for the first time since fiscal 2007.
TDK Corp. (6762) generated an operating profit of 74.5 billion yen from Asia thanks to rising sales of components produced at its Chinese factories. Its Asian profits made up for losses in other regions, including Japan, where business fell into the red. Nissan Motor Co. (7201) generated an operating profit of 171.1 billion yen in Asia, 120% more than in Japan. Japanese companies are expected to grow increasingly dependent on overseas markets for profits.
The overseas sales ratios at Komatsu Ltd. (6301) and Hitachi Construction Machinery Co. (6305) are expected to top 80% in the current business year, thanks to robust business in China, the world's largest construction machinery market. Both firms also expect demand to grow stronger in Indonesia, because the country needs more mining equipment for its resource development projects.
Toshiba Corp. (6502), meanwhile, has announced plans to raise its overseas sales ratio to 65% in fiscal 2013 from 55% in fiscal 2010.
Source:The Nikkei June 12 2011
BANGKOK (Nikkei)--Southeast Asian companies are stepping up their exports to Japan, capitalizing on reconstruction demand following the Great East Japan Earthquake. In April, Thai exports to Japan rose 40% on the year. Malaysia and Indonesia also expanded their exports by 35% and 17%, respectively.
Housing construction is the key to rebuilding quake-hit northeastern Japan. Indonesia and Malaysia, with their rich supplies of timber, are finding eager customers in Japan. The Malaysia Furniture Entrepreneurs Association, a trade group representing about 3,000 companies, estimates the value of its members' exports to Japan will rise 10% on the year to 800 million ringgit (about 22 billion yen) this year.
Siam Sanitary Ware Industry Co., a major Thai sanitary ceramics maker, expects its exports of toilets, faucets and metal fixtures to grow 50% this year. The March 11 disaster, along with the crisis at the Fukushima Daiichi nuclear power station, have seriously damaged the livestock and food processing industries in northeastern Japan, and disrupted supply chains of chilled products. The food shortages that resulted have been eased by exports from Southeast Asian companies.
Thai food processing giant Charoen Pokphand Foods PCL will increase its shipments of chicken to Japan by 20% on the year to 27,000 tons this year. It also plans to boost exports of prawn and instant noodles. Betagro Group, another Thai food processor, will lift exports of frozen pork and chicken by 20%. San Miguel Foods, Inc. of the Philippines will boost shipments of processed chicken for "yakitori" kabobs by 30%.
Demand for candles, which were mainly used for family altars and shrines before the quake, has been rising due to power outages. Sinaran Vietnam Co., a Vietnamese candle maker, has raised monthly output to 350 tons, up 50% from the pre-quake level. Expecting electricity shortages to become more severe in Japan this summer, Sinaran is set to hire more people and run factories around the clock to up monthly output by another 100 tons.
Source:The Nikkei June 10,2011
TOKYO (Nikkei)--With the nation's supply chains fractured by the March 11 disaster, the government and the manufacturing industry will come together to draw up measures to prevent a recurrence.Under the lead of the Ministry of Economy, Trade and Industry, manufacturers of automobiles, parts and materials will look into ways to share more components across the various vehicles produced by the automakers.
To differentiate their products, Japanese automakers often order suppliers to make custom-designed parts, even for items that are typically inexpensive and commodity-grade.Disruptions in the supply chain proved devastating to the auto industry after the quake. This contributed to the challenges faced by Japanese automakers in seeking alternative procurement sources during the supply chain disruptions.
At METI's urging, the Japan Automobile Manufacturers Association and the Japan Auto Parts Industries Association plan to lead discussions to boost the use of common parts and materials in the battery, chemicals and electronics parts industries.
During the recent supply chain breakdowns, shortages of microcontrollers proved particularly troublesome for the auto industry. METI is now considering setting up a committee to discuss the standardization of microcontrollers and other semiconductor-related parts.But some in the auto industry worry that using more common parts will shift the focus in the autoparts market too much in the direction of price, exposing Japanese autoparts makers to intense competition from low-cost producers in China and elsewhere.
