According to the NIKKEI Asian Review shows a recent survey suggests India as the most promising overseas location for Japanese manufacturers to make their stuff.The same survey shows Japanese producers in China are content with what they already have there.
The annual survey on overseas business operations of Japanese manufacturers was conducted by the Japan Bank for International Cooperation from July through September.Interviews were done in person or by phone.
Among 1,016 target companies with three or more overseas affiliates, 607 responded.
India was named as the most promising medium-term destination for the second year in a row.The country has been enhancing its manufacturing base under the "Make in India" initiative.
Of those who gave reasons for the country's attractiveness,88.9% cited the Indian market's growth potential, and 31% noted the market's already huge size.
India has a population of 1.3 billion.On the other hand, respondents were concerned with the country's inadequate infrastructure (49.4%)
and a legal system that can lack transparency (38.9%).
and a legal system that can lack transparency (38.9%).
Indonesia and China finished in a tie behind India. More than 80% of the respondents cited
Indonesia's future growth potential, while nearly 70% showed appreciation for the current size of China's market.
Indonesia's future growth potential, while nearly 70% showed appreciation for the current size of China's market.
For all five regions in China, the percentage of respondents who intend to enhance or expand operations declined, while the share of those who will retain the current level of operations increased.
Japanese businesses have become hesitant to expand in China, which is suffering through an economic slowdown,higher labor costs and a tight labor market.
Meanwhile, Mexico is becoming more of a target destination.
According to the survey, Japan's auto industry sees the nation as the most promising country to invest in.
According to the survey, Japan's auto industry sees the nation as the most promising country to invest in.
Toyota Motor in April said it would spend $1 billion to build a factory in Mexico.Other automakers are also expanding their investments in the nation.
Autoparts makers, too, are launching operations in the U.S. neighbor, making Mexico a production and export hub.
Autoparts makers, too, are launching operations in the U.S. neighbor, making Mexico a production and export hub.
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