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Policies and reality of theservice industry in japan in the period of2015 – 2022 and cooperation with vietnam

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Tiêu đề Policies And Reality Of The Service Industry In Japan In The Period Of 2015 – 2022 And Cooperation With Vietnam
Tác giả Đào Đức Vinh
Người hướng dẫn Dr. Nguyễn Thường Lạng
Trường học National Economics University
Chuyên ngành International Economics
Thể loại assignment
Năm xuất bản 2023
Thành phố Hanoi
Định dạng
Số trang 35
Dung lượng 2,4 MB

Nội dung

NA IONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL PROGRAM SU JECT: ASEAN GLOBAL ECONOMY ASSIGN ENT: POLICIES AND REALITY OF THE SERVICE NDUSTRY IN JAPAN IN THE PERIOD OF 2015 – 2022 AND COOPERATION WITH VIETNAM Name: Đào Đức Vinh Student ID: 11208474 Class: Kinh tế quốc tế CLC 62B c urer: Dr.Nguyễn Thường Lạng HANOI, 2023 Declaration I, the author, certify that all of the material in this study that is not under my ownership has been identified, and that no similar study has been conducted in the same way as mine that was copied onto my work The content of this study does not necessarily entirely reflect my own personal views, and is under no circumstances must it be endorsed by my supervisor and my University (Signature): ……………………………………………… (Date): …………………………………………… INTRODUCTION Reasons why the topic is chosen and it’s importance Target of research Methods of data and information gathering MAIN CONTENT Chapter 1: Japan’s service industry and policies formulated from 2015 - 2022 1.1 Introduction to Japan and it’s service industry 1.2 Japan’s policies regarding the service industry from 2015 2022 1.2.1 Tax policy and investment incentives 1.2.2 Research and development policies towards technology advancement 1.2.3 Training and human resources development policies 1.2.4 Free trade agreements and their impacts 1.2.5 Visa relaxation and tourism encouragements 1.2.6 Measures to support service exports Chapter 2: Reality of the implementation of policies for the service industry 2.1 Changes in the service sector from 2015 – 2022 2.2 Successes and challenges in the implementations of such policies Chapter 3: The cooperation between Japan and Vietnam in the service industry 3.1 Collaborative relationship background between Japan and Vietnam 3.2 Cooperation in the service industry from 2015 – 2022 between the two nations 3.3 Predictions about the mutual relationship between Japan and Vietnam CONCLUSION REFERENCE INTRODUCTION Reasons why the topic is chosen and it’s importance Nowadays, Japan is one of the leading economic powerhouse of the modern world with a ranking only after the US and it’s neighbour China Ever since Japan’s “economic miracle” in the 50s onward, the country had played an important role in deciding the global economic transition, especially in the service sector since the 80s Alongside with such growth, the government of Japan has established much needed policies in order to promote and strengthen the nation’s service area, thus bringing more changes to the development of the society as a whole Moreover, Japan also cooperates with other countries all over the world in the said sector, with Vietnam as an important “strategic partner” The two nations have a mutual association in developing each other’s service area with great strides, including tourism, techology and information,…allowing both to develop effectively in providing services to customers With strengthen ties between Japan and Vietnam, we are likely to see more and more cooperation in the said area Hence, the study of “Policies formulated and implemented for the service industry in Japan from 2015-2022 and cooperation with Vietnam” is carried out to understand the topic Target of reseach Policies established towards service area in Japan is the protagonist of the research, with some background for the implementation and the impacts it brought alongside the relationship of Japan and Vietnam in the service industry Methods of gathering data and information Information and data will be collected from both Japanese and Vietnamese’s govermental resources, alongside with possible sources on the World Wide Web MAIN CONTENT CHAPTER 1: JAPAN’S SERVICE INDUSTRY AND POLICIES FORMULATED FROM 2015 – 2022 1.1 Introduction to Japan and it’s service industry The Japanese territory is located in the region called Northeast Asia or East Asia, to the east of the Eurasian continent It is surrounded by the Pacific Ocean, the Sea of Okhotsk, the Sea of Japan, and the East China Sea The total land area of the Japanese territory is about 378,000 square kilometers with it’s largest island Honshu, at nearly 228,000 square kilometers, the 7th largest island in the world With more than two-thirds of the countries covered with mountains, Japan’s landscape has great diversity in terms of wildlife and ecosystems with various climates throughout the country: most of the country is located within the temperate zone; with the exception of Okinawa being subtropical in the South and Hokkaido being subartic in the North In terms of economics, Japan is one of the most important financal assets holder in the international stage In 2022, it was recorded that Japan was the 5th largest exporter of goods, valued at approximately $752 million after China, the US, Germany and the Netherlands with a total GDP at $5.06 trillion at the end of 2022 with a GDP per capita at $39,048, ranking third in the whole world, behind only China and the US The numbers clearly shows that Japan is still one of the leading economic powerhouse in the world, which in turn leaves the country in a quite stable