2019 JETRO Survey On Business Conditions of Japanese Companies in Asia and Oceania

2019 JETRO Survey on Business Conditions of
Japanese Companies in Asia and Oceania
November 21, 2019

Asia and Oceania Division and
China and North Asia Division,
Overseas Research Department,
Japan External Trade Organization (JETRO)
Copyright © 2020 JETRO. All rights reserved. 1

Key Points (1)
Results of JETRO’s 2019 Survey on Business Conditions of Japanese Companies in Asia and Oceania
Business confidence of Japanese-affiliated companies significantly worsened
1. Business confidence slowed down in almost all the countries/regions. Intention to expand business also decreased. (pp.16–19, 21–22)
 The business confidence of Japanese-affiliated companies slowed down in almost all countries/regions. Intention to expand business also decreased. As a
reason for this, many companies answered with “Sales decrease in local markets.” Business confidence turned negative in all countries/regions in Northeast
Asia (China, South Korea, Taiwan, and Hong Kong/Macau) for the first time in 10 years. On the other hand, many companies (excluding companies in South
Korea and Hong Kong/Macau, etc.) expect that their business confidence will improve in 2020.
 Hong Kong: The confusion of protests continued. The business confidence of Japanese-affiliated companies worsened.
After the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill was submitted by the government to the
Legislative Council of Hong Kong in March 2019, while protest movements and demonstrations continued in Hong Kong, where the DI for 2019 was the
second lowest, at -8.4 percentage points (pp) to the lowest in 2009 (-26.9 pp). As the reason for the decreased operating profit forecast, “Sales decrease in
local markets” was cited. As a management matter, the proportion of “Sluggishness in major sales markets (consumption downturn)” rapidly increased.
These results suggest that a consumption slowdown resulted from the deceleration of the Chinese economy and the local confusion resulting from the
protests and demonstrations, etc.
 South Korea: Business confidence declined most significantly in this decade.
In South Korea, the DI for 2019 was the lowest in these 10 years at -15.7 pp, which was lower than -12.5 pp in 2009 when the economy slowed down on a
global basis. As the reason for the decreased operating profit forecast, “Sales decrease in local markets” was cited. As management matters, “Sluggishness
in major sales markets (consumption downturn),” etc., was cited. The deceleration of the economy of China (which is the largest export destination), the
worsened market conditions for semiconductors (which is the biggest export item), and chilly Japan-South Korea relations such as a consumer boycott
affected the situation in a complex manner.
2. The impact of changes in the trade environment, including the US-China trade frictions, are greater in Northeast Asia. (pp.73–78)
 The impact of changes in the trade environment, including US-China trade frictions, was greater in China and other Northeast Asian countries/regions. Only
10% of the companies took specific measures. In general, the proportion of procurement from and exports to China and/or the US is smaller among
Japanese-affiliated companies in Asia and Oceania. Of the companies that answered as having been impacted, only 10% of the companies actually
implemented “Transfer of production site,” “Change of procurement source,” or “Change in sales destination” (including plans). Many companies answered
“No” for such transfer or change.
 The proportion of negative impact was higher in China and other Northeast Asia countries/regions, at 30% or more, while the proportion was 20% or less
among companies in ASEAN, etc. Major factors of negative impact included: (1) sluggish sales to foreign-affiliated companies in China and local companies
exporting to the US, (2) decreased sales to companies exporting to China, and (3) the spreading impact of the decelerating Chinese economy.
3. The FTA/EPA use rate exceeded 50% for the first time. (pp.63–64)
 The FTA/EPA use rate of Japanese-affiliated companies in Asia was 52.4%, up 4.1 pp from the previous year, exceeding 50% for the first time. By company
size, the use rate was higher among large enterprises (55.8%) than among SMEs (47.2%), but 11.0% of the SMEs (large enterprises: 8.1%) were
“Considering using,” suggesting that understanding regarding FTAs/EPAs is deepening. Continuous support is required to further increase the FTA/EPA use
rate with a focus on SMEs.
Key Points (2)
Wage hike continued to be the biggest management matter. (pp. 37–38, 117)
 As in the 2018 survey, most companies cited “Wage hike” as a management matter. By country, “Wage hike” was pointed out most commonly in
Indonesia (84.0%), followed by Cambodia (75.7%) and China (73.7%). By industry, “Wage hike” was more serious in the manufacturing sector
(74.6%) than in the non-manufacturing sector (59.1%).
 Comparing the manufacturing sector and the non-manufacturing sector, however, it should be noted that the non-manufacturing sector pays higher
salaries than the manufacturing sector. Comparing “Manufacturers/Worker” with “Non-manufacturers/Staff” in each country, using the (monthly) base
salary in the 2019 survey as the standard, salaries are higher in the non-manufacturing sector in all countries/regions. In many countries where the
base salary of the manufacturing sector is less than 1,000 dollars, in particular, salaries in the non-manufacturing sector were higher by approx. two
to four times than in the manufacturing sector.
The Philippines took the top position in the appropriateness of the minimum wage from the perspective of productivity. (p.80)
 “Productivity” was added in the 2019 survey. The proportion of companies that answered that the minimum wage in the country/region was
appropriate from the perspective of productivity was the highest in the Philippines (74.2%), followed by Laos (66.7%) and Myanmar (60.9%). The
proportion was the lowest in Indonesia (23.7%), followed by Cambodia (24.2%) and Australia (27.3%).
More than 70% companies recognized the necessity of trade facilitation measures. (pp.71–72)
 “Necessity of trade facilitation measures required in order to improve trade” was added in the 2019 survey. 75.9% of the companies selected “Yes”
to the question. The proportion of such companies exceeded 80% in nine countries, including Pakistan (96.0%) and Indonesia (88.5%).
 By type of measures, “Enhancing information on trade systems and procedures” (42.1%), “Making port authorities and customs officers share a
common interpretation about the assessment of tariff classification” (33.0%), and “Applying an advance ruling system and making it accessible”
(32.8%) were selected by many companies.
More than 200 companies work with local startups. (pp.92–94)

 Regarding the new question about “Collaborating with local startups,” 203 companies were already working with local startups, while 152 companies
were planning to work with local startups. The number of companies that were already working with or that were planning to work with local startups
was the largest in Vietnam (56 companies), followed by India (55 companies) and Singapore (46 companies). By industry, the number was the
largest in Wholesale/Retail (83 companies), followed by Finance/Insurance (32 companies) and Communications/Software (31 companies).
Large enterprises utilize personal information and manufacturing-related data more actively. (pp.95–100)
 Regarding the sharing of personal information owned by the company, “Within the company only” (48.5%) and “Sharing with the headquarters in
Japan” (45.6%) accounted for larger proportions. Regarding manufacturing-related data, on the other hand, “Sharing with the headquarters in Japan”
(49.2%) was more frequently cited than “Within the company only” (43.5%). Some companies share information/data with related companies in the
operating country/region, although the number of such companies was small.

Contents
Key Points pp. 2–3
Survey Summary pp. 5–9
1. Operating Profit Forecast pp. 10–20
2. Future Business Plan pp. 21–36
3. Management Matters pp. 37–43
4. Procurement of Raw Materials and Parts pp. 44–52
5. Exports/Imports pp. 53–72
6. Impact of Changes in Trade Environment pp. 73–78
7. Productivity and Innovation pp. 79–94
8. Utilization of Personal and Corporate Data pp. 95–100
9. Efforts to Enter the Local Market pp. 101–114
10. Wages pp. 115–119
11. Automation and Reducing Labor in ASEAN pp. 120–122
12. Procurement of Raw Materials and Parts in ASEAN pp. 123–124
Survey Summary (1)
Purpose of Survey (Companies, %)
Companies
 To understand the current business activities of Companies Category Valid
responding
Japanese-affiliated companies operating in Asia and surveyed Non- responses
Oceania and to disseminate those findings widely. Valid (%) Manufacturing
manufacturing
Total 13,458 5,697 100.0 2,471 3,226 42.3

Surveyed Countries/Regions
Northeast Asia 2,694 1,418 24.9 546 872 52.6
 Japanese-affiliated companies (with direct and indirect
Japanese investment of 10% or greater and the branch China 1,519 694 12.2 386 308 45.7
offices and representative offices of Japanese Hong Kong/Macau 518 341 6.0 37 304 65.8
companies) operating in a total of 20 countries/regions
Taiwan 491 248 4.4 73 175 50.5
in northeast Asia (5), ASEAN countries (9), southwest
Asia (4), and Oceania (2). South Korea 166 135 2.4 50 85 81.3
ASEAN 9,116 3,417 60.0 1,595 1,822 37.5
Survey Period Vietnam 1,608 858 15.1 453 405 53.4
Thailand 2,669 681 12.0 360 321 25.5
 August 26 to September 24, 2019 Indonesia 1,726 614 10.8 338 276 35.6
Singapore 898 522 9.2 120 402 58.1
Response Rate Malaysia 935 299 5.2 167 132 32.0
 Of a total of 13,458 surveys sent out, we received valid Myanmar 423 153 2.7 30 123 36.2
responses from 5,697 companies (42.3%). The Philippines 517 139 2.4 73 66 26.9
breakdown of respondents by country and region is
provided in the table to the right. Cambodia 265 113 2.0 37 76 42.6
Laos 75 38 0.7 17 21 50.7
備考
Notes
Southwest Asia 1,232 606 10.6 270 336 49.2
 The survey has been conducted since 1987, making
調査は1987年より実施し、本年度は第26回目。 India 942 467 8.2 214 253 49.6
this year the 33rd version.
2007年度調査より非製造業も調査対象に追加。
 Since 2007, the survey has included non- Bangladesh 164 64 1.1 25 39 39.0
図表の数値は四捨五入しているため、合計が
manufacturing sectors. Pakistan 60 40 0.7 19 21 66.7
必ずしも100%とはならない。
The numbers in parentheses in each slide indicate the Sri Lanka 66 35 0.6 12 23 53.0
Taiwanの調査については、公益財団法人交流
number of companies with valid responses.
 Numbers in tables are rounded, so they do not
協会の協力を得て実施した。
necessarily add up to 100%.
Oceania 416 256 4.5 60 196 61.5
 Surveys in Taiwan were conducted with the assistance Australia 276 162 2.8 32 130 58.7
of Japan-Taiwan Exchange Association. New Zealand 140 94 1.6 28 66 67.1

Survey Summary (2)
By industry category (Companies, %) Large vs. Small and medium-
sized enterprises (SME)
Companies by country/region (Companies)
Valid (%)
(%)
Large SME
Manufacturing Total 2,471 43.4
37.4 Total 3,565 2,132
Motor vehicles/Motorcycles 472 8.3
Iron/Nonferrous metals/
385 6.8 62.6 Northeast Asia 1,002 416
Metals
Electric machinery 378 6.6 China 454 240
大企業
Large
中小企業
SME Hong Kong/Macau 239 102
Chemical/Pharmaceutical 341 6.0
Note: The definition of “small and medium-sized enterprises” here is based
Taiwan 197 51
Food 153 2.7 on the definition provided in Japan’s Small and Medium-sized South Korea 112 23
Enterprise Basic Act.
Textiles 131 2.3 ASEAN 1,915 1,502
Note: Industry category details are as follows:
General machinery 93 1.6 1. Food: Food/Processed food, agricultural or fishery products
Vietnam 408 450
2. Textiles: Textiles (Spinning/Woven fabrics/Chemical fibers),
Textile apparel/Textile products Thailand 263 418
Precision machinery 86 1.5 3. Wood/Pulp: Lumber/Wood products, Paper/Pulp
4. Chemical/Pharmaceutical: Chemicals and allied Indonesia 404 210
Rubber/Leather 60 1.1 products/Petroleum products, Medicines, Plastic products
5. Rubber/Leather: Rubber products, Leather tanning/Leather Singapore 367 155
Wood/Pulp 47 0.8 products/Fur skins
6. Iron/Nonferrous metals/Metals: Iron and steel (including cast Malaysia 205 94
Other manufacturing and wrought products), Nonferrous metals, Fabricated metal
industries 325 5.7 products (including plated products) Myanmar 102 51
7. General machinery: General-purpose
machinery/Production machinery (including molds and Philippines 79 60
Non-manufacturing Total 3,226 56.6 machine tools), Office machines
8. Electric machinery: Electrical machinery/Electronic devices, Cambodia 69 44
Wholesale/Retail 1,336 23.5 Information and communication electronics equipment
9. Motor vehicles/Motorcycles: Motor vehicles and Laos 18 20
Transport motorcycles, Motor vehicle and motorcycle parts and
326 5.7 accessories, Transportation equipment (Railroad
activities/Warehouse
vehicles/Ship/Aircraft/ Industrial trucks), Transportation
Southwest Asia 445 161
Construction 279 4.9 equipment parts (Railroad vehicles/Ship/Aircraft/Industrial
India 353 114
trucks)
Finance/Insurance 257 4.5 10.Precision machinery: Precision instruments (Analytical
Bangladesh 39 25
instruments/Optical instruments and apparatus, etc.),
Business services 189 3.3 Medical equipment
11.Wholesale/Retail: Wholesale and retail trade, Trading, and
Pakistan 36 4
Communications/Software 174 3.1 sales companies
12.Finance/Insurance: Banks, Non-banks
Sri Lanka 17 18
Travel/Amusement 83 1.5 (Insurance/Securities brokerage/Credit card/Leasing, etc.)
13.Communications/Software: Communications/Software Oceania 203 53
Restaurant 40 0.7 14.Transport activities/Warehouse: Transport
Other non-manufacturing
542 9.5 15.Travel/Amusement: Accommodations/Travel, Amusement
Australia 142 20
industries 16.Restaurant: Restaurant
Note: Wholesale/Retail includes the sales bases of New Zealand 61 33
manufacturing companies.

Survey Summary (3)
Year of establishment of responding companies (by country/region)
(Companies)
Total (n=5,697) China (n=694) Hong Kong/Macau (n=341) Taiwan (n=248)

192 151 59 46
40 42 37 38 30
33 26 25 23 25
1,504 104 111 29 20 20 18
574 672 833 72 19 22 19
406 519 518
9
215 157 132 167 13 17 22 6
2 2 8 3
-1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016-
-1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015
South Korea (n=135) Vietnam (n=858) Thailand (n=681) Indonesia (n=614)

22 24 317 156 215
21 220
15 108
11 12 13 81 87
121 71 57 57 72 78
96 59
5 5 4 61 30 29 36 46 36
3 35 15 6 13 18 11 14
4 0 1 0 3
-1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016-
-1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015
Singapore (n=522) Malaysia (n=299) Myanmar (n=153) Philippines (n=139)

93 35
121 71 27
45
58 44 19
46 46 55 28 40 15
40 35 33 43 22 24 11 10
19 26 15 14 16 8
10 10 10 5 5 3
4 0 0 0 0 1 3 2 1
-1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016-
-1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015
Cambodia (n=113) Laos (n=38) India (n=467) Bangladesh (n=64)

72 168 27
139
19 14
19 5 6 5 50 8
44 39 6
11 2 2 4
2 0 0 0 0 1 5 3 1 0 0 0 0 0 8 0 2 5 4 8 0 1 1 1 0
-1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016-
-1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015
Pakistan (n=40) Sri Lanka (n=35) Australia (n=162) New Zealand (n=94)
9 8 26 16
10 9
17 16 18 16 11 12
14 15 15 13 10 9
4 4 4 10 7 10
3 3 3 3 3 3 5 8
2 3 3
1 1 1 1 1 1 1 2
0
-1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016- -1970 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016-
-1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015 -1975-1980-1985-1990-1995-2000-2005-2010-2015

Survey Summary (4)
Number of current employees of responding companies (by country/region)
(Companies)

153 124 61
1,173 900 947 87 46
787 703 718 112 106 109 35
89 32 40
54
60 47 20
283 29 26
117 8
18 1 1 3
15
1–5 6–20 21–50 51–100 101–300 301–1,000 1,001– More than 1–5 6–20 21–50 51–100 101–300 301–1,000 1,001– More than 1–5 6–20 21–50 51–100 101–300 301–1,000 1,001– More than 1–5 6–20 21–50 51–100 101–300 301–1,000 1,001– More than
3,000 3,001 3,000 3,001 3,000 3,001 3,000 3,001

34 29 143 151 161 117 130
132 132 125 93
23 116 108 83 75
19 101
86 83
12 71 47 45
11 53
4 18 26 15
12
1
3,000 3,001 3,000 3,001 3,000 3,001 3,000 3,001

140 163 59 50 47 29 27
48 32 22
41 38 30 20
89 27 14
26 17
51 12 7 13
38 27 7 5
7 7 3 2
5
3,000 3,001 3,000 3,001 3,000 3,001 3,000 3,001

23 23 19 9 16
18 7 75 70 14
6 6 63 93
14 5 56
10 46 9 9 8
3 30 5
23
3 3 1 2
0 0
3,000 3,001 3,000 3,001 3,000 3,001 3,000 3,001
11 10 34 28 32
27 26
7 26
6 6 18 16
5 5
4 4 11 10 11
3 3 3 3
2 5
1 1 1 3 1
1
3,000 3,001 3,000 3,001 3,000 3,001 3,000 3,001

Survey Summary (5)
Number of expatriates from Japan of responding companies (by country/region)
(Companies)

2,560 287 162 129
1,391 157 79 59
662 82 65 40 34 29
385 375 54
96 16 20 5 10 0 7 14 1 1
5
0 1–2 3–5 6–10 11–30 31–100 More than 0 1–2 3–5 6–10 11–30 31–100 More than 0 1–2 3–5 6–10 11–30 31–100 More than 0 1–2 3–5 6–10 11–30 31–100 More than
101 101 101 101

73 415 292 204
233
35 215 176
86
105 49 74 49
5 9 7 29 44 41 18 16
2 0 11 1 1 6 0
101 101 101 101

235 137 86 58
125 66 35
33 26
54 43
34 42 29 13
14 10 11 5 3 8 3
4 5 1 1 0
0
101 101 101 101

66 31 170 32
121
68 14
21 10
15 37 40 5
5 3 4 2 10
0 0 1 0 0 0 2 1 0 0
101 101 101 101
16 22 81 36 35
9
6 6 31
4 19 7
2 3 2 13 10 3 3
0 0 1 0 0 0 1 0 0
101 101 101 101

1. Operating Profit Forecast (1)
Operating profit forecast for 2019 (by country/region) (%) Operating profit forecast for 2019 (by country/region and company size)
0 20 40 60 80 100 0 20 40 60 80 100 (%)
Total (n=5,385) 65.5 16.8 17.7 Large (n=3,317) 71.1 13.8 15.1
Total
ASEAN (n=3,209) 64.2 16.7 19.1 SME (n=2,068) 56.5 21.6 21.9
Taiwan (n=235) 80.9 8.9 10.2
Vietnam
Large (n=370) 76.2 10.0 13.8
Australia (n=159) 79.9 10.1 10.1 SME (n=426) 56.8 17.4 25.8
South Korea (n=134) 79.1 14.9 6.0 Large (n=253) 74.7 10.3 15.0
Thailand
Philippines (n=133) 69.2 19.6 11.3 SME (n=416) 58.7 22.4 19.0
Large (n=449) 74.2 14.5 11.4
Indonesia (n=570) 69.1 16.0 14.9 China
SME (n=240) 57.9 25.4 16.7
Hong Kong/Macau (n=318) 68.9 17.9 13.2 Large (n=370) 74.1 14.3 11.6
Indonesia
Pakistan (n=32) 68.8 9.4 21.9 SME (n=200) 60.0 19.0 21.0
Philippines Large (n=75) 73.3 12.0 14.7
China (n=689) 68.5 18.3 13.2 SME (n=58) 63.8 29.3 6.9
Vietnam (n=796) 65.8 13.9 20.2 Large (n=217) 72.4 16.1 11.5
Hong Kong/Macau
Malaysia (n=286) 65.7 16.1 18.2 SME (n=101) 61.4 21.8 16.8
Large (n=56) 71.4 16.1 12.5
Thailand (n=669) 64.7 17.8 17.5 New Zealand SME (n=31) 45.2 29.0 25.8
Singapore (n=492) 64.6 18.1 17.3 Large (n=344) 70.1 16.3 13.7
New Zealand (n=87) 62.1 20.7 17.2 Singapore SME (n=148) 52.0 22.3 25.7
Large (n=196) 68.9 15.8 15.3
Sri Lanka (n=29) 55.2 20.7 24.1 Malaysia SME (n=90) 58.9 16.7 24.4
India (n=444) 54.3 19.6 26.1 Large (n=334) 57.2 16.2 26.7
Cambodia (n=95) 48.4 22.1 29.5 India SME (n=110) 45.5 30.0 24.6
Bangladesh (n=49) Large (n=51) 51.0 19.6 29.4
44.9 26.5 28.6 Cambodia SME (n=44) 45.5 25.0 29.6
Laos (n=31) 38.7 29.0 32.3 Large (n=89) 39.3 16.9 43.8
Myanmar (n=137) 38.0 18.3 43.8 Myanmar SME (n=48) 35.4 20.8 43.8
Note: Countries/regions for which the number of valid
Profit Breakeven Loss Profit Breakeven Loss responses is 30 large/SME companies or more
 A total of 65.5% of the companies expect operating “Profit” for 2019, down 2.6 pp from 68.1% in 2018; in contrast, 17.7% of the companies expect
operating “Loss,” down 0.2 pp from 17.9% in 2018.
 By country/region, the proportion of companies expecting operating profit was the highest in Taiwan at 80.9%, followed by Australia and South Korea
almost at 80%.
 A total of 71.1% of the large enterprises expect operating profit, and this was higher than 56.5% of the SMEs by 14.6 pp. The proportion of positive
forecasts was higher among large enterprises than among SMEs in all the 12 countries/regions with valid responses from more than 30 large
enterprises and SMEs. Particularly, there were great differences between the large enterprises and SMEs in New Zealand (26.2 pp), Vietnam (19.4
pp), and Singapore (18.1 pp), etc.

Proportion of profitable companies: 2009–2019 (by country/region)
Total Northeast Asia

(%) (%)
80 90
70 80
70
60
60
50
50
40 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Taiwan South Korea Hong Kong/Macau China
Total Note: Macau is excluded in and before 2010.
(%)
ASEAN6
90
(%)
India
80 80
70 70
60
60
50
50
40
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 40
Philippines Indonesia Vietnam 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Malaysia Thailand Singapore
India
Operating profit forecast for 2019 (by industry) Major industry categories by country and region
Note: Countries/regions for which the number of valid responses is 30 companies or more
(%) (%)
Manufacturing 0 20 40 60 80 100 Motor 0 20 40 60 80 100
Manufacturing (n=2,424) 66.5 15.8 17.8 vehicles/Motorcycles
Wood/Pulp (n=47) 76.6 10.6 12.8
Vietnam (n=53) 79.3 5.7 15.1
Thailand (n=63) 76.2 6.4 17.5
Rubber/Leather (n=60) 73.3 13.3 13.3 Indonesia (n=94) 74.5 8.5 17.0
Chemical/Pharmaceutical (n=331) 71.6 13.6 14.8 China (n=94) 71.3 16.0 12.8
Electric machinery (n=372) 70.2 18.0 11.8 India (n=82) 42.7 24.4 32.9
Motor vehicles/Motorcycles (n=464) 68.8 13.4 17.9 (%)
Iron/Nonferrous metals/
Food (n=149) 67.8 12.1 20.1 0 20 40 60 80 100
Metals
Precision machinery (n=84) 66.7 15.5 17.9 Thailand (n=73) 65.8 16.4 17.8
Iron/Nonferrous metals/Metals (n=378) 60.9 17.5 21.7 Vietnam (n=101) 63.4 14.9 21.8
General machinery (n=93) 59.1 17.2 23.7 China (n=41) 61.0 12.2 26.8
Textiles (n=129)
Indonesia (n=50) 60.0 30.0 10.0
51.2 22.5 26.4
India (n=33) 45.5 21.2 33.3
Other non-manufacturing industries (n=317) 65.0 16.7 18.3 (%)
Non-manufacturing Wholesale/Retail 0 20 40 60 80 100
Non-manufacturing (n=2,961) 64.7 17.6 17.6 South Korea (n=57) 87.7 7.0 5.3
Finance/Insurance (n=210) 79.1 9.1 11.9 Taiwan (n=97) 84.5 7.2 8.3
Wholesale/Retail (n=1,252) 70.4 14.5 15.2 Australia (n=71) 74.7 9.9 15.5
Business services (n=176) 63.6 23.9 12.5 Hong Kong/Macau (n=164) 74.4 14.0 11.6
Transport activities/Warehouse (n=305)
China (n=132) 74.2 12.9 12.9
59.0 19.7 21.3
Vietnam (n=96) 71.9 9.4 18.8
Communications/Software (n=165) 58.2 26.7 15.2
Singapore (n=168) 69.1 15.5 15.5
Construction (n=251) 53.8 19.9 26.3
Indonesia (n=91) 67.0 16.5 16.5
Travel/Amusement (n=79) 50.6 27.9 21.5
Thailand (n=154) 66.2 16.9 16.9
Restaurant (n=40) 50.0 25.0 25.0
India (n=97) 58.8 22.7 18.6
Other non-manufacturing industries (n=483) 59.4 19.5 21.1 Malaysia (n=49) 55.1 28.6 16.3
Profit Breakeven Loss
 The proportion of companies expecting operating profit for 2019 was higher in the manufacturing sector (66.5%) than the non-manufacturing sector (64.7%). In
comparison with the 2018 survey (manufacturing: 70.1%; non-manufacturing: 66.4%), the proportion decreased by 3.6 pp in the manufacturing sector and
decreased by 1.7 pp in the non-manufacturing sector.
 In the non-manufacturing sector, the proportion of companies expecting operating profit exceeded 70% in Finance/Insurance (79.1%) and Wholesale/Retail (70.4%).
 Regarding the top three industries for the number of valid responses, the trends by country/region are as follows.In Motor vehicles/Motorcycles, 79.3% of
companies in Vietnam, 76.2% of companies in Thailand, 74.5% of companies in Indonesia and 71.3% of companies in China expect a surplus. In Iron/Nonferrous
metals/Metals, 65.8% of companies in Thailand, 63.4% of companies in Vietnam, 61.0% of companies in China and 60.0% of companies in Indonesia expect a
surplus. In Wholesale/Retail, the proportion of profitable companies is the highest in South Korea at 87.7%, followed by Taiwan at 84.5%.

Operating profit forecast (domestic sales-oriented Operating profit forecast (export-oriented companies
companies with export ratio < 50%) (2019, by country/region) with export ratio ≥ 50%) (2019, by country/region)
(%) (%)
0 20 40 60 80 100 0 20 40 60 80 100
Total (n=2,990) 65.4 15.2 19.4 Total (n=1,788) 66.3 18.0 15.7
ASEAN (n=1,670) 63.7 15.6 20.8 ASEAN (n=1,193) 65.4 17.417.3
Taiwan (n=162) 80.9 6.8 12.4 Australia (n=41) 90.2 4.9 4.9
South Korea (n=91) 80.2 12.1 7.7 Taiwan (n=42) 83.3 9.5 7.1
Australia (n=104) 77.9 10.6 11.5 South Korea (n=31) 80.7 19.4
Pakistan (n=22) 72.7 9.1 18.2 Malaysia (n=123) 73.2 14.6 12.2
Philippines (n=40) 72.5 17.5 10.0
Singapore (n=217) 71.4 16.1 12.4
Hong Kong/Macau (n=140) 69.3 15.7 15.0
China (n=404) 70.8 15.4 13.9
Philippines (n=79) 67.1 21.5 11.4
Hong Kong/Macau (n=121) 70.3 19.8 9.9
Vietnam (n=403) 66.5 14.1 19.4
Indonesia (n=394) 70.1 14.0 16.0
China (n=206) 64.6 22.3 13.1
Thailand (n=449) 65.7 16.9 17.4
India (n=63) 63.5 23.8 12.7
Vietnam (n=320) 64.7 12.5 22.8 Thailand (n=165) 63.0 18.2 18.8
New Zealand (n=48) 64.6 16.7 18.8 Indonesia (n=115) 62.6 21.7 15.7
Singapore (n=189) 60.9 18.5 20.6 New Zealand (n=30) 60.0 26.7 13.3
Malaysia (n=142) 59.9 16.2 23.9 Cambodia (n=42) 50.0 21.4 28.6
India (n=335) 51.6 17.6 30.8 Bangladesh (n=24) 50.0 33.3 16.7
Myanmar (n=84) 41.7 14.3 44.1 Sri Lanka (n=15) 40.0 26.7 33.3
Cambodia (n=43) 39.5 23.3 37.2 Laos (n=21) 38.1 33.3 28.6
Bangladesh (n=20) 35.0 20.0 45.0 Myanmar (n=28) 32.1 32.1 35.7
Note: Countries/regions for which the number Profit Breakeven Loss Note: Countries/regions for which the number
Profit Breakeven Loss
of valid responses is 15 companies or more of valid responses is 15 companies or more
 The proportion of positive operating profit (forecast) was 65.4% among domestic sales-oriented companies (less than a 50% export ratio in the operating
country/region), while the proportion was 66.3% among export-oriented companies (50% or larger export ratio in the operating country/region). The
proportion of profit-forecasting companies decreased from the previous year in both domestic sales-oriented companies and export-oriented companies.
 In Bangladesh, Malaysia, Australia, India, Singapore and Cambodia, the proportion was higher among export-oriented companies than domestic sales-
oriented companies by over 10 pp. On the other hand, of ASEAN countries, Myanmar, Indonesia, the Philippines and Thailand were the countries in
which the proportion was higher among domestic sales-oriented companies than export-oriented companies.
 In Taiwan, South Korea and Australia, the proportion was high among both domestic sales-oriented companies and export-oriented companies.

Operating profit forecast for 2019 (by year of establishment)
(%) Profit Breakeven Loss
Total (5,385)
100 7.6
10.9 10.9 9.5 12.2 11.8 10.6 11.6 13.2
10.4 11.8 16.9 25.8
80 15.0 18.1 17.3 15.4 16.9 19.7 43.9
60 17.7
17.0
40 78.8 74.2 72.4 70.5 76.5 74.0 75.5 71.5 67.1
56.5
20 39.2
0
In or before 1970 1971–75 1976–80 1981–85 1986–90 1991–95 1996–2000 2001–05 2006–10 2011–15 In or after 2016
(n=193) (n=147) (n=127) (n=156) (n=391) (n=493) (n=550) (n=653) (n=806) (n=1,422) (n=447)
(%) China (689) (%) Vietnam (796)

100 10.0 7.8 100 4.1 4.3 8.6
14.1 13.0 13.3
14.7
17.1 22.7 15.5 14.9 14.8 26.4  Looking at the
80 17.5 15.5 15.6 80
21.9 21.6 58.0 operating profit
27.3 13.2
60 60 forecast for 2019 by
year of establishment,
40 72.5 77.5 70.4 71.4 40 80.4 80.9 76.6 13.0
64.9 61.3 60.5 over 70% of
50.0
20 20
29.0 companies that were
established before
0 0
In or 1991–95 1996–2000 2001–05 2006–10 2011–15 In or after In or before 2001–05 2006–10 2011–15 In or after 2005 expected a
before1990 (n=102) (n=71) (n=192) (n=151) (n=111) 2016 2000 (n=94) (n=209) (n=296) 2016
(n=40) (n=22) (n=97) (n=100) surplus.
(%) Thailand (669) (%) India (444)  On the other hand,

100 9.8 8.8 9.3 100 among companies
14.0 11.2 13.6 18.4
9.1 17.5 18.7 29.0 26.1 31.5 31.9 that were established
80 14.0 25.6 45.5 80 12.1 13.2 in or after 2016, less
60 21.7 60 20.9 14.9
18.2 24.5 than half (39.2%)
81.1 71.9 73.8 70.1
40 65.1 40 expected a surplus.
49.3 74.2 68.4
36.4 53.0 53.2
20 20 44.0
In or before 1991–95 1996–2000 2001–05 2006–10 2011–15 In or after
0 0
1990 (n=57) (n=80) (n=107) (n=86) (n=152) 2016 In or before 2001–05 2006–10 2011–15 In or after
(n=132) (n=55) 2000 (n=38) (n=134) (n=159) 2016
(n=66) (n=47)

Operating profit forecast for 2019 Operating profit forecast for 2020
(by county/region, comparison with 2018) (by county/region, comparison with 2019)
(%) (%)
0 20 40 60 80 100 0 20 40 60 80 100
Total (n=5,393) 33.1 37.1 29.8 Total (n=5,372) 42.1 45.2 12.7
ASEAN (n=3,211) 35.8 37.3 26.9 ASEAN (n=3,203) 44.6 43.8 11.6
Myanmar (n=138) 47.8 41.3 10.9 Sri Lanka (n=29) 69.0 24.1 6.9
Cambodia (n=97) 47.4 35.1 17.5 Myanmar (n=137) 56.2 35.0 8.8
Vietnam (n=793) 42.0 36.2 21.8 India (n=444) 53.4 34.5 12.2
Indonesia (n=569) 41.1 32.0 26.9 Vietnam (n=791) 51.6 41.1 7.3
Bangladesh (n=49) 36.7 44.9 18.4 Bangladesh (n=49) 51.0 34.7 14.3
Laos (n=31) 35.5 41.9 22.6 Laos (n=31) 48.4 32.3 19.4
Philippines (n=132) 34.1 44.7 21.2 Pakistan (n=32) 46.9 31.3 21.9
India (n=444) 33.3 32.2 34.5 Indonesia (n=568) 46.0 42.4 11.6
Australia (n=160) 32.5 35.6 31.9 Cambodia (n=96) 44.8 43.8 11.5
China (n=689) 29.8 36.7 33.5 Philippines (n=133) 44.4 43.6 12.0
Thailand (n=672) 29.3 37.8 32.9 Malaysia (n=286) 41.6 41.3 17.1
Singapore (n=494) 29.0 41.3 29.8 Thailand (n=668) 39.7 47.0 13.3
Sri Lanka (n=29) 27.6 37.9 34.5 Australia (n=160) 38.8 50.6 10.6
Hong Kong/Macau (n=320) 27.2 37.2 35.6 Singapore (n=493) 36.9 49.9 13.2
Malaysia (n=285) 26.0 37.5 36.5 China (n=682) 36.7 48.2 15.1
Taiwan (n=236) 25.4 40.3 34.3 Taiwan (n=233) 33.1 57.1 9.9
Pakistan (n=32) 25.0 31.3 43.8 New Zealand (n=88) 29.6 55.7 14.8
New Zealand (n=89) 23.6 46.1 30.3 Hong Kong/Macau (n=320) 28.4 54.7 16.9
South Korea (n=134) 21.6 41.0 37.3 South Korea (n=132) 22.7 56.1 21.2
Increase Remain the same Decrease Increase Remain the same Decrease
 For 2019, a total of 33.1% of the companies expect an operating profit “Increase” over 2018, down 11.2 pp from 44.3% in the 2018 survey;
the proportion of companies expecting an operating profit “Decrease” was 29.8%, up 9.2 pp from the 2018 survey (20.6%).
 A total of 42.1% of the companies expect an “Increase” for 2020, down 5.2 pp from the 2019 forecast (47.3%) in the 2018 survey.
Meanwhile, the proportion of companies expecting an operating profit “Decrease” was 12.7%, up 2.1 pp from the 2019 forecast (10.6%) in
the 2018 survey.

