TOKYO (Dow Jones)--Japan's exports of cars, trucks and buses increased 24.4% on year in July as vehicle shipments to North America, the Middle East and other Asian markets grew, the Japan Automobile Manufacturers Association said Tuesday.
This is the seventh straight month of increase, JAMA said. Exports totaled 422,641 vehicles in July, up from 339,648 vehicles in the same month a year earlier.
Source : The Nikkei August 31, 2010
TOKYO (Dow Jones)--Japanese retail sales rose 3.9% in July from a year earlier, the government said Tuesday, due partly to strong sales of clothing, drinks and cooling equipment amid warmer weather. The data, which aren't adjusted for inflation, gained for the seventh straight month, the Ministry of Economy, Trade and Industry said. In June, retail sales gained 3.3%.
Meanwhile, sales at large-scale retailers fell 1.2% from a year earlier in July, after adjustment for a change in the number of stores.
Source: The Nikkei August 31, 2010
TOKYO (Nikkei)--Japan's April-June gross domestic product is likely to be raised to an annualized 1.5% expansion on a price-adjusted basis because of stronger-than-expected capital spending and inventory investments, according to the average estimate of private-sector economists surveyed by The Nikkei.
The revised figure is due out Sept. 10 from the Cabinet Office, which said in its preliminary report that real GDP grew an annualized 0.4% from the previous quarter. The economists estimate that capital spending for the period actually grew 1.6% on the quarter, up from the preliminary figure of 0.5%.
According to the Finance Ministry data released Friday, capital investment in the April-June term declined 1.7% on the year after plunging 11.5% in the January-March quarter. Seasonally adjusted, the most recent figure represents a 6.4% rise from the previous three months, the first gain in nine quarters. The Cabinet Office uses the data in revising its preliminary GDP figures.
The 10 economists' projections for the revised April-June GDP growth range from 1% to 2.6%. And the July-September period may see faster economic growth, with the average forecast by the economists coming to an annualized 2.1% rise in real GDP from the previous quarter. Consumers are rushing to buy environmentally friendly automobiles before government incentives expire at the end of this month, and the unusually hot summer is boosting private consumption.
But economic growth could be bumpy after that. It may slow in the October-December period as eco-car incentives end, but may pick up again in the first quarter of 2011 as consumers rush to buy energy-saving home appliances before the eco-point program expires.
Moreover, the strong yen and concerns over economic slowdowns in the U.S. and China are adding uncertainties to Japanese economic outlook. "Should the strong yen severely hurt exports, the risk of a double dip back into recession will increase," says Itochu Corp.'s Yasunori Miwa.
Source:The Nikkei Sept. 4
TOKYO (Kyodo)--Japan's corporate capital spending fell 1.7 percent in the April-June quarter from a year earlier for all industries, partly because of cautiousness among automakers and others about future demand in and outside the country, the Finance Ministry said Friday. Overall capital expenditure, excluding the financial and insurance sectors, came to 8,364.8 billion yen, dropping for the 13th straight quarter. But the decline was slower than the 11.5 percent drop in the previous period.
Manufacturers' spending on plant and equipment dropped 10.5 percent, falling for the eighth quarter in a row, while spending among nonmanufacturers climbed 3.4 percent for the second straight quarterly increase, according to the ministry survey.
Combined sales for all industries, meanwhile, expanded 20.3 percent to 357.91 trillion yen, up for the second straight quarter, as sales at firms making such items as automobiles increased. Pretax profits grew 83.4 percent, up for the third straight quarter and totaling 13,274.5 billion yen. The ministry polled 31,666 companies capitalized at 10 million yen or more, of which 73.8 percent responded.
The quarterly survey is an important source of data for calculating revised gross domestic figures for the April-June period, which are next due out Sept. 10.
Preliminary GDP for the April-June quarter, released last month, increased an annualized real 0.4 percent for the third straight quarter of expansion, but the pace of economic recovery slowed. In the report, corporate capital spending grew 0.5 percent, up for the third straight quarter.
Source: Source:The Nikkei Sept. 3
TOKYO (NQN)--Japan's economic diffusion index fell for the first time in eight months in August, down 0.3 point from July to 33.2, Teikoku Databank Ltd. said Friday. The fall in confidence was apparently brought on by the yen's strength and the economic slowdown in Europe and the U.S.
"The Japanese economy is losing speed and there are some changes in the economy's recovery trend. It is highly likely that the economy will pause, and a further downswing is also a concern," the research firm said in a report.
The index for manufacturers sank 0.8 point to 35.9. The subindex saw its steepest decline since the onset of the global financial crisis, as the effects of government stimulus wore off and domestic demand remained in the doldrums. The index for retailers also sank, as household income took a hit from harsh employment conditions. By region, the readings were particularly gloomy in such urban areas as the Kinki, and southern and northern Kanto including Tokyo.