position, despite the continuous stagnation ever since the 1990s and even with the impact of COVID – 19 Most of the country’s weath comes from the fact that Japan is a service-dominated country with the service sector accounts for approximately 70% of Japan's gross domestic product (GDP) and approximately 75% of employment, so developments in this industry have a large impact on Japan's economy in particular and in a global scale as a whole From the 1950s onward till 1975, Japan was one of the world’s leading manufacturer and industrialization hub in the region This was refer to as the Japanese economic miracle era as the government, in collaboration with the private sector, promoted policies and rapid industrialization in order to boost exports of manufactured goods and earn foreign exchange and stimulate economic development In this era, the Japanese society saw a Document continues below Discover more from: Kinh tế quốc tế TMKQ11 Đại học Kinh tế Quốc dân 999+ documents Go to course Kinh tế quốc tế - dịch chuyển quốc tế vốn 30 Kinh tế quốc tế Chính sách tỷ giá hối đối Việt Nam từ năm 2011 đến Kinh tế quốc tế 26 100% (6) Trình bày phân tích phương thức tốn tín dụng chứng từ ngân hàng thương mại Việt Nam Kinh tế quốc tế 100 100% (7) 92% (13) THÚC ĐẨY PHỤC HỒI KINH TẾ VÀ CẢI CÁCH THỂ CHẾ SAU ĐẠI DỊCH COVID-19: ĐỀ XUẤT CHO VIỆT NAM Kinh tế quốc tế 100% (5) Chiến lược thâm nhập thị trường Việt nam Honda 17 Kinh tế quốc tế 100% (5) Cac dang bai tap mon kinh te quoc te thi cuối kỳ Kinh tế quốc tế 100% (5) skyrocketing level of living standards, with more than 80% of the population was living in the urban corridor of Tokyo – Osaka by the 1970s However, the country also encountered some difficulties in the same period of time: lower birth rate since the end of World War II, higher costs of producing goods and employing the domestic workforce Therefore, the country shifted to another development path Entering the 1980s, the so-called Japan’s golden age, Japanese governmental cabinet had decided the country the shift towards a service-based society as a new development path instead of the manufacturing-focused society that the country was following for the last two decades This completely reshaped the development path of Japan as it was at that time, a new economic hub of the world Nevertheless, during the 1990s, Japan fell into it’s sinkhole – so called “Japan’s lost decade”, with continuous stagnation and economic decline caused by the liquidity trap caused by the Bank of Japan (BOJ) due to their policy of increasing the interest rate to cool down the real estate market This made the Japanese economy to enter recession and till this day made it one of the only developed economies with very low growth, only around 1% annually for the past 20 years Despite that, Japan still owns one of the world’s most important service industry, drawing the attention of workers all around the world, especially South East Asian workforce from the Phillipines, Vietnam, Laos,…which in turn assisting the Japanese service industry, especially in caretaking industry when the aging problem in Japan is still worsening 1.2 Japan’s policies regarding the domestic service industry from 2015 – 2022 1.2.1 Tax policy and investment incentives The Japanese government had implemented a series of tax reforms to improve the economic situation in the country in multiple area, with the most notable one in corporate tax reforms During this period to enhance the competitiveness of businesses in the country, which would in turn boost the economic growth of the country Graph 1: Coperate tax from 2013 – 2022 Source: Japan Corperate Tax Rate, Trading Economics As we can see from the table above, after the reforms took place, average corporate tax had reduced from 33.86% in 2015 to an average of 30.86% in the span of the next years until finally settled around 30.62% in 2022 This is the result of careful considerations made by the Japanese government that allows more and more businesses to develop This also includes small and medium ones, which the government also took matters to their own hands to help: corporate tax for this group was set to be only 19% (effective from April 1st, 2019), reserve for bad debts, net loss carried over and net loss caried back, which really helped the development of this group of corporations In reasearch and development (R&D), the Japanese government had created the R&D tax credit system With the aim of promoting R&D investment by private companies in Japan, the R&D Tax credit System allows private companies to deduct a percentage of their R&D expenses from their corporate tax payments The policy calculated taxes on two fronts: For total R&D expenses and for open innovation (including joint or contract research with universities, national research institutes ) At the same time, the Japanese government also took the initiative to promote research and development activities linked to innovation, and tackles economic and social issues through the practical application of its research output as well as international collaborative research through funding programs such as the JST – Mirai Program, Core Research for Evolutional Science and Technology (CREST), Precursory Research for Embryonic Science and Techonology (PRESTO), Japan had also released multiple policies to encourage more foreign investment into the country, which included tax incentives and the most notably, the program My Number (個人番号) It was released in late 2015 as a way to help the population in Japan to have a much easier way to submit private information into an online storage, which would help them to have a much easier time dealing with procedures such as visa