2019 DI (by country/region) 2020 DI (by country/region)
(Points) (Points)
-40 -20 0 20 40 0 20 40 60 80
● The DI (see Note),
Total (n=5,393) 3.3 Total (n=5,372) 29.5
indicating business
ASEAN (n=3,211) 8.8 ASEAN (n=3,203) 33.0 confidence for 2019
Myanmar (n=138) 37.0 Sri Lanka (n=29) 62.1 operating profit, was 3.3
Myanmar (n=137)
points, significantly down
Cambodia (n=97) 29.9 47.4
20.3 points from 23.6
Vietnam (n=793) 20.2 Vietnam (n=791) 44.3 points in the 2018
Bangladesh (n=49) 18.4 India (n=444) 41.2 survey. By
Indonesia (n=569) Bangladesh (n=49) 36.7
country/region, the DI
14.2
was higher in Myanmar,
Laos (n=31) 12.9 Indonesia (n=568) 34.3 Cambodia, Vietnam and
Philippines (n=132) 12.9 Cambodia (n=96) 33.3 Bangladesh. On the
Australia (n=160) Philippines (n=133) 32.3
other hand, the DI
0.6
decreased by more than
Singapore (n=494) -0.8 Laos (n=31) 29.0 10 points in Pakistan,
India (n=444) -1.1 Australia (n=160) 28.1 South Korea, and
Thailand (n=668) 26.4
Malaysia. In Northeast
Thailand (n=672) -3.6
Asia (China, Hong
China (n=689) -3.8 Pakistan (n=32) 25.0 Kong/Macau, Taiwan
New Zealand (n=89) -6.7 Malaysia (n=286) 24.5 and South Korea), the DI
Singapore (n=493) 23.7
was down in all
Sri Lanka (n=29) -6.9
countries/regions.
Hong Kong/Macau (n=320) -8.4 Taiwan (n=233) 23.2 ● The DI for 2020 was
Taiwan (n=236) -8.9 China (n=682) 21.6 29.5 points, up 26.2
-10.5 New Zealand (n=88) 14.8 points from 2018. The DI
Malaysia (n=285)
for 2020 was higher than
South Korea (n=134) -15.7 Hong Kong/Macau (n=320) 11.6 the DI for 2019 in all
Pakistan (n=32) -18.8 South Korea (n=132) 1.5 countries/regions.
Note: DI is an abbreviation for Diffusion Index, the proportion of companies expecting “Increase” (improvement) minus the
proportion of companies expecting “Decrease” (worsening). This figure reflects changes in business confidence.

Proportion of DI: 2009–2019 (by country/region)
(Points) Total (Points) Northeast Asia

60 60
50 50
40 40
30
30
20
20
10
10 0
0 -10
-10 -20
-20 -30
-30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 China Hong Kong/Macau Taiwan South Korea
Total Note: Hong Kong includes Macao from 2011.
(Points) ASEAN6 (Points) India

60 60
50 50
40
40
30
20 30
10 20
0 10
-10 0
-20
-10
-30
-40 -20
-50 -30
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Vietnam Indonesia Philippines India

Singapore Thailand Malaysia
Operating profit forecast for 2019 Operating profit forecast for 2020
(comparison with 2018, by industry) (comparison with 2019, by industry)
(%) (%)
Manufacturing industries 0 20 40 60 80 100
Manufacturing industries 0 20 40 60 80 100
Manufacturing (n=2,426) 31.1 35.4 33.5 Manufacturing (n=2,413) 42.1 43.8 14.1
Food (n=151) 48.3 29.1 22.5 Food (n=146) 56.2 30.8 13.0
General machinery (n=93) 39.8 28.0 32.3 Iron/Nonferrous metals/Metals (n=376) 46.5 40.4 13.0
Wood/Pulp (n=47) 38.3 31.9 29.8 Chemical/Pharmaceutical (n=334) 44.6 43.4 12.0
Precision machinery (n=84) 36.9 38.1 25.0 Textiles (n=127) 44.1 44.9 11.0
Chemical/Pharmaceutical (n=333) 35.4 35.7 28.8 General machinery (n=90) 42.2 45.6 12.2
Electric machinery (n=372) 28.0 39.3 32.8 Electric machinery (n=371) 40.7 45.3 14.0
Textiles (n=129) 27.1 44.2 28.7 Rubber/Leather (n=60) 40.0 45.0 15.0
Iron/Nonferrous metals/Metals (n=379) 25.6 35.1 39.3 Precision machinery (n=84) 39.3 50.0 10.7
Motor vehicles/Motorcycles (n=463) 24.6 32.8 42.6 Motor vehicles/Motorcycles (n=462) 35.3 46.3 18.4
Rubber/Leather (n=60) 20.0 38.3 41.7 Wood/Pulp (n=47) 31.9 46.8 21.3
Non-manufacturing industries Non-manufacturing industries

Non-manufacturing (n=2,967) 34.8 38.6 26.7 Non-manufacturing (n=2,959) 42.1 46.4 11.5
Business services (n=180) 54.4 34.4 11.1 Restaurant (n=40) 67.5 25.0 7.5
Restaurant (n=38) 52.6 31.6 15.8 Communications/Software (n=168) 58.3 36.3 5.4
Communications/Software (n=165) 43.6 41.8 14.6 Business services (n=178) 56.7 39.9 3.4
Finance/Insurance (n=209) 43.5 39.2 17.2 Finance/Insurance (n=209) 47.9 44.0 8.1
Transport activities/Warehouse (n=306) 33.0 32.0 35.0 Transport activities/Warehouse (n=n=304) 40.1 49.0 10.9
Construction (n=250) 31.2 46.4 22.4 Wholesale/Retail (n=1,251) 38.5 47.7 13.8
Wholesale/Retail (n=1,258) 29.4 36.7 33.9 Travel/Amusement (n=79) 36.7 54.4 8.9
Travel/Amusement (n=79) 27.9 41.8 30.4 Construction (n=249) 36.1 44.6 19.3
Increase Remain the same Decrease Increase Remain the same Decrease
 Compared with the 2018 survey, the proportion of companies expecting an operating profit “Increase” for 2019 significantly
decreased in both the manufacturing sector (46.1%=>31.1%) and the non-manufacturing sector (42.8%=>34.8%).
 Comparing the proportion of companies expecting an operating profit “Increase” for 2020 with the proportion of companies that
expected an operating profit “Increase” for 2019, the 2020 proportion was higher in both the manufacturing sector (42.1%) and the
non-manufacturing sector (42.1%).

Reasons for increased operating profits forecast for 2019
(comparison with the reasons for the increase forecast for 2018 cited
in the 2018 survey) (top 5, multiple answers) Response rate by country/region and
industry (top 5)
■2019 survey (n=1,763) 2018 survey (n=2,113) (%) Country/region Industry category
0 20 40 60 80
66.0 India (85.7%) Restaurant (85.0%)
Sales increase in local markets Business services (79.2%)
69.5 Taiwan (78.3%)
Myanmar (75.8%) General machinery (78.4%)
Improvement of production efficiency 37.3 Indonesia (74.6%) Wholesale/Retail (76.0%)
(manufacturing industry only) 40.3 Finance/Insurance (75.9%)
China (69.9%)
Sales increase due to export expansion
26.0
33.7
Reduction of other expenditures (e.g., 15.9 Bangladesh (57.1%) Rubber/Leather (91.7%)
Malaysia (46.3%) Iron/Nonferrous metals/Metals
administrative/utility costs/fuel costs) 13.2 (47.4%)
Cambodia (44.4%) Electric machinery (42.7%)
Reduction of procurement costs
14.9 Indonesia (43.1%) Motor vehicles/Motorcycles (41.2%)
11.5 Taiwan (42.9%) Textiles (41.2%)
Note: Countries/regions and industry categories for which the number of valid responses is 30 companies or more
Reasons for decreased operating profits forecast for 2019

(comparison with the reasons for the decrease forecast for 2018 cited
in the 2018 survey) (top 5, multiple answers)
■2019 survey (n=1,597) 2018 survey (n=985) (%) Country/region Industry category
0 20 40 60 80
Sales decrease in local markets 61.4 India (84.9%) Restaurant (83.3%)
45.7 Motor vehicles/Motorcycles
Pakistan (78.6%)
(76.5%)
34.3 Taiwan (77.8%) Wholesale/Retail (75.1%)
Sales decrease due to export slowdown South Korea (75.5%)
24.9 Business services (70.0%)
New Zealand (73.1%) General machinery (66.7%)
Increase of labor costs 34.1
41.4 Textiles (59.5%)
Laos (57.1%) Electric machinery (57.5%)
Increase of procurement costs 17.4 Philippines (57.1%) Rubber/Leather (56.0%)
32.2 Malaysia (48.1%) Iron/Nonferrous metals/Metals
Vietnam (43.9%) (49.7%)
Effects of exchange rate fluctuation 16.5 Transport activities/Warehouse
21.0 Thailand (40.9%) (47.7%)

Reasons for increased operating profits forecast for 2020
(comparison with the reasons for the increase forecast for 2019 cited
in the 2018 survey) (top 5, multiple answers) Response rate by country/region and
industry (top 5)
■2019 survey (n=2,247) 2018 survey (n= 2,253) (%) Country/region Industry category
0 20 40 60 80
Sales increase in local markets
72.9
India (91.5%) Restaurant (88.9%)
73.0
Australia (83.9%) Wholesale/Retail (83.3%)
Improvement of production efficiency 40.9 Taiwan (81.8%) Business services (83.2%)
(manufacturing industry only) 42.1 China (79.4%) Wood/Pulp (80.0%)
Myanmar (79.0%) Finance/Insurance (79.2%)
Sales increase due to export expansion
32.0
30.9
Rubber/Leather (62.5%)
16.0 Myanmar (64.3%)
mprovement of sales efficiency Wood/Pulp (60.0%)
Sri Lanka (62.5%)
15.2 Textiles (46.4%)
New Zealand (60.0%)
General machinery (46.0%)
Reduction of procurement costs
13.0 Cambodia (57.1%)
Motor vehicles/Motorcycles
11.9 Laos (50.0%)
(44.8%)
Reasons for decreased operating profits forecast for 2020

(comparison with the reasons for the decrease forecast for 2019 cited
in the 2018 survey) (top 5, multiple answers)
■2019 survey (n= 675) 2018 survey (n= 505) (%) Country/region Industry category
0 20 40 60 80
Sales decrease in local markets 56.9 Myanmar (90.9%) Construction (80.9%)
46.3 Wholesale/Retail (68.8%)
Thailand (77.3%)
40.9 South Korea (75.0%) (68.2%)
Increase of labor costs India (74.1%)
41.0 Restaurant (66.7%)
China (63.1%) Business services (66.7%)
Sales decrease due to export slowdown 34.1
27.7 Rubber/Leather (88.9%)
Cambodia (72.7%)
22.8 Indonesia (69.7%) Restaurant (66.7%)
Increase of procurement costs Textiles (64.3%)
29.5 China (51.5%) Precision machinery (55.6%)
Increase of other expenditures (e.g., 16.3 Sri Lanka (50.0%) Iron/Nonferrous metals/Metals
administrative/utility costs/fuel costs) 14.9 South Korea (42.9%) (55.1%)
Noe: Countries/regions and industry categories for which the number of valid responses is 10 companies or more

2. Future Business Plan (1)
Approach to future business plan/activities in the next 1 to 2 years (by country/region)
(%)
0 20 40 60 80 100
Total (n=5,665) 48.9 46.5 4.1 0.6
Bangladesh (n=64) 70.3 23.4 1.6 4.7
India (n=464) 65.5 31.3 2.6 0.7
Vietnam (n=855) 63.9 33.3 2.7 0.1
Pakistan (n=40) 62.5 35.0 2.5
Myanmar (n=151) 61.6 36.4 2.0
Philippines (n=139) 51.8 44.6 2.9 0.7
Indonesia (n=609) 50.7 45.8 3.1 0.3
Cambodia (n=112) 50.0 44.6 4.5 0.9
Laos (n=38) 50.0 42.1 7.9
Sri Lanka (n=35) 48.6 40.0 11.4
Thailand (n=678) 44.7 51.9 3.1 0.3
Taiwan (n=246) 44.3 52.9 2.0 0.8
Singapore (n=519) 43.9 51.5 3.7 1.0
China (n=690) 43.2 50.6 5.4 0.9
Australia (n=161) 42.2 53.4 4.4
Malaysia (n=297) 42.1 48.5 8.1 1.4
South Korea (n=134) 30.6 63.4 4.5 1.5
New Zealand (n=93) 29.0 65.6 5.4
Hong Kong/Macau (n=340) 24.4 65.9 9.1 0.6
Expansion Remaining the same Reduction Transferring to a third country/region or withdrawal from current local market
 A total of 48.9% of the companies selected “Expansion” as their approach to future business plan/activities in the next one or two years, down 6.2 pp
from 55.1% in the 2018 survey. In contrast, 4.7% of companies selected “Reduction” or “Transferring to a third country/region or withdrawal from
current local markets,” up 0.5 pp from 4.2% in the 2018 survey.
 By country/region, Bangladesh marked the highest proportion of “Expansion” at 70.3%. In India, Vietnam, Pakistan and Myanmar, over 60% of
companies selected “Expansion.”
 In China, 43.2% of the companies selected “Expansion,” down 5.5 pp from the 2018 survey (48.7%).

Proportions of companies expecting to expand in the next 1 to 2 years (2009–2019)
(%) ASEAN major countries (%) Southwest Asia/Oceania major countries (%) Northeast Asia
100 100 100
90 90 90
80 80 80
70 70 70.3 70
63.9 65.5
62.5
60 61.6 60 60
51.8
50 50.7 50
50.0 48.6 50
44.7 44.3
42.2
40 42.1 40 40 43.2
30 30 30 30.6
24.4
20 20 20
Indonesia Malaysia Myanmar Bangladesh India China Taiwan

Philippines Thailand Cambodia Pakistan Sri Lanka South Korea Hong Kong/Macau
Vietnam Note: The survey of Cambodia started in 2010. Australia Note: Hong Kong/Macau for 2009 and 2010 does not actually include Macau.
 Reviewing the survey results by country/region from 2009, the proportion of companies that selected “Expansion” as their approach to future business plan/activities in the next one or two
years increased significantly in 2010 when the global economy recovered from the downturn following the financial crisis. The proportion of “Expansion” remained generally the same from
2011 to 2013, excluding several countries/regions, decreased in 2014 and 2015. The proportion varied by country/region from 2016 to 2018, but all countries/regions excluding Indonesia
decreased in the 2019 survey.
 In the 2019 survey, the proportion of companies that selected “Expansion” decreased by over 10.0 pp from 2018 in Sri Lanka (-13.9 pp), Malaysia (-11.9 pp), South Korea (-11.9 pp), Hong
Kong/Macau (-11.2 pp) and Myanmar (-10.5 pp).

Proportions of companies expecting to expand in the next 1 to 2 years (2009–2019)
(%)
90
China
ASEAN
80
Indonesia
70 Thailand
61.9 66.8 65.5 Vietnam

65.2
65.0 63.9
63.1
60 61.4 57.4 India
60.8 60.3 55.4 55.7
54.2 54.2
51.5
Note 1: ASEAN shows a
50.7 weighted average of
50 52.3 nine countries,
46.5
excluding Brunei.
46.6 48.3 48.7 44.7 Note 2: Figures for Cambodia
and Laos have been
38.1 43.2
40 included in the
ASEAN average
40.1 since 2010 and 2011,
respectively.
30
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
 Comparing China with ASEAN, the proportion of companies that selected “Expansion” as their approach to future business plan/activities in the next one
or two years was higher in China from 2009 to 2011. In 2012, however, ASEAN (61.4%) overtook China (52.3%). In2012 and 2013, the proportion was
higher in ASEAN than in China by around 9.0 pp. The gap between ASEAN and China expanded to over 10 pp from 2014 to 2016 (13.8 pp in 2014, 16.1
pp in 2015, and 15.3 pp in 2016), but decreased again to 7.4 pp in 2017. The gap was 8.7 pp in 2018 and 8.3 pp in 2019.

Approach to future business plan/activities in the next 1 to 2 years (by industry and company size)
Manufacturing (%) Non-manufacturing (%)

0 20 40 60 80 100 0
0% 20
20% 40
40% 60
60% 80
80% 100
100%
Manufacturing total (n=2,453) 46.1 48.4 4.9 0.7 Non-manufacturing total (n=3,212) 51.0 45.0 3.4 0.6
Food (n=150) 71.3 25.3 2.7 0.7 Restaurant (n=40) 70.0 22.5 5.0 2.5
Precision machinery (n=86) 50.0 45.4 4.7 Communications/Software (n=173) 67.6 31.2 1.2
Iron/Nonferrous metals/Metals (n=382) 47.9 46.6 4.7 0.8
Business services (n=189) 59.8 37.0 2.7 0.5
Chemical/Pharmaceutical (n=339) 47.2 48.7 3.2 0.9
Wholesale/Retail (n=1,329) 51.4 44.2 3.9 0.5
General machinery (n=92) 45.7 52.2 2.2
45.0 48.4 Finance/Insurance (n=256) 48.8 48.8 2.0 0.4
Electric machinery (n=376) 6.1 0.5
Rubber/Leather (n=60) 41.7 50.0 8.3 Transport activities/Warehouse (n=326) 48.2 48.8 2.8 0.3
Motor vehicles/Motorcycles (n=470) 40.9 53.2 5.5 0.4 Construction (n=277) 42.2 50.9 6.1 0.7
Wood/Pulp (n=47) 40.4 55.3 4.3 Travel/Amusement (n=83) 42.2 53.0 4.8
Textiles (n=130) 33.1 56.9 6.9 3.1
Other non-manufacturing industries (n=539) 48.8 47.5 2.6 1.1
Other manufacturing industries (n=321) 45.8 48.9 5.0 0.3
(%) (%)
0 20 40 60 80 100 0 20 40 60 80 100
2019 (n=1,370) 49.3 46.8 3.4 0.5 2019 (n=2,175) 52.4 44.0 3.2 0.4
Large
Large
2018 (n=1,237) 56.2 39.3 4.0 0.5 2018 (n=1,987) 56.0 40.7 2.5 0.8
2017 (n=1,233) 54.7 41.1 3.2 0.9 2017 (n=1,655) 54.6 41.6 3.0 0.9
2016 (n=1,282) 53.4 42.9 2.8 0.9 2016 (n=1,559) 54.4 41.7 3.0 1.0
2019 (n=1,083) 42.0 50.4 6.7 0.8 2019 (n=1,037) 48.1 47.2 3.9 0.9
SME
2018 (n=858) 53.2 42.8 2.9 1.2
SME
2018 (n=957) 53.4 40.8 4.5 1.4

2017 (n=967) 51.4 43.5 4.2 0.8 2017 (n=750) 52.9 43.5 2.8 0.8
2016 (n=1,038) 47.1 47.6 3.6 1.7 2016 (n=734) 52.9 43.2 3.1 0.8
 By industry, the proportion of companies that selected “Expansion” as their approach to future business plan/activities in the next one or two years was higher by
4.9 pp in the non-manufacturing sector (51.0%) than in the manufacturing sector (46.1%).
 In the manufacturing sector, the proportion of “Expansion” was high in Food (71.3%). In the non-manufacturing sector, the proportion was high in Restaurant
(70.0%). On the other hand, the proportion of “Expansion” was lower in Textiles, Construction and Travel/Amusement.
 By company size, large enterprises are more likely to expand their businesses than SMEs in both manufacturing and non-manufacturing sectors. The proportion of
SME manufacturing companies that selected “Expansion” was 42.0%, down 11.4 pp from the 2018 survey (53.4%).

Approach to future business plan/activities in the next 1 to 2 years Note: Countries/regions for which the number of
(by major industry and country/region) valid responses is 30 companies or more
Wholesale/Retail (%) Iron/Nonferrous metals/Metals (%)

0 20 40 60 80 100 0 20 40 60 80 100
India (n=99) 76.8 21.2 1.0 1.0 India (n=34) 67.7 29.4 2.9
Vietnam (n=112) 75.9 21.4 1.8 0.9 Vietnam (n=103) 59.2 37.9 2.9
Indonesia (n=98) 58.2 38.8 2.0 1.0
China (n=40) 45.0 47.5 7.5
Thailand (n=72) 41.7 55.6 2.8
Thailand (n=155) 55.5 41.3 2.6 0.7
Indonesia (n=51) 33.3 64.7 2.0
China (n=132) 53.8 41.7 4.6
Taiwan (n=100) 51.0 46.0 3.0 Electric machinery (%)
Singapore (n=169) 45.6 50.3 4.1 0 20 40 60 80 100
Malaysia (n=50) 44.0 52.0 2.0 2.0 Vietnam (n=66) 56.1 40.9 3.0
Australia (n=71) 40.9 52.1 7.0
Malaysia (n=58) 46.6 41.4 12.1
Thailand (n=42) 45.2 50.0 4.8
South Korea (n=57) 24.6 73.7 1.8
Singapore (n=34) 32.4 58.8 8.8
Hong Kong/Macau (n=169) 24.3 63.3 11.8 0.6 China (n=63) 31.8 58.7 7.9 1.6
Motor vehicles/Motorcycles (%) (%)

0 20 40 60 80
Chemical/Pharmaceutical
100
Vietnam (n=53) 62.3 32.1 5.7 0 20 40 60 80 100
India (n=82) 47.6 43.9 8.5 Vietnam (n=61) 62.3 36.1 1.6
China (n=94) 40.4 54.3 4.3 1.1 China (n=44) 54.6 34.1 11.4
Indonesia (n=95) 39.0 55.8 5.3 Indonesia (n=41) 51.2 48.8
Thailand (n=64) 34.4 60.9 4.7 Thailand (n=56) 35.7 62.5 1.8
 The proportion of “Expansion” in Wholesale/Retail was high in India (76.8%) and Vietnam (75.9%). Meanwhile, “Remaining the same” accounted for over 60% in
South Korea and Hong Kong/Macau.
 In the Motor vehicles/Motorcycles industry, the proportion of “Expansion” was high in Vietnam (62.3%). India and China were 40% level, 47.6% and 40.4%
respectively.
 In Vietnam, the proportion of "Expansion" exceeded 60% in Wholesale/Retail, Motor vehicles/Motorcycles and Chemical/Pharmaceutical.

Approach to future business plan/activities in the next 1 to 2 years (%)
Total (n=5,665) 48.9 46.5 4.1 0.6
Vietnam (n=855) 63.9 33.3 2.7 0.1
Philippines (n=139) 51.8 44.6 2.9 0.7
Indonesia (n=609) 50.7 45.8 3.1 0.3
Thailand (n=678) 44.7 51.9 3.1 0.3
Singapore (n=519) 43.9 51.5 3.7 1.0
Malaysia (n=297) 42.1 48.5 8.1 1.4
Reasons for the future business expansion in the next 1 to 2 years (multiple answers) (1/2)
Total Vietnam Philippines Indonesia Thailand Singapore Malaysia

(n=2,739) (n=526) (n=72) (n=309) (n=303) (225) (n=125)
0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100
Sales increase in local 72.4 76.6 61.3 66.4

62.6 52.8 79.3
markets
High growth potential 40.3 37.6 33.3 46.6 25.1 39.6 28.8
Sales increase due to

export expansion 31.9 44.1 37.5 26.5 36.3 35.6 45.6
Relationship with clients 20.7 22.2 22.2 16.5 23.1 19.1 26.4
High receptivity for high

20.6 16.2 13.9 18.8 20.8 22.2 25.6
value-added products
Reconsideration of
production and distribution 12.6 9.9 12.5 11.7 13.5 12.9 12.0
networks
Reduction of costs (e.g., 7.9 7.2 8.3 6.8 8.3 6.7 8.8
procurement/labor costs)
2.7 4.4 6.9 1.6 1.0 2.2 1.6

Ease in securing labor force
Deregulations 1.4 1.7 2.8 1.0 0.3 0.4 1.6

Approach to future business plan/activities in the next 1 to 2 years
(%)
Bangladesh (64) 70.3 23.4 1.6 4.7
India (464) 65.5 31.3 2.6 0.7
Pakistan (40) 62.5 35.0 2.5
Myanmar (151) 61.6 36.4 2.0
Cambodia (112) 50.0 44.6 4.5 0.9
Laos (38) 50.0 42.1 7.9
Sri Lanka (35) 48.6 40.0 11.4
India Pakistan Sri Lanka Bangladesh Cambodia Laos Myanmar

(n=303) (n=25) (n=17) (n=45) (n=56) (n=19) (n=92)
0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100
Sales increase in local

markets 86.1 48.0 52.9 46.7 51.8 57.9 72.8
High growth potential 60.1 64.0 29.4 41.1 26.3 55.4

60.0
export expansion 19.1 28.0 41.2 37.8 33.9 36.8 12.0
Relationship with clients 17.8 40.0 35.3 21.4 5.3 16.3

37.8

value-added products 18.2 28.0 17.7 17.8 10.7 5.3 12.0
Reconsideration of
production and distribution 13.9 36.0 11.8 11.1 10.7 5.3 10.9
networks
Reduction of costs (e.g., 8.6 12.0 11.8 5.4 10.5 8.7
13.3
Ease in securing labor force 2.6 16.0 20.0 3.6 6.5
Deregulations 2.6 4.0 5.4

Approach to future business plan/activities in the next 1 to 2 years
(%)
Taiwan (246) 44.3 52.9 2.0 0.8
China (690) 43.2 50.6 5.4 0.9
Australia (161) 42.2 53.4 4.4
South Korea (134) 30.6 63.4 4.5 1.5
New Zealand (93) 29.0 65.6 5.4
Hong Kong/Macau (340) 24.4 65.9 9.1 0.6
Hong
China Taiwan South Korea Australia New Zealand
Kong/Macau
(n=296) (n=83) (n=108) (n=40) (n=68) (n=27)
0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100
Sales increase in local

markets 83.8 69.9 86.1 90.0 82.4 59.3
High growth potential 44.6 27.7 30.0 27.9 37.0

30.6
export expansion 25.7 33.7 22.2 22.5 20.6 29.6
Relationship with clients 20.3 20.5 10.0 17.7 14.8

23.2

value-added products 29.7 20.5 29.6 45.0 22.1 18.5
Reconsideration of
production and distribution 16.9 12.1 7.4 7.5 19.1 18.5
networks
Reduction of costs (e.g., 9.5 3.6 6.5 2.5 10.3 11.1
0.7 0.9
Ease in securing labor force
1.4 1.9 1.5

Deregulations

2. Future Business Plan (9) Reasons for the future business expansion in the next 1 to 2 years
Decreased by 10 pp or more Increased by 10 pp or more
Motor vehicles/Motorcycles Sales increase in local markets Sales increase due to export expansion
0 20 40 60 80 100 0 20 40 60 80 100 (%)
Proportions of companies expecting to expand 81.3
92.3 Vietnam
in the next 1 to 2 years (2014–2019) India 64.1
94.2
46.0
100 86.8 Indonesia
China 40.0
86.4
31.8
90 78.4 Thailand
Indonesia 50.0
88.0
23.7
80 72.7 China
Thailand 18.2
80.6
7.7
34.4 India
70 Vietnam 21.2
51.3
62.3 High growth potential Relationship with clients
60
0 20 40 60 80 100 0 20 40 60 80 100
38.5 36.4
50 India Thailand
47.6 48.1 25.0
40.4 18.9 28.1

40 Indonesia Vietnam
20.0 25.6
39.0
34.4 18.4 16.2
30 China Indonesia
18.2 12.0
18.2 13.2
Thailand China
20 22.2 11.4
2014 15 16 17 18 19
9.4 0.0
China Thailand Vietnam Vietnam India
20.5 11.5
Indonesia India Note: Numbers of companies that responded (2019, 2018): India (39, 52), 2019 2018
China (38, 44), Indonesia (37, 25), Thailand (22, 36), Vietnam (32, 39)
 Looking at changes in the proportion of Motor vehicles/Motorcycles companies that selected “Expansion” as their future business plan in the next one or
two years, by country/region from 2014, the proportion decreased in 2015 and 2016 and increased in 2017 and 2018, excluding some of the companies.
In 2019, however, the proportion decreased in all the countries (Vietnam, India, China, Indonesia, and Thailand).
 In the 2019 survey, the most frequently cited reason for “Expansion” was “Sales increase in local markets” in India, China, Indonesia, and Thailand, with
“Sales increase due to export expansion” in Vietnam. The reasons that significantly decreased from the previous year were “Sales increase in local
markets” in Vietnam, “Sales increase due to export expansion” in Thailand, and “High growth potential” and “Relationship with clients” in India.

Electric machinery Reasons for the future business expansion in the next 1 to 2 years
Decreased by 5 pp or more Increased by 5 pp or more
Proportions of companies expecting to expand
in the next 1 to 2 years (2014–2019) Sales increase in local markets Sales increase due to export expansion
0 20 40 60 80 100 0 20 40 60 80 100 (%)
80.0 73.7
100 China Thailand
77.4 56.5
90 63.2 72.2
Thailand Vietnam
69.6 73.8
80 63.0 63.0
Malaysia Malaysia
52.4 66.7
70 50.0 40.0
Vietnam China
42.9 38.7
60 High receptivity for high

56.1 High growth potential value-added products
0 20 40 60 80 100 0 20 40 60 80 100
50 46.6 25.0 25.0
China China
45.2 25.8 22.6
40
21.1 22.2
Thailand Malaysia
31.8 17.4 19.1
30
18.5 13.9
Malaysia Vietnam
9.5 9.5
20
2014 15 16 17 18 19 13.9 5.3
Vietnam Thailand
16.7 21.7
China Thailand
Note: Numbers of companies that responded (2019, 2018): China
Vietnam Malaysia (20, 31), Thailand (19, 23), Malaysia (27, 21), Vietnam (36, 42) 2019 2018
 Looking at changes in the proportion of Electric machinery companies that selected “Expansion” as their future business plan in the next one or two
years, by country/region from 2014, the proportion decreased or remained the same in 2015 and increased in 2016 and 2017, excluding Thailand. In
2018, however, the proportion decreased again. In 2019, the proportion decreased by over 10 pp in Vietnam, China, and Thailand.
 In the 2019 survey, the most frequently cited reason for the “Expansion” was “Sales increase in local markets” in China and “Sales increase due to
export expansion” in Thailand and Vietnam, with both reasons being the most frequently cited at the same proportion in Malaysia. In Thailand, the
proportion of “Sales increase in local markets” and “High receptivity for high value-added products” decreased by more than 5 pp from the previous
year. On the other hand, the reasons that increased by over 5 pp from the previous year were “Sales increase in local markets” in Malaysia and
Vietnam, “Sales increase due to export expansion” in Thailand, and “High growth potential” in Malaysia.

Functions to be expanded (multiple answers)
(%)
Production (high Production Administrative Function of
Sales Logistics functions in providing
value-added (general-purpose R&D regional
function products) products) function services (e.g., shared
headquarters
services center, call center)
0 25 50 75 100 0 25 50 0 25 50 75 0 25 50 0 25 50 0 25 50 0 25 50
Total (n=2,712) 60.3 Total 31.0 Total 23.2 Total 12.0 Total 9.1 Total 7.1 Total 6.1
Hong Kong/Macau Bangladesh 16.3

88.0 Malaysia 42.7 42.2 Australia 16.7 China 21.2 Bangladesh 13.3 Singapore
(n=83)
Australia (n=66) 80.3 Philippines 40.9 Cambodia 33.9 India 15.4 South Korea 15.0 India 10.1 Bangladesh 15.6
Taiwan (n=108) 74.1 China 38.2 Vietnam 33.2 Malaysia 15.3 India 13.1 China 9.9 China 10.9
South Korea Philippines Hong

70.0 South Korea 37.5 29.6 South Korea 15.0 Australia 9.1 Myanmar 9.9 9.6
(n=40) Kong/Macau
Singapore (n=221) Thailand 36.4 Indonesia 27.1 Taiwan 13.0 Bangladesh 8.9 Philippines 9.9 Australia 7.6
69.7
India (n=298) Indonesia 36.3 Thailand 25.2 Vietnam 12.7 Thailand 8.3 Singapore 9.1 Malaysia 5.7
65.4
Hong
Vietnam 35.7 India 24.8 12.1 Indonesia 7.5 Cambodia 8.9 Taiwan 5.6
Indonesia (n=306) 62.1 Kong/Macau
China Hong
China (n=293) India 27.5 21.5 Myanmar 11.0 7.2 Taiwan 8.3 Myanmar 5.5
61.8 Kong/Macau
Cambodia 25.0 Malaysia 21.0 Singapore 10.9 Singapore 6.8 Indonesia 6.2 Cambodia 5.4
Bangladesh 24.4 Australia 18.2 Indonesia 10.8 Vietnam 6.5 Vietnam 6.1 Thailand 4.6
Myanmar (n=91) 53.9
Myanmar Hong
Myanmar 22.0 11.0 Cambodia 10.7 Taiwan 6.5 Kong/Macau 6.0 Philippines 4.2
Vietnam (n=521) 48.4
Australia 19.7 South Korea 10.0 China 10.2 Malaysia 6.5 South Korea 5.0 India 3.7
Philippines (n=71) 47.9
Hong
Taiwan 17.6 Kong/Macau 7.2 Thailand 8.9 Philippines 4.2 Thailand 3.6 Indonesia 3.6
Malaysia (n=124) 45.2
Hong Taiwan
Kong/Macau 16.9 6.5 Philippines 8.5 Myanmar 2.2 Malaysia 3.2 South Korea 2.5
Cambodia (n=56) 44.6
Singapore 14.9 Singapore 5.9 Bangladesh 4.4 Cambodia 0.0 Australia 1.5 Vietnam 2.3
Bangladesh (n=45) 44.4

Functions to be expanded (by country, 2015–2019)
Sales function Production (high-value added products) Production (general-purpose products)

(%) (%) (%)
75 75 75
65.4
65 65 65
62.1
61.8
55 55 55
61.3
48.4
45 45 45
36.4
38.2
35 35.7 35 33.2
35
36.3
27.1
27.5
25 25 25 25.2
24.8
21.5
15 15 15
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
China Vietnam Indonesia Thailand India
 The proportion of companies intending to expand “Sales function” remains at a high level in India (65.4%). The proportion increased by 12.3 pp
in Thailand and by 5.3 pp in Indonesia from the 2018 survey.
 The proportion of companies intending to expand “Production (high value-added products)” exceeded 30% in China, Thailand, Indonesia and
Vietnam, and was 27.5% in India.
 The proportion of companies intending to expand “Production (general-purpose products)” has been decreasing, in general. Vietnam had the
highest rate (33.2%), while the rate was less than 30% in China, India, Thailand, and Indonesia.

