2025 Survey on Business Operations of Foreign-Affiliated Companies in Japan

News & Updates

• Latest
• 2025
• 2024
• 2023
• 2022

JETRO Publishes 2025 Survey on Business Operations of Foreign-affiliated Companies in Japan

Feb 26, 2026

Japan’s Stability Gaining Importance Amid Global Volatility

JETRO sent questionnaires to 7,698 foreign-affiliated companies* based in Japan from September to October 2025, receiving valid responses from 1,520 companies (valid response rate: 19.7%).
The goal of this survey is to promote foreign investment in Japan by understanding the business trends, the appeal and challenges in the business environment and the kind of support required by foreign-affiliated companies in Japan. This survey will serve as a reference basic data for improving the business environment and facilitating related policies.

*In this survey, “foreign-affiliated companies” refers to companies with a foreign ownership ratio of 25% or more and companies identified as Japanese subsidiaries of foreign companies.

Key report findings are:

1．Approximately 50% of foreign-affiliated companies expect revenue growth, and more than 60% expect to be profitable, far exceeding the number expecting a loss For the current fiscal year, 45.9% of companies expect higher revenue, more than twice the percentage of companies expecting a decline. For the next fiscal year, more than half of companies expect revenue growth, while the number expecting a decline is projected to be cut in half YoY. 61.6% of companies expect a profit for the current fiscal year, 3.6 times as many as those expecting a loss. Companies expecting operating profit improvement from the previous year are about twice as many as those anticipating profit deterioration. Regarding future business plans, approximately 60% of companies intend to strengthen or expand their operations in Japan. Among industries, retail, which was the only industry below 50% in the previous survey, now has the highest proportion. 2．Japan’s business environment is highly rated for social, economic, and geopolitical stability, while exchange rate volatility and securing talent remain challenges Regarding the attraction of Japan’s business environment, the rating for “Social and economic stability/geopolitical stability” increased by 24.3 points from the previous survey, making it the most highly rated item since the survey began. The next-highest item, “Clustering/presence of customer and related industries,” also increased by 13.2 points. Regarding changes in the business environment, responses indicating that the situations in securing personnel and office/business sites are worsening stood out. 3．Japan’s importance has increased for European and North American companies, but decreased for Chinese companies Regarding Japan’s importance in the context of geopolitical risks, the majority of companies reported “No change,” but the proportion of companies responding “Increased” grew notably among European and North American companies. In contrast, among Chinese companies, the proportion reporting an increase declined, while the proportion responding “Decreased” rose sharply. Nearly 40% of companies expect negative impacts from U.S. tariff policy both short term and long term. Respondents expressed concerns about rising import costs and declining customer performance. 2025 Survey on Business Operations of Foreign-affiliated Companies in Japan

(1.0MB)

Saito (Ms.), Takase (Mr.), Taniguchi (Ms.), Miyazaki (Mr.)
Strategic Planning Division, Innovation Department.
Phone: +81-3-3582-5312 E-mail: iva-research@jetro.go.jp