ID :
155918
Wed, 01/05/2011 - 07:58
Auther :
Shortlink :
https://www.oananews.org//node/155918
The shortlink copeid
India overtakes China as most attractive market for Japanese firms+
TOKYO, Jan. 4 Kyodo -
India has overtaken China as the most attractive overseas investment
destination for Japanese manufacturers over the next decade amid increased
labor costs in China, a survey by the Japan Bank for International Cooperation
showed Tuesday.
China, however, remained the most popular investment destination over the next
three years in the survey conducted last summer, having retained top spot since
fiscal 1992 when the state-backed financial institution began conducting the
survey.
The result suggests an increasing number of Japanese companies are aiming to
diversify foreign investment amid caution about rising labor costs and
anti-Japanese demonstrations in China. An additional survey conducted in
November in the wake of bilateral tension over the Senkaku Islands in the East
China Sea provided further evidence of the trend.
China no longer dominates Japanese foreign investment and Japanese companies
''are increasingly turning their attention to such (emerging) markets as India
and Vietnam,'' said Toshiharu Mimura, a senior economist at JBIC.
In the survey conducted in the summer of 2010, in which multiple responses were
allowed, 74.9 percent of the 605 Japanese manufacturers selected India as their
investment destination over the next 10 years, compared with 71.7 percent that
chose China. In the previous year, China was first and India second.
As a destination over a shorter period, China came top at 77.3 percent,
followed by India at 60.5 percent, Vietnam at 32.2 percent, Thailand at 26.2
percent, and Brazil at 24.6 percent.
The companies that chose China and India said they viewed the two markets as
having high growth potential.
Many companies, however, expressed concern over rising personnel costs in China
amid the country's rapid economic growth, as well as labor issues, apparently
reflecting a recent rise in disputes between Japanese firms and Chinese workers
seeking wage hikes.
In the follow-up study to gauge the investment stance of Japanese companies
after maritime collisions between a Chinese trawler and Japanese patrol boats
near the disputed Senkaku Islands in September, 24.8 percent responded that
China was not as attractive as before, while 46.9 said it was important to
reduce their dependence on China and diversify investment risks.
==Kyodo
India has overtaken China as the most attractive overseas investment
destination for Japanese manufacturers over the next decade amid increased
labor costs in China, a survey by the Japan Bank for International Cooperation
showed Tuesday.
China, however, remained the most popular investment destination over the next
three years in the survey conducted last summer, having retained top spot since
fiscal 1992 when the state-backed financial institution began conducting the
survey.
The result suggests an increasing number of Japanese companies are aiming to
diversify foreign investment amid caution about rising labor costs and
anti-Japanese demonstrations in China. An additional survey conducted in
November in the wake of bilateral tension over the Senkaku Islands in the East
China Sea provided further evidence of the trend.
China no longer dominates Japanese foreign investment and Japanese companies
''are increasingly turning their attention to such (emerging) markets as India
and Vietnam,'' said Toshiharu Mimura, a senior economist at JBIC.
In the survey conducted in the summer of 2010, in which multiple responses were
allowed, 74.9 percent of the 605 Japanese manufacturers selected India as their
investment destination over the next 10 years, compared with 71.7 percent that
chose China. In the previous year, China was first and India second.
As a destination over a shorter period, China came top at 77.3 percent,
followed by India at 60.5 percent, Vietnam at 32.2 percent, Thailand at 26.2
percent, and Brazil at 24.6 percent.
The companies that chose China and India said they viewed the two markets as
having high growth potential.
Many companies, however, expressed concern over rising personnel costs in China
amid the country's rapid economic growth, as well as labor issues, apparently
reflecting a recent rise in disputes between Japanese firms and Chinese workers
seeking wage hikes.
In the follow-up study to gauge the investment stance of Japanese companies
after maritime collisions between a Chinese trawler and Japanese patrol boats
near the disputed Senkaku Islands in September, 24.8 percent responded that
China was not as attractive as before, while 46.9 said it was important to
reduce their dependence on China and diversify investment risks.
==Kyodo