Reasons for the future reduction, transfer or withdrawal (multiple answers)
By industry By company size
0 10 20 30 40 50 60 70
Manufacturing
Non-
Large SME (%)
manufacturing
52.8
Sales decrease in local markets 46.2
45.3 60.7 54.0 51.6
66.7
43.6
Increase of costs (e.g., procurement/labor costs) 44.6 50.0 36.9 42.9 44.4
56.4
31.2
Low growth potential 28.5 28.9 33.6 32.5 29.8
28.2
29.2
Sales decrease due to export slowdown 30.0 35.9 22.1 27.0 31.5
38.5
14.8
Difficulty in securing labor force 13.9 19.5 9.8 7.9 21.8
28.2
10.0
Reviewing production and distribution networks 10.8 7.8 12.3 11.9 8.1
5.1
8.8
Tightening of regulations 8.5 13.3 4.1 7.1 10.5
15.4
8.8 Total (250)
Relationship with clients 6.2 7.0 10.7 5.6 12.1
7.7
Low receptivity for high-value added 8.4 ASEAN (130)

products/services
10.0 8.6 8.2 10.3 6.5
0.0
4.4 China (39)
Negative effects of trade restrictive measures by
governments
3.1 4.7 4.1 7.1 1.6
5.1
ex.Raising of tariffs, quantitative restrictions
on exports, sanctions and industrial policies 11.6
such as import substitution Other 10.8 8.6 14.8 13.5 9.7
12.8
 In a multiple-choice question on the reason for business “Reduction” or “Transferring or withdrawal,” “Sales decrease in local markets” (52.8%) was most commonly
cited, followed by “Increase of costs” (43.6%) and “Low growth potential” (31.2%).
 When comparing ASEAN and China, the proportions of companies that selected “Sales decrease in local markets,” ”Difficulty in securing labor force“ and “Increase of
costs” were higher in China than in ASEAN by 20.5 pp, 14.3 pp and 11.8 pp, respectively. On the other hand, the proportions of “Low receptivity for high-value added
products/services” was higher in ASEAN than in China by 10.0 pp.
 By industry, the proportion of companies that cited “Sales decrease in local markets” was higher in the non-manufacturing sector than in the manufacturing sector by
15.4 pp. On the other hand, the proportions of companies that cited “Sales decrease due to export slowdown,” “Increase of costs” and “Difficulty in securing labor force”
were higher in the manufacturing sector than in the non-manufacturing sector by 13.8 pp, 13.1 pp and 9.7 pp, respectively.
 By company size, the proportion of SMEs that cited ”Difficulty in securing labor force“ was higher than that of large enterprises by 13.9 pp.

Approach to future business plan/activities of Japanese-affiliated companies in China in the next 1 to 2 years
(%)
2015 survey (n=863) 38.1 51.3 8.8 1.7
2016 survey (n=599) 40.1 52.8 5.3 1.8
2017 survey (n=811) 48.3 44.3 5.9 1.5
2018 survey (n=752) 48.7 44.8 5.1 1.5
2019 survey (n=690) 43.2 50.6 5.4 0.9
Reasons for reduction, transferring or withdrawal (%) Breakdown of companies

0 20 40 60 80 100 that responded reduction, Liaoning
Sales decrease in local markets 66.7 transferring or withdrawal Beijing
4 companies
37.5 (5.2%)
56.4 4 companies
Increase of costs (e.g., procurement/labor costs)
41.7 (3.9%)
Sales decrease due to export slowdown 38.5
22.9 Sichuan
4 companies Shandong
Difficulty in securing labor force 28.2
31.3 (11.8%) 6 companies
28.2 (8.1%)
Low growth potential Jiangsu
22.9
34 companies 3 companies Shanghai
Tightening of regulations 15.4 Manufacturing
22.9 (8.9%) (5.7%) 4 companies
7.7 Textiles 6 (28.6%) (4.9%)
Relationship with clients
18.8
5.1 Chemical/Pharmaceutical 5 (11.4%)
Reviewing production and distribution networks
10.4 Electric machinery 6 (9.5%)
Negative effects of trade restrictive measures by 5.1 Guangdong Fujian
governments Other manufacturing industries 6 (9.5%) 8 companies 3 companies
Low receptivity for high-value added products/services 0.0 Iron/Nonferrous metals/Metals 3 (7.5%) (9.4%) (13.6%)
8.3
Negative effects of trade facilitative measures by 0.0 Motor vehicles/Motorcycles 5 (5.3%)
governments or multiple countries
Non-manufacturing 9 (2.9%) Note 1: The percentages for “Negative effects of trade restrictive measures by
2019 (n=39) 2018 (n=48) governments” and “Negative effects of trade facilitative measures by
Wholesale/Retail 6 (4.6%) governments or multiple countries” for 2018 are unavailable because they were
not presented as answer options in the 2018 survey.
Note 2: Industries and provinces/municipalities with three or more companies that selected “Reduction” or “third country/region or withdrawal from current local Transferring to a markets”
Note 3: The percentages in parentheses indicate the proportion of companies that selected “Reduction” or “Transferring to a third country/region or withdrawal from current local markets” to the number of responding companies
in the respective industries or provinces/municipalities.
 In a question about the approach to future business plan/activities in the next one or two years, the proportion of Japanese-affiliated companies in China that selected “Reduction” or
“Transferring to a third country/region or withdrawal from current local markets” was 6.3%, which was as same 6% level as the 2018 survey (6.6%). On the other hand, “Expansion” decreased
by 5.5 pp to 43.2% from 2018.
 In a multiple-choice question asking the reason for business reduction, transferring or withdrawal, “Sales decrease in local markets” had the highest proportion at 66.7%. This is followed by
“Increase of costs” (56.4%) and “Sales decrease due to export slowdown” (38.5%).
 By industry category, the manufacturing sector (8.9%) selected “Reduction” or “Transferring to a third country/region or withdrawal from current local markets” higher than the non-
manufacturing sector (2.9%). In particular, the proportions was high in Textiles (28.6%) and Chemical/Pharmaceutical (11.4%).

Changes in the number of employees
(Changes in a year-on-year comparison, future plans, by country/region)
Local employees Year-on-year Plans for the next one year
(%) (%)
0 20 40 60 80 100 0 20 40 60 80 100
Total (n=5,490) 34.2 50.2 15.7 Total (n=5,339) 37.6 52.5 9.9
India (n=453) 49.2 38.4 12.4 Myanmar (n=140) 62.1 32.9 5.0
Myanmar (n=146) 48.6 45.2 6.2 India (n=445) 56.0 37.5 6.5
Vietnam (n=824) 45.0 41.8 13.2 Vietnam (n=793) 53.0 42.1 4.9
Philippines (n=133) 43.6 47.4 9.0 Bangladesh (n=61) 50.8 41.0 8.2
Bangladesh (n=60) 43.3 40.0 16.7 Cambodia (n=108) 49.1 45.4 5.6
Cambodia (n=108) 41.7 42.6 15.7 Pakistan (n=38) 44.7 34.2 21.1
Indonesia (n=591) 37.6 45.7 16.8 Sri Lanka (n=32) 43.8 34.4 21.9
Taiwan (n=232) 34.9 55.6 9.5 Philippines (n=131) 43.5 45.8 10.7
Malaysia (n=288) 34.7 43.4 21.9 Laos (n=35) 37.1 54.3 8.6
Pakistan (n=39) 33.3 43.6 23.1 Indonesia (n=576) 36.3 48.8 14.9
South Korea (n=130) 30.8 60.8 8.5 Taiwan (n=224) 35.7 57.6 6.7
Thailand (n=656) 29.4 54.7 15.9 Singapore (n=494) 32.2 63.0 4.9
Singapore (n=500) 29.4 59.0 11.6 New Zealand (n=85) 31.8 61.2 7.1
Sri Lanka (n=32) 28.1 53.1 18.8 Malaysia (n=278) 31.7 50.0 18.4
Laos (n=37) 27.0 67.6 5.4 Australia (n=158) 31.0 62.0 7.0
Australia (n=162) 25.9 59.9 14.2 Thailand (n=638) 28.4 61.4 10.2
New Zealand (n=91) 24.2 64.8 11.0 China (n=653) 27.0 57.0 16.1
China (n=677) 22.2 51.4 26.4 South Korea (n=130) 23.9 68.5 7.7
Hong Kong/Macau (n=331) 15.7 65.3 19.0 Hong Kong/Macau (n=320) 20.9 68.1 10.9
Large (n=3,438) 35.5 49.0 15.6 Large (n=3,359) 38.7 51.7 9.6
SME (n=2,052) 32.0 52.1 15.9 SME (n=1,980) 35.8 53.9 10.3
Increase No change Decrease Increase No change Decrease
 Regarding year-on-year changes in the number of local employees by country/region, the proportion of the companies selected “Increase” was high in
India and Myanmar in the high 40% level.
 The proportion of companies planning to “Increase” local employees in the next one year exceeded 60% in Myanmar (62.1%) and exceeded 50% in
India, Vietnam, and Bangladesh.
 In China, Pakistan and Malaysia, over 20% of the companies selected “Decrease” in a year-on-year comparison. The proportion of companies
planning to “Decrease” local employees in the next one year was relatively high in Sri Lanka (21.9%) and Pakistan (21.1%).

Changes in the number of employees
(Changes in a year-on-year comparison, future plans, by country/region)
Japanese expatriates Year-on-year Plans for the next one year (%)
(%)
0% 20% 40% 60% 80% 100%
100 0%
0 20%
20 40%
40 60%
60 80%
80 100%
100
0 20 40 60 80
Total (n=5,407) 12.5 73.2 14.3 Total (n=5,279) 8.4 79.1 12.5
Bangladesh (n=61) 19.7 65.6 14.8 Pakistan (n=37) 16.2 75.7 8.1
India (n=447) 18.3 70.0 11.6 Myanmar (n=141) 14.9 75.9 9.2
Myanmar (n=146) 17.8 68.5 13.7 Philippines (n=132) 14.4 76.5 9.1
Philippines (n=132) 17.4 74.2 8.3 Laos (n=37) 13.5 81.1 5.4
Vietnam (n=819) 16.2 72.4 11.4 India (n=440) 12.3 76.8 10.9
Singapore (n=494) 13.4 70.7 16.0 Vietnam (n=799) 10.4 79.5 10.1
Cambodia (n=105) 13.3 75.2 11.4 Singapore (n=484) 10.1 77.7 12.2
Indonesia (n=580) 12.6 71.9 15.5 Indonesia (n=566) 10.1 76.2 13.8
Taiwan (n=232) 12.5 73.7 13.8 Cambodia (n=106) 9.4 79.3 11.3
Australia (n=160) 11.9 80.6 7.5 Sri Lanka (n=32) 9.4 75.0 15.6
Thailand (n=640) 10.9 75.8 13.3 Bangladesh (n=60) 8.3 80.0 11.7
Malaysia (n=288) 10.4 66.0 23.6 Malaysia (n=279) 7.5 76.7 15.8
Hong Kong/Macau (n=325) 8.6 74.5 16.9 Australia (n=153) 7.2 85.0 7.8
Pakistan (n=35) 8.6 88.6 2.9 Thailand (n=626) 7.0 79.2 13.7
China (n=662) 8.0 74.2 17.8 Taiwan (n=224) 5.8 78.1 16.1
South Korea (n=130) 6.2 80.8 13.1 China (n=642) 4.2 78.8 17.0
New Zealand (n=82) 6.1 85.4 8.5 New Zealand (n=79) 3.8 91.1 5.1
Laos (n=38) 5.3 81.6 13.2 Hong Kong/Macau (n=315) 3.2 86.4 10.5
Sri Lanka (n=31) 3.2 67.7 29.0 South Korea (n=127) 2.4 85.8 11.8
Large (n=3,408) 14.3 70.3 15.4 Large (n=3,336) 9.2 77.3 13.6
SME (n=1,999) 9.5 78.0 12.6 SME (n=1,943) 7.1 82.2 10.7
Increase No change Decrease Increase No change Decrease
 Regarding changes in the number of Japanese expatriates by country/region, “No change” was most frequently selected in all countries/regions in
both year-on-year comparison and in plans for the next one year.
 In a year-on-year comparison, the proportion of companies that selected “Decrease” was the highest in Sri Lanka (29.0%), followed by Malaysia
(23.6%), China (17.8%), Hong Kong/Macau (16.9%), etc.
 Regarding plans for the next one year, the proportion of companies that selected “Increase” was relatively high in Pakistan (16.2%), Myanmar
(14.9%) and the Philippines (14.4%). On the other hand, the proportion of companies that selected “Decrease” was the highest in China (17.0%).

3. Management Matters (1)
Problems common to all regions (top 10, multiple answers)
(%)
2019 2018 Change
Answers
By industry By company size
(Percentage
(%) (%) Non-
points) Manufacturing Large SME
manufacturing
1 Wage hike 65.8 65.9 -0.1 74.6 59.1 66.1 65.4

Growing market shares of competitors
2 47.8 49.4 -1.6 49.8 46.1 51.3 42.0
(cost-wise competition)
Difficulty in quality control
3 47.4 49.6 -2.2 47.4 - 43.5 52.2
(only manufacturing companies)
4 Quality of employees 43.5 42.9 0.6 45.9 41.7 44.4 42.0
Difficulty in local procurement of raw
5 materials and parts 41.5 43.3 -1.8 41.5 - 38.9 44.8
Increased cost in procurement of raw
6 materials and parts 39.8 49.2 -9.4 39.8 - 41.2 38.0
7 Difficulty in developing new clients 38.9 39.2 -0.3 35.1 41.9 36.3 43.1
No more room for cost-cutting
8 37.0 33.1 3.9 37.0 - 37.4 36.7
Sluggishness in major sales markets
9 35.1 20.4 14.7 40.5 30.8 37.5 31.3
(consumption downturn)
10 Pressure to lower prices from major clients 32.8 34.2 -1.4 41.1 26.2 32.8 32.9
“Wage hike” (65.8%) was most frequently cited as a management matter, followed by “Growing market shares of competitors (cost-wise competition)” (47.8%) and
“Difficulty in quality control” (47.4%). Compared with the 2018 survey, “Increased cost in procurement of raw materials and parts” (-9.4 pp), “Difficulty in quality
control” (-2.2 pp), and “Difficulty in local procurement of raw materials and parts” (-1.8 pp) improved. (The response rate decreased.) On the other hand,
“Sluggishness in major sales markets (consumption downturn)” (+14.7 pp) and “No more room for cost-cutting” (+3.9 pp) worsened. (The response rate increased.)
By country/region, the proportion of “Wage hike” was higher in Indonesia (84.0%) and Cambodia (75.7%) than in China (73.7%), followed by India in 4th place
(73.3%) and Vietnam in 5th place (72.0%).
By industry, more than 70% of companies selected “Wage hike” in the manufacturing sector. The proportion of “Pressure to lower prices from major clients” was
higher in the manufacturing sector than in the non-manufacturing sector by 14.9 pp. By company size, SMEs selected “Difficulty in quality control,” “Difficulty in local
procurement of raw materials and parts,” “Difficulty in developing new clients,” and “Pressure to lower prices from major clients” more commonly than large
enterprises.

Problems common to all regions (top 10, multiple answers, response rate for each country/region)
Growing market shares of (%)

Difficulty in quality Difficulty in local procurement
Wage hike competitors (cost-wise Quality of employees of raw materials and parts
competition) control
0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100
Total Total Total

(n=3,684) 65.8 47.8 Total (n=2,434) 43.5 Total
(n=2,568) 47.4 (n=982) 41.5
(n=1,121)
Indonesia Bangladesh
84.0 South Korea 61.9
(n=510)
(n=74) 55.6 (n=39)
Bangladesh
Cambodia Malaysia Myanmar (n=17) 70.8
(n=84) 75.7 Malaysia 66.5 (n=84) 56.8
53.2 (n=107)
(n=151)
China Indonesia Laos
(n=506) 73.7 (n=334) 55.0 70.6
India (n=12)
(n=236) 53.0 Philippines
India 58.6 Cambodia
73.3 (n=41) 55.0
(n=335) Myanmar (n=61) Cambodia
(n=72) 52.2
(n=26) 70.3
Vietnam Malaysia
(n=606) 72.0 Cambodia (n=158) 53.7
Indonesia 56.8
51.9 (n=21) Myanmar
Malaysia (n=295) Philippines
67.0 53.3 (n=17) 65.4
(n=197) (n=73)
Taiwan
South Korea (n=118) 50.4 India India
(n=87) 65.4 53.7 (n=232) 50.8 Indonesia
(n=110) 59.4
China (n=192)
Thailand 50.0 Laos
(n=427) 63.5 (n=343)
(n=19) 50.0
Indonesia Philippines
Hong Kong/Macau Singapore 53.6 Thailand 58.6
60.1 48.8 (n=173) 47.0 (n=41)
(n=203) (n=241) (n=316)
Singapore Vietnam China

56.5 48.0 Thailand 44.0 Vietnam
(n=289) (n=379) 52.9
(n=302)
(n=249) 56.2
(n=183)
Australia Sri Lanka
(n=86) 55.1 Thailand
47.3 (n=15) 42.9
(n=315) India
Sri Lanka Bangladesh Vietnam (n=92) 44.9
(n=19) 54.3 Pakistan 50.0 (n=318) 37.8
46.9 (n=12)
(n=15)
New Zealand Taiwan Malaysia
(n=46) 51.7 (n=86) 35.8 37.9
Bangladesh (n=61)
(n=21) 43.8 Vietnam
Bangladesh 49.9 South Korea
50.8 (n=221) 33.1
(n=32) Cambodia (n=44) Thailand
(n=41) 42.7 (n=118) 34.1
Myanmar Singapore
(n=74) 50.0 China (n=168) 32.8
Australia 42.4
40.4 (n=159) Taiwan
Philippines (n=65) Hong Kong/Macau 27.5
(n=61) 44.5 (n=108) 32.0 (n=19)
Philippines
Pakistan (n=47) 35.9 Taiwan Australia
(n=16) 41.0 26.1 (n=45) 28.9 China
(n=18) 22.1
Hong Kong/Macau (n=83)
Taiwan 34.3 Pakistan
(n=95) 39.6 (n=110) (n=10) 25.6
Singapore Singapore
Laos New Zealand 24.3 New Zealand 15.0
29.0 30.8 (n=26) 24.7 (n=16)
(n=11) (n=28) (n=22)

Problems common to all regions (top 10, multiple answers, response rate for each country/region)
Sluggishness in major sales
Increased cost in procurement Difficulty in developing No more room for cost- Pressure to lower prices (%)
markets (consumption
of raw materials and parts new clients cutting from major clients
downturn)
0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100
Total Total Total Total

39.8 38.9 Total (n=1,889) 35.1 (n=1,766) 32.8
(n=940) (n=2,090) 37.0
(n=876)
South Korea South Korea
Pakistan Thailand
46.7 51.1 (n=59) 44.4
(n=13) 76.5 (n=311) (n=68)
Malaysia India
Malaysia (n=76) 47.2 India
50.6 (n=179) 40.2
New Zealand (n=131) 46.1 (n=225)
(n=15) 60.0
China
Cambodia Hong Kong/Macau (n=273) 39.8
45.8 Taiwan (n=135) 42.1
Australia (n=44)
46.4
(n=14) 51.9 (n=32) Sri Lanka
Hong Kong/Macau Malaysia (n=11) 37.9
(n=146) 45.5 (n=118) 41.6
China
(n=178) 47.5 Thailand Thailand
37.4
Singapore
(n=146) 42.2 Pakistan
40.6 (n=249)
(n=207) 41.9 (n=13)
Hong
Indonesia
Kong/Macau 47.1 China (n=206) 36.3
China
(n=16) (n=284) 41.4 China (n=276) 40.2
(n=158) 42.1 Malaysia
Indonesia (n=91) 32.0
(n=149) 46.1 Laos Indonesia
(n=12) 38.7 (n=219) 38.6
Taiwan
Taiwan Indonesia (n=74) 31.6
44.9 Vietnam
(n=136) 42.1 Taiwan
38.5
(n=31) (n=303) 38.4 (n=90)
Pakistan
(n=10) 31.3
Malaysia South Korea New Zealand
43.5 (n=51) 38.4 Cambodia (n=34) 37.4
(n=70) 40.5 Vietnam
(n=15) (n=237) 30.0
Myanmar Thailand
India 37.0 36.9
(n=81) 39.5 (n=51) (n=246) Myanmar
(n=38) 27.5
Singapore
Indonesia
36.4 (n=39) 36.5 Singapore
36.8
Philippines (n=207) (n=182) Bangladesh
(n=27) 38.6 (n=13) 27.1
Taiwan Laos
(n=81) 34.6 India (n=11) 35.5 Hong Kong/Macau
Thailand 31.7 26.5
(n=132) 38.2 (n=65) (n=85)
India Australia
(n=139) 31.2 (n=57) 35.4 New Zealand
South Korea (n=24) 26.4
(n=16) 34.0 Vietnam
Philippines
30.5 (n=138) 31.2 Myanmar
29.0 Singapore
(n=40) (n=40)
(n=124) 25.1
Singapore
(n=32) 29.9 New Zealand Vietnam
29.7 16.7 Australia
(n=27) South Korea (n=132) (n=38) 23.6
(n=13) 27.7
Cambodia
(n=11) 29.7 Bangladesh Philippines Cambodia
(n=12) 25.0 (n=18) 13.7 22.9
(n=22)
Vietnam Philippines
29.4 Australia
18.0 (n=18) 25.7 Cambodia
10.4 Philippines
22.1
(n=130) (n=29) (n=10) (n=29)

Problems by country/region (top 5, multiple answers) (%)
2019 2018 2019 2018
Singapore survey survey
Indonesia survey survey
1 Wage hike (n=289) 56.5 55.7 1 Wage hike (n=510) 84.0 78.2
Growing market shares of competitors Difficulty in local procurement of raw materials and parts
2 48.8 48.4 2 59.4 60.1
(cost-wise competition) (n=241) (n=192)
3 Difficulty in developing new clients (n=207) 41.9 44.2 Tax burdens (i.e. corporate taxes and transfer pricing
3 55.9 53.9
taxes) (n=338)
4 36.8 22.6 4 Quality of employees (n=334) 55.0 53.6
(consumption downturn) (n=182)
5 No more room for cost-cutting (n=39) 36.5 30.6 5 Difficulty in quality control (n=173) 53.6 51.6
2019 2018 2019 2018
Malaysia survey survey
Vietnam survey survey
1 Wage hike (n=197) 67.0 66.7 1 Wage hike (n=606) 72.0 73.0
Difficulty in local procurement of raw materials and parts
2 Difficulty in quality control (n=107) 66.5 71.1 2 56.2 58.1
(n=249)
3 Quality of employees (n=158) 53.7 54.8 3 Difficulty in quality control (n=221) 49.9 54.7
Growing market shares of competitors Growing market shares of competitors
4 53.2 50.6 4 48.0 49.5
(cost-wise competition) (n=151) (cost-wise competition) (n=379)
5 No more room for cost-cutting (n=76) 47.2 31.9 5 Complicated customs clearance procedures (n=332) 42.8 45.7
2019 2018 2019 2018

Thailand survey survey
Philippines survey survey
1 Wage hike (n=427) 63.5 59.3 1 58.6 60.9
(n=41)
2 Difficulty in quality control (n=183) 52.9 58.6 2 Difficulty in quality control (n=41) 58.6 48.4
3 47.3 49.5 3 Quality of employees (n=73) 53.3 45.2
(cost-wise competition) (n=315)
4 Quality of employees (n=316) 47.0 50.1 4 Wage hike (n=61) 44.5 50.8
5 Difficulty in developing new clients (n=311) 46.7 46.1 5 Difficulty in recruiting engineering staff (n=32) 44.4 36.3
Note1: Top 5 responses are listed above, except for “No particular problem.” Orange-highlighted items are not included in the top 10 common problems in “3.
Management Matters (1).”
Note2: The red-highlighted items increased by 10 pp or more from 2018, while the blue-highlighted items decreased by 10 pp or more from 2018.

Problems by country/region (top 5, multiple answers) (%)
2019 2018
2019 2018 Bangladesh
India survey survey
survey survey Difficulty in local procurement of raw materials and parts
1 70.8 56.0
1 Wage hike (n=335) 73.3 72.3 (17)
2 Difficulty in quality control (n=110) 53.7 49.5 2 Time-consuming customs procedures (32) 66.7 60.0
Growing market shares of competitors 3 Power shortages or blackouts (16) 66.7 52.0
3 53.0 59.1
(cost-wise competition) (n=236)
4 Inadequate logistics infrastructure (15) 62.5 56.0
4 Quality of employees (n=232) 50.8 44.5
5 Quality of employees (39) 61.9 62.5
5 50.6 9.1
(consumption downturn) (n=225) 2019 2018
Cambodia
survey survey
2019 2018 1 Wage hike (84) 75.7 70.9
Pakistan
survey survey Difficulty in local procurement of raw materials and parts
Volatility of local currency’s exchange rate against the 2 70.3 54.6
1 82.1 76.2 (26)
US dollar (32)
3 Power shortages or blackouts (24) 64.9 31.8
Increased cost in procurement of raw materials and
2 76.5 72.2
parts (13) 4 Difficulty in quality control (21) 56.8 54.6
3 High import duties (20) 66.7 57.6 5 Quality of employees (61) 55.0 49.4
4 Time-consuming customs procedures (17) 56.7 54.6 2019 2018
Laos
survey survey
5 Restrictions on foreign remittance (21) 53.9 57.1 Difficulty in local procurement of raw materials and parts
1 70.6 60.0
(12)
2019 2018 2 Difficulty in quality control (9) 52.9 66.7
Sri Lanka survey survey 3 Quality of employees (19) 50.0 56.3
1 66.7 63.6 4 Power shortages or blackouts (8) 47.1 40.0
(8)
3 Difficulty in recruiting general workers (7) 58.3 27.3 5 Complicated customs clearance procedures (12) 41.4 36.0
3 Wage hike (19) 54.3 60.0 2019 2018
Myanmar
survey survey
5 Difficulty in quality control (6) 50.0 54.6
1 Power shortages or blackouts (18) 69.2 42.3
5 No more room for cost-cutting (6) 50.0 36.4 Difficulty in local procurement of raw materials and parts
2 65.4 65.4
(17)
Note1: Top 5 responses are listed above, except for “No particular problem.” 3 Quality of employees (84) 56.8 57.9
Orange-highlighted items are not included in the top 10 common Growing market shares of competitors (cost-wise
4 52.2 47.5
problems in “3. Management Matters (1). ” competition) (72)
Note2: Red-highlighted items increased by 10 pp or more from 2018. Blue- 5 Wage hike (74) 50.0 53.4
highlighted items decreased by 10 pp or more from 2018.
5 Difficulty in recruiting middle management staff (74) 50.0 41.4

Problems by country/region (top 5, multiple answers) (%) 2019 2018
South Korea
2019 2018 survey survey
China survey survey 1 Wage hike (n=87) 65.4 69.4
1 Wage hike (n=506) 73.7 75.7 Growing market shares of competitors
2 55.6 54.9
Growing market shares of competitors (cost-wise competition) (n=74)
2 50.0 51.7 Volatility of local currency’s exchange rate against the
(cost-wise competition) (n=343) 3 52.6 24.6
Increased cost in procurement of raw materials and Japanese yen (n=70)
3 47.5 53.5 Sluggishness in major sales markets
parts (n=178) 4 51.1 36.8
4 Quality of employees (n=302) 44.0 42.0
5 Pressure to lower prices from major clients (n=59) 44.4 38.4
5 Tightening environmental regulations (n=163) 43.5 45.8
2019 2018
Australia
2019 2018 survey survey
Hong Kong/Macau
survey survey 1 Wage hike (n=86) 55.1 57.7
1 Wage hike (n=203) 60.1 67.0 Increased cost in procurement of raw materials and
2 51.9 46.9
Increased cost in procurement of raw materials and parts (n=14)
2 47.1 59.3 Volatility of local currency’s exchange rate against the
parts (n=16) 3 42.5 35.4
US dollar (n=68)
3 Difficulty in developing new clients (n=146) 45.5 46.0 Growing market shares of competitors
4 40.4 47.0
4 Decreased orders from clients (n=137) 42.7 34.8 (cost-wise competition) (n=65)
Volatility of local currency’s exchange rate against the
Sluggishness in major sales markets 5 35.6 24.2
5 42.1 27.2 Japanese yen (n=57)
(consumption downturn)(n=135)
2019 2018
New Zealand survey survey
2019 2018
Taiwan Increased cost in procurement of raw materials and
survey survey
1 60.0 61.5
Growing market shares of competitors parts (n=15)
1 50.4 48.8
(cost-wise competition) (n=118) 2 Wage hike (n=46) 51.7 48.3
2 No more room for cost-cutting (n=32) 46.4 28.3 Sluggishness in major sales markets
3 37.4 32.5
Increased cost in procurement of raw materials and (consumption downturn) (n=34)
3 44.9 49.1
parts (n=31) Difficulty in local procurement of raw materials and parts
4 32.0 34.6
(n=8)
4 Wage hike (n=95) 39.6 36.8
Sluggishness in major sales markets 5 30.8 32.5
5 38.5 32.0 (cost-wise competition) (n=28)
5 Difficulty in recruiting general workers (n=8) 30.8 22.2
Note1: Top 5 responses are listed above, except for “No particular problem.”
Orange-highlighted items are not included in the top 10 common 5 Difficulty in recruiting engineering staff (n=8) 30.8 44.4
problems in “3. Management Matters (1). ”
Note2: Red-highlighted items increased by 10 pp or more from 2018. Blue-
highlighted items decreased by 10 pp or more from 2018.

3. Management Matters (7) Note: Countries/regions for which the number of valid responses is 10 companies or more
Management matters that improved from 2018 Management matters that worsened from 2018
(top 10 countries/regions with a significant decrease) (top 10 countries/regions with a significant increase)
Increased cost in 2019 2018 Changes Sluggishness in major 2019 2018 Changes
procurement of raw survey survey (Percentage sales markets survey survey (Percentage
materials and parts (%) (%) points) (consumption downturn) (%) (%) points)
1 Indonesia 46.1 62.4 -16.3 1 India 50.6 9.1 41.5
2 Singapore 29.9 45.9 -16.0 2 Thailand 36.9 17.6 19.3
3 Philippines 38.6 53.1 -14.5 3 China 40.2 21.9 18.3
4 India 39.5 53.3 -13.8 4 Hong Kong/Macau 42.1 27.2 14.9
5 Hong Kong/Macau 47.1 59.3 -12.2 5 South Korea 51.1 36.8 14.3
6 Thailand 38.2 47.8 -9.6 6 Singapore 36.8 22.6 14.2
7 Vietnam 29.4 38.7 -9.3 7 Indonesia 38.6 24.5 14.1
8 Malaysia 43.5 51.1 -7.6 8 Malaysia 41.6 29.8 11.8
9 China 47.5 53.5 -6.0 9 Australia 35.4 26.8 8.6
10 Taiwan 44.9 49.1 -4.2 10 Taiwan 38.5 32.0 6.5
 Among management matters, “Increased cost in procurement of raw materials and parts” improved from the 2018 survey. (The response rate decreased.)
This took 4th place in the 2018 survey as a problem common to all regions but ranked 6th in the 2019 survey (-9.4 pp). By country/region, this problem
improved most significantly in Indonesia (-16.3 pp), followed by Singapore (-16.0 pp), the Philippines (-14.5 pp), India (-13.8 pp), and Hong Kong/Macau (-
12.2 pp).
 “Sluggishness in major sales markets (consumption downturn)” worsened from the 2018 survey. (The response rate increased.) This took 25th place in the
2018 survey as a problem common to all regions but rapidly moved up to 9th place in the 2019 survey (+14.7 pp). By country/region, this problem worsened
most significantly in India (+41.5 pp), followed by Thailand (+19.3 pp), China (+18.3 pp), Hong Kong/Macau (+14.9 pp), and South Korea (+14.3 pp).

4. Procurement of Raw Materials and Parts (1) Manufacturing industries only
Ratio of labor/material costs to production costs Ratio of labor/material costs to production costs
(by company size and industry) (by country/region)
(%) (%)
0 20 40 60 80 100
0 20 40 60 80 100
Bangladesh (n=23) 30.0 52.0 18.0
Total (n=2,141) 19.9 58.5 21.6
Cambodia (n=35) 27.8 56.2 16.0
Sri Lanka (n=12) 25.9 65.4 8.7
Large (n=1,142) 17.2 61.9 20.9
New Zealand (n=22) 24.7 57.5 17.8
SME (n=999) 22.9 54.6 22.5
Singapore (n=78) 24.7 49.2 26.1
Laos (n=15) 23.9 60.3 15.8
Textiles (n=122) 32.4 51.2 16.4
Taiwan (n=56) 23.7 58.5 17.8
Other manufacturing industries (n=263) 23.1 58.2 18.7
Myanmar (n=23) 22.6 55.3 22.1
Australia (n=20) 22.2 54.5 23.3
Electric machinery (n=305) 20.6 62.0 17.4
Hong Kong/Macau (n=22) 21.1 47.9 31.0
Rubber/Leather (n=55) 20.5 51.3 28.2 Vietnam (n=413) 20.8 55.9 23.3
Precision machinery (n=66) 20.4 58.1 21.5 China (n=342) 20.7 58.2 21.1
Food (n=133) 19.5 56.5 24.0 Thailand (n=328) 20.7 55.8 23.5
Chemical/Pharmaceutical (n=292) 18.9 58.6 22.5 South Korea (n=40) 19.8 60.3 19.9
Iron/Nonferrous metals/Metals (n=356) 18.2 56.4 25.4 Philippines (n=65) 18.5 59.2 22.3
Wood/Pulp (n=40) 15.6 65.0 19.4 Malaysia (n=146) 18.4 60.7 20.9
Motor vehicles/Motorcycles (n=423) 15.5 62.5 22.0 Indonesia (n=302) 17.0 62.1 20.9
Labor costs Material costs (raw materials, parts) Other India (n=185) 13.8 66.7 19.5
Pakistan (n=14) 9.9 81.8 8.3
Note: “Production cost” includes the costs of all resources consumed in producing a product,
such as materials, labor, and others. Labor costs Material costs (raw materials, parts) Other
 The ratio of labor costs to local production costs of Japanese-affiliated companies averaged 19.9%, while the ratio of material costs averaged 58.5%.
Thus, the material costs constitute a majority of local production costs. In comparison with the 2018 survey, labor costs increased by 0.3 pp, while
material costs decreased by 1.4 pp.
 By country/region, the ratio of labor costs is relatively high in Bangladesh, Cambodia, Sri Lanka, New Zealand and Singapore. On the other hand, the
ratio of material costs is high in Pakistan (81.8%), where Motor vehicles/Motorcycles is the major industry.

