Foreign direct investment (FDI) from Japan - statistics & facts

Foreign direct investment (FDI) is a type of investment made with the aim of acquiring a lasting interest in a company located in another country. While inward FDI to Japan has remained low, the country has been among the leading source economies of FDI worldwide in the past years.
In 2022, Japan became the second-largest investor of outward FDI following a decline in investment activities in 2020 due to the coronavirus (COVID-19) pandemic.

Development of Japanese outward FDI

Outward FDI flows from Japan have shown an overall growth trend in the past decade. Japan became the leading investor globally for two consecutive years in 2018 and 2019, with FDI outflows reaching a record high in 2019. The sharp increase in outward FDI that year could mainly be attributed to an increase in merger and acquisition (M&A) activity driven by a deal of the Japanese company Takeda Pharmaceutical. In 2020, the growth trend was interrupted amid the coronavirus (COVID-19) pandemic, which led to a worldwide decrease in FDI flows. Japan was no exception to this trend, but figures recovered. In 2022, Japan’s FDI outflows amounted to 161.56 billion U.S. dollars, making the country the second-largest investor of FDI globally. Japan’s outward FDI position reached almost two trillion dollars, accounting for around 45.3 percent of the GDP.

Japan’s outward FDI by region and industry

Reinvestment of earnings represented the largest component of FDI flows from Japan in 2022, followed by equity outflows and debt instruments. The majority of Japanese FDI was directed at non-manufacturing industries, with finance and insurance accounting for the largest share of Japan’s outward FDI flows. Against the background of an ultra-low interest environment and an aging and shrinking population in the domestic market, Japanese banks and insurance companies have increasingly expanded overseas in recent years. Next to finance and insurance, wholesale and retail, communications, and mining were major target industries for FDI from Japan. North America was the leading receiving region of Japanese FDI flows in 2022, followed by Asia and Europe. Broken down by economy, the highest amount of FDI was directed at the United States, Australia, and China.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 19, 2023

Key insights

Outward FDI flows
161.56bn USD
Leading industry based on FDI outflows
Wholesale and retail
Largest recipient of FDI outflows
United States
Get more insights

Editor’s Picks Current statistics on this topic

Inward foreign direct investment (FDI) in Japan from 2013 to 2022 (in billion U.S. dollars)

Financial Instruments & Investments

FDI flows into Japan 2013-2022

Japan's outward foreign direct investment (FDI) stock from 2013 to 2022 (in trillion U.S. dollars)

Financial Instruments & Investments

Japanese outward FDI stock 2013-2022

Leading non-financial multinational enterprises (MNEs) from Japan in 2022, by foreign assets (in billion U.S. dollars)

Business Enterprise

Leading non-financial MNEs Japan 2022, by foreign assets

Related topics

Recommended

5

Foreign direct investment in APAC

2

Recommended statistics

Overview

4

Overview

Size of FDI from Japan

6

Size of FDI from Japan

Leading industries

6

Leading industries

Leading destinations

6

Leading destinations

Investment by type

5

Investment by type

Foreign affiliates

4

Foreign affiliates

Further reportsGet the best reports to understand your industry

Financial sector in Japan
Financial sector in Japan
International trade of Japan
International trade of Japan
Banking industry in Japan
Banking industry in Japan
Foreign direct investment (FDI) to Japan
Foreign direct investment (FDI) to Japan
Business enterprises in Japan
Business enterprises in Japan

Contact

Get in touch with us. We are happy to help.
Statista Locations
Contact Meredith Alda
Meredith Alda
Sales Manager– Contact (United States)
Email
support@statista.com

Mon - Fri, 9am - 6pm (EST)

Contact Yolanda Mega
Yolanda Mega
Operations Manager– Contact (Asia)
Email
asia.support@statista.com

Mon - Fri, 9am - 5pm (SGT)

Contact Kisara Mizuno
Kisara Mizuno
Senior Business Development Manager– Contact (Asia)
Email
asia.support@statista.com

Mon - Fri, 10:00am - 6:00pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)
Email
eu.support@statista.com

Mon - Fri, 9:30am - 5pm (GMT)

Contact Carolina Dulin
Carolina Dulin
Group Director - LATAM– Contact (Latin America)
Email
latam@statista.com

Mon - Fri, 9am - 6pm (EST)

Menu