What is the Business Climate in Tokyo – カヴァン・ チョクシ

When most people think of doing business in Japan, they think of Tokyo カヴァン・ チョクシ. While Tokyo is a great place to do business, other cities in Japan are also worth considering. Japan has a thriving and vibrant economy that is friendly for business, and many people are looking to set up shop in the country. In this article, we will look at the overall business environment of Japan and Tokyo in particular.

Tokyo’s Metropolitan Government has a web page called “Business in Tokyo” that goes through some of the advantages and disadvantages of doing business in Japan. It also contains some very interesting information about Tokyo’s status as a global business center. Some key points are:

  • With over 35.8 million people, the Tokyo Metropolitan Area is the world’s most populous metropolitan area. It is also one of the most expensive places to live in terms of housing costs.
  • 644 of the Fortune Global 500 companies have operations in Japan, with 30 having headquarters in Tokyo or Chiyoda-ku alone.
  • 3% of Japanese exports are produced in Tokyo.
  • Tokyo’s GDP is three times larger than the next largest city, Osaka-Kobe.
  • Tokyo has more Michelin-star restaurants than any other city on earth.

The Pros of Doing Business in Tokyo

While Tokyo can be expensive to live in, the quality of life is very high. This means you are likely to attract and retain talented employees who are willing to work long hours if they enjoy where they live. Another major advantage of doing business in Tokyo is that it’s an international city. It has a large number of luxuries and conveniences that other cities cannot match. Lastly, doing business in Tokyo means you have access to a huge consumer market with lots of buying power. In addition, Japan does not rely on trade as much as other economic powers. With just 1% of the world’s population, they have exported more than 10% of the world’s goods.

The Cons of Doing Business in Tokyo

Tokyo is an expensive place to do business. Another major drawback of doing business in Tokyo is that the labor force can be a bit inflexible, particularly on issues related to working hours and holidays. In addition, Japan has a very high rate of unionization which means that employees have a large degree of influence on the labor market. Employees can also retire early, which means it might be difficult to find younger talent. Furthermore, Tokyo is a one-industry town with very little diversity in its economy. Finally, because Tokyo is such a crowded city, there are often problems with transportation and housing.

Who’s Doing Business in Tokyo?

Tokyo attracts a number of famous companies from all over the world to do business in Japan. Some examples are:

  • Sony
  • KDDI Corporation
  • Suntory Holdings Limited
  • Google
  • Toyota Motor Corporation
  • Nestlé Japan Ltd
  • Hitachi, Ltd.
  • Ford Motor Company
  • Cisco Systems Japan KK
  • IBM Japan, Ltd.


There are pros and cons to doing business in both Tokyo and other cities in Japan. You need to consider your business needs and what will be the best fit for you.