procedure, tax submission,… Moreover, this program also cut short lots of steps when doing tax to help more businesses engage more effectively without the need to process difficult documents 1.2.3 Research and development policies towards technology advancement From 2015 – 2022, the Japanese cabinet approved multiple policies regarding the R&D sector with clear hopes of bringing Japan to become and maintain a techonological leading nation in the world Such policies were determined based on the needs for strategic, Graph 4: Number of tourists to Japan Source: JTB Tourism Research & Consulting Co The number of tourists from 2015 to 2022 was a proving success compared to the given plan to have more tourists According to the roadmap (see graph 2), by 2019, Japan would only be nearly the same as the UK with around 30 million visitors, while in reality, more than 31.9 million tourists came to the country, which proved the policy of the cabinet to be a correct vision as to become a tourismbased nation Alongside that, initiatives such as “Visit Japan” campaign or the improvement of the infastructure helped attracting tourists and enhance the overall visitor experience The policies towards more openness with the world allowed the Japanese cabinet to enter market liberalization and internationalization successfully and helped the country to intergrate more to the global economy, while also improved the economic conditions resulted from the impact of COVID – 19 FTAs such as CPTPP or RCEP opened up new opportunities for Japanese corporations to search for potential service providing Moreover, this also attracted and encourage foreign investors to choose Japan to put their investment in the industry With the increase of policies in favor of R&D, the cabinet had succesfully handled multiple social problems the country was facing including the shortage of high-skilled workforce, the ongoing aging population leaving behind their working positions in companies, Especially during COVID – 19, when most outdoor commute was strictly limited due to safety reasons, robots were introduced more than ever into the society, following the enactment of the “New Robot Strategy” back in 2015, allowing the society to partly resolved the problem relating to shortage of workers, while also encouraging more elderly people to adopt the use of automatic services to relieve much of the burden away from physical nursing from human caretaker; or in services providing facilities like café shops, restaurants, robots were able to handle most of a waiter’s work or in train stations to work as information providers or guiders… However, with all the fruits reaped from such policies, the challenges arose from the given policies still surfaced One of the most clearly seen one was labour shortages Alongside the improvement in the service industry came along the need for more personnels to work in the sector, in particular, tourism and hospitality Factors such as an aging population, low birth rate, and strict immigration policies were not really relieved by the given policies made by the cabinet really hindered the growth of this industry And when COVID – 19 happened, in 2021, the number of tourists to come to Japan dropped more than 99% as the government decided to lock the nation up to prevent the spread of the virus, which severely damaged these industries Even after some relaxations of the laws, Japan had yet to see the bounce back it needed Therefore, such issues would continued to cast a shadow over the service industry Next to mention, is the divided digital and technological adoption Truly, with many supportive policies and programs aimed at embracing the use of more developed technology were succeeding, most of them happened only in the Tokyo – Osaka corridor, the two most important economical pillars of Japan Other big cities such as Sapporo, Fukuoka, Hiroshima,… are still lagging behind in terms of tech advancements comparing to the big two, making the synchronization in the technological field extremely difficult to be tackled in the near future There might need to be more policies aiming to help businesses, especially SMEs to catch up At the same time, Japan’s resillience to cultural barriers alongside service quality also hindered the potential of the service industry It is well-knowned all over the world that even though Japan is a st world nation, in 2019, the nation only ranked 53 rd place in terms of English proficiency, with about roughly 8% of the total population can make conversations in English and 2% are truly fluent, and therefore, making it hard for the country to intergrate into a globalized world Between 2015 – 2022, the cabinet had not made enough effort in improving the level of English of it’s service providers nationwide, making most of the tourists when arriving to the country, 80% of all foreigner who come to Japan would often complained that they couldn’t understand anything and there’s little to help them with that, and they had to request guiders that was able translate to be alongside all the time In the long run, the emphasis on traditional service practices and language barriers sometimes would hindered internationalization efforts, especially businesses targeting foreign customer Last but not least, the impact left behind by COVID – 19 and the halfhearted policies made by the cabinet As restrictions were implemented, most of them were declared much later than they were supposed to be, at the same time, making more underreporting of cases to surface and hindered the country's ability to fully understand the spread of the virus Certain policies did not fully repel or assist in the battle against the