Skip to content
Subscriber Only
Business

Japan Shifts Investment From China to Southeast Asia

  • Amount invested in Asean almost triples in five years
  • Tensions with China spurred Japan to direct more to Asean
Workers load bags of groceries onto a tuk-tuk at the Klong Thoei market in Bangkok.

Workers load bags of groceries onto a tuk-tuk at the Klong Thoei market in Bangkok.

Photographer: Dario Pignatelli/Bloomberg
By

Japanese investment in Southeast Asia continues to grow, owing to the region’s potential and low labor costs, amid simmering tensions that reduce the appeal of China for some Japanese businesses.

For a third straight year, in 2015 the amount of foreign direct investment from Japan to the 10-member Association of Southeast Asian Nations exceeded such investment in China and Hong Kong, according to figures compiled by the Japan External Trade Organization.