Local production cost in comparison with production cost in Local production cost in comparison with production cost in
Japan, which is taken as 100 (by company size and industry) Japan, which is taken as 100 (by country/region)
By company size 0 20 40 60 80 100 0 20 40 60 80 100

Large (n=1,069) 80.8 South Korea (n=37) 91.0
SME (n=957) 76.0 Australia (n=19) 86.4
By industry Taiwan (n=51) 86.1

0 20 40 60 80 100
Total (n=2,026) 78.5 New Zealand (n=19) 85.3
Motor vehicles/Motorcycles (n=399) 84.2 Pakistan (n=14) 82.9
Myanmar (n=23) 82.6
Wood/Pulp (n=35) 82.5
Hong Kong/Macau (n=19) 82.5
Chemical/Pharmaceutical (n=276) 81.1 Indonesia (n=277) 81.9
Iron/Nonferrous metals/Metals (n=347) 80.4 China (n=331) 80.0
Other manufacturing industries (n=251) 77.1 Thailand (n=311) 79.8
Electric machinery (n=293) 76.5
India (n=181) 76.4
General machinery (n=81) 75.4 Vietnam (n=393) 73.9
Food (n=121) 74.2 Philippines (n=62) 72.8
72.9 Bangladesh (n=22) 69.6
Precision machinery (n=61)
Rubber/Leather (n=48) 72.8
Laos (n=14) 61.8
Textiles (n=114) 66.5 Sri Lanka (n=9) 56.2
Note: “Production cost” includes the costs of all resources consumed in producing a product, such as materials, labor, and others.
Compared with the production cost in Japan, which is taken as 100, the average local production cost decreased from 78.7 in the 2018 survey by 0.2 pp to 78.5.
By industry, production costs are relatively high in Motor vehicles/Motorcycles, Wood/Pulp, Chemical/Pharmaceutical, Iron/Nonferrous metals/Metals and while the
cost is lower in Textiles at 66.5.
By company size, the costs of SMEs (76.0) were lower than those of large enterprises (80.8) by 4.8 pp. The gap increased by 3.4 pp from the 2018 survey (1.4 pp).
By country/region, production costs were higher in South Korea (91.0), Australia (86.4), Taiwan (86.1), Singapore (86.0), and New Zealand (85.3), but there was no
country/region where the costs were higher than those in Japan. On the other hand, the costs were less than 70% in Sri Lanka (56.2), Laos (61.8), Cambodia (62.9),
and Bangladesh (69.6).

Procurement sources for raw materials and parts

(by country/region, responses total 100%) Local Japan ASEAN China US Other (%)
0 20 40 60 80 100
Total (n=2,132) 47.9 29.3 6.8 7.3 0.9 7.8
China (n=348) 69.5 22.8 2.1 0.7 4.9
New Zealand (n=25) 67.5 11.8 0.4 4.8 1.1 14.4
Thailand (n=324) 60.8 26.1 2.5 5.2 0.7 4.7
India (n=180) 55.5 26.8 6.7 4.4 1.1 5.5
Australia (n=24) 46.5 26.4 8.8 7.7 2.7 7.9
Indonesia (n=297) 45.9 29.5 7.8 7.2 1.2 8.4
Taiwan (n=58) 45.8 36.3 3.3 9.5 1.4 3.7
South Korea (n=39) 44.4 37.7 2.7 7.6 0.9 6.7
Pakistan (n=15) 40.7 24.5 12.4 11.3 0.3 10.8
Malaysia (n=143) 37.8 33.1 10.7 9.6 0.4 8.4
Vietnam (n=415) 36.3 33.8 8.6 10.2 0.8 10.3
Philippines (n=63) 33.4 45.1 6.1 3.4 0.1 11.9
Singapore (n=74) 26.2 39.4 9.3 8.2 2.7 14.2
Laos (n=16) 23.4 23.4 25.6 22.1 5.5
Bangladesh (n=24) 22.8 25.8 13.3 19.5 2.2 16.4
Myanmar (n=25) 20.0 16.0 26.7 23.8 0.4 13.1
Sri Lanka (n=9) 19.7 39.1 13.8 10.3 0.6 16.5
Hong Kong/Macau (n=18) 19.1 29.6 5.0 38.1 0.2 8.0
Cambodia (n=35) 12.1 25.4 27.5 26.9 8.1
The largest procurement source for raw materials and parts in the local production activities of Japanese-affiliated companies was “Local”, increased from 46.9% in the
2018 survey by 1.0 pp to 47.9%. On the other hand, the rate of procurement from the US remained at the same level as the 2018 survey (0.9%), while the procurement
from ASEAN (-1.3 pp), Japan (-0.8 pp) and China (-0.2 pp) decreased.
By country/region, the local procurement rate was high in China, New Zealand, and Thailand, increasing from the 2018 survey by 3.2 pp, 2.5 pp, and 3.6 pp, respectively.
The procurement rate from Japan was the highest in Philippines (45.1%), followed by Singapore (39.4%), Sri Lanka (39.1%), South Korea (37.7%), and Taiwan (36.3%).
The procurement rate from ASEAN was the highest in Cambodia (27.5%), followed by Myanmar (26.7%) and Laos (25.6%).
The procurement rate from China was the highest in Hong Kong/Macau (38.1%), followed by Cambodia (26.9%) and Myanmar (23.8%).
The procurement rate from the US was the highest in Singapore (2.7%), and the rate was less than 1.0% in South Korea, Vietnam, China, Thailand, and Sri Lanka.

Future policy for local procurement of raw materials/parts Future policy for procurement of raw materials/parts from ASEAN
(by country/region, responses total 100%) (by country/region, responses total 100%)
Expansion Remaining the same Reduction Expansion Remaining the same Reduction
0 20 40 60 80 100 0 20 40 60 80 100
Total (n=1,659) 48.2 49.6 2.2 Total (n=523) 32.5 55.5 12.1
Bangladesh (n=19) 68.4 31.6
Laos (n=10) 70.0 30.0
India (n=161) 64.0 33.5 2.5
Vietnam (n=314) 58.3 41.1 0.6 Myanmar (n=10) 40.0 50.0 10.0
Indonesia (n=224) 53.6 46.0 0.5
Cambodia (n=18) 38.9 55.6 5.6
China (n=289) 51.2 46.4 2.4
Vietnam (n=117) 37.6 53.9 8.6
Myanmar (n=18) 50.0 50.0
Cambodia (n=19) 42.1 57.9 Philippines (n=16) 37.5 37.5 25.0
Taiwan (n=42) 40.5 59.5
Thailand (n=49) 36.7 59.2 4.1
Malaysia (n=108) 38.9 58.3 2.8
South Korea (n=31) 38.7 48.4 12.9 Taiwan (n=11) 36.4 63.6
Thailand (n=277) 38.6 58.8 2.5 Singapore (n=25) 36.0 64.0

Philippines (n=45) 31.1 66.7 2.2
Malaysia (n=55) 34.6 54.6 10.9
Australia (n=12) 25.0 75.0
Singapore (n=46) 23.9 65.2 10.9 Indonesia (n=93) 29.0 53.8 17.2
Laos (n=10) 20.0 60.0 20.0
India (n=53) 24.5 45.3 30.2
Hong Kong/Macau (n=12) 16.7 75.0 8.3
China (n=42) 16.7 69.1 14.3
New Zealand (n=17) 5.9 94.1

Future policy for procurement of Future policy for procurement of Future policy for procurement of
raw materials/parts from Japan raw materials/parts from China raw materials/parts from the US
(by country/region, responses total 100%) (by country/region, responses total 100%) (by country/region, responses total 100%)
Reduction Remaining the same Expansion Reduction Remaining the same Expansion Reduction Remaining the same Expansion
0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Total (n=1,496) 36.7 58.2 5.2 Total (n=585) 22.1 57.4 20.5
Total (n=171) 12.3 81.9 5.9
Myanmar (n=13) 38.5 46.2 15.4
India (n=143) 46.2 42.0 11.9

India (n=55) 32.7 50.9 16.4
China (n=242) 42.6 53.3 4.1 India (n=17) 29.4 64.7 5.9
Bangladesh (n=10) 30.0 60.0 10.0
Indonesia (n=199) 40.2 56.3 3.5
Vietnam (n=149) 28.2 53.7 18.1
Cambodia (n=25) 40.0 56.0 4.0
China (n=31) 29.0 67.7 3.2
Indonesia (n=85) 21.2 49.4 29.4
Vietnam (n=301) 39.9 56.8 3.3
South Korea (n=33) 36.4 54.6 9.1 Cambodia (n=19) 21.1 63.2 15.8
Indonesia (n=19) 21.1 79.0
Thailand (n=219) 33.8 62.1 4.1 Thailand (n=78) 19.2 60.3 20.5
Myanmar (n=12) 33.3 66.7

Philippines (n=16) 18.8 68.8 12.5
Thailand (n=19) 5.3 89.5 5.3
Malaysia (n=106) 27.4 67.9 4.7 Hong Kong/Macau
18.2 54.6 27.3
(n=11)
Taiwan (n=44) 27.3 70.5 2.3
Malaysia (n=60) 15.0 75.0 10.0
Philippines (n=50) 26.0 66.0 8.0 Vietnam (n=25) 88.0 12.0
Singapore (n=26) 11.5 53.9 34.6
Singapore (n=58) 19.0 70.7 10.3
Taiwan (n=23) 8.7 60.9 30.4

Pakistan (n=10) 10.0 80.0 10.0
Hong Kong/Macau South Korea (n=18) 66.7 27.8
7.1 78.6 14.3 5.6
(n=14)

Procurement sources of major countries (comparison between the 2010 survey, the 2013 survey, the 2016 survey and the 2019 survey)
100% 2.5 4.1 3.4 2.8

4.9 4.4 5.8 5.2 4.7 3.7 5.5 4.4
0.8 1.1 0.9 6.5 7.3 8.2 8.4
0.9 0.6 0.7 0.6 0.5 0.7 1.1
3.0 3.2 0.7 0.7 1.1
2.5
2.9 2.3 2.1 5.2 5.0 7.7 4.4 1.1 1.1 1.2
90% 6.5 5.3 4.4 4.6
4.7 2.5 5.3
3.0 6.7 7.2
4.6 14.8 9.8 15.8
25.9 22.8 12.1 13.5
80% 10.8 7.8
27.9
35.4
26.1
31.0 28.9
70% 26.8
29.7 24.5
60% 31.1 32.2 33.3 29.5

32.7 34.1
50%
40%
67.8 69.5
64.2
30% 58.3 60.8
56.1 57.1 55.5
52.7 54.1
45.2 43.4 45.9
20% 42.9 40.8 40.5
10%
0%
2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019
(n=464) (n=530) (n=327) (n=348) (n=503) (n=444) (n=367) (n=324) (n=74) (n=123) (n=165) (n=180) (n=87) (n=165) (n=201) (n=297)
China Thailand India Indonesia
Local Japan ASEAN China US Other

Procurement sources of major countries (comparison between the 2010 survey, the 2013 survey, the 2016 survey and the 2019 survey)
100% 1.9
0.8 4.3 4.8 4.0
2.0 6.7 6.3 8.5 7.2 6.1 8.4
10.3 10.9 10.3 1.2 10.5 11.7 11.9
2.1 1.5 1.3 0.9 2.0 0.5 0.9
5.4 6.1 0.7 0.4 4.4
90% 0.8 5.5 1.8 0.7 0.1
2.0 7.6 0.4 0.9
3.5 10.2 11.4 10.5 7.0 5.6 9.6 3.4
2.7 10.2 13.2 8.6 8.7
80% 12.5 6.1
12.0 11.5 12.9 10.7 10.7

38.2 12.4 8.6 8.1
16.6
70%
38.9 35.1
37.7
60% 29.1
27.9 45.1
33.8 32.8 33.1
35.6 50.0 39.0
50% 34.8 41.6
42.5
40%
30%
55.0
47.9 49.2
44.4 45.9
20% 42.3
36.3 36.6 37.8
32.2 34.2 31.6 33.4
27.2 27.9
10% 22.4
0%
2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019
South Korea Vietnam Malaysia Philippines
Local Japan ASEAN China US Other

Procurement sources for raw materials and parts

(by industry, responses total 100%) Local Japan ASEAN China US Other
(%)
0 20 40 60 80 100
Total (n=2,132) 47.9 29.3 6.8 7.3 0.9 7.8
Food (n=130) 71.2 11.7 7.5 1.9 1.0 6.7
Wood/Pulp (n=42) 61.6 16.7 6.2 5.3 2.4 7.8
General machinery (n=84) 56.4 28.4 1.1 9.6 0.6 3.9
53.0 29.1 8.6 3.7 0.5 5.1
(n=420)
Other manufacturing industries
49.6 26.7 5.7 8.6 1.5 7.9
(n=264)
Iron/Nonferrous metals/Metals
48.3 31.4 4.5 4.4 0.5 10.9
(n=355)
47.5 26.4 8.3 6.7 0.9 10.2
(n=291)
Rubber/Leather (n=54) 41.8 35.7 10.7 5.3 0.4 6.1
Textiles (n=124) 39.1 25.7 6.2 18.2 2.2 8.6
Electric machinery (n=301) 33.2 39.1 6.7 12.5 0.7 7.8
Precision machinery (n=67) 32.7 43.7 9.9 8.6 0.8 4.3
 By industry, the local procurement rate of raw materials and parts was high in Food and Wood/Pulp at 71.2% and 61.6%, respectively.
 The rate of procurement from Japan was higher in the Precision machinery, at over 40%. In comparison with the 2018 survey, the rate
increased by 0.9 pp.

Local procurement sources for raw materials and parts Local procurement sources for raw materials and parts
(by country/region, responses total 100%) (by company size and industry, responses total 100%)
Local companies Japanese-affiliated companies Other foreign-affiliated companies Local companies Japanese-affiliated companies
(%) Other foreign-affiliated companies (%)
0 20 40 60 80 100 0 20 40 60 80 100
Total (n=1,843) 51.9 40.5 7.6 Large (n=984) 53.0 38.9 8.1
South Korea (n=34) 83.1 12.0 4.9 SME (n=859) 50.6 42.3 7.1
Australia (n=17) 79.7 8.5 11.8
Taiwan (n=47) 76.2 19.5 4.3 Food (n=119) 77.5 16.8 5.7
New Zealand (n=21) 75.2 20.4 4.4 Wood/Pulp (n=40) 68.9 21.8 9.4
Other manufacturing
Pakistan (n=13) 73.1 18.5 8.4 60.6 31.4 8.0
industries (n=235)
55.3 37.3 7.5
India (n=162) 71.0 22.4 6.6 (n=248)
Textiles (n=103) 52.4 36.4 11.2
Bangladesh (n=20) 70.8 26.3 3.0
Precision machinery (n=57) 50.0 46.9 3.1
Myanmar (n=13) 69.9 14.3 15.8
Iron/Nonferrous
48.1 42.8 9.1
Hong Kong/Macau (n=11) 64.8 28.7 6.5 metals/Metals (n=296)
China (n=328) 63.2 30.5 6.3
Malaysia (n=122) 55.4 40.7 4.0 Motor vehicles/Motorcycles
43.6 51.6 4.8
(n=369)
Singapore (n=48) 55.1 33.2 11.7
Rubber/Leather (n=47) 42.8 45.8 11.4
Cambodia (n=17) 45.6 24.4 30.0
 “Local companies” was the largest local procurement source, at
Indonesia (n=262) 44.2 50.4 5.5
51.9%, followed by “Japanese-affiliated companies” (40.5%) and
Thailand (n=308) 41.0 54.7 4.4 “Other foreign-affiliated companies" (7.6%).
 “Japanese-affiliated companies” was most frequently cited as a
Vietnam (n=354) 37.4 48.6 14.0 procurement source in the Philippines (68.6%). The proportion
Philippines (n=53) 26.6 68.6 4.9 exceeded 50% in Thailand and Indonesia.
 By industry, the proportion of “Local companies” was the highest in
Note: Countries/regions for which the number of valid responses is 10 companies or more Food (77.5%).

5. Exports/Imports (1)
Proportion of export sales to the total sales (by country/region, responses as 0–100%)
100 1.0 4.5 2.5 3.9 3.3

5.5 8.9 7.6
12.0 7.8 13.3 8.2 12.3 10.4 11.7 10.7 11.8
90 6.0 11.3 13.6 16.1 24.1
4.2 11.7 28.7
6.2 14.8 10.3 34.1 31.9 43.3
80 7.0 6.8 20.3 16.6
24.0 5.3 9.6 24.8 29.5
11.2 1.8 6.2 24.8
10.3 14.4 35.7 66.4%
70 8.0 10.5 20.7
16.4 11.7 7.5 10.1 61.1%
13.8 16.8 18.2
60 33.7 11.8 16.8 53.1%
5.1 8.8 10.2 53.1%
27.3 25.9 5.8 49.2% 49.4%
25.3 2.3 7.1 25.2
50 15.2 21.8 8.3 3.5 10.7
23.8 32.7 24.3 2.3 20.0
34.9% 36.5% 47.3% 9.9 9.5 6.5
40 65.5 32.5% 44.6% 45.8% 11.4 9.2
28.5% 29.9% 10.7
26.5% 15.4 0.8 6.7
30 64.0 43.6
21.9% 23.3% 24.4%
14.6 16.0 5.9 3.3
16.0
17.8% 46.0
20 13.0% 38.4 40.5
35.7
41.1 34.4 32.0 34.1
41.0 28.5 30.2 29.7 26.9 26.7
10 20.6 22.0 22.0
0
(%) Pakistan India Taiwan Myanmar Indonesia
South
Thailand Australia China
New
Total
Hong
Malaysia Cambodia Sri Lanka Kong/Macau Singapore Vietnam Bangladesh Philippines Laos
Korea Zealand (n=44)
(n=25) (n=401) (n=205) (n=113) (n=513) (n=617) (n=146) (n=610) (n=4,803) (n=266) (n=87) (n=28) (n=262) (n=410) (n=726) (n=119) (n=30)
(n=122) (n=79)
0% 1% < 25% 25% < 50% 50% < 75% 75% < 100% 100% Average
Domestic sales-oriented Export-oriented

(export ratio: less than 50%) (50% +)
 The average proportion of export sales to total sales among Japanese-affiliated companies was 36.5% (up 1.4 pp from the previous year). By
country/region, the proportion of domestic sales-oriented companies was higher in Pakistan (the average export ratio was 13.0%, the same
hereinafter), India (17.8%), Taiwan (21.9%), and Myanmar (23.3%), and there was no change in the top countries/regions.
 The average export ratio of India, which is recently focusing its efforts on export promotion, increased by 3.0 pp from the 2018 survey. The
proportion of totally domestic sales-oriented companies (companies with 0% export sales) was 43.6%, which is the smallest proportion since the
survey started. In India, generous incentives are provided to export companies, and more companies have gotten involved in export business.

Proportion of export sales to the total sales: Trends in averages (2010–2019)
(%) ASEAN major countries CLM/Southwest Asia Northeast Asia/Oceania

90 90 90
80 80 80
70 70 66.4 70
61.1
60 60 60
53.1
53.1
50 49.4 50 47.3 50 49.2
44.6 45.8
40 40 40
34.9
32.5
30 28.5 30 30 29.9
23.3 26.5
24.4 21.9
20 20 20
17.8
10 10 13.0 10
0 0 0
Cambodia Laos China Hong Kong/Macau

Thailand Indonesia
Myanmar India Taiwan South Korea
Malaysia Singapore
Pakistan Bangladesh
Philippines Vietnam Australia New Zealand
Sri Lanka
Note: Hong Kong includes Macao from 2011.

Breakdown of export destinations (by country/region, responses total 100%)
(%)
0 10 20 30 40 50 60 70 80 90 100
Total (n=3,306) 45.3 4.3 6.6 23.0 1.7 4.9 2.3 4.0 3.3 1.63.0
0.2 0.5
China (n=418) 60.5 11.6 9.6 1.3 3.0 5.5 3.6 4.3
Hong Kong/Macau (n=216) 31.9 3.8 34.1 16.3 0.83.80.7 3.5 0.9
3.3 0.9
2.1
Taiwan (n=119) 35.9 5.1 29.7 13.6 0.8 1.7 5.2 1.9 3.4
2.0 0.6 0.6
South Korea (n=81) 35.6 2.0 21.2 15.8 1.5 6.5 8.4 1.4 5.0
ASEAN (n=2,039) 45.7 3.4 3.8 29.6 2.2 0.73.5 1.1

4.5 2.9 2.6
Singapore (n=318) 18.0 3.2 3.7 53.8 4.4 4.8 2.4 3.6 2.4
1.5 2.3
Malaysia (n=191) 30.0 4.5 7.0 37.4 1.1 6.2 0.6 4.3 5.0 0.9 3.0
Thailand (n=458) 39.7 2.9 4.0 29.9 4.1 0.7 3.6 2.51.4 3.9
7.3
0.7 1.2
Indonesia (n=300) 45.8 2.12.8 32.3 2.6 3.7 4.5 2.0 2.3
0.7 0.84.8 0.5
Philippines (n=91) 62.5 6.9 3.9 12.1 2.3 4.9
0.7
Vietnam (n=564) 65.0 3.7 3.6 15.4 3.3 3.5 2.8 1.7
0.3 0.5
0.4 0.6
Cambodia (n=50) 67.1 2.7 2.2 24.1 0.1
2.4
0.6
Laos (n=21) 58.0 1.0 38.2 2.1 0.7
0.7 2.6 2.8 3.4 1.0
Myanmar (n=46) 64.5 3.3 3.0 18.3 0.1 0.3
0.2
Bangladesh (n=29) 68.7 5.9 2.3 6.6 2.8 4.3 7.9 0.7 0.7
Sri Lanka (n=17) 40.9 4.5 1.4 5.2 7.9 0.6 10.2 15.1 3.2 8.7
2.3
India (n=228) 40.0 0.8 2.2 17.8 15.4 0.7 5.4 5.4 7.6 4.8
1.2
Pakistan (n=11) 14.1 1.8 7.1 3.0 33.9 2.4 7.7 7.7 20.8 0.3
0.7 1.0
Australia (n=99) 31.2 4.9 5.2 6.4 3.4 42.3 0.7 3.1 1.3
2.0 1.6
New Zealand (n=49) 46.2 1.4 5.6 3.8 1.3 28.8 3.6 0.5 5.2
Japan South Korea/Taiwan/Hong Kong China ASEAN India Other Asia Oceania US Europe Middle East/Africa Other

Export destinations of major countries (comparison between the 2010 survey, the 2013 survey, the 2016 survey and the 2019 survey)
100%
12.5 15.9 15.9
90% 16.4 18.5 17.7 18.7 18.3
21.0 21.5 20.8 20.3 23.7 20.4
29.3 29.2
8.4 3.3
80% 4.3 1.4 4.7 5.2 3.8
4.4 3.9 3.6 3.8 5.1 4.0 2.5
3.4 6.5 4.9 3.9 3.6
5.5 6.2 10.0
8.6 6.2 5.6 8.0 9.0
70%
12.9 10.0 6.1 5.4
10.5 9.6 15.8 9.6
10.9 7.5 5.4
60% 12.8 31.9
30.4 31.7 29.9
8.5
50% 28.1 22.9 19.8 25.0 17.8
8.1
21.2
25.6 4.5 4.0 3.1
40% 6.0 4.7 2.2
2.0 1.8
66.3
30% 58.0 59.0 60.5
20% 38.5 40.4 39.7 41.4 38.0 40.0

35.3 35.6 37.6 37.6 36.7
29.8
10%
0%
2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019
China South Korea Thailand India
Japan China ASEAN US Europe Other

 Looking at the changes in the breakdown of four major countries’ export destinations from the 2010 survey, the ratio of exports to China is
decreasing among Japanese-affiliated companies in South Korea. For these companies, major customers are local conglomerates, and direct
sales to Chinese companies is decreasing. Among Japanese-affiliated companies in India, exports to Europe and the US are decreasing.

Export destinations of major countries (comparison between the 2010 survey, the 2013 survey, the 2016 survey and the 2019 survey)
100%
10.3 10.3 6.9 8.7 9.7
12.8 13.3 13.2 11.4 12.6 11.5 10.7 10.7
16.3 14.9 14.4 3.4
90% 3.0 2.8
2.3 3.4 2.0 3.5 4.5 6.3 2.7
5.0 4.0 3.1 4.7 2.3 4.5 4.3 3.5
3.8 3.8 4.8 4.5
3.5 3.6 5.0 5.0 6.1 7.8 6.7 4.8
80% 2.6
4.3 15.4
12.1 20.5 19.3 19.5
70% 16.5
20.2 20.7 3.6
31.7 32.3 3.9
34.7 35.4 2.2 3.8
60% 37.9 40.1 4.4
5.9
46.5 37.4 6.7 6.6
50% 2.6
2.0 2.8
2.2
40%
6.2 5.5
7.0 65.0
30% 4.4 62.5 60.7 60.7
55.6 58.4
50.8 51.2
45.8 47.2 45.8
20% 41.1
34.6 33.5
27.8 30.0
10%
0%
2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019 2010 2013 2016 2019
Malaysia Indonesia Philippines Vietnam
Japan China ASEAN US Europe Other

 Looking at the changes in the breakdown of four major ASEAN countries’ export destinations, the ratio of exports to Japan is decreasing among
Japanese-affiliated companies in Malaysia. The ratio of exports to Japan is increasing among Japanese-affiliated companies in the Philippines,
indicating that the Philippines is strengthening its position as a processing base for exports to Japan in Japanese-affiliated companies’ supply
chains.
Note: Countries/regions for which the number of valid responses is 10 companies or
more. In descending order of the DI obtained by deducting the percentage of
Future export policy (by country/region) “Reduction” from the percentage of “Expansion”; the percentage of “Remaining the
same” is not shown.
(%)
Export to Japan Export to China 拡大縮小 Export to ASEAN
拡大
Expansion 縮小
Reduction Expansion Reduction 拡大
Expansion 縮小
Reduction
100 0 100 100 0 100 100 0 100
Total(1,929) 10.4 27.2 Total(645) 12.7 26.8 Total(1,260) 5.4 50.8

Cambodia(35) 2.9 40.0 South Korea(37) 2.7 43.2 Cambodia(19) 10.5 68.4
Vietnam(383) 7.8 35.3
Myanmar(16) 25.0 HongKong/Makau(90) 3.3 60.0
Taiwan(73) 2.7 30.1
Vietnam(74) 10.8 35.1 Vietnam(173) 4.6 60.1
Myanmar(40) 10.0 35.0
Philippines(67) 7.5 31.3 India(33) 9.1 27.3 India(87) 4.6 56.3
India(137) 11.0 33.6 Malaysia(40) 10.0 27.5 Philippines(30) 50.0

Bangladesh(19) 15.8 36.8 Taiwan(51) 2.0 51.0
Singapore(72) 12.5 29.2
New Zealand(20) 10.0 30.0
Taiwan(67) 14.9 29.9 Singapore(192) 5.7 53.1
ASEAN(1,181) 9.8 28.5
ASEAN(365) 12.6 25.2 ASEAN(875) 5.8 51.3
Malaysia(86) 4.7 20.9
Laos(14) 7.1 21.4 HongKong/Makau(114) 19.3 27.2 Myanmar(25) 4.0 48.0
Singapore(119) 9.2 22.7 Thailand(77) 11.7 18.2 Thailand(196) 5.1 45.9

Thailand(261) 11.9 23.4 Indonesia(139) 7.9 48.2
Australia(16) 6.3
South Korea(45) 13.3 24.4
Indonesia(58) 17.2 15.5 Malaysia(92) 7.6 47.8
China(278) 13.7 23.0
Philippines(19) 26.3 21.1
China(101) 4.0 42.6
Indonesia(176) 16.5 25.0
HongKong/Makau(120) 12.5 17.5
Australia(43) 4.7 9.3 Australia(15) 13.3 13.3

Note: Countries/regions for which the number of valid responses is 10 companies or
more. In descending order of the DI obtained by deducting the percentage of
Future export policy (by country/region) “Reduction” from the percentage of “Expansion”; the percentage of “Remaining the
same” is not shown.
(%)
Export to the US Export to Europe 拡大縮小 Export to India 拡大
Expansion 縮小
Reduction
拡大
Expansion 縮小
Reduction Expansion Reduction
100 0 100
100 50 0 50 100 100 0 100
Total(582) 10.5 27.2 Total(518) 7.0 28.2 Total(391) 3.1 36.6
Vietnam(79) 3.8 51.9 India(52) 5.8 53.9 HongKong/Makau(24) 50.0
India(49) 2.0 46.9 South Korea(21) 9.5 52.4

Singapore(86) 3.5 50.0
Myanmar(13) 30.8 Myanmar(13) 30.8

Malaysia(25) 44.0
Taiwan(34) 26.5 Philippines(17) 5.9 35.3
Philippines(10) 40.0
ASEAN(330) 8.5 28.5
Taiwan(29) 24.1
Vietnam(52) 7.7 28.9 South Korea(10) 40.0

Philippines(22) 13.6 27.3
ASEAN(282) 8.2 23.8 ASEAN(278) 4.0 38.9
Malaysia(31) 9.7 22.6
Singapore(54) 3.7 18.5 Thailand(76) 4.0 38.2
Singapore(47) 6.4 17.0
Thailand(60) 10.0 23.3
Thailand(76) 10.5 18.4 Vietnam(26) 7.7 38.5
China(68) 5.9 19.1
Taiwan(22) 27.3
Indonesia(46) 10.9 19.6
Indonesia(52) 15.4 19.2
China(45) 22.2
Malaysia(32) 15.6 18.8 Indonesia(42) 7.1 23.8
China(87) 26.4 12.6

Note: Countries/regions for which the number of valid responses is 10 companies or more. In
Future export policy (by country/region) descending order of the DI obtained by deducting the percentage of “Reduction” from the
percentage of “Expansion”; the percentage of “Remaining the same” is not shown. Middle
East/Africa indicates the total of Middle East and Africa.
(%)
Export to Hong Kong 拡大
Expansion 縮小
Reduction Export to Taiwan 拡大
Expansion 縮小
Reduction Export to South Korea 拡大
Expansion 縮小
Reduction
100 0 100 100 0 100 100 0 100
Taiwan(34) 26.5 Malaysia(25) 24.0 Taiwan(27) 3.7 22.2
Philippines(17) 5.9 23.5 HongKong/Makau(42) 7.1 31.0 Philippines(11) 18.2
Singapore(50) 6.0 22.0 Vietnam(27) 22.2 China(60) 6.7 16.7
India(22) 4.6 18.2 Myanmar(12) 16.7 Vietnam(32) 3.1 12.5
Vietnam(37) 8.1 18.9 India(25) 4.0 20.0 Malaysia(22) 13.6 18.2
Export to other Asia 拡大

Expansion 縮小
Reduction Export to Oceania 拡大
Expansion 縮小
Reduction Export to Middle East/Africa 拡大
Expansion 縮小
Reduction
100 0 100 100 0 100 100 50 0 50 100
India(58) 3.5 55.2 Australia(39) 38.5 India(73) 2.7 50.7
Singapore(66) 3.0 50.0 Philippines(11) 27.3 HongKong/Makau(35) 25.7
Vietnam(43) 4.7 48.8 New Zealand(13) 7.7 30.8 Singapore(79) 21.5
Taiwan(27) 29.6 Vietnam(18) 22.2 South Korea(10) 20.0
Indonesia(48) 4.2 31.3 Singapore(61) 6.6 24.6 Malaysia(28) 3.6 21.4

Most promising export market for business/products over the next 1 to 3 years (by country/region)
(%)
0 10 20 30 40 50 60 70 80 90 100
Total (n=4,069) 20.0 1.8 7.1 40.0 8.5 2.7 1.7 5.9 4.3 4.3 3.8
China (n=496) 33.5 5.2 31.8 7.7 1.8 4.4 7.7 1.8 5.5
0.6
2.3 3.0
Hong Kong/Macau (n=264) 8.3 2.3 24.2 41.7 8.0 1.1 4.2 1.1 3.8
Taiwan (n=171) 13.5 2.9 22.2 33.9 9.4 1.8 6.4 0.6 6.5
0.6 2.3
South Korea (n=100) 12.0 2.0 30.0 28.0 8.0 1.0 11.0 4.0 2.0
2.0
0.7
ASEAN (n=2,473) 20.2 1.1 5.1 46.9 10.1 5.9 3.1 2.3 3.0
1.6
Singapore (n=390) 5.6 1.3 4.1 64.1 13.6 1.52.12.11.81.82.1
Malaysia (n=222) 11.3 1.4 9.5 47.8 10.4 2.3 4.5 4.5 3.2 4.5
0.9
Thailand (n=556) 14.9 0.2 4.9 54.5 14.6 0.4 4.1 2.91.61.4
0.5
3.0
Indonesia (n=400) 18.0 1.3 3.8 45.5 10.3 0.5 6.8 2.0 3.5 5.5
Philippines (n=104) 34.6 1.9 12.5 28.8 3.9 1.0 9.6 1.91.9 3.9
Vietnam (n=627) 34.1 1.8 4.8 33.2 6.7 1.0 9.6 4.6 1.6
0.5 2.2
Cambodia (n=65) 26.2 3.1 46.2 1.5 4.6 6.2 1.5 4.6 6.1
Laos (n=23) 34.8 4.4 56.5 4.4
Myanmar (n=86) 25.6 2.3 43.0 5.8 4.7 5.8 4.7 4.7 3.5
Bangladesh (n=35) 28.6 2.9 11.4 11.4 2.9 14.3 11.4 8.6 8.6
Sri Lanka (n=21) 14.3 4.8 9.5 19.0 9.5 4.8 19.1 14.3 4.8
India (n=327) 15.3 0.3 2.1 25.1 13.2 8.0 7.0 24.8 4.3
Pakistan (n=18) 5.6 11.1 16.7 11.1 16.7 33.3 5.5
Australia (n=108) 16.7 1.9 10.2 13.0 5.6 30.6 6.5 1.9 4.6 8.3
0.9
New Zealand (n=56) 19.6 5.4 16.1 12.5 1.8 21.4 8.9 3.6 5.4 5.3
Japan South Korea/Taiwan/Hong Kong China ASEAN India Other Asia Oceania US Europe/Russia Middle East/Africa Other