The DI is expected to drop 0.2 point from August to 33.0 in November, and drop 0.5 point versus August to 32.7 in February 2011. Teikoku Databank polled 22,732 companies nationwide in late August and received valid responses from 50.9%. The DI ranges from 0 to 100, with 50 marking the boom-or-bust line.
Source:The Nikkei September 3, 2010
TOKYO (Nikkei)--Concern about the "hollowing out" of Japanese industry, including some companies considering moving their headquarters outside the country, is intensifying amid the yen's steep appreciation, which may add fuel to so-called "Japan passing" by Japanese firms.
Nissan Motor's popular March is made in Thailand and exported to Japan. Mitsubishi Chemical Corp. will stop producing terephthalic acid -- a material for synthetic fiber widely used to make clothing -- in Japan by the end of this year while expanding its output capacity in China and India.
In Ningbo in the eastern Chinese province of Zhejiang, for example, Mitsubishi Chemical produces 600,000 tons of terephthalic acid a year, enough to make 3.3 billion dress shirts.
The acid is processed into yarn at neighboring factories, into woven fabric at mills and into clothing at sewing plants. The entire process is completed within a radius of several hundred kilometers and the final products are exported all over the world.
Ningbo has a long history with Japan, which began when Japanese envoys to China arrived at the port city during the Tang dynasty; the city is now a production center for textile and apparel makers.
Manufacturers make products in places where demand exists. Accordingly, it is natural for them to transfer operations from a shrinking Japan to other Asian nations where demand is increasing.
Mitsubishi Chemical's decision to end domestic production of the acid is an example of this. But the Tokyo-based company has gone beyond it by setting up a firm in Singapore in June last year to oversee its terephthalic acid business, and moving headquarters operations there.
A team of five resident representatives from Japan, India, South Korea and elsewhere manages the firm's terephthalic acid business, whose annual sales come to around 400 billion yen (4.8 billion dollars), in Singapore.
A senior Ningbo plant official said he makes more business trips to Singapore than Tokyo. Mitsubishi Chemical may start paying corporate taxes on its terephthalic acid business to the Singapore government rather than Japan in the future.
The yen's current appreciation differs from those in the past because other Asian economies have drastically improved their capacity as production and business bases. In other words, Japanese companies can readily move from Japan to these nearby economies if they decide to.
Ningbo and its environs have become an apparel-making base that overwhelms Japan, while Singapore is better suited to be a corporate headquarters than Tokyo because it is closer to key Asian economies and offers convenient air routes.
Japan's manufacturing foundations are being shaken. The country ranked third in machine-tool production, in value terms, after China and Germany in 2009, giving up the top position it had held for 27 straight years.
Though Japanese machine-tool makers have supported the world's manufacturing industry, they have lost price-competitiveness to their foreign rivals due to the yen's appreciation. Nippon Steel Corp. (5401), the world's largest or second-largest crude steel producer for some 40 years since its founding in 1970, dropped to sixth place in 2009 due to Chinese steelmakers' advances. China, furthermore, has come to overwhelm other countries as far as automobile production is concerned.
And now, the yen's strength is aggravating Japan's plight.When a country's presence increases, its currency rises in value. But the opposite is true with regards to the yen's recent rise. If the yen remains at its current level, the Japanese economy will be exposed to unprecedented risks.
Source:The Nikkei Aug. 31
TOKYO (Nikkei)--Facing growing competition from such Asian rivals as Shanghai and Singapore, Tokyo is losing its ability to attract foreign direct investment.
Can the Japanese capital create a comfortable living environment for domestic and overseas firms alike, providing them with ample business opportunities and an optimum location for their regional headquarters? Such private businesses as property developers and construction companies are expected to play a key role in transforming the metropolis.
Abhishek Goel, the Indian-born president of translation service company Cactus Communications KK, moved his firm's head office to Tokyo's Marunouchi business district in July. The head office is located in a special area Mitsubishi Estate Co. (8802) set aside for Indian companies.
On the floor of his executive office -- where Japanese, English and Hindi were heard being spoken -- Goel said the Marunouchi district is the center of the Japanese economy, where one has the best access to useful information and business opportunities.
Cactus Communications has provided translation services for universities and research institutes in Japan for eight years, translating highly specialized content into both English and Japanese. It moved to the Marunouchi district from another central Tokyo location to expand its client base to include Japanese companies.
"Unless you can attract foreign companies' investment to this country, the Japanese economy will become stagnant over the medium and long terms," Mitsubishi Estate President Keiji Kimura said, citing high office vacancies in central Tokyo.
Tokyo used to be the primary candidate site where overseas firms expanding into Asia considered locating their regional headquarters. But companies are always looking for a better business environment, showing a willingness to relocate their offices, factories and human resources from one country to another on short notice.
