Event name: 4 th Keep Fighting! Manufacturing Japan, Urgent Symposium in Kanai Kansai
Economy's current situation and Search for a way out
Date: Oct. 13, 2011
Venue: Sankei Hall BrizeCo-organizers: Keep Fighting! Manufacturing Japan Committee
METI Kansai, SMRJ Kinki, Sankei Shimbun, Fuji Sankei Business Eye
Number of participants: about 700 people.
1. Opening Presentation: Mr. Msahiko Nagao, Director General, METI Kansai
2. Key Note Speech: Mr. Toshizo Ido, Governor, Hyogo Prefecture
3. Panel Discussion
1. Opening Speech: 'Manufacturing of Japan and raising a question' We afraid that rapid progress of strong yen may cause lower deflection in the future. Japan is in unfavorable position in competitiveness in location of manufacturing site. By the Great Eastern Japan Earthquake, large number of parts manufacturers suffered from severe damage. The earthquake revealed weakness of supply chain. For example, each auto manufacturers use to have their own Tier 1 and Tier 2 subcontractors (i.e. pyramid style), however, now they share same Tier 2 suppliers (i.e. Diamond style). Since more than one supplier shared their Tier 2 subcontractors, many manufacturers were affected by Tier 2 companies. The corrupted supply chains of raw materials and middle parts influenced Auto, Electronics, and Industry Machinery industry. Problem of supply chain made many entrepreneurs anxiety about fear of hollowing out of industry. As a result, to avoid risk some manufacturers started to seek manufacturing site in overseas. Some manufacturer went bankrupt because of less order. Some company has concern about stable electricity supply. Japanese Government received requests to strengthen government measures such as reduce corporate tax and import tariff by concluding FTA/EPA or TPP, etc. Some region requested to government's financial support for relocation of manufacturing site, private electric generation, investment to overseas, etc. To respond to requests from Japanese manufacturers, government is going revise automotive tax dramatically.
METI Kansai is going to implement 'Kansai Mega Region activation scheme' by supporting SME's overseas business, environment and new energy project, strengthen medical and life industry, creation of forming plat form for growth.
2. Key Note Speech: 'Restoration of Industry and Japan, Roll of Kansai'
Estimated amount of damage of the Eastern Japan Earthquake is 16.9 trillion yen, and it is bigger than the Hanshin-Awaji (9.6 trillion yen). The recent earthquake revealed weakness of Japanese society such as corruption of supply chains, power shortage, extreme centralization of government and economy, etc.
For firm recovery, Japan has to construct flexible and strong industry structure including followings: 1.Pluralistic supply chains, development of domestic industry site (mother factory, R&D facility, etc.), and grasp of social demand and growing industry. 2.Development of future technology industry with state of the art technology, high quality, and high confidence level products and service.
3.Creation of framework to link other countries growth with Japanese industry by liberalization of trade and investment, promotion of economic cycle (employment, production, increasing income and consumption).
4.Training of highly skilled worker, promote accept of highly skilled foreign worker, and enrichment of living environment to attract foreign workers.
1.To construct Kansai's function as a back up capital of Japan by utilization of ocean port, three (Kansai, Osaka, Kobe) airport, and rail road
2.Creation of Kansai's original innovation base in pharmaceutical, medical device, regenerative medicine, battery, and smart community.
3.Promotion of world level SMEs
4.Promotion of culture and tourism industry
5.Strengthen training of global personnel
1.Expansion of regional alliance
2.Continuous promotion of new business and new products from Kansai
3.Promotion of innovation in industry level and expansion of social experiments
4.Promotion of 'Kansai Industry Vision'
Kansai Industry Vision Gov. Ido commented that centralized government is only good for developing countries. Japan should shift to decentralization of power like other developed countries, and Kansai Industry Vision will help Japanese economy by Kansai economy.
The vision has 4 pillar of strategy: Strengthen innovative environment and function by world leading technology. Strengthen SMEs' international competitiveness by switching to highly value-added products. Establishment of Kansai Brand for activation of Kansai economy Securing high skill workers to support corporate competitiveness.
Reported by Yasuko Seta, Thai Trade Center, Osaka
Source : http://www.depthai.go.th