Kreston Proworks, featured in Bloomberg Tax article on foreign investment in Japan
January 25, 2023
Japanese foreign investment almost doubled in 2021 and looks to increase in 2023. Liza Robbins, Kreston Global Chief Executive, and Marek Lehocky, CEO of Kreston ProWorks in Japan were recently invited to comment on this increase in foreign investors entering the Japanese market. Read the full Bloomberg article here or the summary below.
Inward investment in Japan doubles in 2021
The influx of foreign companies increased a decade ago with then-prime minister Shinzo Abe’s push for inbound investment; however, it decreased during the pandemic. Recently, global tensions between the US and China, and China and Taiwan and the weakening yen and a stagnant wages marker saw investment in Japan double in one year. Inward investment figures topped $20 billion in 2021, creating a new market for accounting firms. There is room for more growth in the Japanese tax, accounting, and audit market, which is mostly dominated by the Big Four.
Japanese investment increase in 2023
Foreign direct investment is increasing and has been predicted to increase in 2023 by Martin Schulz, chief policy economist of Fujitsu’s Strategy Planning Division. Japanese government data suggest high growth in 2021 for foreign direct investment fields such as communications, chemicals and pharmaceuticals, electrical machinery, and the finance and insurance sectors. Foreign direct investment is also increasing due to the 21 bilateral free-trade agreements Japan has signed in the last few years. Growth prospects for the Japanese tax, accounting, and audit market remain positive, as there is room for growth among small and medium-sized enterprises with overseas businesses.
Marek’s firm Kreston ProWorks joined Kreston Global in 2022, as he is able to offer complementary services to the other two Kreston Global firms that offer auditing services. Liza Robbins, Kreston Global Chief Executive, sees this new partnership with Kreston ProWorks as an investment gateway for Kreston Global clients.
If you are interested in investing in Japan, get in touch.