In short
  • Japan's inward FDI stock reached a record ¥53.3 trillion at the end of 2024 (+4.5%), equal to 8.7% of GDP
  • The UK is Japan's second-largest investor by stock (¥9.1 trillion, 17.0%), behind the US
  • Greenfield investment into Japan rose 15.4% to US$31.6 billion, led by data centres and logistics
  • The government raised its 2030 target to ¥120 trillion, with ¥150 trillion as the next goal

The report at a glance

Original title
JETRO Invest Japan Report 2025
Publisher
JETRO (Japan External Trade Organization)
Published
September 2025 (data for calendar year 2024)
Language
English and Japanese (PDF)
Access
Free, no registration

Key numbers and findings

¥53.3tninward FDI stock, end of 2024 — a record
17.0%UK share of that stock, second after the US
208inbound cross-border M&A deals in 2024 (+24.6%)

Who invests in Japan (FDI stock, end of 2024)

Country / regionStockShare
United States¥10.6 trillion20.0%
United Kingdom¥9.1 trillion17.0%
Singapore¥6.1 trillion11.4%

Asia overtook North America as a source of investment stock for the first time in two years.

Where the money goes

  • Finance and insurance hold the largest share of inward FDI stock (¥12.1 trillion, 37.1%), followed by chemicals and pharmaceuticals (¥3.2 trillion) and transport equipment (¥3.2 trillion).
  • New greenfield projects are dominated by data centres and logistics facilities. Around 70% of greenfield projects are in Tokyo.
  • Net FDI inflow in 2024 was ¥2.5 trillion, down 13.6%, mainly because of lower new equity investment.
  • Cross-border M&A into Japan recovered to 208 deals; US acquirers accounted for 99 of them (47.6%). M&A by investment funds has grown about elevenfold since 2011.

Policy

The government's inward FDI target for 2030 was raised from ¥100 trillion to ¥120 trillion, with an aspiration of ¥150 trillion “as early as possible in the early 2030s”. The report also covers support for start-ups and the wider economic spill-overs of foreign investment.

What it means for companies entering Japan

Our reading

For British companies in particular, the useful fact is that the UK is already Japan's second-largest foreign investor. You are not arriving in an unfamiliar relationship: British banks, insurers, pharmaceutical and consumer groups have long histories there, and Japanese partners are used to working with UK firms.

The policy direction is equally clear. Japan wants more foreign investment and has raised its targets to get it. In practice that means JETRO's free support services — market information, office space, introductions — are there to be used, especially by smaller companies that cannot yet justify a full local team.

How to read the original

The report page lists the full English PDF and a shorter summary. If you only have ten minutes, read the chapter on Japan's inward FDI by country and industry, and the section on government policy.

Go to the report page (English) ↗

This is an independent summary by Japan Business Insider. Figures are taken from the original publication; the interpretation in “Our reading” is our own. Please check the original before quoting figures.

Japan Business InsiderBorn and raised in Japan, based in the UK for 30 years. I help Western brands read, enter and grow in the Japanese market — trend intelligence, localisation, social and search — reading the original Japanese sources every day.