Most promising export market for business/products over the next 1 to 3 years (by country/region) (2012–2019)
Total (Manufacturing/Non-manufacturing) Manufacturing Non-manufacturing

(%) (%) (%)
25 25 25
21.4
20 20.0 20 18.7 20
15 15 15 14.9
12.9
10.8
10 10 10
9.3
8.5 8.0 7.8
8.0
7.6
7.1 7.1 7.0
6.8 6.8
6.1 5.5
5 5 5
0 0 0
2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019
Japan Indonesia Japan Indonesia Japan Indonesia

China India China Thailand
China Thailand
Thailand US Vietnam CLM
Vietnam India Vietnam India

Utilization of existing (in force) FTAs/EPAs (only companies involved in export/import) Note: Manufacturing industries with valid responses
from 10 or more companies
Proportions of companies utilizing FTAs/EPAs Proportions of companies utilizing FTAs/EPAs

(total, by company size and industry) (by country/region)
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Total (n=2,712) Pakistan (n=13) 76.9 15.4 7.7

52.4 9.2 38.4
Indonesia (n=329) 69.6 5.5 24.9
Large (n=1,656) 55.8 8.1 36.1
South Korea (n=74) 62.2 12.2 25.7
SME (n=1,056) 47.2 11.0 41.9 Thailand (n=400) 59.5 10.0 30.5
India (n=248) 58.5 15.3 26.2

Textiles (n=96) 74.0 9.4 16.7
Australia (n=91) 58.2 6.6 35.2
Rubber/Leather (n=40) 70.0 7.5 22.5 Malaysia (n=169) 56.8 7.1 36.1
Motor vehicles/Motorcycles Myanmar (n=40) 55.0 5.0 40.0

(n=305) 68.5 8.2 23.3
Vietnam (n=435) 54.0 10.3 35.6
(n=222) 61.3 7.7 31.1
New Zealand (n=39) 53.9 2.6 43.6
Food (n=87) 59.8 8.1 32.2 Laos (n=17) 52.9 47.1
Iron/Nonferrous Cambodia (n=32) 46.9 9.4 43.8

metals/Metals (n=231) 58.4 9.1 32.5
China (n=215) 46.1 9.3 44.7
Philippines (n=77) 40.3 3.9 55.8
Wood/Pulp (n=24) 54.2 12.5 33.3 Singapore (n=232) 40.1 9.5 50.4
Transport Bangladesh (n=21) 38.1 14.3 47.6

activities/Warehouse (n=81) 53.1 4.9 42.0
Taiwan (n=97) 30.9 8.3 60.8
Hong Kong/Macau (n=173) 23.1 10.4 66.5
General machinery (n=68) 39.7 8.8 51.5 Sri Lanka (n=10) 20.0 80.0
Note 1: The proportions of “Currently in use” are calculated as the ratio of companies that are using at least
Currently in use Considering using No plan to use one FTA or EPA to companies that are involved in either exporting or importing, or both.
Note 2: The proportions of ”Considering using” are calculated as the ratio of companies that are not using
any EPA/FTA and that are considering the use of at least one FTA or EPA to companies that are
involved in either exporting or importing, or both.
Note: The FTA/EPA use rates are calculated as the ratio of companies
that are using at least one FTA or EPA to companies that are
Utilization of existing (in force) FTAs/EPAs (only companies involved in export/import) involved in either exporting or importing, or both. The FTA/EPA use
rates for exporting (importing) are calculated as the ratio of
companies that are using at least one FTA or EPA for exporting
(importing) to companies that are involved in exporting (importing).
Trends in FTA/EPA utilization by Japanese-

Proportions of companies utilizing FTAs/EPAs (2011–2019)
affiliated companies in ASEAN (2006–2019)
(%) (%)
60 60
51.8 53.4
48.1 48.4 49.6

49.3
50 45.9 50
46.1 50.2
42.8 43.8 44.7 48.7
42.1 42.6 47.4
39.6 40.3 40.7 40.4
46.1 45.2
40 37.2 37.4 43.1
42.7 40 42.4
41.3 42.2
40.4
38.9
37.9 37.9 37.2
35.5 35.4 29.7
33.9 35.0
30 30
52.4 23.0
47.5 49.0 48.3
44.5 19.7 19.3
43.7 24.1
20 40.3 40.3 41.2 20
19.7
16.0 16.7
10 10
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Use rate Using for exporting Using for importing Using for exporting Using for importing
 A total of 52.4% of the companies engaged in trade are using FTAs/EPAs. Looking at the FTA/EPA use rate of Japanese -affiliated
companies in ASEAN on a long-term basis from 2006, the rate exceeded 50% both in imports and exports for the first time since the
survey began.

Note: These figures include companies making use of Early Harvest accelerated tariff reductions for designated products.
FTA/EPA utilization (ASEAN) Bilateral FTAs/EPAs are included in multi lateral FTAs/EPAs. The percentage of companies using FTAs/EPAs is calculated
as the ratio of companies making use of FTAs/EPAs to companies involved in importing/exporting.
Export Import Export Import
% of all % of all % of all % of all

Trade Companies Companies Trade Companies Companies Companies Companies Companies Companies
companies companies companies Trade companies
involved in using
using
involved in using
using Trade partners involved in using involved in using
partners export FTAs/EPAs partners import FTAs/EPAs export FTAs/EPAs
using partners import FTAs/EPAs
using
FTAs/EPAs FTAs/EPAs FTAs/EPAs FTAs/EPAs
ASEAN 155 88 56.8 ASEAN 96 63 65.6 ASEAN 170 66 38.8 ASEAN 84 34 40.5
China 65 42 64.6 China 99 55 55.6 China 46 22 47.8 China 56 19 33.9
Japan 196 92 46.9 Japan 293 160 54.6 Japan 78 25 32.1 Japan 149 47 31.5
Thailand
South Korea 20 14 70.0 South Korea 36 15 41.7 South Korea 27 12 44.4 South Korea 27 12 44.4
Hong Kong 23 10 43.5 Taiwan 30 9 30.0 Taiwan 27 6 22.2
Singapore
India 61 22 36.1 Hong Kong 35 8 22.9
US (GSP) 24 6 25.0 Australia 45 14 31.1

New Zealand 22 9 40.9
ASEAN 128 79 61.7 ASEAN 129 83 64.3
India 67 21 31.3
China 64 32 50.0 China 105 47 44.8
Sri Lanka 26 7 26.9
Japan 279 115 41.2 Japan 307 136 44.3
GCC 20 2 10.0
Japan (GSP) 44 19 43.2
Vietnam
US 29 7 24.1
South Korea 23 13 56.5 South Korea 42 14 33.3
ASEAN 84 47 56.0 ASEAN 68 39 57.4
Hong Kong 30 8 26.7 Hong Kong 22 7 31.8
China 46 24 52.2 China 59 24 40.7
Malaysia
India 32 16 50.0
Japan 86 39 45.4 Japan 136 60 44.1
EU (GSP) 22 17 77.3
Mexico 22 10 45.5
India 29 17 58.6
ASEAN 122 84 68.9 ASEAN 150 109 72.7
Philippines
China 53 33 62.3 China 123 85 69.1 ASEAN 26 10 38.5 ASEAN 28 12 42.9

Indonesia
Japan 141 71 50.4 Japan 272 182 66.9

South Korea 21 12 57.1 South Korea 48 30 62.5 Japan 51 10 19.6 Japan 50 19 38.0
Myanmar
India 39 22 56.4 India 30 18 60.0

US (GSP) 29 10 34.5 ASEAN 20 12 60.0
EU (GSP) 25 14 56.0 Note: Countries/regions with valid responses from 20 or more companies involved in importing/exporting or
valid responses from 10 or more FTA/EPA-using companies

Note: These figures include companies making use of Early Harvest accelerated tariff reductions for designated products.
FTA/EPA utilization (East Asia/India/Australia) Bilateral FTAs/EPAs are included in multi lateral FTAs/EPAs. The percentage of companies using FTAs/EPAs is
calculated as the ratio of companies making use of FTAs/EPAs to companies involved in importing/exporting.
Export Import
% of all % of all
Companies Companies Companies Companies
companies companies
Trade partners involved in using Trade partners involved in using
using using
export FTAs/EPAs import FTAs/EPAs
FTAs/EPAs FTAs/EPAs
ASEAN 89 47 52.8 ASEAN 54 37 68.5

China
Hong Kong 61 17 27.9 Hong Kong 39 9 23.1

Taiwan 43 8 18.6 Taiwan 32 10 31.3
Singapore 32 11 34.4
Macau
Taiwan Kong/
China 125 21 16.8 China 97 15 15.5

Hong
ASEAN 95 22 23.2 ASEAN 49 12 24.5

China 66 20 30.3 China 57 13 22.8
Singapore 25 3 12.0
ASEAN 27 11 40.7 ASEAN 17 11 64.7
South Korea
China 41 18 43.9 China 44 28 63.6

EU 20 12 60.0 EU 13 11 84.6
US 28 14 50.0
Vietnam 18 10 55.6
ASEAN 55 30 54.6 ASEAN 103 74 71.8
Japan 68 23 33.8 South Korea 26 14 53.9
India
Japan (GSP) 18 10 55.6 Japan 201 115 57.2

EU (GSP) 16 10 62.5
SAARC 21 8 38.1
ASEAN 19 10 52.6 ASEAN 32 19 59.4
Australia
Japan 33 15 45.5 China 23 12 52.2

New Zealand 24 11 45.8 Japan 58 39 67.2
Note: Countries/regions with valid responses from 20 or more companies involved in importing/exporting or valid responses from 10 or more FTA/EPA-using companies

Note: Each responding company answered regarding its modes of transport for up to
Mode of transport for imports five import items. For valid responses, the number of responded modes of transport,
(by country/region, responses total 100%) instead of the number of responding companies, is used as the parameter.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total (n=3,452) 77.1 17.8 3.3 1.2 0.6

Pakistan (n=41) 89.1 8.7 2.2
Myanmar (n=81) 88.0 5.4 6.5
Indonesia (n=545) 84.5 13.5 1.7 0.3
0.9 1.0
Vietnam (n=673) 82.8 14.0
1.4
Australia (n=143) 81.7 17.1 1.1
New Zealand (n=54) 80.6 17.9 1.5
India (n=368) 80.2 19.0 0.7 0.2
ASEAN (n=2,448) 78.1 16.2 3.5 0.7
1.4
Malaysia (n=233) 76.6 15.5 7.9
Philippines (n=91) 76.5 16.0 5.9 1.7
Thailand (n=488) 75.4 21.0 2.3 0.5 0.8
Taiwan (n=177) 75.0 23.7 0.40.8
Singapore (n=272) 70.5 23.1 3.6 1.6 1.3
Sri Lanka (n=15) 65.2 26.1 8.7
Cambodia (n=48) 58.5 9.8 31.7
Hong Kong (n=165) 57.5 28.2 12.9 0.7 0.7
Laos (n=17) 37.8 8.9 42.2 11.1
Ocean Air Truck Combination Other

Average transportation days for major import routes (by origin of import and by mode of transport)
Countries/ Origin of Mode of Valid Transportation Countries/ Origin of Mode of Valid Transportation Countries/ Origin of Mode of Valid Transportation
transport responses days transport responses days transport responses days
regions import regions import regions import
Indonesia Ocean 24 11.3 Malaysia Ocean 26 8.0 Thailand Ocean 12 7.1
Malaysia Ocean 12 6.9 Thailand Ocean 75 7.9 Japan Ocean 67 8.0
Truck 12 3.7 Singapore Ocean 26 3.8 Air 43 1.8
Hong Kong
Vietnam Ocean 16 7.6 Japan Ocean 219 17.0 China Ocean 27 6.4
India Ocean 16 16.6 Air 59 2.5 Truck 33 1.9
Indonesia
Japan Ocean 246 14.8 South Korea Ocean 24 16.5 Taiwan Ocean 11 4.5
Air 94 2.5 China Ocean 76 13.5 Japan Ocean 98 8.1
Thailand
South Korea Ocean 23 12.3 Taiwan Ocean 16 12.0 Taiwan Air 31 2.3
China Ocean 77 12.6 US Ocean 17 37.9 China Ocean 24 7.1
Air 10 3.6 Europe Ocean 10 46.9 Thailand Ocean 16 20.6
Hong Kong Ocean 10 7.2 Indonesia Ocean 21 11.2 Japan Ocean 55 24.6
Australia
Taiwan Ocean 12 11.1 Malaysia Ocean 31 10.3 Air 11 3.1
US Ocean 11 58.6 Thailand Ocean 74 7.0 China Ocean 21 22.3
Europe Ocean 11 36.8 Air 13 1.8 New Japan Ocean 24 26.9
Indonesia Ocean 16 4.1 Singapore Ocean 14 5.7 Zealand
Malaysia Truck 13 1.8 Japan Ocean 316 12.7 Japan Ocean 13 25.2
Bangladesh
Thailand Ocean 25 5.1 Air 69 2.0
Vietnam
Vietnam Ocean 12 6.5 South Korea Ocean 22 12.0 Malaysia Ocean 11 21.5
Singapore
Japan Ocean 100 12.3 China Ocean 100 8.5 Thailand Ocean 54 20.6
Air 47 2.1 Air 12 1.5 Singapore Ocean 10 9.3
China Ocean 36 11.1 Hong Kong Ocean 20 4.6 Japan Ocean 161 31.0
India
Taiwan Ocean 13 8.6 Taiwan Ocean 32 9.9 Air 51 3.1
Indonesia Ocean 20 9.8 US Ocean 10 33.5 South Korea Ocean 18 26.3
Thailand Ocean 22 6.5 Europe Ocean 11 43.2 China Ocean 45 27.4
Truck 12 2.9 Thailand Truck 15 1.7 Europe Ocean 16 34.8
Malaysia Singapore Truck 11 1.2 Cambodia Japan Ocean 16 18.8 Japan Ocean 12 27.4
Pakistan
Japan Ocean 106 15.6 China Ocean 15 15.5
Air 33 2.1 Thailand Truck 15 1.4 Note: Average transportation days with valid
Laos
China Ocean 39 11.1 responses on import routes by mode of transport from
Thailand Ocean 12 6.8 Thailand Ocean 13 12.9 10 or more companies; each responding company
Philippines Japan Ocean 43 12.6 Myanmar Japan Ocean 21 25.0 answered regarding its transport days for up to five
Air 14 2.1 China Ocean 17 19.5 major import items. For valid responses, the number of
responded transportation days, instead of the number
of responding companies, is used as the parameter.

Note: Countries/regions for which the number of valid responses is 10 companies or more; each
Average import customs clearance days responding company answered regarding its average number of days from arrival at the port/border to
the completion of import customs clearance for up to five major import items. For valid responses, the
(by country/region and by mode of transport) number of responded average customs clearance days, instead of the number of responding
companies, is used as the parameter.
Total (Days) Ocean (Days) Air (Days) Truck (Days)
Total (n=4,375) 4.0 Total (n=3,308) 4.5 Total (n=781) 2.4 Total (n=140) 1.6
Bangladesh (n=54) 12.8 Bangladesh (n=41) 14.3 Bangladesh (n=12) 8.1 Cambodia (n=24) 2.2
Pakistan (n=41) 7.0 Pakistan (n=36) 6.8 India (n=84) 3.8
Malaysia (n=21) 1.4
Myanmar (n=90) 6.4 Myanmar (n=78) 6.8 Indonesia (n=86) 3.4
India (n=434) 6.0 India (n=342) 6.6 Vietnam (n=112) 2.5
Thailand (n=15) 1.3
Indonesia (n=640) 4.5 Philippines (n=89) 4.8 Australia (n=30) 2.3
Philippines (n=119) 4.3 Hong Kong (n=34) 1.3
Australia (n=131) 4.7 Thailand (n=134) 2.1
Australia (n=168) 4.3 Indonesia (n=529) 4.7 Taiwan (n=56) 1.8 Laos (n=19) 1.1
Thailand (n=632) 3.7 Thailand (n=474) 4.3 Singapore (n=85) 1.8

New Zealand (n=61) 3.6 New Zealand (n=47) 4.0 Malaysia (n=47) 1.7
Combination (Days)
Vietnam (n=819) 3.6 Taiwan (n=173) 3.9 New Zealand (n=12) 1.7
Taiwan (n=236) 3.4 Sri Lanka (n=15) 3.8 Philippines (n=19) 1.7 Total (n=49) 3.3
Malaysia (n=297) 3.2 Vietnam (n=664) 3.8 Hong Kong (n=77) 1.2 Vietnam (n=11) 2.8
Cambodia (n=75) 3.1 Cambodia (n=41) 3.7 Looking at the average customs clearance days of Japanese-affiliated
Sri Lanka (n=23) 3.1 companies in Asia and Oceania by country, customs clearance takes the most
days in Bangladesh (12.8 days). In Laos, truck transport through Thailand is
Singapore (n=365) 2.5 Singapore (n=250) 2.9 the major mode because Laos has no sea port, and customs clearance on the
border between the two countries takes only 1.1 days. (Actually, customs
Laos (n=46) 2.3 Hong Kong (n=153) 2.8 clearance does not require a whole day, in many cases.) The average
Hong Kong (n=270) 2.1 Laos (n=17) 2.5
customs clearance days exceeded one day in Singapore, Hong Kong, etc.,
because many companies answered “One day” even though they can
complete customs clearance within a day.

Improvement of import clearance procedures in the last few years Note: The question was asked from the perspective of improvement of
speed (including computerization), simplification, efficiency, progress in
(by country/region, in the order of average customs clearance days) computerization, transparency, and predictability.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total (n=3,695) 7.6 22.7 46.1 2.5 1.1 19.9

ASEAN average (n=2,594) 7.5 24.9 45.4 2.4 1.2 18.6
Bangladesh (n=42) 4.8 11.9 54.8 9.5 4.8 14.3
Pakistan (n=25) 16.0 20.0 40.0 12.0 4.0 8.0
Myanmar (n=103) 7.8 40.8 21.4 3.9 26.2
India (n=381) 12.1 28.9 35.7 2.9 1.1 19.4
Indonesia (n=459) 11.1 35.1 34.4 4.4 2.0 13.1
Philippines (n=119) 0.8 20.2 43.7 5.0 5.9 24.4
Australia (n=120) 3.3 13.3 50.0 1.7 31.7
Thailand (n=557) 6.8 20.1 54.2 1.8 0.7 16.3
New Zealand (n=65) 6.2 6.2 43.1 3.1 1.5 40.0
Vietnam (n=668) 7.5 29.6 43.6 2.5 0.5 16.3
Cambodia (n=75) 9.3 41.3 33.3 2.7 13.3
Taiwan (n=196) 5.1 11.7 55.1 3.6 1.0 23.5
Malaysia (n=225) 3.6 16.4 60.0 3.61.3 15.1
Sri Lanka (n=23) 4.4 17.4 30.4 8.7 39.1
Singapore (n=364) 8.2 10.2 49.5 32.1
Laos (n=24) 4.2 20.8 54.2 20.8
Hong Kong/Macau (n=249) 6.0 9.6 62.3 0.8 21.3
Improved Somewhat improved No change Somewhat declined Declined Cannot say it has improved or declined

Trade facilitation measures required to improve Trade facilitation measures in the countries/regions
trade in the countries/regions (multiple answers)
(Valid responses: 3,639) (%)
Enhancing information on trade systems and procedures (streamlining
42.1
information available online such as through assembling databases)
Necessity of trade facilitation measures Making port authorities and customs officers share a common interpretation
about the assessment of tariff classification (preventing different judgements 33.0
0% 20% 40% 60% 80% 100% depending on individual customs stations and officers)
Applying an advance ruling system and making it accessible (Classification of
32.8
Total (n=3,639) 75.9 24.1 HS Code, Customs Assessment, and rules of origin, etc.)
Applying computerization, paperless and a sophisticated ICT system 30.9
Pakistan (n=25) 96.0 4.0 　Introducing advance procedures done before cargo arrives (allowing
13.7
Indonesia (n=461) 88.5 11.5 submission of freight declaration data via the Internet)
　Enabling electric payment for tariffs and other miscellaneous expenses 10.6
Sri Lanka (n=25) 88.0 12.0
　Accepting electronic copies of the original required documents 10.3
India (n=372) 86.8 13.2
Installing a single window (setting up one place which accepts documents
Cambodia (n=67) 85.1 14.9 8.7
and data required by multiple ministries and agencies in a integrated manner)
Issuing information on the introduction and revision of new trade procedures,
Myanmar (n=106) 84.9 15.1 the customs clearance system and inspections in a recognizable manner 24.6
before entry into effect
Vietnam (n=648) 84.0 16.1 Simplifying customs documents, following international standards and
24.1
Bangladesh (n=41) 82.9 17.1 formatting documents
Disclosing the average lead time from the arrival of cargo to receiving, as well
22.6
Philippines (n=117) 81.2 18.8 as improving predictability
Malaysia (n=219)
Setting up an inquiry window for trade procedures or an information center 21.5
78.5 21.5
Speeding up and simplifying procedures for obtaining an import license 21.0
ASEAN average (n=2,545) 78.2 21.8
Improving logistics at ports and borders 16.5
Thailand (n=549) 78.1 21.9
Creating guidelines or FAQs related to the operation of FTAs 15.9
Laos (n=26) 73.1 26.9
Coordinating procedures for regulations, certification and authentication and
Taiwan (n=199) 64.3 35.7 making them standardized internationally [such as Sanitary and 11.8
Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT)]
Hong Kong/Macau (n=242) 59.5 40.5 Providing opportunities to deliver opinions on the introduction and operation of
trade procedures, the customs clearance system and inspections, or 11.6
Australia (n=129) 51.9 48.1 arranging opportunities to consult with port authorities and the government
New Zealand (n=61) 50.8 49.2 Improving logistics through to ports and borders 10.7
Realizing prompt customs clearance and accepting express freight and
Singapore (n=352) 50.0 50.0 9.5
perishable products
Yes Nothing in particular Speeding up and simplifying pre-shipment inspection 9.1

Note: “Yes” indicates the proportion of companies that selected at least one trade facilitation Introducing a certification system for traders 5.9
measure.

Trade facilitation measures required to improve trade in the Note: Trade facilitation measures at a 10% or more response rate in total, in the order
countries/regions (multiple answers) of countries with a higher necessity of trade facilitation measures (horizontal axis) and
in the order of trade facilitation measures with a larger response rate (vertical axis)

6. Impact of Changes in Trade Environment (1)
Areas of negative impact
Impact of changes in the trade environment as of now (by country/region, responses total 100%)
(multiple answers): top 5
(%) countries/regions
Total (n=4,884) 19.7 11.0 3.3 26.2 39.8
Domestic sales (sales in local market)
Pakistan (n=31) 38.7 19.4 6.5 22.6 12.9
Note: Countries/regions for
0 25 50 75 100 (%)
Hong Kong/Macau (n=300) 37.3 7.0 0.3 24.0 31.3 which the number of valid
responses is 30 companies or
more
China (n=618) 35.4 11.2 1.5 26.2 25.7 Total (n=943) 59.7
South Korea (n=129) 31.8 3.9 0.8 34.9 28.7 India (n=68) 72.1
Taiwan (n=215) 21.4 15.8 1.9 26.5 34.4 Thailand
70.5
Singapore (n=441) 19.5 9.8 1.4 27.0 42.4 (n=105)
Taiwan (n=44) 70.5
New Zealand (n=81) 18.5 8.6 6.2 32.1 34.6
Malaysia
Thailand (n=585) 18.1 11.1 3.8 23.8 43.3 67.5
(n=40)
Malaysia (n=235) 17.9 15.7 1.7 19.6 45.1 China (n=212) 66.5
Australia (n=143) 17.5 11.2 2.1 36.4 32.9
Sri Lanka (n=29) 17.2 10.3 34.5 37.9 Sales in overseas (out of export sales)
(%)
India (n=409) 17.1 12.0 3.9 24.5 42.5 Note: Countries/regions for which
the number of valid responses is 0 25 50 75 100
30 companies or more
Indonesia (n=508) 16.1 10.4 3.0 26.0 44.5 Total (n=943) 32.7
Cambodia (n=93) 15.1 6.5 3.2 31.2 44.1
ASEAN (n=2,874) 14.4 11.2 4.0 25.6 44.8
Taiwan (n=44) 47.7
Philippines (n=123) 13.8 8.1 5.7 30.9 41.5
Hong Kong/Macau
Myanmar (n=136) 9.6 8.8 3.7 22.8 55.2 45.0
(n=109)
Vietnam (n=718) 7.5 13.4 7.1 26.0 46.0
Vietnam (n=53) 41.5
Bangladesh (n=55) 7.3 7.3 10.9 21.8 52.7
South Korea (n=41) 34.2
2.9 2.9
Laos (n=35) 40.0 54.3
Negative impact Both positive and negative impacts Positive impact No impact Unknown
● The proportion of “Negative impact” exceeded 30% in Pakistan (38.7%), Hong Kong/Macau (37.3%), China (35.4%), and South Korea (31.8%). The proportion of “Positive impact” was higher in
Bangladesh (10.9%) and Vietnam (7.1%). The response rate for “Both positive and negative impacts” was the highest in Pakistan (19.4%), followed by Taiwan (15.8%) and Malaysia (15.7%).
● As “Negative impact,” “Domestic sales(sales in local market)” (59.7%) was most frequently cited. By country/region, the proportion exceeded 70% in India (72.1%), Thailand (70.5%), and Taiwan
(70.5%).
● “Sales in overseas (out of export sales)” was also a major “Negative impact” at 32.7%. By country/region, the response rate was the highest in Singapore (56.6%), followed by Taiwan (47.7%)
and Hong Kong/Macau (45.0%).
73
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Areas of negative impact
Impact of changes in the trade environment in the future (by country/region, responses total 100%)
(multiple answers): top 5
(%) countries/regions
Total (n=4,841) 19.2 8.9 3.3 21.7 47.0
Domestic sales (sales in local market)
Hong Kong/Macau (n=298) 35.2 5.7 22.5 36.6
Note: Countries/regions for
which the number of valid
0 25 50 75 100 (%)
China (n=607) 34.8 7.9 1.5 21.9 33.9 responses is 30 companies
or more
South Korea (n=126)

Total (n=908) 58.4
34.1 1.6 25.4 38.9
Pakistan (n=30) 26.7 20.0 10.0 16.7 26.7 India (n=62) 71.0
New Zealand (n=83) 22.9 7.2 2.4 30.1 37.4
Taiwan (n=38) 68.4
Malaysia (n=230) 19.1 12.2 1.7 18.3 48.7
Malaysia
65.1
Singapore (n=443) 19.0 9.3 1.6 21.0 49.2 (n=43)
Thailand
Taiwan (n=213) 18.3 12.7 3.3 20.7 45.1 65.1
(n=103)
Thailand (n=587) 17.6 10.7 3.1 20.3 48.4 China (n=207) 63.8
Australia (n=143) 16.8 8.4 1.4 29.4 44.1
India (n=402) 15.4 11.4 3.2 20.7 49.3 Sales in overseas (out of export sales)
Indonesia (n=503)
(%)
14.9 7.4 3.0 20.7 54.1 Note: Countries/regions for which the
number of valid responses is 30
0 25 50 75 100
companies or more
ASEAN (n=2,854) 14.3 9.0 4.0 21.0 51.7 Total (n=908) 33.0
Cambodia (n=90) 13.3 3.3 2.2 28.9 52.2
Taiwan (n=38) 50.0
Philippines (n=123) 11.4 8.1 6.5 28.5 45.5
Bangladesh (n=56) 10.7 8.9 10.7 17.9 51.8 Vietnam (n=56) 48.2
Sri Lanka (n=29) 10.3 13.8 3.5 31.0 41.4 Singapore (n=82) 47.6
Vietnam (n=709) 8.6 9.7 7.8 20.3 53.6
Laos (n=35) 8.6 2.9 2.9 37.1 48.6
Hong Kong/Macau
41.2
Myanmar (n=134) 8.2 4.5 3.7 16.4 67.2 (n=102)
Negative impact Both positive and negative impacts Positive impact No impact Unknown
● The proportion of “Negative impact” exceeded 30% in Hong Kong/Macau (35.2%), China (34.8%), and South Korea (34.1%). The proportion of “Positive impact” was
higher in Bangladesh (10.7%), Pakistan (10.0%), and Vietnam (7.8%). The response rate for “Both positive and negative impacts” was the highest in Pakistan (20.0%),
followed by Sri Lanka (13.8%) and Taiwan (12.7%).
● As a “Negative impact,” “Domestic sales(sales in local market)”” (58.4%) was most frequently cited. By country/region, the response rate was the highest in India
(71.0%), followed by Taiwan (68.4%) and Malaysia (65.1%). The second-ranked “Negative impact” was “Sales in overseas (out of export sales)” at 33.0%. By
country/region, the response rate was the highest in Taiwan (50.0%), followed by Vietnam (48.2%).

Impactful policies (multiple answers) Impactful policies as of now (by region)
(%)
Additional tariffs imposed on Chinese products based on Section 301 of the US Trade
39.0
(Now: 1,530, Future: 1,388) 0 10 20 30 40 (%) Northeast Asia Act in 1974
(n=533) Additional tariffs imposed on fourth tranche of Chinese products based on Section 301 of
29.6
the US Trade Act in 1974
Additional tariffs imposed on Chinese Now 29.2 Retaliatory tariffs by China toward the US in response to additional tariffs imposed by
ASEAN Section 301 of the Trade Act in 1974
26.5
products based on Section 301 of the
US Trade Act in 1974 (n=788) Additional tariffs imposed on Chinese products based on Section 301 of the US Trade
25.5
Future 30.8 Act in 1974
Retaliatory tariffs of countries/regions against Section 232 of the Trade Expansion Act in
23.3
Retaliatory tariffs by China toward the Southwest Asia 1962
Now 24.7 (n=150) Additional tariffs imposed on Chinese products based on Section 301 of the US Trade
US in response to additional tariffs Act in 1974
16.0
imposed by Section 301 of the Trade Act
Future 25.7 Retaliatory tariffs by China toward the US in response to additional tariffs imposed by
28.8
in 1974 Oceania Section 301 of the Trade Act in 1974
(n=59) Additional tariffs imposed on Chinese products based on Section 301 of the US Trade
23.7
Additional tariffs imposed on fourth Now 21.1 Act in 1974
tranche of Chinese products based on
Section 301 of the US Trade Act in 1974 Future 32.2 Impactful policies in the future (by region)
Retaliatory tariffs of countries/regions Now 17.1 Additional tariffs imposed on Chinese products based on Section 301 of the US Trade
40.9
Northeast Asia Act in 1974
against Section 232 of the Trade
Expansion Act in 1962 Future 16.8 the US Trade Act in 1974
38.0
Additional tariffs imposed on fourth tranche of Chinese products based on Section 301 of
ASEAN the US Trade Act in 1974
30.9
Additional tariffs of the US imposed on Now 12.7 (n=724) Retaliatory tariffs by China toward the US in response to additional tariffs imposed by
steel and aluminum (Section 232 of the Section 301 of the Trade Act in 1974
27.1
Trade Expansion Act in 1962) Future 13.5 Retaliatory tariffs of countries/regions against Section 232 of the Trade Expansion Act in
Southwest Asia 1962 25.9
21.5
Export control and strengthening Now 11.4 the US Trade Act in 1974
Retaliatory tariffs by China toward the US in response to additional tariffs imposed by
regulations on investment by the US Oceania Section 301 of the Trade Act in 1974
34.6
government. Future 11.0 (n=52) Additional tariffs imposed on Chinese products based on Section 301 of the US Trade
Act in 1974
28.9
US national security investigation of Now 8.4

imports of automobiles and automobile ● The specific trade policy that is currently the most impactful was “Additional
parts (Section 232 of the Trade tariffs imposed on Chinese products based on Section 301 of the US Trade
Expansion Act in 1962)
Future 7.9 Act” (29.2%). By region, the proportion of “Retaliatory tariffs by China toward
the US in response to additional tariffs imposed by Section 301 of the Trade
Now 10.8 Act in 1974” (26.5%) was higher in ASEAN, while the proportion of “Retaliatory
Other tariffs of countries/regions against Section 232 of the Trade Expansion Act in
Future 10.2 1962” (23.3%) was higher in Southwest Asia.
● Regarding the future, “Additional tariffs imposed on the fourth tranche of
Now 23.6 Chinese products based on Section 301 of the US Trade Act in 1974” (32.2%)
Unknown was most frequently cited as the most impactful trade policy. This policy is
Future 19.5 currently more of a concern of companies in Northeast Asia. Regarding the
future, the response rate was also high in companies in ASEAN and
Southwest Asia.
Measures responding to changes in the trade environment (transfer of production site)
Transfer of production site Start period of transfer or change

(including that is already implemented) (n=118) Duration (n=115) Scale (n=117)
0 20 40 60 80 100 (%) 0 20 40 60 0 50 100 0 20 40 60
(%) (%) (%)
Total Already started 43.2 Not more than

7.2 75.6 17.2 10% 20.5
(n=1,686) Temporary 4.4
Within 2019 16.1
Not less than
ASEAN First half of 2020 10%-not more 42.7
5.5 76.7 17.7 10.2
(n=885) Mid to long- than 30%
Second half of 80.9
7.6 term period Not less than
China 2020 30%-less than 23.9
9.2 76.5 14.3 100%
(n=293) In or after 2021 8.5
Unknown 14.8
Unknown 14.4 All 12.8
Yes No Unknown
New production sites replacing ● The proportion of companies that selected “Yes” for
Former production sites (n=102) New production sites (n=97)
(Multiple answers allowed) (Multiple answers allowed) China (n=64) (Multiple answers “Transfer of production site” in response to changes
allowed) in the trade environment was only 7.2%, in total. By
country/region, the proportion was 5.5% in ASEAN
(%) 0 50 100 (%) 0 20 40 60 (%) 0 20 40 60
and 9.2% in China.
China 62.7 Vietnam 42.3 Vietnam 37.5 ● Regarding the “Start period of production site transfer
or change,” the combination of “Already started”
Japan 14.7 Thailand 20.6 Thailand 20.3 (43.2%) and “Within 2019” (16.1%) exceeded 50%.
Vietnam 9.8 Regarding the duration of transfer, 80.9% of the
Philippines 18.6 Philippines 18.8
Thailand 8.8 responding companies selected “Mid to long-term
Indonesia 16.5 Indonesia 15.6 period.”
India 4.9
● The scale of transfer was less than 30% among more
Japan 15.5 Malaysia 10.9
Malaysia 3.9 than a half of the companies with “Not more than
South Korea 2.9 Malaysia 15.5 Japan 9.4 10%” and “Not less than 10%-not more than 30%”
accounting for 20.5% and 42.7%, respectively.
Indonesia 2.9 China 11.3 China 7.8 ● Among companies that selected “Yes” for “Transfer
Taiwan 2.0 of production site,” China (62.7%) was most
India 11.3 India 6.3
Singapore 2.0 frequently cited as the former production site.
Mexico 6.2 Mexico 6.3 Vietnam (42.3%) occupied 1st place as the transfer
Philippines 2.0
Taiwan 5.2 Taiwan 4.7 destination. Companies for which the former
US 2.0 production site was China most frequently cited
Other 11.8 Other 26.8 Other 21.9 ASEAN countries, such as Vietnam and Thailand, as
their transfer destination.

