Japan is currently experiencing an unprecedented wave of digital transformation (DX). Missing out on this wave means missing out on business opportunities and being left behind by the times. However, this DX wave also presents a golden opportunity for talented foreign engineers and business professionals to build a new career and achieve success in Japan.
Why Japan Needs Foreign Engineers
As Japan’s DX accelerates, there is a growing shortage of highly skilled IT personnel, including IT engineers. The Ministry of Economy, Trade and Industry estimates that by 2030, Japan will face a shortage of up to 790,000 IT professionals. It is difficult to meet this demand domestically, so the government is opening its doors to talented individuals from overseas and creating an environment where they can thrive.
Japan is an attractive country for foreign engineers. It boasts many world-leading companies with cutting-edge technology, a stable social infrastructure, and a rich culture. Moreover, the government offers various incentives to encourage foreign engineers to come to Japan.
- World-class technology: Japan is home to many world-renowned companies like Toyota, Sony, Panasonic, and NTT Docomo, offering opportunities to work on cutting-edge technology development.
- Stable social infrastructure: Japan offers a safe and secure living environment with excellent healthcare, education, and public safety. It is also an ideal place to raise a family.
- Rich culture and nature: Japan is rich in cultural attractions, from beautiful natural landscapes that change with the seasons to traditional arts and delicious cuisine.
Incentives for Foreign Engineers Offered by the Japanese Government
- Relaxed visa requirements:
- The government has expanded the range of occupations eligible for the Specified Skilled Worker visa and relaxed the requirements for the Highly Skilled Professional visa, making it easier for foreign engineers to work in Japan. For example, obtaining a Highly Skilled Professional visa allows your spouse to work and your children to receive an education in Japan.
- The Start-up Visa has also been established, providing an attractive system for foreign engineers who want to start their businesses in Japan. This opens up opportunities to realize your ideas and build a successful business in Japan.
- Tax incentives:
- Companies engaged in offshore business are eligible for tax incentives such as corporate tax reductions and exemptions. This reduces the cost burden for companies hiring foreign engineers, encouraging their employment.
- Foreign engineers themselves can also benefit from reduced resident and income taxes.
- Housing and living support:
- Various services are available to support foreign engineers’ lives in Japan, including housing information, lifestyle information, and Japanese language learning support.
- Local governments and international exchange associations offer consultation services for foreigners and hold Japanese language classes.
- Some companies even provide housing, rent subsidies, and Japanese language learning support as part of their employee benefits.
Roadmap to Success in the Platform Business
- Market research:
- Research the needs and competitive landscape of the Japanese market to narrow down the field you want to enter. There are platform business opportunities in various sectors, including healthcare, education, finance, smart cities, and tourism.
- Refer to government white papers, statistical data, and industry reports to assess the market’s growth potential and future prospects.
- It is also important to understand the unique needs and challenges of the Japanese market. For example, platforms that cater to the needs of an aging society or inbound tourists have great potential.
- Business plan creation:
- Create a clear business plan outlining your revenue model, target customers, and marketing strategy.
- Consider utilizing government support programs and subsidies to streamline fundraising and business development.
- Participate in business plan competitions and accelerator programs to receive advice and mentoring from experts.
- Team building:
- Gather team members with the necessary skills to realize your business plan.
- Consider collaborating with not only foreign engineers but also Japanese engineers and business professionals. A diverse team with different backgrounds can lead to more innovative ideas.
- Focus on building a team where members are motivated and can cooperate towards a common goal.