Against this backdrop, the South Korean government, for example, is offering such incentives as a corporate tax break and an income tax break for skilled technicians to attract foreign companies.
Regional cities, such as Sendai in northeastern Japan, are also seeking ways to attract foreign investment and human resources. An office complex developed by Mori Trust Co. and launched in Sendai earlier this month will host a working-level APEC (Asia-Pacific Economic Cooperation) meeting next month.
Many business and civic leaders in Sendai express hope that the city will host many more international conferences.
"Japanese cities have strong infrastructure, enabling residents to live comfortably and safely," Orix Corp. (8591) President Yukio Yanase told a group of Taiwanese reporters visiting Japan in late July. "As such, they are attractive investment destinations."
Orix introduces condominiums for sale in the Tokyo metropolitan region to individual investors elsewhere in Asia in partnership with Sinyi Realty Inc., a major Taiwanese real estate broker. Real estate investment funds were the primary player in Japan's real estate market before the financial crisis in fall 2008, but the market has stagnated since then.
Orix wants to stimulate the market by inducing wealthy non-Japanese Asian individuals to purchase condos in Tokyo and the prefectures surrounding it before Japan's population begins to fall in earnest. Late last year, Mori Building Co. launched an outlet mall in its "VenusFort" commercial complex in Tokyo's Odaiba waterfront district after renovating some of the facilities. Customer traffic has increased 50% on the year since the mall's opening, boosting sales 70%.
Roughly 20% of the visitors are foreign, mostly tourists from other parts of Asia, and the shopping district has become a popular spot for such tourists to buy souvenirs. They come in droves, seeking various Japanese products.
Tokyo ranks first among the world's 21 major cities in public transportation and infrastructure, according to a comparative study completed this past spring by U.S. firm PricewaterhouseCoopers. But it was at the bottom of the pile in the business and living expenses category.
Japanese government and industry must address the off-putting aspect of doing business in Tokyo if they want to attract more foreign investment and revive it as Asia's leading business hub amid intensifying competition among the world's leading cities.
Source:The Nikkei Aug. 31
TOKYO (Nikkei)--The Japanese government will work with roughly 100 firms to win orders for equipment and facilities tied to China's plans for building green cities. In stepping up efforts to address global warming and population growth, regional Chinese governments have begun planning suburban eco-cities that would support 200,000 to 300,000 residents.
Japanese general contractors, real estate developers, financial institutions, trading houses and utilities will form a consortium within the year, sending a team to Shanghai in January to promote their expertise in environmental technologies. Mitsui Fudosan Co. (8801) and Hitachi Ltd. (6501), which both have experience in similar projects, are expected to participate.
The cross-industry group will propose model cities that incorporate smart grids, energy-efficient transportation systems and green multi-unit housing. The Japanese government is considering such support as special financing through the Ministry of Land, Infrastructure and Transport for orders won by the consortium. It also plans to provide assistance in handling potential land disputes.
With Singapore's Government Investment Corp. already taking part in an eco-city project in Tianjin, the public-private initiative aims to ensure that Japan's green infrastructure exports keep pace.
Source: The Nikkei Sept. 6,2010
TOKYO (Kyodo)--Japan's general account tax revenues in July rose 25 percent from a year earlier to 4,295.21 billion yen because state refunds to struggling companies decelerated amid improving corporate performance, the Finance Ministry said Wednesday.
Corporate tax refunds topped revenue by more than 40 billion yen in July. The figure is far lower than the excess of 782.11 billion yen a year ago.Personal income tax receipts increased by 4.5 percent to 2,623.24 billion yen and inheritance tax revenue grew 22.6 percent to 109.92 billion yen.
Consumption tax revenue also rose 1.6 percent to 931.43 billion yen. Meanwhile, liquor tax revenue declined 7.4 percent to 105.61 billion yen and tobacco tax revenue fell 5.2 percent to 70.39 billion yen.
Source: The Nikkei September 1,2010
TOKYO (Nikkei)--Major Japanese video game developers, including Namco Bandai Games Inc., will soon unveil 3-D versions of their popular offerings for use at video arcades and other amusement facilities, sources familiar with the matter said Friday. The 3-D game machines are expected to boost customer traffic to the commercial facilities at a time when it is falling amid a weak economy.
Namco Bandai Games will as early as next spring roll out a 3-D shooting game machine that requires players to wear special glasses to experience stereoscopic effects.
It plans later to unveil a 3-D car racing game machine for use in video arcades and at such other venues as theme parks. It will market its 3-D products in North America, Japan and the rest of Asia. Similarly, Konami Digital Entertainment Co. will later this month release a 3-D version of its carracing game machine. Players are required to wear a pair of special glasses to experience the 3-D effect.
Source: The Nikkei Sept. 3
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th