The technological sophistication of Japanese autoparts makers is considered to be a result of having to comply with rigorous automaker demands. Some fear that bolstering the use of common parts will lead to the loss of original technologies at small and midsize parts makers, which are often seen as the unsung heroes of the Japanese manufacturing industry.
Some automakers are also concerned that sharing too many parts with rivals will undermine their competitiveness and demoralize their R&D teams.Meanwhile, METI is also considering offering financial assistance to small and midsize producers of parts and materials that have been hit by the earthquake and tsunami.
To ensure the continued supply of chemicals and other essential materials, METI is looking to ask the Japan Fair Trade Commission to draw up guidelines that clearly indicate that subcontracting production and mutually supplying materials under special circumstances will be exempted from the Anti-Monopoly Law.
Source:The Nikkei June 10,2011
TOKYO (Nikkei)--Leading Japanese dairy product makers are dipping their toes into the Asian market but face an uphill battle against bigger European and U.S. rivals, as well as rapidly growing local producers.
An executive with Meiji Holdings Co. (2269) said the company is finally ready to make inroads in Asia. Japan's top dairy product firm announced in late April that it will make and sell chilled milk and yogurt in China. On May 19, it said it will boost capacity at its joint venture in Thailand.
Meiji plans to invest about 8 billion yen in the two projects. In China, a wholly owned subsidiary will take charge of the entire production process from procurement of ingredients to quality control. Meji estimates its capacity in China will reach about 24,000kl, equal to that of its main domestic plants. Meiji intends to double its production capacity for milk and chilled beverages in Thailand to 200,000kl a year in five years' time and expand its sales channels to neighboring countries.
To achieve its goal of tripling overseas sales to 150 billion yen annually over the next 10 years, expanding in Asia is a top priority for Meiji.
Cash cow or spilt milk
Megmilk Snow Brand Co. (2270), the third-largest dairy maker in Japan, aims to double its overseas sales to 10 billion yen within several years. It will boost production at a baby formula plant in Australia and expand sales in China and Thailand. It is also considering exporting cheese products to Asia or making them locally. No. 2 producer Morinaga Milk Industry Co. (2264) started to conduct market research and scout for new businesses in China.
The Japanese makers hope to expand their Asian operations to make up for shrinking business at home. The domestic market for their mainstay milk products has been contracting by three to five percent every year over the past decade. But some industry officials say the Japanese firms were slow off the mark in Asia.
They began making and selling baby formula and other products in the region in the 1980s and '90s. Their brands are respected in the baby formula market, and their products sold strongly after a Chinese dairy firm was found to have spiked its powdered milk with melamine -- a toxic industrial chemical -- three years ago. But the Japanese companies sell only products with long shelf lives, and they failed to lay the groundwork to profit from wide product lines.
Other food processors are more successful. Ajinomoto Co. (2802) sells its products in about 130 countries and regions. Kikkoman Corp. (2801) makes around 40% of its sales outside Japan. In contrast, overseas sales account for only 1-5% of the total for the three dairy makers. Their strategies and earnings look weaker than those of brewers, which have been buying up foreign rivals.
European food giants Nestle SA and Danone SA were the first to sell milk drinks and yogurt in Asia. In recent years, Asia's home-grown dairy firms have grown stronger as well. Hangzhou Wahaha Group Co. and others are expanding rapidly. Rumors are swirling that they may launch buyout bids for their Japanese competitors.
The Japanese dairy makers need to capitalize on their quality control advantage and high value-added products to compete with foreign rivals, which have the upper hand in terms of cost and sales channels. Meiji often sends people from Japan to its Chinese plant to inspect products, and to suppliers to monitor quality and ensure traceability of ingredients. It aims to promote its high product quality to attract wealthy and middle-class consumers in urban areas who are concerned about food safety.
Markets in Asia will test Japanese dairy makers ability to catch their foreign rivals.