Measures responding to changes in the trade environment (change of procurement source)
Change of procurement source Start period of transfer or change

(%) 0 20 40 60 80 100 (%) 0 20 40 60 (%) 0 50 100 (%) 0 20 40

11.9 65.6 22.5 Temporary 8.4 10% 34.7
(n=1,687)
Within 2019 15.0 Not less than
ASEAN 10%-not more 36.3
11.3 64.9 23.8 First half of 2020 9.3 Mid to long- than 30%
(n=886)
74.9
Second half of term period Not less than
2020 4.2 30%-less than 24.7
China
9.9 70.7 19.5 100%
(n=293) In or after 2021 3.6
Unknown 27.5
Yes No Unknown
● The proportion of companies that selected “Yes”
Main procurement source before Main procurement source after New procurement source replacing for “Change of procurement source” in response
change (n=193) (multiple answers change (n=183) (multiple China (n=87) (multiple answers to changes in the trade environment was only
allowed) answers allowed) allowed) 11.9%, in total. By country/region, the proportion
(%) 0 20 40 60 (%) was 11.3% in ASEAN and 9.9% in China.
0 20 40 60 (%) 0 20 40 60 ● Regarding the “Start period of procurement source
China 45.1 Vietnam 24.6 Vietnam 41.4 transfer or change,” the combination of ”Already
started” (40.4%) and “Within 2019” (15%)
Japan 44.6 Thailand 24.0 Thailand 32.2 exceeded 50%. Regarding the duration of
US 13.0 China 23.0 transfer, 74.9% of the responding companies
Japan 24.1
Japan 22.4 selected “Mid to long-term period.”
Thailand 11.9 Indonesia 19.5 ● The scale of change was less than 30% among
South Korea India 14.2 over 70% of the companies with “Not more than
9.3 China 16.1
Indonesia 13.7 10%” and “Not less than 10%-not more than 30%”
India 7.8 Malaysia 13.8 accounting for 34.7% and 36.3%, respectively.
Taiwan 9.3 ● Among companies that selected “Yes” for
Taiwan 6.7 India
Malaysia 9.3 11.5 “Change of procurement source,” China (45.1%)
Malaysia 6.7 was most frequently cited as the procurement
South Korea 7.1 Singapore 10.3
Indonesia 5.2 source before change. Vietnam (24.6%) occupied
Singapore 4.4 Taiwan 8.0 1st place as the procurement source after change.
Vietnam 4.1 Companies for which the procurement source
Philippines 4.4 Philippines 6.9
Other 15.5 before change was China most frequently cited
Other 31.7 Other 34.5 Vietnam, Thailand, and Japan as their
procurement source after change.

Measures responding to changes in the trade environment (change in sales destination)
Change in sales destination Start period of transfer or change

(%) 0 20 40 60 80 100 (%) (%) 0 50 100 (%) 0 20 40 60

0 20 40 60

10.0 69.7 20.4 10% 35.0
(n=1,705) Temporary 3.8
Within 2019 15.7 Not less than
ASEAN 10%-not more 40.8
8.6 68.8 22.5 First half of 2020 18.7 than 30%
(n=892) Mid to long-
Second half of 81.7 Not less than
4.8 term period
China 2020 30%-less than 18.5
11.2 73.7 15.2 100%
(n=296) In or after 2021 3.0
Unknown 15.7
Yes No Unknown
Main sales destination before Main sales destination after New sales destination replacing ● The proportion of companies that selected “Yes”
change (n=148) (Multiple answers change (n=148) (Multiple answers China (n=52) (Multiple answers for “Change in sales destination” in response to
allowed) allowed) allowed) changes in the trade environment was only 10%,
in total. By country/region, the proportion was
(%) 0 20 40 60 (%) 0 20 40 60 (%) 0 50 100
8.6% in ASEAN and 11.2% in China.
Japan 25.7 Vietnam 44.2 ● Regarding the “Start period of sales destination
China 35.1
transfer or change, “the combination of “Already
Japan 27.0 Vietnam 25.0 China 38.5 started” (42.2%) and “Within 2019” (15.7%)
US 20.9 Thailand 24.3 exceeded 50%. Regarding the duration of
Japan 25.0
transfer, 81.7% of the responding companies
Thailand 13.5 China 18.9
India 23.1 selected “Mid to long-term period.”
Malaysia 10.8 India 16.2 ● The scale of change was less than 30% among
Thailand 21.2 over 70% of the companies with “Not more than
South Korea 10.1 US 14.9
Malaysia 21.2 10%” and “Not less than 10%-not more than 30%”
Vietnam 8.1 Malaysia 13.5 accounting for 35% and 40.8%, respectively.
Indonesia Taiwan 17.3 ● Among companies that selected “Yes” for
India 8.1 13.5
Philippines 15.4 “Change in sales destination,” China (35.1%) was
Indonesia 7.4 Philippines 12.8 most frequently cited as their sales destination
Taiwan 6.1 South Korea 9.5 Singapore 13.5 before change. Japan (25.7%) occupied 1st place
Singapore as the sales destination after change. Companies
Philippines 6.1 9.5 Indonesia 11.5
for which the sales destination before change was
Other 35.1 Other 53.4 Other 69.2 China most frequently cited Vietnam, China,
Japan, and India as their new sales destination.

7. Productivity and Innovation (1) Manufacturing industries only
Note 1: Countries/regions for which the number of valid responses is 10 companies

Productivity of plants in the country/region when assuming or more
the productivity of your company in Japan as 100 Note 2: “Productivity” includes the improvement of added value and the creation of
new business models, in addition to efficiency.
By country/region (%) By company size and industry (%)

0 20 40 60 80 100
0 20 40 60 80 100 120
Total (n=1,516) 77.9

Large (n=799) 77.7
Hong Kong/Macau (n=16) 105.6 SME (n=717) 78.1

Australia (n=17) 95.0
New Zealand (n=21) 90.2
Philippines (n=59) 86.3 Precision machinery (n=51) 90.1

Taiwan (n=52) 80.4
Vietnam (n=350) 80.0 Wood/Pulp (n=30) 79.2

ASEAN (n=1,201) 78.2
Food (n=90) 78.3
Laos (n=15) 76.7
Pakistan (n=14) 76.4 78.1
(n=268)
Textiles (n=80) 75.8
Indonesia (n=247) 74.4
Chemical/Pharmaceutical (n=215) 75.0
India (n=166) 69.0

74.7
(n=285)
General machinery (n=63) 64.8
Myanmar (n=22) 55.7

7. Productivity and Innovation (2) Manufacturing industries only
Appropriateness of the minimum wage set by the government in the

Note: Countries/regions for which the number
country/region, from the perspective of productivity of valid responses is 10 companies or more
By country/region Yes No Unknown By company size and industry Yes No Unknown
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Total (n=1,641) 42.7 28.1 29.3 Large (n=875) 42.7 25.8 31.4
Philippines (n=62) 74.2 6.5 19.4

SME (n=766) 42.6 30.7 26.8
Laos (n=15) 66.7 13.3 20.0
Myanmar (n=23) 60.9 26.1 13.0
Vietnam (n=379) 50.9 19.5 29.6 Food (n=98) 53.1 18.4 28.6
Pakistan (n=16) 50.0 25.0 25.0

Taiwan (n=58) 50.0 10.3 39.7
Iron/Nonferrous
India (n=174) 47.7 14.4 37.9 metals/Metals (n=280) 45.0 29.3 25.7
Thailand (n=308) 44.5 26.6 28.9 Chemical/Pharmaceutical

(n=227) 41.4 23.4 35.2
ASEAN (n=1,293) 42.2 30.6 27.2
Sri Lanka (n=10) 40.0 20.0 40.0 Precision machinery (n=60) 38.3 31.7 30.0
Malaysia (n=126) 39.7 27.8 32.5 Motor vehicles/Motorcycles

(n=304) 38.2 31.3 30.6
Bangladesh (n=22) 36.4 36.4 27.3
New Zealand (n=25) 36.0 40.0 24.0 Textiles (n=95) 36.8 33.7 29.5
Hong Kong/Macau (n=21) 33.3 19.1 47.6

Singapore (n=73) 31.5 28.8 39.7
Australia (n=22) 27.3 31.8 40.9 Rubber/Leather (n=46) 34.8 32.6 32.6
Cambodia (n=33) 24.2 54.6 21.2

Wood/Pulp (n=34) 32.4 35.3 32.4
Indonesia (n=274) 23.7 55.8 20.4

7. Productivity and Innovation (3)
Utilization of digital technologies in local business Digital technologies utilized in local business (by technology)
(multiple answers) (%)
(n=2,665) 0 10 20 30 40
デジタル技術を活用している(18年調査)
Utilizing digital technologies (2018 survey)
Cloud 30.9
デジタル技術を活用している(19年調査)
Utilizing digital technologies (2019 survey)
(%) Robots 14.4
0 20 40 60 80 100 E-commerce (EC) 13.6
Total(2,665) 53.9 Digital marketing 13.4
58.7
69.0
IoT 11.3
Australia(107) 78.5 Big data 5.5
Pakistan(24) 76.9
75.0 RPA 5.3
New Zealand(65) 68.6 Drones 5.2
69.2
42.4
3D printers 4.7
Phlippines(85) 68.2 Artificial Intelligence (AI) 4.7
55.4
Singapore(309) 65.1
Fintech (Financial technology) 2.0
Malaysia(156) 61.0 Virtual reality (VR), Augmented reality (AR) 1.9
61.5
Block chain 0.7
India(283) 56.2
61.5
59.3
Digital technologies under consideration for use on a medium-
Sri Lanka(20) 60.0 to long-term basis (5 to 10 years) (by technology)
(%)
Taiwan(138) 57.1
58.0 (n=3,020) 0 10 20 30 40
Indonesia(309) 51.2
57.6 IoT 26.5
ASEAN(1,798) 52.4 Artificial Intelligence (AI) 23.6
57.3
46.7
Cloud 17.5
Cambodia(54) 55.6 Robots 16.4
Thailand(329) 53.0 Big data 15.2
55.0
42.4 E-commerce (EC) 14.1
HongKong/Makau(193) 52.9 Digital marketing 13.2
Myanmar(84) 49.3
52.4 RPA 13.1
Vietnam(450) 51.2 3D printers 7.2
52.0
46.0
Block chain 5.6
Bangladesh(37) 51.4 Drones 5.6
Laos(22) 31.3 Fintech (Financial technology) 5.5
36.4
Virtual reality (VR), Augmented reality (AR) 4.2
Digital technologies utilized in local business (by country/region, multiple answers)
 The proportion of Japanese-
affiliated companies in Asia
Cloud (%) Robots (%) E-commerce (EC) and Oceania utilizing digital
(%)
technology increased to 58.7%,
0 20 40 60 0 20 40 60 0 20 40 60
up 4.8 pp YoY. By
Total (n=2,665) 30.9 Total 14.4 Total 13.6 country/region, the proportion
was higher in Australia,
Australia (n=107) 54.2 Malaysia 20.5 New Zealand 27.7 Pakistan, New Zealand, the
Thailand Pakistan
Philippines, etc., while the
Singapore (n=309) 46.9 19.5 25.0
proportion was lower in
New Zealand (n=65) 46.2 India 19.4 Australia 22.4 countries where labor costs are
lower, such as Laos,
Myanmar (n=84) 38.1 Indonesia 18.5 Philippines 20.0 Bangladesh, Vietnam, and
Vietnam 18.2 Taiwan 19.6
Myanmar.
Philippines (n=85) 35.3
 In the present circumstances,
India (n=283) 33.6 Philippines 17.7 Sri Lanka 15.0 the cloud, which is core for all
digital technologies, is most
Pakistan (n=24) 33.3 ASEAN 15.6 Malaysia 14.7 commonly used at 30.9%.
Hong Kong/Macau
32.6 Taiwan 13.0 Laos 13.6 Currently, the use rates of IoT
(n=193) and artificial intelligence (AI)
Taiwan (n=138) 31.2 Australia 10.3 Singapore 13.6 are low at 11.3% and 4.7%,
respectively, but many
ASEAN (n=1,798) 28.5 Sri Lanka 10.0 Bangladesh 13.5
companies are considering
Cambodia (n=54) 27.8 Singapore 8.4 Thailand 13.1 their utilization on a medium- to
long-term basis (5 to 10 years)
Bangladesh (n=37) 27.0 Pakistan 8.3 India 13.1 at 26.5% and 23.6%,
respectively.
Sri Lanka (n=20) 25.0 Hong Kong/Macau 5.7 Indonesia 12.9
 Looking at the utilization rate
Indonesia (n=309) 24.6 Cambodia 5.6 ASEAN 12.1 by technology, the rate of cloud
usage was higher in countries
Thailand (n=329) 22.8 Bangladesh 5.4 Hong Kong/Macau 11.9 that are more advanced
regarding data policies, such
Vietnam (n=450) 22.7 Laos 4.6 Vietnam 8.9
as Australia and Singapore.
Malaysia (n=156) 21.8 New Zealand 3.1 Myanmar 8.3 The rate of robot usage was
higher in major ASEAN
Laos (n=22) 13.6 Myanmar 1.2 Cambodia 5.6 countries and India but lower in
CLM and Bangladesh.

Digital technologies utilized in local business (by country/region, multiple answers)
Digital marketing (%) IoT (%) Big data (%) RPA (%)
0 20 40 0 20 40 0 20 40 0 20 40
Total 13.4 Total 11.3 Total 5.5 Total 5.3
Pakistan 37.5 Sri Lanka 20.0

Australia 13.1 Singapore 10.0
New Zealand 35.4 Singapore 9.1 India 8.5

Malaysia 15.4
Australia 29.9 New Zealand 7.7 Myanmar 8.3
Australia 15.0
Bangladesh 21.6 India 7.1 Hong
Pakistan 12.5 6.7
Kong/Macau
Myanmar 17.9
Myanmar 6.0
Thailand 12.5 Malaysia 5.8
Singapore 16.8
Philippines 5.9
Taiwan 12.3 Taiwan 5.1
Taiwan 16.7
Taiwan 5.8
Singapore 12.3 Sri Lanka 5.0
India
Bangladesh 5.4
16.3 ASEAN
Vietnam 12.0 4.8
Sri Lanka 5.0
Sri Lanka 15.0
ASEAN 11.7 Australia 4.7
ASEAN 5.0
Malaysia 14.1
India 11.3 New Zealand 4.6
Laos 4.6
Hong Kong/Macau 10.9
New Zealand 10.8 Pakistan 4.2
Indonesia 4.5
ASEAN 10.7
Philippines 10.6 Vietnam 3.8
Malaysia 4.5
Philippines 10.6
Indonesia 10.0 Indonesia 3.6
Pakistan 4.2
Indonesia 10.4
Cambodia 9.3 Vietnam 3.8 Thailand 3.0
Cambodia 9.3
Laos 9.1 Cambodia 3.7 Bangladesh 2.7
Thailand 8.5
Hong Kong/ Cambodia 1.9
Myanmar 8.3 Macau 3.6
Vietnam 6.2
Hong Kong/Macau 5.7 Thailand 3.0 Philippines 1.2
Laos 4.6

Digital technologies under consideration for use on a medium- to long-term basis (5 to 10 years) (multiple answers)
IoT Artificial Intelligence (AI) Cloud  As the digital technology under

(%) (%) (%) consideration for use on a
0 25 50 0 25 50 0 25 50 medium- to long-term basis,
IoT was most frequently cited.
Total (n=3,020) 26.5 Total 23.6 Total 17.5 So far, there was no
Malaysia (n=177) 37.3 Singapore 35.9 Sri Lanka 26.3
county/region with over 20% of
the companies using IoT, but
Bangladesh (n=40) 32.5 Australia 30.9 New Zealand 20.5 many companies are
considering IoT utilization on a
Indonesia (n=378) 29.9 Pakistan 29.2 Myanmar 20.2 medium- to long-term basis (5
Thailand (n=428) 28.0 Cambodia 28.8 Laos 20.0 to 10 years). The percentage
reached around 30% or 40% in
ASEAN (n=2,117) 27.7 Bangladesh 27.5 Singapore 19.9 Malaysia, Bangladesh,
Indonesia, and Thailand, etc.
Cambodia (n=66) 27.3 Philippines 27.3 India 19.3  In Singapore and Australia,
Taiwan (n=158) 27.2 India 26.0 Vietnam 19.1 where the big data utilization
rate is higher, many
Philippines (n=88) 26.1 Taiwan 24.1 Malaysia 18.6 companies are considering the
use of artificial intelligence (AI)
Singapore (n=326) 26.1 Myanmar 23.2 Thailand 18.0 on a medium- to long-term
Vietnam (n=530) 26.0 Malaysia 23.2 ASEAN 17.9 basis at 35.9% and 30.9%,
respectively.
India (n=296) 25.0 ASEAN 23.1 Hong Kong/Macau 17.1  Robots are being utilized by
nearly 20% of the companies
Pakistan (n=24) 25.0 New Zealand 22.7 Philippines 14.8 in Malaysia, Thailand,
New Zealand (n=44) 25.0 Hong Kong/Macau 21.9 Taiwan 14.6 Indonesia, Vietnam, and the
Philippines, etc. In these major
Australia (n=94) 23.4 Indonesia 20.1 Indonesia 14.6 ASEAN countries, where there
are many production bases
Sri Lanka (n=19) 21.1 Thailand 19.9 Cambodia 13.6 and wage increases are an
Myanmar (n=99) 19.2 Vietnam 19.3 Pakistan 12.5 issue, it is expected that
Hong Kong
companies that are not yet
/Macau (n=228) 17.5 Sri Lanka 15.8 Bangladesh 10.0 using robots will aim to
introduce robots on a medium-
Laos (n=25) 16.0 Laos 4.0 Australia 9.6 to long-term basis.

Digital technologies under consideration for use on a medium- to long-term basis (5 to 10 years) (multiple answers)
(%)
Robots Big data E-commerce (EC) Digital marketing

0 25 50 0 25 50 0 25 50 0 25 50
Total 16.4 Total 15.2 Total 14.1 Total 13.2

Vietnam 21.5 Singapore 21.8 Pakistan 37.5 Pakistan 29.2
Philippines 20.5 New Zealand 18.2 Myanmar 19.2 Sri Lanka 21.1
Indonesia 20.4 Australia 18.1 Cambodia 18.2 Australia 18.1
Malaysia 20.3 India 17.9 Singapore 17.8 Bangladesh 17.5
Thailand 19.6 Bangladesh 17.5 Hong Kong/Macau 17.1 Singapore 16.6
ASEAN 18.3 Taiwan 17.1 Laos 16.0 New Zealand 15.9
New Zealand 15.9 Malaysia 17.0 Sri Lanka 15.8 India 15.5
Bangladesh 15.0 Pakistan 16.7 Philippines 14.8 Hong Kong/Macau 15.4
Myanmar 13.1 Myanmar 16.2 Taiwan 14.6 Taiwan 13.9
Australia 12.8 Indonesia 15.9 ASEAN 14.0 Cambodia 13.6
Pakistan 12.5 Sri Lanka 15.8 Vietnam 14.0 Myanmar 13.1
Singapore 12.3 ASEAN 14.6 Thailand 12.6 Vietnam 12.1
Taiwan 12.0 Philippines 13.6 Bangladesh 12.5 Laos 12.0
India 11.5 Hong Kong/Macau 13.2 India 12.2 ASEAN 11.9

Hong Laos 12.0 Indonesia 11.9 Indonesia
11.4 11.4
Kong/Macau
Sri Lanka 10.5 Vietnam 11.9 New Zealand 11.4 Thailand 10.1
Cambodia 6.1 Thailand 11.2 Malaysia 10.2 Malaysia 9.0
Laos 4.0 Cambodia 9.1 Australia 9.6 Philippines 8.0

Industries where digital technologies are actively used
Industries for which the response rate was higher than the average
(%)
0 20 40 60 80 100
Current utilization (n=2,665)
Communications/Software (n=103) 76.7
Business services (n=102) 52.9
Response
Answers Travel/Amusement (n=38) 47.4
rate (%)
1 Cloud 30.9 Motor vehicles/Motorcycles (n=206) 50.0

2 Robots 14.4 General machinery (n=43) 30.2
Chemical/Pharmaceutical (n=143) 30.1
3 E-Commerce (EC) 13.6
Restaurant (n=21) 42.9
Travel/Amusement (n=38) 36.8
Consideration for the future (n=3,020)

Precision machinery (n=41) 46.3
Response Motor vehicles/Motorcycles (n=223) 42.2
Answers
rate (%) Electric machinery (n=173) 38.7
1 IoT 26.5
2 Artificial Intelligence (AI) 23.6 Business services (n=119) 44.5
3 Cloud 17.5
Finance/Insurance (n=141) 34.8

Changes in utilization in two major industries where digital technologies  Currently, the cloud is most actively used.
are actively used By industry, the proportion of cloud-using
companies was higher than the average
by over 15 pp in
Motor vehicles/Motorcycles (Current: 206, Future: 223)
(%) Communications/Software (76.7%),
0 20 40 60 80 100 Business services (52.9%), and
Current utilization Travel/Amusement (47.4%).
0 20 40 60 Thailand (n=34) 64.7  IoT is most commonly considered for
utilization on a medium- to long-term
Robots 50.0 India (n=49) 51.0 basis (5 to 10 years). By industry, the
Cloud 18.9 proportion of companies considering IoT
Indonesia (n=49) 42.9 use was higher than the average by over
E-commerce (EC) 16.0 10 pp in Precision machinery (46.3%),
Motor vehicles/Motorcycles (42.2%), and
Consideration for the future Electric machinery (38.7%).
0 20 40 60
Thailand (n=40) 47.5  In Motor vehicles/Motorcycles, half of all
Japanese-affiliated companies in Asia
IoT 42.2 Indonesia (n=60) 43.3 and Oceania are utilizing robots. In
Robots 30.5 particular, a large proportion of
India (n=48) 37.5 companies are using robots in Thailand,
Artificial Intelligence (AI) 19.7
India, and Indonesia, where many motor
vehicle-related companies are operating.
Communications/Software (Current: 103, Future: 95) It is expected that these companies will
shift to IoT use on a medium- to long-
Current utilization India (n=14) 92.9 term basis (5 to 10 years).
0 20 40 60 80  In Communications/Software, 76.7% of
Thailand (n=12) 75.0 the responding Japanese-affiliated
Cloud 76.7 companies are utilizing the cloud. The
Digital marketing 25.2 cloud is more commonly used in India,
Vietnam (n=30) 56.7 where there are many software-related
IoT 21.4 companies, as well as Thailand,
Singapore, and Vietnam, where many IT-
Consideration for the future related companies, such as companies
0 20 40 60 80
India (n=11) 72.7 related to business administration
Artificial Intelligence (AI) 52.6 systems, are operating. It is expected
IoT
Vietnam (n=32) 46.9 that these companies will shift to the use
32.6
of artificial intelligence (AI) on a medium-
RPA 31.6 to long-term basis.

Note 1: The red-highlighted items show over 20%.
Digital technologies utilized in local business (by industry, multiple answers) Note 2: Countries/regions for which the number of
valid responses is 30 companies or more
(%)
Food (n=74) Textiles (n=49) Chemical/Pharmaceutical Iron/Nonferrous metals/Metals
1 Digital marketing 27.0 1 Cloud 14.3 (n=143) (n=143)
2 Cloud 25.7 2 Robots 6.1 1 Robots 30.1 1 Robots 25.9
3 Robots 16.2 3 IoT 4.1 2 Cloud 19.6 2 Cloud 16.1
3 E-commerce (EC) 16.2 3 E-commerce (EC) 4.1 3 E-commerce (EC) 10.5 3 IoT 11.2
5 Drones 6.8 5 Digital marketing 2.0 4 IoT 9.8 4 Digital marketing 6.3
5 Block chain 2.0 5 3D printers 6.3 5 E-commerce (EC) 5.6
5 RPA 2.0
General machinery (n=43) Electric machinery (n=159) Motor vehicles/Motorcycles Precision machinery (n=48)
1 Robots 30.2 1 Robots 39.0 (n=206) 1 Robots 29.2
2 E-commerce (EC) 14.0 2 IoT 32.1 1 Robots 50.0 2 Cloud 25.0
2 Cloud 14.0 3 Cloud 25.2 2 Cloud 18.9 3 IoT 16.7
4 IoT 11.6 4 E-commerce (EC) 17.0 3 E-commerce (EC) 16.0 4 3D printers 10.4
5 3D printers 11.6 5 3D printers 12.0 4 IoT 14.1 5 RPA 6.3
5 3D printers 10.2
Wholesale/Retail (n=659) Communications/Software Construction (n=160) Transport activities/Warehouse

1 Cloud 33.5 (n=103) 1 Drones 36.3 (n=145)
2 Digital marketing 17.3 1 Cloud 76.7 2 Cloud 35.6 1 Cloud 35.9
3 E-commerce (EC) 16.5 2 Digital marketing 25.2 3 E-commerce (EC) 13.1 2 E-commerce (EC) 11.7
4 IoT 8.8 3 IoT 21.4 4 IoT 12.5 3 Digital marketing 8.3
5 Robots 5.3 4 RPA 16.5 Virtual reality (VR), 4 IoT 7.6
5 5.6
Artificial Intelligence Augmented reality (AR) 4 RPA 7.6
5 14.6
(AI)
5 E-commerce (EC) 14.6
Finance/Insurance (n=138) Travel/Amusement (n=38) Business services (n=102)
1 Cloud 28.3 1 Digital marketing 50.0 1 Cloud 52.9
2 RPA 26.1 2 Cloud 47.4 2 Digital marketing 17.7
3 Digital marketing 23.2 3 E-commerce (EC) 36.8 Artificial Intelligence
3 8.8
4 E-commerce (EC) 17.4 4 Drones 10.5 (AI)
Fintech (Financial Virtual reality (VR), 4 IoT 7.8
5 16.7 5 7.9
technology) Augmented reality (AR) 4 Big data 7.8

Digital technologies under consideration for use on a medium- to long-term basis Note 1: Red-highlighted items show over 20 %.
(5 to 10 years) (by industry, multiple answers) Note 2: Countries/regions for which the number of
(%)
Food (n=77) Textiles (n=66) Chemical/Pharmaceutical Iron/Nonferrous metals/Metals
1 Robots 24.7 1 IoT 25.8 (n=160) (n=212)
Artificial Intelligence 2 Robots 13.6 1 IoT 31.3 1 IoT 34.9
2 20.8
(AI) 3 E-commerce (EC) 12.1 2 Robots 21.9 2 Robots 31.1
3 IoT 19.5 4 Big data 9.1 Artificial Intelligence Artificial Intelligence
3 16.9 3 12.3
4 Digital marketing 18.2 5 Cloud 9.1 (AI) (AI)
5 E-commerce (EC) 16.9 4 Big data 15.6 4 Cloud 11.3
5 Cloud 12.5 5 E-commerce (EC) 9.4
General machinery (n=45) Electric machinery (n=173) Motor vehicles/Motorcycles Precision machinery (n=41)
1 IoT 24.4 1 IoT 38.7 (n=223) 1 IoT 46.3
2 Robots 20.0 2 Robots 31.8 1 IoT 42.2 1 Robots 34.2
3 Big data 15.6 Artificial Intelligence 2 Robots 30.5 Artificial Intelligence
3 25.4 3 26.8
3 Cloud 15.6 (AI) Artificial Intelligence (AI)
3 19.7
3 3D printers 15.6 4 RPA 16.2 (AI) 4 RPA 19.5
5 3D printers 15.6 4 Cloud 17.0 5 Big data 9.8
5 3D printers 14.8 5 Digital marketing 9.8
Wholesale/Retail (n=747) Communications/Software Construction (n=168) Rubber/Leather (n=33)
Artificial Intelligence (n=95) 1 IoT 31.0 1 IoT 36.4
1 22.5
(AI) Artificial Intelligence Artificial Intelligence 1 Robots 33.3
1 52.6 2 22.0
2 IoT 20.1 (AI) (AI) Artificial Intelligence
3 Cloud 19.4 2 IoT 32.6 2 Cloud 20.2 3 21.2
(AI)
4 E-commerce (EC) 18.7 3 RPA 31.6 4 Drones 19.6 4 E-commerce (EC) 18.2
5 Digital marketing 15.4 4 Big data 29.5 5 3D printers 14.9 5 Digital marketing 15.2
5 Block chain 24.2
Finance/Insurance (n=141) Travel/Amusement (n=42) Business services (n=119) Transport activities/Warehouse
Fintech (Financial Artificial Intelligence Artificial Intelligence (n=197)
1 37.6 1 38.1 1 44.5
technology) (AI) (AI) 1 IoT 26.9
Artificial Intelligence 2 E-commerce (EC) 33.3 2 Digital marketing 26.9 Artificial Intelligence
2 34.8 1 25.9
(AI) 2 Big data 33.3 3 Big data 23.5 (AI)
3 RPA 26.2 4 IoT 28.6 4 RPA 20.2 3 Robots 20.3
4 Big data 22.7 5 Digital marketing 23.8 4 Cloud 19.8
5 IoT 19.3
5 Cloud 19.9 4 RPA 19.8
5 Cloud 23.8
Obstacles upon investment into the digital field
Obstacles (by industry)
(multiple answers)
(%)
(Valid answers: 4,212 companies) 0 10 20 30 40 (%) 0% 20% 40% 60% 80% 100%
Total (n=4,212) 59.9 14.4 25.7

We have no digital engineers. 28.8 Manufacturing (n=1,720) 64.3 9.5 26.2
Non-manufacturing (n=2,492) 56.9 17.7 25.4
Lack of understanding of
investment into the digital field 22.4 Rubber/Leather (n=45) 80.0 4.4 15.6
within the company. Motor vehicles/Motorcycles (n=315) 74.0 8.9 17.1
Deficiency of information on Restaurant (n=28) 67.9 10.7 21.4
21.2
available digital technologies. Travel/Amusement (n=63) 66.7 11.1 22.2
Transport activities/Warehouse
(n=251) 63.7 10.0 26.3
There are numerous issues to Precision machinery (n=63) 61.9 15.9 22.2
consider before investing, such as 21.0 Finance/Insurance (n=195) 61.5 19.5 19.0
5S and cost reduction.
Wood/Pulp (n=36) 61.1 11.1 27.8
As personnel wages are still low,
there is no merit in investment into 14.0 Chemical/Pharmaceutical (n=235) 60.8 9.4 29.8
the digital field. Textiles (n=94) 60.6 7.5 31.9
(n=285) 60.4 10.5 29.1
As we do not have any chief digital 18.6 21.2
officers within the company, it will 10.0
take much time to install one. Food (n=107) 59.8 4.7 35.5
Construction (n=245) 56.7 19.6 23.7
There are concerns about leakage Wholesale/Retail (n=1,013) 56.5 15.2 28.3
of company and private 9.6 Communications/Software (n=133) 47.3 42.9 9.8
information.
Yes No Unknown

Obstacles upon investment into the digital field (by country/region, multiple answers)
(%)
Lack of understanding of Deficiency of information There are numerous issues to As personnel wages are still
We have no digital
investment into the digital on available digital consider before investing, such low, there is no merit in
engineers. field within the company technologies as 5S and cost reduction. investment into the digital field.
0 25 50 0 25 50 0 25 50 0 25 50 0 25 50
Total (n=4,212) 28.8 Total 22.4 Total (n=4,212) 21.2 Total 21.0 Total 14.0
Large (n=2,621) 29.8 Large 22.6 Large 21.1 Large 21.6 Large 14.6
SME (n=1,591) 27.1 SME 22.2 SME 21.4 SME 20.0 SME 13.0
Indonesia (n=513) 33.5 Pakistan 30.0 Malaysia 26.8 Pakistan 36.7 Philippines 26.2
Malaysia (n=246) 33.3 Singapore 27.0 Indonesia 25.9 Malaysia 30.9 Laos 25.0
Taiwan (n=216) 32.4 Malaysia 24.4 Laos 25.0 Indonesia 28.5 Myanmar 23.4
Singapore (n=460) 30.9 Thailand 23.9 Taiwan 25.0 Philippines 25.4 Bangladesh 22.4
Laos (n=36) 30.6 Vietnam 22.6 Cambodia 24.2 India 24.9 India 22.3
Hong Kong/Macau
29.9 Hong Kong/Macau 22.5 Bangladesh 24.1 Sri Lanka 23.3 Cambodia 21.2
(n=298)
Vietnam (n=727) 28.3 Bangladesh 22.4 Pakistan 23.3 Thailand 21.6 Vietnam 20.1
India (n=409) 27.9 Laos 22.2 Hong Kong/Macau 21.8 Vietnam 21.2 Pakistan 20.0
Myanmar (n=137) 27.7 Indonesia 21.8 Singapore 21.1 Bangladesh 20.7 Malaysia 14.6
Thailand (n=598) 27.4 India 21.8 Vietnam 19.9 Myanmar 19.7 Indonesia 13.5
Cambodia (n=99) 27.3 Taiwan 21.3 Thailand 19.4 Laos 19.4 Thailand 13.0
Pakistan (n=30) 26.7 Cambodia 21.2 India 18.3 Cambodia 19.2 Sri Lanka 10.0
Bangladesh (n=58) 25.9 Myanmar 20.4 Myanmar 18.3 New Zealand 16.1 Singapore 5.4
Philippines (n=126) 20.6 Australia 16.9 Australia 17.6 Taiwan 14.4 Taiwan 5.1
Australia (n=148) 20.3 Philippines 16.7 Philippines 17.5 Singapore 13.7 Hong Kong/Macau 4.4
New Zealand (n=81) 16.1 New Zealand 14.8 New Zealand 14.8 Hong Kong/Macau 13.4 New Zealand 1.2
Sri Lanka (n=30) 13.3 Sri Lanka 6.7 Sri Lanka 13.3 Australia 9.5 Australia 0.7

Collaborating with local startups Note: The number of valid responses in the figure at right is the same as that in the figure at left.
Already collaborating or planning to collaborate

Not yet, but have an interest (by company size and industry)
(by company size and industry)
(Companies) (Companies)
0 100 200 300 400 0 200 400 600 800 1,000 1,200 1,400
Total (n=4,180) 203 152 Total 1,213
Large (n=2,608) 154 103
Large 787
SME (n=1,572) 49 49
SME 426
Already doing Planing

0 50 100 0 50 100 150 200 250 300 350
Wholesale/Retail (n=1,007) 51 32 Wholesale/Retail 310

Finance/Insurance (n=196) 21 11 Finance/Insurance 78
Communications/Software (n=134) 23 8 Motor vehicles/Motorcycles 76
Business services (n=155) 16 9 Transport activities/Warehouse 76
Electric machinery (n=256) 10 15 Electric machinery 69
Motor vehicles/Motorcycles (n=313) 9 14 Construction 67
Transport activities/Warehouse (n=247) 6 9 Communications/Software 63
Iron/Nonferrous metals/Metals (n=285) 7 5
Business services 63
Construction (n=240) 4 8
Iron/Nonferrous metals/Metals 59
Food (n=106) 5 3
Chemical/Pharmaceutical 43
Travel/Amusement (n=62) 3 5
Travel/Amusement 24
Textiles (n=90) 3 4
Food 23
Chemical/Pharmaceutical (n=234) 5 1
Precision machinery 17
General machinery (n=68)2 2
Restaurant (n=27)2 2 Rubber/Leather 14
Precision machinery (n=62)1 General machinery 14
1
Rubber/Leather (n=45) 1 0 Textiles 13
Wood/Pulp (n=34) 0 0 Restaurant 11
Wood/Pulp 10
Collaborating with local startups Note: The number of valid responses in the figure at right is the same as that in the figure at
left.
Already collaborating or planning to collaborate
Not yet, but have an interest (by country/region)
(by country/region)
0 20 40 60 0 50 100 150 200
Vietnam (n=719) 38 18 Vietnam 187
India (n=417) 27 28 Thailand 164
Singapore (n=454) 31 15 Singapore 155
Indonesia (n=512) 23 17 Indonesia 131
Thailand (n=591) 16 18 India 128
Hong Kong/Macau (n=298) 13 11 Hong Kong/Macau 85
Malaysia (n=245) 12 8 Malaysia 71
Taiwan (n=212) 9 8 Taiwan 64
Myanmar (n=130) 7 6 Myanmar 47
Bangladesh (n=57) 5 6 Cambodia 37

Already doing
Australia (n=145) 7 3 (n=Total: 203 companies) Philippines 37
Cambodia (n=98) 2 5 Australia 35

Planning
Philippines (n=124) 4 3 (n=Total: 152 companies) Bangladesh 22
Laos (n=37) 2 2 New Zealand 17
Sri Lanka (n=30) 2 2 Pakistan 16
New Zealand (n=80) 3 1 Sri Lanka 10
Pakistan (n=31) 2 1 Laos 7

Target market for working with local startups (by country/region, multiple answers)
(Companies)
Target market working with local startups (by country/region)

Valid
Country/region South
answers Southwest Asia Middle
Local ASEAN Japan China India US Europe Africa Oceania (excluding India)
Korea/Taiw an
/Hong Kong East
Total 1,438 658 365 228 54 31 21 21 17 12 10 7 4
ASEAN 1,000 440 322 160 11 23 9 10 4 3 6 6 1
Southwest Asia 211 128 10 32 3 3 7 8 12 4 1 3
Vietnam 225 105 61 48 1 4 1 1 3

Thailand 190 94 50 32 2 4 1 5 1 1
Singapore 188 43 102 16 3 13 1 3 1 1 4 1
Indonesia 161 96 36 24 1 1 1 1 1
India 152 101 7 20 2 3 3 11 2 1 2
Hong Kong/Macau 102 21 16 22 34 2 3 1 1
Malaysia 83 34 29 12 2 2 1 2 1
Taiwan 66 37 8 9 5 3 1 1
Myanmar 57 28 14 12 1
Philippines 44 17 12 10 1 2 1
Cambodia 42 17 17 4 1 1 1
Australia 42 25 6 3 1 1 5
Bangladesh 31 13 3 5 1 1 3 3 1 1
New Zealand 17 7 3 2 1
Pakistan 16 10 3 1 4 1 1
Sri Lanka 12 4 4 2 1 1
Laos 10 6 1 2 1
Note: The orange-highlighted cells indicate markets with responses from 100 or more companies, the yellow-highlighted cells indicate markets with responses from 50 or
more companies, and the blue-highlighted cells indicate markets with responses from 10 or more companies.

