Turkey a paradise to invest for Japanese business giants
Turkey has been lucky enough to attract the attention of alternative investment sources other than of European origin thanks to the advantegous opportunities it can offer world giants in the business world.
It has recently been observed that Japanese giants have grown real interest in this large domestic market, with young population and relative political stability as compared to other emerging markets such as Indonesia and Russia.
Trade between Turkey and Japan has jumped 25 percent last year to a record USD 4.6 billion, while the number of Japanese companies opening offices in Istanbul sky-rocketed to 120 this year.
Among fields of interest, finance, automotive, construction and logistics sectors have been considered most favorable by Japanese companies.
To verify this situation the Economy Minister Zafer Çağlayan has said “The Japanese are seriously targeting Turkey. They are the slowest-moving people in the world. But once they reach a decision, they are always taking the right and rational steps”.
Among referred Japanese giants are Bank of Tokyo-Mitsubishi UFJ, Japan’s biggest bank which decided to join forces with Turkiye Is Bankasi A.S., Turkey’s biggest lender by assets, to provide wide-ranging services to Japanese concerns operating in Turkey, ranging from retail banking to credit cards, leasing and advising on mergers and acquisitions.
The good news for Turkey is that more financial companies are coming over back to back. In fact it has been reported that the Istanbul branch of the Japan External Trade Organization hosted more than 100 companies in both May and July, when executives visited Turkey to scope out business opportunities.
Japanese companies are said to have started considering Turkey as an investment spot three years ago. They spent a lot of time for research. Eventually they are now coming with huge opportunities to realize giant investments.
For instance, Sumitomo Rubber Industries Ltd is spending USD 500 million on a tire factory.
Sumitomo management believes that supplying tires from Turkey, which is nearer to the Mideast and African markets in addition to Europe, will enable the company to gain substantial benefits in terms of lead times and transportation costs.
On the other hand Yusen Logistics Co., a unit of the world’s second-biggest transportation company Tokyo-based NYK Group is expected to invest in this country as well.
To recap, Turkey is in position to offer advantages such as a large domestic market, a young and consuming population and considerable stability to foreign companies willing to invest in a foreign land.
This is exactly why Japanese companies as well as giants from other parts of the world are enthusiastic to get established in this country.
15.10.2012
BTT