Source:The Nikkei Business Daily June 7,2011
TOKYO (Nikkei)--A postquake demographic shift appears to be taking place in Japan, with people and companies moving west to the Kansai region.
More people moved into four Kansai prefectures -- Osaka, Kyoto, Hyogo and Nara -- than moved out during March and April, according to an Internal Affairs Ministry report. It is the first time in 27 years that inflow over two consecutive months has exceeded outflow in the region .
In April, 39,413 people moved to the four prefectures, 5,339 people more than those who left. More people tend to flow into the area than out in April, when students start university, but a figure of more than 5,000 is unusual. Hideyuki Araki, a senior researcher at Resona Research Institute Co., says, "Companies were reluctant to transfer workers to Tokyo, so they relocated more to Osaka."
The demographic shift report is based on moving-in and moving-out notifications to local municipalities. The data does not include temporary refugees who have not submitted notifications.
Source:The Nikkei June 10,2011
TOKYO (Nikkei)--With a government panel starting discussions on a consumption tax hike, the Ministry of Finance is facing a looming battle with localities over how to share the resulting revenue increase.The government's Tax Commission launched discussions Tuesday on integrated reform of social security and taxes, with the focus on gradually raising the consumption tax to 10% by fiscal 2015.
Internal Affairs Minister Yoshihiro Katayama gave voice to localities' frustration over being shut out from discussions over dividing the revenue. "The views of local governments have not been heard at all," Katayama said at the meeting. Under existing law, localities are entitled to 43.6% of consumption tax revenue, either through the local portion of the sales tax or through tax revenue grants. Local governments have argued for a larger slice of the pie if the consumption tax is raised, especially because it offers a stable source of revenue.
But the reform draft does not delve into how the consumption tax revenue would be distributed. Instead, it suggests the possibility of earmarking it all for social security programs, much to the ire of localities, which chafe at being told how to use the revenue.Hiking the consumption tax to 10% by fiscal 2015 is expected to boost revenue by around 13.5 trillion yen, with regional governments set to receive around 6 trillion yen under the existing formula. Facing eroding finances, the MOF wants to lower distributions to local governments and secure a larger portion for use by the central government.
Some have proposed increasing consumption tax allocations to localities in exchange for turning some regional taxes, such as levies on automobile acquisitions, into central government taxes. The MOF had initially planned to discuss revenue distribution as part of fiscal 2012 tax reform talks set to begin during or after this autumn. But with Katayama expressing objections, the ministry may be forced to do so sooner.
Source:The Nikkei June 8,2011
The Japan Bank for International Cooperation will work with financial institutions in other Asian countries to help small and midsize Japanese companies outside major metropolitan areas expand in the institutions' home markets. The JBIC aims to help such Japanese firms obtain loans and advice on tax rules and regulations from financial institutions in those markets.
The government-affiliated bank on May 30 began by signing a memorandum of understanding with Kasikorn Bank, Thailand's third-biggest lender by assets. The JBIC will send employees from Japanese regional banks to Kasikorn Bank, which will expand its team that caters to Japanese companies. Unlike large Japanese banks, which already operate elsewhere in Asia, regional lenders are often not well-equipped to support their clients' efforts to expand abroad.
Source : Nikkei 6 June 2011
Cut-rate retailers also took bite out of market with pairs for 1,000 yen Sales of jeans are stagnating because of a consumer switch to more loose-fitting pants. "I used to wear jeans in my junior high school and high-school days, but I haven't worn them recently because they aren't easy to move around in," said a 20-year-old student looking for cargo pants in a Tokyo store. April same-store sales at specialty jean chain stores were poor. Jeans Mate Corp.'s sales fell 17.8% on the year - part of a trend that has seen the chain's monthly sales fall year on year since October 2009. Right On Co.'s April sales fell 11.6%. Jean makers are struggling, with one, Bobson Co., applying for creditor protection under the Civil Rehabilitation Law on May 2. Where's the value?