8. Utilization of Personal and Corporate Data (1)
Rate of sharing of personal information (customer
information, salaries) (multiple answers) By country/region
Sharing with the headquarters in Japan

By company size Sharing with related companies active in the same region (Asia)
(%) Rate of sharing with outside the company (%)
0 20 40 60
0 20 40 60 80
48.5 Total (n=4,331) 46.3 45.6
Within the company only (No sharing 5.8
46.8 65.5
done in particular) Bangradesh (n=58) 63.8
51.4 12.1
Cambodia (n=103) 55.3 56.3
6.8
45.6 54.3
Hong Kong/Macau (n=313) 55.0
Sharing with the headquarters in Japan 48.0 8.0
41.7 Myanmar (n=140) 48.6
10.7 50.0
Singapore (n=478) 50.0 49.2
5.8 5.4
Sharing with related companies active 7.8 45.2
Sri Lanka (n=31) 48.4
in the same region (Asia)
2.4 48.6
India (n=424) 6.8 47.4
3.3 Malaysia (n=251) 46.6 43.0
Sharing with related companies active 5.2
3.8 44.2
in the same country Vietnam (n=747) 4.8 45.9
2.5
Indonesia (n=529) 45.6 43.9
6.4
2.5 45.5
Sharing with related companies located Total (n=4,331) Pakistan (n=33) 45.5
3.2 18.2
across the globe 44.3
1.4 Large (n=2,703) ASEAN (n=3,017) 5.4 45.4
Taiwan (n=221) 45.3 45.3
0.8 SME (n=1,628) 3.6
Other Australia (n=148) 44.6 45.3
0.9 3.4
0.7 Philippines (n=127) 44.1 39.4
7.1
4.4 Laos (n=38) 39.5 42.1
2.6
Unknown 3.4 39.4
Thailand (n=604) 3.8 38.3
6.1
New Zealand (n=86) 34.9 34.9
8.1

Regulations having large impact on handling personal and company information (multiple answers)
(%)
By industry
By company size (%)
Manufacturing Non-manufacturing
0 10 20 30 40 50 60 70 (n=1,642) (n=2,431)
Personal information protection regulations are 24.5

different or not prepared in different countries 29.5 20.3 27.4
(different rules exist in different countries)
16.3
As a condition of investment, have a server that 16.4

manages data in the country / oblige to use a 18.1 15.1 17.3
domestic server 13.7
There are laws and regulations to manage data, 15.6
but no detailed implementation regulations have
18.1 13.5 17.1
been established (the operation method is
unknown) 11.5
14.5
Require state-related information to be provided
to the state for reasons such as state security
17.1 13.5 15.1
10.3
11.6
The software download / when to send to the Total (n=4,073)
customer, it takes tariff to those cross-border
12.8 10.1 12.6
9.6 Large (n=2,534)
10.2
Mandatory disclosure of software contents as SME (n=1,539)
11.6 10.7 9.9
import and sales conditions
8.0
52.9
Not affected 47.1 55.0 51.5
62.4

Countries/regions where company servers are storing data
(multiple answers)
(%) Response rates by country/region and by

industry (top 5 entries)
0 20 40 60 80
Country/region Industry
68.9
Country/region (local) 74.1
Precision machinery (83.9%)
65.4 Australia (82.3%) Wood/Pulp (81.1%)
Taiwan (73.8%) Iron/Nonferrous
33.0 Malaysia (73.6%) metals/Metals (77.9%)
Indonesia (73.0%) Motor vehicles/Motorcycles
Japan 28.5 (76.1%)
New Zealand (72.8%)
36.1 Food (75.9%)
3.7
Singapore 2.9
Communications/Software
4.2 Sri Lanka (48.3%)
(51.1%)
Bangladesh (43.1%) Travel/Amusement (47.0%)
1.1 Myanmar (41.1%) Construction (43.3%)
North, Central and Cambodia (39.4%) Precision machinery (41.9%)
0.5
South America Philippines (38.2%) Electric machinery (38.8%)
1.4
0.9
Total (n=4,244)
Thailand 0.8
Pakistan (17.1%) Communications/Software
1.0 Manufacturing (n=1,717) (9.6%)
Sri Lanka (13.8%)
Rubber/Leather (9.3%)
8.7 Laos (10.8%)
Non-manufacturing (n=2,527) Travel/Amusement (6.1%)
Bangladesh (8.6%) Finance/Insurance (6.0%)
Unknown 9.1 Myanmar (7.8%) Electric machinery (5.9%)
8.4

8. Utilization of Personal and Corporate Data (4) Manufacturing industries
only
Headquarters in 0Japan
Sharing of data related to manufacturing (procurement, 25 50 75
inventory and production lines) (multiple answers) Total (n=1,673) 49.2
(%) India (n=185) 60.0
0 20 40 60 Sri Lanka (n=10) 60.0
49.2
Sharing with the Indonesia (n=278) 49.6
headquarters in Japan 53.9 ASEAN (n=1,309) 48.1
43.7 Vietnam (n=375) 48.0
Taiwan (n=59) 47.5
Within the company only 43.5 Philippines (n=61) 44.3
(No sharing done in 38.3 Laos (n=16) 43.8
particular) Pakistan (n=16) 43.8
49.7 Myanmar (n=24) 41.7
Sharing with related 3.5 Hong Kong/Macau (n=24) 37.5
companies active in the 4.3 New Zealand (n=25) 36.0
same country 2.6 Australia (n=23) 34.8
Sharing with related 5.3 Within the company

0 only 25 50 75
companies active in the 7.9 Total (n=1,673) 43.5
same region (Asia) 2.2 Sri Lanka (n=10) 60.0
Laos (n=16) 56.3
Sharing with related 2.6 Total (n=1,673) Thailand (n=312) 51.6
companies located across 3.6 New Zealand (n=25) 48.0
the globe Large (n=908) Australia (n=23) 47.8
1.3 Hong Kong/Macau (n=24) 45.8
SME (n=765) Vietnam (n=375) 45.3
1.0 Indonesia (n=278) 45.3
Other 1.5 ASEAN (n=1,309) 45.0
0.4 Philippines (n=61) 44.3
Taiwan (n=59) 44.1
6.8 Pakistan (n=16) 43.8
Unknown 5.8
7.8 Myanmar (n=24) 37.5
India (n=185) 33.0
Copyright © 2020 JETRO. All rights reserved. Bangladesh (n=22) 22.7 98
only
Sharing of data related to manufacturing (procurement, inventory and production lines) (%)
(by industry, multiple answers)
Electric machinery (n=230) Motor vehicles/Motorcycles (n=314) Precision machinery (n=58)

0 25 50 75 0 25 50 75 0 25 50 75
Headquarters in Japan 56.5 Headquarters in Japan 54.5 Headquarters in Japan 62.1
Within the company only 34.4 Within the company only 37.9 Within the company only 39.7
Related companies active Related companies active Related companies active
4.8 2.6 3.5
in the same country in the same country in the same country
3.9 9.6 8.6
in the same region in the same region in the same region
Related companies Related companies Related companies
3.9 2.9 0.0
located across the globe located across the globe located across the globe
Other 0.9 Other 0.6 Other 0.0
Unknown 7.8 Unknown 7.6 Unknown 5.2
Iron/Nonferrous metals/Metals (n=286) Textiles (n=95) Rubber/Leather (n=44)
0 25 50 75 0 25 50 75 0 25 50 75
Headquarters in Japan 38.8 Headquarters in Japan 44.2 Headquarters in Japan 50.0
Within the company only 51.1 Within the company only 52.6 Within the company only 50.0
3.9 5.3 2.3
in the same country in the same country in the same country
4.2 2.1 6.8
in the same region in the same region in the same region
Related companies located Related companies Related companies
3.5 1.1 2.3
across the globe located across the globe located across the globe
Other 1.1 Other 0.0 Other 0.0
Unknown 6.6 Unknown 7.4 Unknown 2.3

only
Utilization of data related to manufacturing (multiple answers)
Processes for which the use of data has increased over Processes for which the use of data will increase over
the past three years the next three years
(%) (%)
0 20 40 60 0 20 40 60
33.8 39.9
Manufacturing process 38.3 Manufacturing process 42.8
28.6 36.5
30.7 Procurement logistics 35.6

Procurement logistics and and inventory
34.7 39.1
inventory management management
25.9 31.5
25.3 28.9
25.7 Sales distribution and 32.0
Information on buyers inventory management
24.8 25.2
21.4 27.8
Sales distribution and Information on buyers 29.0
25.5
inventory management
16.4 26.4 Total (n=1,619)
Total (n=1,615)
9.8 Large (n=873) 16.1 Large (n=877)

Inspection process 11.9 Inspection process 17.0
SME (n=742) SME (n=742)
7.3 15.0
43.9 34.8
No change 38.6 No change 30.7
50.1 39.8

9. Efforts to Enter the Local Market (1) Non-manufacturing industries only
Sales for business: Target demographics in developing the local market (multiple answers, by company size)
Japanese-affiliated companies (%) (%) (%)

Large SME 0 20 40 60 80 100
0 20 40 60 80 100 0 20 40 60 80 100
Current (n=2,301) 75.8 Current (n=1,554) 73.4 Current (n=747) 80.6
Breakdown
Future (n=2,247) 58.1 Future (n=1,514) 56.1 Future (n=733) 62.4
Local companies (%) (%) (%)

0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Breakdown
Current 59.5 Current 65.3 Current 47.4
Future 74.5 Future 78.5 Future 66.3
Foreign-affiliated companies (excluding Japanese-affiliated companies) (%) (%)

0 20 40 60 80 100 (%) 0 20 40 60 80 100 0 20 40 60 80 100
Breakdown
Current 31.7 Current 36.1 Current 22.5
Future 48.6 Future 53.0 Future 39.6
Sales for business: Target price range in developing the local market (multiple answers, by company size)
Target in the future

Current target (%) (%)  Currently, “Japanese-affiliated companies” is the largest
target in local markets (sales for business) at over 70%.
0 20 40 60 80 100 0 20 40 60 80 100
As the target in the future, however, the proportion of
56.5 Total 65.1 “Local companies” is higher than “Japanese-affiliated
Total 68.8
66.8 (n=2,067) companies.”
(n=2,105) 16.8 16.0
 The percentage of “Local companies” and “Foreign-
Large 63.4 Large 69.1 affiliated companies (excluding Japanese-affiliated
64.8 69.5
(n=1,412) (n=1,383) 14.7 companies)” as the current target is higher among large
15.1
enterprises than among SMEs. However, SMEs’
SME 42.6 SME 57.2 willingness to develop sales channels in the two target
71.0 67.3
(n=693) 20.4 (n=684) 18.6 demographics in the future significantly increased.
 By price range, the proportion of “Middle price range” is
High Middle Low the highest as the current target. The proportion of “High
price range” as the target in the future increased.

Increased by 20 pp or more
Sales for business: Target demographics in developing the local market (multiple answers, by country/region) Decreased by 20 pp or more
Note: Countries/regions for which the Japanese-affiliated companies Local companies Foreign-affiliated companies
number of valid responses is 20 (%) (%) (excluding Japanese-affiliated companies) (%)
companies or more 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Current(2,301) 75.8 Current 59.5 Current 31.7
Total Future(2,247) 58.1 Future 74.5 Future 48.6
Current(255) 88.6 Current 45.1 Current 18.4
Thailand Future(252) 61.9 Future 72.6 Future 40.5
Vietnam Future(320) 65.6 Future 67.8 Future 50.3
Indonesia Future(206) 67.5 Future 76.2 Future 50.0
Malaysia Future(98) 61.2 Future 82.7 Future 57.1
Philippines Future(56) 57.1 Future 67.9 Future 42.9
Myanmar Future(104) 64.4 Future 68.3 Future 50.0
Singapore Future(305) 61.0 Future 76.1 Future 59.7
Cambodia Future(58) 58.6 Future 48.3 Future 51.7
India Future(200) 64.5 Future 72.5 Future 60.0
Bangladesh Future(32) 62.5 Future 75.0 Future 59.4
Hong Kong/Macau Future(254) 52.4 Future 74.8 Future 44.9
Taiwan Future(129) 45.7 Future 84.5 Future 35.7
New Zealand Future(37) 43.2 Future 91.9 Future 32.4
Australia Future(80) 25.0 Future 90.0 Future 35.0
South Korea Future(69) 26.1 Future 95.7 Future 29.0
 The proportion of companies setting “Japanese-affiliated companies” as their future sales target decreased in countries/regions excluding New Zealand
and South Korea. The proportion significantly decreased particularly in Thailand, the Philippines, Malaysia, Vietnam, Cambodia, and Hong Kong/Macau (by
over 20 pp).
 In Thailand, Vietnam, Indonesia, and Bangladesh, the proportion of “Local companies” as the target increased from Current to Future by over 20 pp.
 The proportion of “Foreign-affiliated companies (excluding Japanese-affiliated companies)” as the target increased from Current to Future by over 20 pp in
Indonesia, Vietnam, Thailand, and India.
Increased by 20 pp or more
Sales for business: Target demographics in developing the local market (multiple answers, by industry) Decreased by 20 pp or more
Japanese-affiliated Local companies Foreign-affiliated companies (excluding

companies (%) (%) Japanese-affiliated companies) (%)
0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Current (250) 92.4 Current 44.8 Current 35.2
Transport
Future (246) 67.1 Future 66.3 Future 58.5

Business services

Communications/Soft
ware

Finance/Insurance

Travel/Amusement

Construction

Wholesale/Retail

Restaurant

Sales for consumers: Target demographics in developing the local market and price range (multiple answers, by company size)
Consumer target Wealthy (%) New rich and middle (%) Low-income (%) Foreigners living in the
(%)
income region
0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Current (n=838) 50.5 Current 78.6 Current 16.7 Current 27.9

Total
Future (n=850) 62.6 Future 79.7 Future 19.9 Future 26.7

Large

SME
Price range High (%) Middle (%) Low (%)

0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Current (n=810) 52.2 Current 72.8 Current 16.3

Total
Future (n=822) 64.6 Future 71.9 Future 17.5

Large

SME
 In sales for consumers, over 70% of the companies are targeting “New rich and middle income” both currently and for the future. “Wealthy” significantly
increased as the future target. Among SMEs, in particular, “Wealthy” increased by 13.6 pp from Current to Future. Among large enterprises, there is a
tendency of strengthening sales to “Low-income” consumers.
 As the target price range, the proportion of “Middle price range” was the highest. Looking at changes from Current to Future, however, both large
enterprises and SMEs are willing to strengthen sales of “High price range” products/services.

Sales for consumers: Target demographics in developing the local market (multiple answers, by country/region) Increased by 15 pp
or more
New rich and Foreigners living in
Note: Countries/regions for which the number Wealthy (%) middle income (%) Low-income (%) the region(%)
of valid responses is 15 companies or more 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100
Taiwan Future Future 14.3
Future (n=49) 79.6 79.6 Future 20.4
New Zealand Future 79.3 Future 31.0
Future (n=29) 75.9 Future 17.2
India Future 77.9 Future 23.4
Future (n=77) 64.9 Future 19.5
Cambodia Future (n=31) Future 90.3 Future 41.9
64.5 Future 22.6
Indonesia Future (n=71) Future 83.1 Future Future 28.2
59.2 29.6
Malaysia Future (n=37) 54.1 Future 86.5 Future Future 29.7
32.4
Singapore Future (n=97) 67.0 Future 75.3 Future 28.9
Future 16.5
Myanmar Future (n=48) 70.8 Future 64.6 Future 31.3
Future 22.9
Vietnam Future (n=93) 62.4 Future 71.0 Future 32.3
Future 19.4
Bangladesh Future (n=18) 66.7 Future 77.8 Future 27.8
Future 33.3
Hong Kong/ Current (n=96) 45.8 Current 78.1 Current 16.7 Current 28.1
Macau Future (n=98) 57.1 Future 79.6 Future 13.3 Future 25.5
Australia Future (n=49) 57.1 Future 91.8 Future Future 22.5
24.5
South Korea Future (n=19) 68.4 Future 79.0 Future 31.6
Future 15.8
Thailand Future (n=86) 48.8 Future 90.7 Future Future 23.3
14.0
 The proportion of sales to “Wealthy” consumers increased from Current to Future by over 15 pp in Taiwan, New Zealand, Singapore,
Myanmar, Bangladesh, and South Korea.
 In Cambodia, the proportion of “New rich and middle income” increased by over 15 pp.

Current competition (up to 3) Total (n=2,655)
Industries having a gap with the average in the response rate

0 20 40 60 80 100 (%)
Response Company size Total 65.3
Answers
rate (%) Large SME Transport activities/Warehouse (n=266) 83.5
Japanese-affiliated
1 65.3 65.9 64.1
companies
Total 58.9
2 Local companies 58.9 58.5 59.8 Travel/Amusement (n=68) 75.0
3 Chinese companies 26.1 28.5 21.0 Transport activities/Warehouse (n=266) 68.1
Total 26.1
4 European companies 16.4 18.6 11.7 Wholesale/Retail (n=1,093) 40.4
Transport activities/Warehouse (n=266) 14.7
5 US companies 12.2 14.3 7.8 Restaurant (n=35) 14.3
Finance/Insurance (n=206) 13.1
6 Korean companies 11.2 12.7 8.1
Total 16.4
Taiwanese
7 5.9 5.7 6.2
companies Travel/Amusement (n=68) 5.9
8 No rivals 3.7 3.0 5.1

Total 11.2
Construction (n=249) 22.1
 As rivals, “Japanese-affiliated companies” accounted for the largest proportion, at 65.3%. The proportion was particularly higher in Transport
activities/Warehouse and Business services.
 The proportion of “Local companies” was the second highest, at 58.9%. By industry, the proportion was higher than the average by nearly 10 pp in
Travel/Amusement (75.0%), Communications/Software (68.6%), Restaurant (68.6%), and Transport activities/Warehouse (68.1%).
 The 3rd-place “Chinese companies” was higher than the average by over 10 pp in Wholesale/Retail (40.4%).
 European and US companies were less cited. By company size, however, they are rivals for large enterprises.
 By country/region, “Japanese-affiliated companies” and “Local companies” occupied 1st and 2nd, respectively, in all the countries/regions
excluding Sri Lanka. In Sri Lanka, the proportion of “Chinese companies” was the second highest.

Note: Countries/regions for which the

Current competition (multiple answers/up to 3, by country/region) number of valid responses is 10
companies or more
Countries/regions where “Japanese-affiliated companies” are the Countries/regions where “Local companies”
(%)
greatest competition are the greatest competition
Indonesia (240) Myanmar (116) Vietnam (370) South Korea (82) Taiwan (159)
Japanese-affiliated Japanese-affiliated Japanese-affiliated 1 Local companies 79.3 1 Local companies 77.4
1 78.3 1 76.7 1 74.1
companies companies companies
Japanese-affiliated Japanese-affiliated
2 Local companies 70.8 2 Local companies 50.9 2 Local companies 66.0 2 53.7 2 64.2
companies companies
Chinese Chinese
3 Chinese companies 25.4 3 Chinese companies 31.0 3 Korean companies 18.9 3 24.4 3 23.9
companies companies
Thailand (287) Bangladesh (37) Hong Kong/Macau (283) Malaysia (115) India (234)
Japanese-affiliated Japanese-affiliated Japanese-affiliated
1 72.8 1 70.3 1 66.1 1 Local companies 69.6 1 Local companies 64.5
2 Local companies 57.8 2 Local companies 54.1 2 Local companies 50.9 2 60.9 2 55.1
companies companies
3 Chinese companies 22.0 3 Korean companies 21.6 3 Chinese companies 45.9 3 Chinese companies 29.6 European
3 26.5
companies
Singapore (359) Philippines (64) Cambodia (69) Laos (21) Australia (120)
Japanese-affiliated Japanese-affiliated Japanese-affiliated
1 63.8 1 59.4 1 58.0 1 Local companies 61.9 1 Local companies 60.0
2 Local companies 51.3 2 Local companies 48.4 2 Local companies 53.6 2 42.9 2
companies 47.5
companies
3 Chinese companies 28.7 3 Chinese companies 26.6 3 Chinese companies 43.5 Chinese companies/ 3 US companies 25.0
3 23.8
Korean companies
Sri Lanka (21) Pakistan (20) New Zealand (58)

Japanese-affiliated
1 52.4 1 Local companies 55.0 1 Local companies 50.0
companies
2 Chinese companies 38.1 2 Chinese companies 55.0 Japanese-affiliated
2 44.8
companies
3 Local companies 33.3 Japanese-affiliated
3 30.0 3 Chinese companies 22.4
companies

Advantages of products/services (multiple answers allowed) Total (n=2,600)
Industries having a significant gap with the average in the

Company size response rate
Response 0 20 40 60 80 100 (%)
Answers Total 74.4
rate (%) Large SME Restaurant (n=34) 85.3
1 Quality 74.4 75.1 72.8 Finance/Insurance (n=182) 44.5
Brand power, name
2 42.5 47.9 31.6 Total 42.5
recognition
After-sales service,
3 28.7 28.8 28.6
maintenance Total 28.7
4 Price/cost competitiveness 26.9 23.7 33.4
Transport activities/Warehouse (n=264) 17.1
5 Human resources 20.5 19.6 22.2
Total 26.9
Lineup of abundant products Restaurant (n=34) 47.1
6 18.9 20.1 16.4
and services
Total 20.5
7 Product development power 9.9 10.3 9.0 Business services (n=164) 47.6
Distribution and sales network Wholesale/Retail (n=1,088) 10.9
8 (such as network of 9.8 10.8 7.7
distributors) Total 18.9
Route of purchase and 9.1 8.2 Construction (n=247) 7.3
9 8.8
procurement
Total 9.9
10 Advertising power 1.8 2.0 1.3 Communications/Software (n=134) 21.6
 As the advantages of responding companies’ products/services, “Quality” was most frequently cited, at 74.4%, pulling ahead of the
2nd-place “Brand power, name recognition” by over 30 pp. In particular, the proportion of “Quality” was high in “Restaurant,” at 85.3%.
 The 2nd-place “Brand power, name recognition” was more commonly cited by large enterprises.
 The proportion of the 3rd-place “After-sales service, maintenance” was higher in Construction (40.9%) and Communications/Software
(38.8%).

Which is preferred by consumers in the operating countries/regions?
Total (n=592) (%)  Regarding products preferred by local consumers, “Products and
Products and services for which the function or design have been customized for the
services geared local market (local customization-oriented)” received a higher response
toward the Japanese
rate than “Products and services geared toward the Japanese market
market
(Japanese market-oriented).”
41.4  By country/region, “Japanese market-oriented” products/services were
58.6 preferred in Hong Kong/Macau and Singapore, while “local
customization-oriented” products/services were preferred in Australia,
Products and Indonesia, and India.
services for which the  By industry, “Japanese market-oriented” products/services were
function or design
have been preferred in Transport activities/Warehouse and Restaurant, while
customized for the “local customization-oriented” products/services were preferred in
local market Business services, Communications/Software, and Finance/Insurance.
By country/region By industry (%)

Note: Countries/regions for which the number of 0 20 40 60 80 100
0 20 40 60 80 100 (%) Transport activities/Warehouse (n=44) 70.5 29.5

Hong Kong/Macau (n=65) 53.9 46.2 Restaurant (n=23) 65.2 34.8
Singapore (n=64) 53.1 46.9
Travel/Amusement (n=38) 44.7 55.3
Taiwan (n=42) 50.0 50.0
Vietnam (n=65) 49.2 50.8
Construction (n=23) 43.5 56.5
Myanmar (n=35) 45.7 54.3 Wholesale/Retail (n=263) 41.8 58.2

Thailand (n=61) 41.0 59.0 Business services (n=28) 35.7 64.3
Australia (n=37) 32.4 67.6
Communications/Software (n=17) 35.3 64.7
Indonesia (n=45) 31.1 68.9
Finance/Insurance (n=59) 18.6 81.4
India (n=54) 27.8 72.2
Products and services geared toward the Japanese market Products and services for which the function or design have been customized for the local market

Balance between price and quality for local consumers Note: Countries/regions for which the number of valid responses is 15 companies or more
(by country/region, response total 100%) (%)
0 20 40 60 80 100
Total (n=850) 23.9 42.1 26.9 7.1
Cambodia (n=30) 26.7 50.0 20.0 3.3
India (n=79) 39.2 35.4 19.0 6.3
Vietnam (n=92) 27.2 43.5 28.3 1.1
Taiwan (n=51) 13.7 54.9 25.5 5.9
South Korea (n=19) 26.3 42.1 31.6
Bangladesh (n=18) 27.8 38.9 22.2 11.1
Philippines (n=15) 26.7 40.0 26.7 6.7
Thailand (n=84) 23.8 42.9 17.9 15.5
Indonesia (n=69) 23.2 43.5 29.0 4.4
Myanmar (n=50) 26.0 40.0 26.0 8.0
Malaysia (n=36) 30.6 33.3 22.2 13.9
New Zealand (n=32) 21.9 40.6 37.5
Singapore (n=97) 21.7 39.2 29.9 9.3
Hong Kong/Macau (n=95) 14.7 42.1 36.8 6.3
Australia (n=50) 8.0 48.0 38.0 6.0
Price-oriented Balanced (leaning toward price-oriented) Balanced (leaning toward quality-oriented) Quality-oriented
 In the question about how local consumers see the balance between price and quality, the proportion of companies that selected “Price-
oriented” or “Balanced (leaning toward price-oriented)” totaled 66.0%. In the Asia and Oceania region overall, local consumers attach more
importance to price than quality.
 By country/region where price is more emphasized, the proportion of Cambodia was the highest, at 76.7%, followed by India (74.6%) and
Vietnam (70.7%), etc.
 On the other hand, the proportions of “Quality-oriented” and “Balanced (leaning toward quality-oriented)” were higher in Australia and Hong
Kong/Macau.
Most effective means of advertisement (type of media) (multiple answers allowed)

Response rate Breakdown of “SNS”
Answers
(%)
1 Facebook 90.8
1 SNS 55.8
2 Instagram 48.4
2 Advertisements on websites 41.3
3 YouTube 31.7
3 Viral ads 39.3
4 LINE 22.1
4 Trade fairs and events 27.4
5 Twitter 16.4
5 Company website 25.6
6 WhatsApp 13.1
6 Employing key figures active in the target fields 24.1
7 WeChat, Linked In 6.4
7 TV 22.0
Means Note 1: The red-highlighted items show over 40%. Note 2: Countries/regions for which the number of valid responses is 10 companies or more
SNS Advertisements on websites Viral ads

1 Myanmar (n=40) 78.4 1 Australia (n=28) 56.0 1 Myanmar (n=26) 51.0
2 South Korea (n=13) 72.2 2 New Zealand (n=17) 53.1 2 Taiwan (n=24) 46.2
3 Cambodia (n=22) 68.8 3 Malaysia (n=17) 47.2 3 Vietnam (n=41) 43.6
3 New Zealand (n=22) 68.8 4 Hong Kong/Macau (n=45) 45.5 4 Singapore (n=41) 41.0
5 Bangladesh (n=12) 66.7 5 India (n=34) 44.2 5 Indonesia (n=29) 40.9
Trade fairs and events Company website Employing key figures active in the target fields
1 Australia (n=19) 38.0 1 Australia (n=28) 56.0 1 Taiwan (n=20) 38.5
2 Malaysia (n=12) 33.3 2 New Zealand (n=11) 34.4 2 Malaysia (n=12) 33.3
3 India (n=25) 32.5 3 Malaysia (n=12) 33.3 3 Singapore (n=31) 31.0
4 Indonesia (n=19) 26.8 4 Thailand (n=29) 33.0 4 Indonesia (n=20) 28.2
5 Hong Kong/Macau (n=26) 26.3 5 Hong Kong/Macau (n=26) 26.3 5 India (n=21) 27.3
TV
1 India (n=26) 33.8 As an effective means of advertisement, the proportion of “SNS” was the highest, at
2 Australia (n=16) 32.0 55.8%. Among “SNS,” “Facebook (90.8%)” was most frequently cited, pulling far
ahead of others, including “Instagram,” “YouTube,” and “LINE.”
3 Indonesia (n=22) 31.0
The proportion of the 2nd-place “Advertisement on websites” exceeded 50% in
4 Taiwan (n=16) 30.8
Australia and New Zealand.
5 Thailand (n=18) 20.5

Issues to be addressed immediately in target country/region or expanding business

(multiple answers, by country/region)
Response Company size

Answers Industries for which the response rate was higher than
rate (%) Large SME
(top ten items) the average by over 10 pp (%)
(n=2,616) (n=1,755) (n=861)
Total 32.8
Strengthening or expanding sales and Restaurant (n=33) 51.5
1 33.5 34.4 31.6
promotion
Improving the quality of products, 33.5 31.5
2 32.8 Total 29.7
services and operations
3 Diversification of products and services 32.4 31.7 33.7
4 Seeking of local partners 29.7 30.6 27.8 Total 28.9

Wholesale/Retail (n=1,083) 39.0
Securing and cultivating human Total 21.4

5 29.1 29.7 27.8
resources Wholesale/Retail (n=1,083) 33.7
Especially for: sales and marketing (91.0%), R&D (10.3%), purchasing and procurement (10.1%), advertisement (6.2%)
Introduction of new products and Total 17.3

6 28.9 29.7 27.2
services Restaurant (n=33) 30.3
Expanding sales channels (expansion
7 21.4 21.8 20.6
of physical shops such as distributors) Total 16.9
8 Re-setting sales price 17.3 17.1 17.7 Travel/Amusement (n=67) 31.3
Doing research on the target demographics,

9 16.9 17.6 15.6 Total 13.4
and grasping the needs of customers
10 Reviewing supplier 13.4 13.6 13.0
As an issue in sales channel development in local markets, “Strengthening or expanding sales and promotion” accounted for the largest
proportion, at 33.5%.
In the 5th-place “Securing and cultivating human resources,” the proportion of “sales and marketing” was the highest, exceeding 90%.

