Cultivating emerging markets of Asia will be the key to Japan's economic recovery as the region sees a fast-growing middle-income population with strong consumer confidence, a government report said today.
The White Paper on International Economy and Trade 2009, approved at a Cabinet meeting, said the government will need to support Japanese corporate efforts to develop technology to reduce costs while maintaining product quality as well as sales strategies in the Asian economies.
The latest report focuses on the overseas activities of Japanese firms as Japanese exports have plunged amid the global recession.
The annual report pointed that it is insufficient for Japanese companies to sell high-performance, high-quality products if they wish to have their products fully accepted in the emerging markets, which hold a middle-income population of about 880 million.
Japanese companies should develop products suitable for the living habits of each country in the region and establish a system to procure parts in local markets to sharpen their competitive edge, the report added.
To assist the efforts of Japanese firms, the government should step up attempts to strike investment treaties with these emerging economies and take steps to protect intellectual property rights of Japanese products, it suggested.
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