Thought for London September 2008

Japan - All eyes on London

While all eyes have been on China recently, Japan’s FDI activities into London have quietly gathered momentum: Over the past three years, from 2004 to 2007, Think London’s records demonstrate that FDI from Japan into London has doubled from 9 to 18 projects a year. In the same period, we recorded a total of 49 investment projects from Japan came into London, creating approximately 700 jobs.

This clearly demonstrates the outstanding role that London plays with Japanese companies wishing to expand abroad and globalise their businesses.

Japan has already a huge business presence in London. The stock of FDI from Japan is the highest of the Asia-Pacific region, including large world players such as Mitsubishi. In the past 14 years, Think London has worked with around 100 Japanese inward investors. Among our clients are key players in business such as Nissan and Yamaha. More recently, we have provided assistance to Japanese furniture company Okamura to set up their first UK operation in the East End.

We are planning to host a Japanese business reception for leading figures from Japanese companies in London and British firms doing business in Japan on 13th October. The Japanese Galleries at the British Museum will provide a high-profile venue for the Mayor to address the expected 150 guests, including the Japanese Ambassador, highlighting the importance of Japanese direct investment in the capital.

Japanese companies are continuing to choose London as a place to globalise their businesses, and financial services continues to lead the way. In the past five years, every one in five FDI projects from Japan has been related to financial services. In the first half of 2008, Nomura Holdings – now the world’s biggest independent investment bank – created another 150 jobs in London. This represents two thirds of all jobs created by Japanese companies in London in that period. The acquisition of Lehman Brothers’ equities and investment banking operations in Europe and the Middle East, based in London, by Nomura is another example of the strength of Japanese financial services institutions. 

London needs to continue to go further ahead to secure its top position as a FDI destination. However, the ongoing momentum of FDI from Chinese and Japanese companies demonstrates that London remains a prime business destination for emerging and developed Asian economies alike.

Michael Charlton, Chief Executive