************************************************************************* Issue 37 [October 2009] OCCI e-Magazine http://www.osaka.cci.or.jp/e/index.html ************************************************************************* [CONTENTS, October 2009] 1. Current Status of Osaka / Kansai Economy 2. "East Asian Entrepreneurs' Market Entry Program" successfully held ---inviting 10 companies from 5 Asian countries/region 3. ACCJ (American Chamber of Commerce in Japan) Board Meeting held in Osaka at O-BIC's invitation ---OCCI / Osaka Prefecture / Osaka City hosted Reception for Board Members 4. Japan - Vietnam EPA (Economic Partnership Agreement) came into effect on Oct. 1 5. OCCI International Division report on VIP visitors ========================================================================= 1. Current Status of Osaka / Kansai Economy While the economy of Osaka / Kansai remains severe, slightly improved sentiment is felt with deteriorating trends seeming to have discontinued. Exports, the mainstay of the Osaka / Kansai economy, are still "below water level" or "underwater", but the extent of decrease is lessening. Industrial production remains at much the same level as last month and the general conditions seem to have improved from around February. On the other hand, trends of personal consumption remain weak. Large retailers' sales are on the decrease for 15 consecutive months, and sales of convenience stores are showing decreases after 15 months of increases partly because of the ups from cigarette sales arising from introduction of adult sensor system (misused) for purchases from auto vendors. Housing start-ups also remain dull. Among all these trends, grave concern is caused by the scene of employment. Osaka / Kansai's complete unemployment rates are vastly deteriorating, now worse than the nationwide average, with the effective ratio of job openings to job applications at 0.45 % after 16 consecutive months of decline. According to our BSI (Business Survey Index, showing the average business sentiment of the heads of Osaka / Kansai companies surveyed jointly by OCCI and Kansai Economic Federation), their minds seem to continue looking up but the reality is still 'below water level' with slowing down tempos. Sense of recovery seems delayed particularly among SMEs (small and medium enterprises) showing definite gaps between large corps and those of small scale. BSI Results Prediction Jan-Mar 2009@@Apr-Jun 09 Jul-Sep 09 Oct-Dec 09@@Jan-Mar 2010 Totals -87.9 -42.2 -16.6 -5.0 1.7 Large Corps -90.7 -24.1 -2.0 9.5 20.7 SMEs -86.1 -52.5 -27.6 -13.6 -9.5 ======================================================================== 2. "East Asian Entrepreneurs' Market Entry Program" successfully held ---inviting 10 companies from 5 Asian countries/region Under the sponsorship of OCCI International Business Committee [Chairman: Mr. H. Yoichi (Executive Officer, Marubeni Corporation)], the E.A.E. Market Entry Program was successfully held (Oct. 5-9) inviting executives of 10 companies from 5 Asian countries/region. This is the 4th event (of the annually held Program since 2006), with participation by 3 companies of Taiwan, 2 companies each of Hongkong, Korea and Singapore and one of China. Their lines of business consist of manufacture of foodstuffs, apparel, construction/engineering, machine tools/ implements, air cleaners etc. In the Program, briefings were provided by O-BIC specialists for various information on the Osaka / Kansai economy, how to set up an operation base in Japan, or how to gain eligibility for stay in Japan etc, as well as by those of Osaka Prefecture and Osaka City on these regional governments' own preferential measures for foreign companies' entry. Program participants made visits to related facilities available to them such as the one of 'incubation' for business start-up, and they also individually made visits, pre-arranged at their requests, to companies and other facilities for opportunities of future tie-ups etc. For foodstuffs-related companies from Singapore and Taiwan to make specific preparations for entry into the Osaka/Kansai market, O-BIC is set to individually, or for each of them, to closely follow up with its assistance. For any inquiry, please contact: OCCI International Div: (Tel 06-6944-6400) O-BIC: http://o-bic.net/ ======================================================================== 3. ACCJ (American Chamber of Commerce in Japan) Board Meeting held in Osaka at O-BIC's invitation ---OCCI / Osaka Prefecture / Osaka City hosted Reception for Board Members Similarly to the one in October 2007, ACCJ Board Meeting was held in Osaka on Oct. 2 at the invitation of O-BIC. O-BIC also sponsored a Reception welcoming the ACCJ Board Members' visit to Osaka. The Reception was attended by 15members represented by Mr. Thomas W.Whitson (President, ACCJ), Mr. Michael D. Bobrove (Vice President-Kansai), Mr. Edward K.H. Dong (Consul-General). At the Reception, OCCI Chairman A.Nomura introduced SHARP Corporation's Sakai plant that started operation on Oct. 1 as being symbolic of the dynamic changes taking place in the Osaka / Kansai region with further strengthening of vanguard industries for environment and new products. President T.W. Whitson emphasized the significance of personal exchange in this age of Internet, as well as his wishes to keep observing the movements in the Osaka / Kansai region. The Board Members went on a cruise to look at the facilities and activities around Osaka Bay, and on Oct. 3, they opened and participated in the ACCJ KANSAI CHARITY WALK & FESTIVAL supporting the event of AQUA METROPOLIS OSAKA 2009. For any inquiry, please contact: O-BIC (http://o-bic.net/) ======================================================================== 4. Japan - Vietnam EPA (Economic Partnership Agreement) came into effect on Oct. 1 Through the Japan-Vietnam EPA taking effect on Oct. 1 to deepen economic cooperation for revitalization of economy, the relations between the two countries are expected to further strengthen. At the Osaka Certification Office (based in the OCCI Certification Center) of the Japan Chamber of Commerce and Industry, 'Preferential Certificates of Origin' (for preferential treatment for reduction of, and exemption from, customs duties) are issued on the basis of 11 EPAs currently in effect including the one with Vietnam, with Japan's second largest share (about 20 %) after Tokyo. [Japan's currently effective EPAs are concluded with Singapore, Malaysia, Thailand, Indonesia, Brunei, Philippines, Vietnam, ASEAN. Mexico, Chile, Switzerland.] The OCCI Certification Center fulfills various major roles not only in issuing Certificates of Origin but also in promoting, and making the most of, EPA and its advantages. For the new EPAs coming into effect in the last 4.5 years, we have conducted 24 explanation meetings with total participants exceeding 5,400 persons. We have also formed Japan's first private sector 'study team' only for EPA-related issues, and have greatly contributed to communicating outspoken voices of Osaka / Kansai companies to policy makers and implementers, through useful exchanges of views in these 4 years between ourselves and those concerned with the policy in all the Governments of Japan and other countries. For further multilateral contributions, every year since 2003, we have also made a representation to the Government of Japan for EPA promotion proposals, in cooperation with other major economic organizations in the Osaka / Kansai region. For any inquiry, please contact the Certification Center (OCCI International Div.): (Tel 06-6944-6411) ======================================================================== 5. OCCI International Division report on VIP visitors * October 2 (Fri.) Mr. Simon Fisher, HM Consul-General British Consulate-General Mr. Edward K. H. DONG, Consul-General American Consulate-General in Osaka-Kobe Mr. Thomas W. Whitson, President American Chamber of Commerce in Japan Mr. Michael D. Bobrove, Vice President-Kansai American Chamber of Commerce in Japan * October 3 (Sat.) Mr. John Victor ROOS, Ambassador Embassy of the United States of America in Japan * October 8 (Thu.) Mrs. Doris Leuthard, Vice President Swiss Confederation ========================================================================