Domestic jean production has been on a slide for years. A Japan Jeans Association survey shows a fall in output from 70.37 million pairs in 2004 to 50.62 million in 2009. An association official shrugged off the fact that the figures do not include original brands. "Adding them in," the official said, "wouldn't make any difference." The official added that annual sales are at about the same level as production.
Jeans have been popular since the 1960s. They have gone through booms sparked by new materials and other factors. Even vintage jeans have had their hot spells, with certain pairs sometimes selling for tens of thousands of yen. So what has caused the recent slump? The lingering impact of a 2009 surge in sales of 1,000 yen ($12) jeans could be a factor.
Gov Retailing Co., a Fast Retailing Co. subsidiary that owns the g.u. clothing chain, was the first to launch a range of dirt-cheap jeans. Price: 990 yen. Other retailers followed with cut-rate jeans of their own. Analysts believe this has led to consumer uncertainty over what makes for good value in a pair of denims. "Since the launch of 1,000 yen jeans, sales of once-popular 7,000 yen to 8,000 yen jeans as well as those of 2,000 yen jeans have stagnated," a manager of a specialty jeans store said. Arihiro Kaneda, president of Mode International Co., a clothing industry consultancy, wonders if the trend is still gaining strength. "Uncertainty over traditional price-setting could be growing," he said. Kaneda added that 1,000 yen jeans temporarily helped to boost domestic sales, but much of the demand was for sit-at-home attire and did not translate into a large market share. Fierce competition
Fashion is also changing. "Fewer women are wearing jeans," a Bobson director said. More comfortable clothing has been in demand, and a recent upsurge in legging sales has shifted the trend further away from jeans. Men also have more kinds of trousers to choose from. "I usually wear more comfy pants," a 40-something Tokyo man said. "I have few opportunities to wear jeans." Another major blow to jeans is that people are allowed to wear chinos in the office as part of the annual Cool Biz summertime energy-saving campaign.
Still, jeans could retain their crown as the king of casual dressing through sales promotions targeting youths and baby boomers. Makers are also introducing new types of the pants, like shape controlling jeans. But the competition is fierce. It will not be easy for the blue jeans industry to shake off its recent slump.
Source: The Nikkei 6 June 2011
"Biz polos," or polo shirts designed to be worn in the office, are big sellers. With their attractive collars and other design features, they look somewhat formal, but they are made of stretchable, breathable material. Over the past year or two, they have become increasingly popular with men. Biz polo shirts are poised to become a ubiquitous sight in offices this summer, as a growing number of companies are allowing their employees to wear them as part of efforts to reduce the use of electricity for air conditioning.
Sales of French apparel brand Lacoste's biz polos, priced at 13,650 yen to 16,800 yen ($168-207), rose 40% on the year during the latter half of the Golden Week holidays this spring. "When we set up special sales spaces at our outlets this year in anticipation of demand growth, biz polos quickly grew in popularity," said a spokesperson at Fabricant Co., a Tokyo-based firm that produces and sells Lacoste brand clothing in Japan. Maker's Shirt Kamakura, a specialized shirt retailer based in Kanagawa Prefecture, expects its sales of biz polo shirts, priced at 6,195 yen, to double from last year. The company has used thinner thread for the shirts than last year for a smoother feeling that is similar to regular business shirts.
Aoki Inc., a major specialty menswear retailer, plans to start selling its Biz Knit Shirt polos for 4,990 yen soon. The company will also introduce items that use a combination of cotton and synthetic fibers, for fabric that dries quickly. The Yokohama-based company is poised to compete against other leading producers of biz polos by offering attractive, functional shirts.
As the Cool Biz initiative drives up demand for polo shirts, Sanyo Shokai Ltd. is stepping up production of its own biz polos, which are available under three brands, including its allegri line. It aims to roll out 15,000 of these shirts, or 10 times more than it did last year, by increasing overseas production through contractors. Meanwhile, Renown Inc. has also ramped up production of its D'urban line of biz polo shirts by 30%, in response to rapidly growing demand.
Source: The Nikkei 6 June 2011
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th