Issues in the country/region (top 5, multiple answers) (%)
Strengthening or Improving the quality of

Diversification of Securing and cultivating
expanding sales and products, services and Seeking of local partners
products and services human resources
promotion operations
0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100
Total (n=2,616) 33.5 Total 32.8 Total 32.4 Total 29.7 Total 29.1
Laos (n=21) 52.4 Bangladesh 48.7 Laos 42.9 Pakistan 47.4 Cambodia 38.6
Pakistan (n=19) 47.4 Laos 47.6 Taiwan 37.7 Singapore 36.3 Indonesia 37.0
Taiwan (n=159) 39.6 India 39.7 South Korea 36.6 India 33.6 Pakistan 36.8
Bangladesh (n=37) 37.8 Indonesia 37.8 Indonesia 35.7 Malaysia 33.3 South Korea 36.6
Cambodia (n=70) 37.1 Malaysia 36.8 Thailand 35.2 Indonesia 31.1 Myanmar 36.5
South Korea
36.6 Philippines 35.9 India 34.5 South Korea 30.5 Taiwan 33.3
(n=82)
Vietnam (n=363) 36.4 Vietnam 34.2 Hong Kong/Macau 33.5 Cambodia 30.0 Vietnam 32.0
Thailand (n=284) 35.9 Australia 33.9 Philippines 32.8 Sri Lanka 30.0 Philippines 31.3
Sri Lanka (n=20) 35.0 Pakistan 31.6 Malaysia 32.5 Bangladesh 29.7 Laos 28.6
India (n=229) 34.5 Singapore 31.4 Vietnam 32.0 Myanmar 29.6 India 28.4
Malaysia (n=114) 31.6 Myanmar 31.3 Myanmar 31.3 Australia 29.6 Thailand 27.5
Indonesia (n=238) 31.5 Taiwan 30.8 Sri Lanka 30.0 Vietnam 28.9 Hong Kong/Macau 26.0
Hong Kong/Macau Laos
31.3 Thailand 30.6 Australia 28.7 28.6 Sri Lanka 25.0
(n=281)
Myanmar (n=115) 31.3 Cambodia 30.0 Singapore 28.6 Thailand 27.1 Singapore 24.6
Singapore (n=350) 29.4 South Korea 28.1 Bangladesh 27.0 Taiwan 25.2 Malaysia 22.8
Philippines (n=64) 28.1 New Zealand 27.3 Pakistan 26.3 Hong Kong/Macau 24.6 Australia 19.1
Australia (n=115) 27.8 Hong Kong/Macau 24.9 Cambodia 21.4 New Zealand 21.8 Bangladesh 18.9
New Zealand Philippines
27.3 Sri Lanka 20.0 New Zealand 20.0 17.2 New Zealand 16.4
(n=55)

Selling products through an e-commerce site
Total (n=2,510) Selling Under consideration Not selling
9.0 6.3 84.7
(%) (%)
By country/region By industry
New Zealand (n=54) 18.5 14.8

Travel/Amusement (n=64) 40.6 17.2
Australia (n=115) 22.6 8.7
Sri Lanka (n=19) 15.8 5.3
Restaurant (n=32) 25.0 9.4
South Korea (n=81) 17.3 2.5
Laos (n=21) 9.5 9.5
India (n=218) 11.9 5.1 Finance/Insurance (n=185) 17.8 5.4
Singapore (n=341) 10.0 6.2
Taiwan (n=149) 11.4 4.7 Wholesale/Retail (n=1,054) 10.9 8.8
Hong Kong/Macau (n=277) 7.2 7.9
Pakistan (n=20) 5.0 10.0
Communications/Software (n=136) 5.2 5.2
Myanmar (n=111) 4.5 9.9
Thailand (n=264) 6.4 7.2
Transport activities/Warehouse
Cambodia (n=62) 6.5 6.5 5.8 3.3
(n=240)
Indonesia (n=227) 8.4 3.1
Bangladesh (n=35) 8.6 2.9 Business services (n=156) 3.2 2.6
Malaysia (n=108) 5.6 5.6
Vietnam (n=345) 4.6 6.1 2.1
Construction (n=236)
Philippines (n=63) 6.4 3.2 0.4
0 5 10 15 20 25 30 35 0 10 20 30 40 50 60 70
Selling We are considering it Selling We are considering it

10. Wages (1) Year-on-year Wage Increase Rate
Total (%) Manufacturing (%) Non-manufacturing (%)
Pakistan (n=32) 10.7 Pakistan (n=16) 10.6 Pakistan (n=16) 10.8
India (n=359) 9.4 India (n=167) 9.5 India (n=192) 9.3
Myanmar (n=131) 8.3 Sri Lanka (n=9) 8.4 Myanmar (n=109) 8.9
FY2018
Cambodia (n=80) 7.9 Bangladesh (n=20) 8.3 Cambodia (n=51) 8.2

Indonesia (n=478) 7.6 Indonesia (n=261) 8.0 Vietnam (n=327) 7.6
Bangladesh (n=52) 7.4 Cambodia (n=29) 7.5 Indonesia (n=217) 7.2
Vietnam (n=683) 7.4 Vietnam (n=356) 7.2 Bangladesh (n=32) 6.9
Sri Lanka (n=25) 6.0 Laos (n=14) 5.8 Philippines (n=62) 6.4
China (n=566) 5.7 China (n=309) 5.7 China (n=257) 5.8
←
Philippines (n=120) 5.7 Myanmar (n=22) 5.4 Sri Lanka (n=16) 4.7
Laos (n=28) 4.6 Philippines (n=58) 5.0 Malaysia (n=102) 4.4
Malaysia (n=215) 4.4 Malaysia (n=113) 4.4 Thailand (n=273) 4.3
FY2019
Thailand (n=562) 4.0 Thailand (n=289) 3.8 South Korea (n=66) 4.2
South Korea (n=102) 4.0 South Korea (n=36) 3.6 Laos (n=14) 3.4
Hong Kong (n=261) 3.2 New Zealand (n=19) 3.5 Hong Kong (n=241) 3.2
Singapore (n=372) 3.1 Singapore (n=77) 3.3 Taiwan (n=122) 3.1
Taiwan (n=169) 3.0 Hong Kong (n=20) 3.2 Singapore (n=295) 3.0
New Zealand (n=58) 2.9 Taiwan(n=47) 2.6 New Zealand (n=39) 2.6
Australia (n=110) 2.3 Australia (n=17) 2.5 Australia (n=93) 2.3
(%) (%) (%)

Pakistan (n=31) 11.4 Pakistan (n=15) 10.6 Pakistan (n=16) 12.1
India (n=348) 8.8 India (n=164) 9.0 Myanmar (n=107) 8.8
Myanmar (n=127) 8.4 Sri Lanka (n=8) 8.4 India (n=184) 8.6
FY2019
Bangladesh (n=51) 7.3 Indonesia (n=257) 7.7 Bangladesh (n=31) 7.3

Indonesia (n=471) 7.2 Bangladesh (n=20) 7.4 Vietnam (n=315) 7.2
Vietnam (n=663) 7.1 Vietnam (n=348) 7.0 Cambodia (n=52) 7.1
Cambodia (n=80) 7.0 Cambodia (n=28) 6.9 Indonesia (n=214) 6.5
Sri Lanka (n=24) 6.4 Myanmar (n=20) 6.3 China (n=250) 5.5
China (n=552) 5.4 Laos (n=14) 5.9 Philippines (n=62) 5.5
←
Philippines (n=119) 5.0 China (n=302) 5.4 Sri Lanka (n=16) 5.4
Laos (n=28) 4.6 Philippines (n=57) 4.6 Malaysia (n=97) 4.2
Malaysia (n=209) 4.2 Malaysia (n=112) 4.2 Thailand (n=268) 4.0
FY2020
Thailand (n=557) 3.9 Thailand (n=289) 3.7 South Korea (n=60) 3.5
South Korea (n=94) 3.3 Singapore (n=75) 3.1 Laos (n=14) 3.4
Singapore (n=367) 2.9 South Korea (n=34) 3.0 Taiwan (n=123) 2.9
Hong Kong (n=257) 2.8 New Zealand (n=18) 3.0 Singapore (n=292) 2.8
Taiwan (n=169) 2.8 Hong Kong (n=20) 2.9 Hong Kong (n=237) 2.8
New Zealand (n=56) 2.7 Taiwan (n=46) 2.6 New Zealand (n=38) 2.6
Australia (n=106) 2.4 Australia (n=17) 2.4 Australia (n=89) 2.4

10. Wages (2) Year-on-year Wage Increase Rate (China and major countries)
Total Manufacturing Non-manufacturing

(%) (%) (%) (%)
30 30 30
20 20 20
8.8 9.0
10 10 10
8.6
7.2 (Indonesia) 7.7
7.2
7.1 (Vietnam) 7.0 6.5
5.4 5.5
5.4
3.9 4.0
3.7
0 0 0
20132014201520162017201820192020 20132014201520162017201820192020 20132014201520162017201820192020
Note: 2020 rates are forecasts. China India Thailand Indonesia Vietnam
 In 2019, the wage increase rate (total; same applies to the following) slightly increased by 0.1 pp in Indonesia, but decreased in China (by 0.4 pp),
India (by 0.2 pp) and Thailand (by 0.3 pp), and remained at the same level in Vietnam.
 In China, the wage increase rate decreased every year after peaking out at 12.9% in 2011. The rate was 5.7% in 2019 and is expected to be 5.4%
in 2020 (forecast), showing continued decrease.
 In Indonesia, the wage increase rate decreased every year after peaking out at 24.7% in 2013. The rate was 7.6% in 2019 and is expected to be
7.2% in 2020 (forecast), showing continued decrease.
 In 2020, the wage increase rate is forecasted to gradually decline in China, India, Thailand, Indonesia and Vietnam.

10. Wages (3) Base Salary (Monthly)
Manufacturing: Worker Manufacturing: Engineer Manufacturing: Manager
Unit: US$ Unit: US$ Unit: US$
Australia (n=14) 4,985 Australia (n=16) 6,562
Australia (n=15) 3,374
New Zealand (n=17) New Zealand (n=9) 4,670 New Zealand (n=16) 5,932
2,970
South Korea (n=28) Singapore (n=40) 2,807 Singapore (n=65) 4,460
1,980
Singapore (n=55) 1,924 Hong Kong (n=9) 2,583 Hong Kong (n=19) 3,984
Hong Kong (n=18) 1,852 South Korea (n=31) 2,506 South Korea (n=37) 3,667
Taiwan (n=41) 1,086 Taiwan (n=37) 1,385 Taiwan (n=40) 2,186
China (n=304) 493 Malaysia (n=97) 851 Thailand (n=254) 1,685
Thailand (n=291) 446 China (n=266) 801 Malaysia (n=108) 1,657
Malaysia (n=108) 414 Thailand (n=235) 791 India (n=156) 1,473
Indonesia (n=242) 348 India (n=141) 569 China (n=300) 1,369
India (n=150) 278 Indonesia (n=209) 512 Pakistan (n=15) 1,123
Vietnam (n=350) 236 Vietnam (n=287) 469 Indonesia (n=232) 1,059
Philippines (n=54) 236 Pakistan (n=14) 444 Philippines (n=52) 1,046
Cambodia (n=30) 196 Cambodia (n=22) 434 Vietnam (n=314) 1,008
Laos (n=14) 160 Philippines (n=49) 381 Myanmar (n=22) 985
Myanmar (n=20) 159 Bangladesh (n=19) 376 Cambodia (n=27) 974
Sri Lanka (n=9) 130 Myanmar (n=18) 374 Laos (n=12) 973
Pakistan (n=13) 129 Sri Lanka (n=6) 315 Bangladesh (n=17) 787
Bangladesh (n=20) 104 Laos (n=11) 274 Sri Lanka (n=8) 547
Base salary: Salary excluding benefits, as of August 2019

Worker: Regular general workers with 3 years of work experience,
Non-Manufacturing: Staff Non-Manufacturing: Manager not including contract-based and probationary workers
Unit: US$ Unit: US$ Engineer: Regular employees who are core technicians, graduates
Australia (n=88) Australia (n=83) 6,459 of a vocational college or university, and have 5 years of
3,763
New Zealand (n=34) New Zealand (n=34) 5,331 experience
3,203 Manager (Manufacturing): Regular employees who are section
Singapore (n=300) 2,572 Singapore (n=258) 4,677
Hong Kong (n=209) managers in charge of sales, university graduates, and who
Hong Kong (n=241) 2,429 4,288
have 10 years of work experience
South Korea (n=60) 2,376 South Korea (n=58) 3,657
Staff: Regular general workers with 3 years of work experience, not
Taiwan (n=125) 1,371 Taiwan (n=111) 2,291 including dispatched and probationary workers
China (n=255) 1,029 China (n=239) 2,222 Manager (Non-manufacturing): Regular employees who are section
Malaysia (n=102) 890 Malaysia (n=85) 2,009 managers in charge of sales, university graduates, and who
Thailand (n=279) 859 Thailand (n=231) 1,904 have 10 years of work experience
India (n=175) 703 India (n=170) 1,661
Vietnam (n=315) 570 Laos (n=15) 1,513 Note: Except for Cambodia, base salaries were reported in local
Laos (n=17) 540 Philippines (n=51) 1,298 currencies. (For Myanmar, salaries were reported selectively
Cambodia (n=57) 529 Vietnam (n=263) 1,236 either in the local currency or in US dollars.) The average
Philippines (n=59) 520 Cambodia (n=44) wage for each job type in the local currency was converted to
1,228
Indonesia (n=223) the US dollar, using the average exchange rate of August
472 Indonesia (n=198) 1,194
2019 published by the central bank of each country/region or
Myanmar (n=108) 411 Myanmar (n=84) 1,046 by the State Administration of Foreign Exchange for China.
Bangladesh (n=32) 371 Bangladesh (n=29) 931 For Myanmar, where companies reported base salaries either
Sri Lanka (n=17) 324 Sri Lanka (n=14) 824 in the local currency or in US dollars, base salaries reported in
Pakistan (n=15) 288 Pakistan (n=14) 724 the local currency were converted to US dollars, and then the
average was calculated.

10. Wages (4) Annual Salary
Unit: US$ Unit: US$ Unit: US$
Australia (n=16) 48,288 Australia (n=14) 67,999 Australia (n=17) 95,395
New Zealand (n=17) 38,048 New Zealand (n=9) 61,096 New Zealand (n=16) 79,764
Sough Korea (n=27) 34,866 Singapore (n=34) 47,202 Singapore (n=54) 75,992
Singapore (n=46) 31,956 Sough Korea (n=29) 44,575 Sough Korea (n=36) 63,811
Hong Kong (n=13) 26,616 Hong Kong (n=7) 38,907 Hong Kong (n=13) 59,782
Taiwan (n=38) 18,727 Taiwan (n=34) 25,153 Taiwan (n=36) 38,535
China (n=273) 9,962 China (n=243) 15,761 Thailand (n=218) 30,131
Thailand (n=239) 8,128 Thailand (n=200) 14,505 Malaysia (n=94) 26,005
Malaysia (n=94) 7,041 Malaysia (n=86) 13,380 China (n=273) 25,644
Indonesia (n=216) 5,956 Indonesia (n=188) 9,078 India (n=144) 22,756
India (n=136) 4,466 India (n=130) 8,790 Pakistan (n=14) 20,224
Vietnam (n=292) 4,041 Vietnam (n=248) 8,217 Indonesia (n=210) 19,496
Philippines (n=50) 3,916 Pakistan (n=13) 7,550 Vietnam (n=263) 16,742
Cambodia (n=28) 2,989 Sri Lanka (n=6) 6,845 Philippines (n=48) 16,545
Laos (n=12) 2,505 Philippines (n=45) 6,265 Myanmar (n=18) 15,149
Pakistan (n=13) 2,412 Cambodia (n=21) 6,242 Laos (n=10) 15,078
Myanmar (n=15) 2,261 Myanmar (n=15) 5,885 Cambodia (n=26) 13,542
Sri Lanka (n=7) 2,202 Bangladesh (n=18) 5,333 Bangladesh (n=15) 12,252
Bangladesh (n=19) 1,829 Laos (n=9) 4,407 Sri Lanka (n=8) 8,723
Non-Manufacturing: Staff Non-Manufacturing: Manager Annual salary (annual amount of real obligation fees):
Unit: US$ Unit: US$ Total liability for an employee (the total of annual base
Australia (n=85) 51,656 Australia (n=80) 93,128 salary, benefits, social security, overtime allowances, and
New Zealand (n=33) 40,961 Singapore (n=224) 73,385 bonuses, excluding severance benefits, as of FY2019)
Singapore (n=259) 39,860 New Zealand (n=34) 71,308
Sough Korea (n=53) 36,166 Hong Kong (n=188) 65,668 See the previous page for the definitions of worker,
Hong Kong (n=211) 35,038 Sough Korea (n=55) 57,783 engineer, manager (manufacturing), staff, and manager
Taiwan (n=116) 25,563 Taiwan (n=105) 41,477 (non-manufacturing).
China (n=231) 19,129 China (n=216) 38,997
Thailand (n=199) Note: Except for Cambodia, annual salaries were
Thailand (n=238) 14,629 31,420
reported in local currencies. (For Myanmar, salaries
Malaysia (n=85) 13,865 Malaysia (n=73) 30,464
were reported selectively either in the local
India (n=170) 11,090 India (n=162) 26,957
currency or in US dollars.) The annual salary for
Vietnam (n=259) 9,163 Laos (n=15) 22,981 each job type in the local currency was converted
Philippines (n=53) 8,397 Philippines (n=46) 20,519 to US dollars, using the average exchange rate of
Indonesia (n=203) 8,340 Indonesia (n=183) 19,880 August 2019 published by the central bank of each
Laos (n=16) 8,037 Vietnam (n=217) 19,154 country/region or by the State Administration of
Cambodia (n=45) 7,748 Myanmar (n=77) 17,985 Foreign Exchange for China. For Myanmar, where
Myanmar (n=100) 7,053 Cambodia (n=36) 17,882 companies reported annual salaries either in the
Bangladesh (n=28) 6,763 Bangladesh (n=26) 17,225 local currency or in US dollars, annual salaries
Sri Lanka (n=14) 5,795 Sri Lanka (n=13) 14,623 reported in the local currency were converted to US
Pakistan (n=14) 4,691 Pakistan (n=14) 11,845 dollars to calculate the average.

10. Wages (5) Bonuses
Unit: months Unit: months Unit: months
South Korea (n=27) 3.8 South Korea (n=30) 3.6 Taiwan (n=41) 3.5
Taiwan (n=42) 3.3 Taiwan (n=38) 3.5 South Korea (n=36) 3.4
Thailand (n=292) 2.9 Thailand (n=238) 3.0 Thailand (n=250) 3.0
Pakistan (n=12) 2.8 Pakistan (n=13) 2.6 Singapore (n=65) 2.2
Singapore (n=57) 2.1 Singapore (n=40) 2.4 Indonesia (n=232) 2.2
China (n=305) 1.9 China (n=262) 2.1 China (n=298) 2.2
Indonesia (n=244) 1.9 Indonesia (n=208) 2.0 Pakistan (n=14) 2.2
Malaysia (n=106) 1.9 Malaysia (n=97) 1.9 Malaysia (n=107) 2.1
Bangladesh (n=20) 1.8 Hong Kong (n=8) 1.8 Hong Kong (n=18) 1.8
Hong Kong (n=18) 1.7 Bangladesh (n=19) 1.7 Bangladesh (n=17) 1.8
Vietnam (n=360) 1.5 Sri Lanka (n=6) 1.6 Sri Lanka (n=7) 1.7
Sri Lanka (n=8) 1.5 Vietnam (n=291) 1.5 Philippines (n=52) 1.6
Philippines (n=54) 1.4 Philippines (n=50) 1.5 Vietnam (n=316) 1.6
India (n=145) 1.0 India (n=136) 1.1 Australia (n=14) 1.2
Myanmar (n=20) 0.9 Myanmar (n=18) 1.0 Myanmar (n=20) 1.2
Laos (n=14) 0.8 Laos (n=11) 0.8 Laos (n=12) 1.1
Cambodia (n=27) 0.8 Australia (n=10) 0.8 India (n=144) 1.0
Australia (n=12) 0.6 Cambodia (n=21) 0.7 Cambodia (n=26) 0.8
New Zealand (n=11) 0.4 New Zealand (n=7) 0.4 New Zealand (n=11) 0.6
Non-Manufacturing: Staff Non-Manufacturing: Manager

Unit: months Unit: months
Taiwan (n=125) 3.2 Taiwan (n=112) 3.4
Thailand (n=277) 2.3 Thailand (n=228) 2.4
South Korea (n=58) 2.1 Singapore (n=251) 2.4
China (n=254) 2.1 South Korea (n=54) 2.3
Singapore (n=296) 2.0 China (n=239) 2.3
Bangladesh (n=32) 2.0 Bangladesh (n=29) 2.1
Malaysia (n=99) 1.9 Indonesia (n=195) 2.0
Indonesia (n=224) 1.9 Malaysia (n=80) 2.0
Philippines (n=62) 1.9 Laos (n=15) 2.0
Sri Lanka (n=17) 1.8 Sri Lanka (n=14) 2.0
Pakistan (n=15) 1.7 Philippines (n=54) 1.9
Laos (n=17) 1.6 Pakistan (n=14) 1.8
Hong Kong (n=245) 1.6 Hong Kong (n=208) 1.7
Vietnam (n=322) 1.6 Vietnam (n=269) 1.6
Myanmar (n=104) 1.3 Myanmar (n=82) 1.4
India (n=170) 1.2 India (n=158) 1.4
Cambodia (n=52) 1.1 Australia (n=71) 1.3
New Zealand (n=31) 0.9 Cambodia (n=41) 1.3
Australia (n=74) 0.9 New Zealand (n=32) 1.0

11. Automation and Reducing Labor (1) Manufacturing industries only
Automation and reducing labor (use of robots, etc., on the production line)
By country/region (%) By industry (%)

0 20 40 60 80 100 0 20 40 60 80 100
ASEAN (n=1,318) 31.0 37.3 31.7 Manufacturing (n=1,318) 31.0 37.3 31.7
Malaysia (n=126) 37.3 40.5 22.2 Motor vehicles/Motorcycles (n=215) 46.1 37.2 16.7
Philippines (n=63) 31.8 42.9 25.4 Electric machinery (n=198) 45.0 37.4 17.7
Rubber/Leather (n=34) 29.4 52.9 17.7

Indonesia (n=277) 36.8 35.7 27.4
Vietnam (n=376) 27.9 42.0 30.1
Wood/Pulp (n=24) 25.0 45.8 29.2
Thailand (n=313) 29.7 35.5 34.8
Chemical/Pharmaceutical (n=184) 29.4 38.0 32.6
Singapore (n=90) 31.1 27.8 41.1
Iron/Non-ferrous metals/Metals (n=238) 25.2 39.9 34.9
Myanmar (n=24) 16.7 33.3 50.0
Food (n=72) 19.4 43.1 37.5
Cambodia (n=33) 27.3 21.2 51.5
Laos (16) 6.3 31.3 62.5
Textiles (n=81) 13.6 32.1 54.3
We are already working on automation and labor saving.
We are not working on it now, but are considering it in the future.
We have no plans to work on it.
Regarding automation and reducing labor, 68.3% of the ASEAN companies answered with “We are already working on automation and labor
saving” or “We are not working on it now, but are considering it in the future.” By country, the proportion exceeded 70% in Malaysia (77.8%), the
Philippines (74.7%), and Indonesia (72.5%), while it was 50% or less in Laos (37.6%), Cambodia (48.5%), and Myanmar (50.0%).
By industry, more than 80% of the companies answered with “We are already working on automation and labor saving” or “We are not working
on it now, but are considering it in the future” in Motor vehicles/Motorcycles (83.3%), Electric machinery (82.4%), and Rubber/Leather (82.3%).

11. Automation and Reducing Labor (2) Manufacturing industries only
Note: Answers were given by companies that selected “We are not working on it now, but are
Reasons for not being engaged in
considering it in the future” or “We have no plans to work on it.”
automation or reducing labor
(%)
0 25 50 75 100
As the reasons for not
being engaged in
The cost is not worth the results. 71.5 automation or reducing
labor, “The cost is not
Our company lacks in-house human resources with the necessary worth the results” was most
38.7
knowledge and skills for automation and reducing labor.
frequently cited, at 71.5%.
Only around 10% of the
We are not sure how to go about it. 11.7
companies cited “We are
not sure how to go about
Doing so would cause us to lose our advantage in the labor-
intensive industry.
11.2 it,” “Doing so would cause
us to lose our advantage in
Cutting workers would cause a backlash. 5.2 the labor-intensive
industry,” or “Cutting
Our company lacks in-house human resources with the workers would cause a
The cost is not worth the results. necessary knowledge and skills for automation and backlash.”
(%) reducing labor. The proportion of
0 25 50 75 100 0 25 50 75 100 (%) companies that answered
with “The cost is not worth
ASEAN (n=828) 71.5 ASEAN (n=828) 38.7
the results” exceeded 70%
Vietnam (n=249) 78.3 Myanmar (n=17) 58.8 in Vietnam (78.3%),
Myanmar (76.5%),
Myanmar (n=17) 76.5 Philippines (n=34) 50.0 Indonesia (75.6%), and
Thailand (72.7%).
Indonesia (n=160) 75.6 Cambodia (n=19) 47.4 The proportion of
companies that answered
Thailand (n=205) 72.7 Malaysia (n=50) 41.3 with “Our company lacks
Malaysia (n=75) 66.7 Vietnam (n=249) 39.0 in-house human resources
with the necessary
Cambodia (n=19) 63.2 Thailand (n=205) 37.1 knowledge and skills for
automation and reducing
Laos (n=12) 58.3 Indonesia (n=160) 36.3 labor” was higher than the
average by more than 10
Philippines (n=34) 50.0 Singapore (n=57) 33.3 percentage points in
Laos (n=12) Myanmar (58.8%) and the
Singapore (n=57) 49.1 25.0
Philippines (50.0%).

12．Procurement of Raw Materials and Parts in ASEAN(1)
Manufacturing industries only
Procurement sources for raw materials and parts in ASEAN
(by country/region) (%)
0 20 40 60 80 100
ASEAN(n=455) 51.3 14.6 11.9 8.7 2.5 11.0
0.2
Laos(n=11) 75.6 2.4 19.3 2.4
Cambodia(n=19) 66.8 0.6 8.0 23.9 0.6
0.6
Vietnam(n=130) 60.5 16.5 15.0
7.4
Malaysia(n=60) 58.4 19.6 6.2 2.2 13.5
Indonesia(n=119) 49.2 20.7 5.5 3.8 20.8
Philippines(n=18) 46.8 13.2 13.8 15.8 10.4
Myanmar(n=13) 45.4 9.4 28.5 13.5 3.1
Singapore(n=27) 27.9 38.7 7.7 12.5 13.1
Thailand(n=58) 25.8 15.6 25.7 5.7 27.2
Thailand Malaysia Indonesia Vietnam Philippines Other ASEAN countries

The largest procurement source in ASEAN for raw materials and parts was Thailand(51.3%), followed by Malaysia(14.6%),
Indonesia(11.9%),Vietnam(8.7%) .
The procurement rate from Thailand was the highest in Laos(75.6%), and the rate was more than average in Cambodia (66.8%),
Vietnam (60.5%),Malaysia(58.4%).
The procurement rate from Malaysia was the highest in Singapore(38.7%), followed by Thailand(25.8%), Indonesia(20.7%),Vietnam(16.5%).

12．Procurement of Raw Materials and Parts in ASEAN(2)
Manufacturing industries only
Local procurement sources for raw materials and parts Other foreign-affiliated companies breakdown among Local
(by country/region, responses total 100%) (%)
Procurement sources for raw materials and parts(by country/region)
0 20 40 60 80 100 (%) 0 20 40 60 80 100 (%)
ASEAN(n=1,184) 42.6 49.0 8.4 ASEAN(n=359) 28.8 19.7 19.6 16.9 14.9
Vietnam(n=354) 37.4 48.6 14.0 Vietnam(n=150) 45.3 20.6 11.0 12.9 10.3
Thailand(n=308) 41.0 54.7 4.4 Thailand(n=68) 15.7 21.7 30.6 18.5 13.6
11.6
Indonesia(n=262) 44.2 50.4 5.5 Indonesia(n=64) 12.6 18.3 31.8 25.8
Malaysia(n=26) 9.3 37.5 21.7 16.5 15.0

Malaysia(n=122) 55.4 40.7 4.0
3.5
Philippines(n=53) 26.6 68.6 4.9 Philippines(n=15) 27.4 48.6 14.3 6.2
Singapore(n=48) 55.1 33.2 11.7 Singapore(n=18) 8.0 69.7 11.6 10.7
Cambodia(n=17) 45.6 24.4 30.0 Cambodia(n=8) 13.7 15.7 1.6 11.8 57.3
4.9
Myanmar(n=13) 69.9 14.3 15.8 Myanmar(n=7) 2.4 4.9 63.4 24.4
Laos（n=7） 67.4 32.9 Laos(n=3) 39.1 60.9

Taiwanese-affiliated companies Korean-affiliated companies Western-affiliated companies
Local companies Japanese-affiliated companies Other foreign-affiliated companies ASEAN-affiliated companies Chinese-affiliated companies
Looking at the breakdown of Other foreign-affiliated companies, the largest procurement source for raw materials and parts in ASEAN was
Taiwanese-affiliated companies(28.8%), followed by Korean-affiliated companies(19.7%), Western-affiliated companies(19.6%), ASEAN-
affiliated companies(16.9%),Chinese-affiliated companies(14.9%).
The procurement rate from Taiwanese-affiliated companies was the highest in Vietnam(45.3%), followed by Philippines(27.4%). The
procurement rate from Korean-affiliated companies was the highest in Philippines(48.6%), followed by Malaysia(37.5%). The procurement
rate from Western-affiliated companies was the highest in Singapore(69.7%). The procurement rate from ASEAN-affiliated companies was
highest in Myanmar(63.4%) , followed by Laos(39.1%). The procurement rate from Chinese-affiliated companies was the highest in
Laos(60.9%), followed by Cambodia(57.3%).

Contact details for inquiries:
Japan External Trade Organization (JETRO)
Overseas Research Department / Asia and Oceania Division /
China and North Asia Division
1-12-32 Akasaka, Minato-ku, Tokyo 107-6006

TEL: 03-3582-5179 (Asia and Oceania Division)
03-3582-5181 (China and North Asia Division)
E-mail: ORF@jetro.go.jp (Asia and Oceania Division)
ORG@jetro.go.jp (China and North Asia Division)
Responsibility for any decisions made based on or in relation to the information provided in this
material shall rest solely on the reader. Although JETRO strives to provide accurate
information, JETRO will not be responsible for any loss or damage incurred by readers through
the use of such information in any manner.

2019 JETRO Survey On Business Conditions of Japanese Companies in Asia and Oceania

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2019 JETRO Survey On Business Conditions of Japanese Companies in Asia and Oceania

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2019 JETRO Survey on Business Conditions of

Japanese Companies in Asia and Oceania

November 21, 2019

Copyright © 2020 JETRO. All rights reserved. 1

More than 200 companies work with local startups. (pp.92–94)

Copyright © 2020 JETRO. All rights reserved. 3

Total 13,458 5,697 100.0 2,471 3,226 42.3

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Total (n=5,697) China (n=694) Hong Kong/Macau (n=341) Taiwan (n=248)

South Korea (n=135) Vietnam (n=858) Thailand (n=681) Indonesia (n=614)

Singapore (n=522) Malaysia (n=299) Myanmar (n=153) Philippines (n=139)

Cambodia (n=113) Laos (n=38) India (n=467) Bangladesh (n=64)

Copyright © 2020 JETRO. All rights reserved. 7

Total (n=5,628) China (n=691) Hong Kong/Macau (n=340) Taiwan (n=245)

South Korea (n=133) Vietnam (n=846) Thailand (n=672) Indonesia (n=605)

Singapore (n=520) Malaysia (n=296) Myanmar (n=150) Philippines (n=137)

Cambodia (n=113) Laos (n=37) India (n=456) Bangladesh (n=63)

Copyright © 2020 JETRO. All rights reserved. 8

Total (n=5,485) China (n=670) Hong Kong/Macau (n=330) Taiwan (n=240)

South Korea (n=131) Vietnam (n=820) Thailand (n=651) Indonesia (n=594)

Singapore (n=508) Malaysia (n=291) Myanmar (n=149) Philippines (n=133)

Cambodia (n=110) Laos (n=38) India (n=448) Bangladesh (n=62)

Copyright © 2020 JETRO. All rights reserved. 9

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Total Northeast Asia

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(%) China (689) (%) Vietnam (796)

(%) Thailand (669) (%) India (444)  On the other hand,

Copyright © 2020 JETRO. All rights reserved. 14

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(Points) Total (Points) Northeast Asia

(Points) ASEAN6 (Points) India

Vietnam Indonesia Philippines India

Non-manufacturing industries Non-manufacturing industries

Copyright © 2020 JETRO. All rights reserved. 18

Reasons for decreased operating profits forecast for 2019

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Reasons for decreased operating profits forecast for 2020

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Indonesia Malaysia Myanmar Bangladesh India China Taiwan

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61.9 66.8 65.5 Vietnam

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Manufacturing (%) Non-manufacturing (%)

2018 (n=957) 53.4 40.8 4.5 1.4

Copyright © 2020 JETRO. All rights reserved. 24

Wholesale/Retail (%) Iron/Nonferrous metals/Metals (%)

Motor vehicles/Motorcycles (%) (%)

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Total Vietnam Philippines Indonesia Thailand Singapore Malaysia

Sales increase in local 72.4 76.6 61.3 66.4

Sales increase due to

High receptivity for high

2.7 4.4 6.9 1.6 1.0 2.2 1.6

Deregulations 1.4 1.7 2.8 1.0 0.3 0.4 1.6

Copyright © 2020 JETRO. All rights reserved. 26

India Pakistan Sri Lanka Bangladesh Cambodia Laos Myanmar

Sales increase in local

High growth potential 60.1 64.0 29.4 41.1 26.3 55.4