Surge in Japanese inward investment underlines benefit of a weak yen

Tokyo

FOREIGN direct investment (FDI) in Japan has surged and while this is due partly to the government's promotional efforts, falling business costs on the back of a weaker yen have also been an important factor, according to a newly released survey by the Japan External Trade Organization (Jetro).

The FDI situation parallels that in Japan's inward tourism where nearly 20 million people visited the country last year, a near 50 per cent rise over 2014, spending 3.4 trillion yen (S$42 billion) and making the inward tourism industry equal in value now to Japan's exports of motor-vehicle parts.