Japan Aims for $1 Trillion in Foreign Investment by 2035

Japan is set to raise its foreign direct investment (FDI) target to 150 trillion yen ($1.05 trillion) by the mid-2030s, marking a bold 20% increase from its previous 2030 goal. The move reflects Tokyo’s ambition to revitalize its economy by attracting global investors into high-growth sectors like decarbonization and clean energy.

According to sources familiar with the plan, the revised target will be officially outlined in the government’s upcoming fiscal and economic policy blueprint set for release in June. The government will first increase its 2030 FDI goal from 100 trillion yen to 120 trillion yen, aiming to triple the current investment level of approximately 50 trillion yen.

This enhanced investment strategy not only supports Japan’s green transformation but also focuses on regional revitalization. By encouraging foreign companies to establish operations outside major urban centers, the initiative aims to stimulate local economies and generate new jobs across the country.

To achieve these ambitious targets, Japan is considering new incentives, including grants and improved public-private partnerships. These efforts are designed to make it easier for international firms to set up operations in regional areas, helping diversify economic activity beyond Tokyo and Osaka.

The push for increased foreign investment comes at a time when Japan is striving to stay competitive in the global economy amid demographic challenges and sluggish domestic demand. By opening its doors wider to foreign capital, Japan hopes to boost innovation, productivity, and long-term economic sustainability.

This strategic shift signals Japan’s growing focus on economic openness and global collaboration, positioning the country as a more attractive destination for international businesses and investors. As the policy evolves, it could reshape Japan’s economic landscape for decades to come.