pandemic, therefore hurting the service industry in particular and the whole economy as a whole much more severely than it should had been The strictness of policies were also void, making most of the population to grumble about the determination given by the Japanese government CHAPTER 3: THE COOPERATION BETWEEN JAPAN AND VIETNAM IN THE SERVICE INDUSTRY 3.1 Collaborative relationship background between Japan and Vietnam During the 1600s, the people of Dai Viet (name of Vietnam back in the day), already had relationship with merchants of the Edo period who were sailing to the port city of Hoi An to trade goods with the locals, but no official relationship were established by the head of states Then during the late 19th century, the Empire of Japan, rose to become one of the great power in the world following the Meiji regforms (Emperor of Japan) while An Nam (the name of Vietnam under French dominance), the junior part of French Indochina were fighting against their colonial rulers At this time of history, An Nam intellectuals, including Phan Boi Chau, seeing the successes made by the Meiji government, were encouraged to travel to the nation to copy the reforms in order to liberate the nation from Western influence and to gain the country’s independence, but to no avail By 1942, Annam and the whole French Indochina fell under the rule of the Japanese Empire with the ongoing Second World War, suffered from the brutal way of control of both French colonial rulers who collaborated with the imperial invaders, which caused the horrendous Northern Famine of 1944 – 1945, causing the death of 400 thousand to over million deaths in Northern Vietnam After the war, from 1953, the Japanese government, the only American ally not to send any troop or millitary help to North Vietnam’s counterpart in the war against the Southern Vietnam, tried to establish official diplomatic relationship with the regime After nearly 20 years of negotiations, the Japanese government agreed to pay the North Vietnam’s government a total sum of $45 million in two yearly installments, the two finally came to official relationship in September 21st, 1973 Ever since, Japan had became one of the most important investor into Vietnam with numerous investment projects and also played an important part of restoring Vietnam’s postwar economy and acted as an evidence to encourage other nations to invest into the coutnry Today, the relationship between the two only grow stronger and stronger, with the upcoming 50 years celebration of official diplomatic relationship which will take place by September 21st, 2023 3.2 Cooperation in the service industry from 2015 – 2022 between the two nations Japan has long been an important investor into Vietnam ever since the country became open to the world after the Doi Moi of 1986, and after the re-establishment of relationship between the US and Vietnam, at the same time always in top of the most important captial investors Not only that, Japanese organizations also cooperated with lots of Vietnamese businesses in crucial industries like infastructure, manufacturing, industries…Nevertheless, since the economic crisis of 2008, Japan and the whole world as a whole, face numerous economic hardships, which hindered the opportunity of investment in the same fields again in the following years Most notable ones can be listed are the oil refinement plant of Nghi Son, the Metro line of Ho Chi Minh city,…Yet, with the withdrawal of Japanese enterprises away from the tradional fields, more and more cooperation were seen in the financial investment and service industry field as these aspects were regarded as “long – term and stable” By the early 2022, Japan had over 4828 FDI projects in Vietnam with an investment capital well over $64.41 billion, acting as the largest ODA provider to the nation, as well as being the 3rd most important investor and 4th most crucial trade partner Meanwhile, Vietnam also played as an important partner in providing young workers to work in the service industry in Japan with more than 67000 people in the total of 142000 people working abroad (the highest number in the year 2022), marking the importance of a constant striving Vietnamese potential labour force to participate in a declining population like Japan that is still very in need of more young working population The two nations also had multiple meetings in terms of upgrading their relationship to a more mutual strategic partnership as their 50 years of official ties celebration is drawing near Following that, the two countries also made striking promises over mutal investments in respective fields in terms of development as in the new world order with daily changes and challenges, both nations would work together to develop as a whole Image 1: A meeting conference between Vietnam’s and Japan’s important departments’ leaders Source: Cổng thông tin điện tử tỉnh Bình Phước, “Quan hệ Việt Nam-Nhật Bản hướng tới giai đoạn phát triển mới” 3.3 Predictions about the mutual relationship between Japan and Vietnam As the 50 years relationship draws near, the two nations need to find more mutual collaboration with each other in an ever-changing world, as for both nations to catch up with the ongoing globalization and international intergration Here are some of the predictions that I, as this study conductor, can give relating to the relationship of the two Firstly, Japan and Vietnam will become more closer than ever in terms of collaboration in the service industry The service industry, including sectors such as tourism, hospitality, finance, and IT, is likely to witness increased collaboration between Vietnam and Japan Both countries have complementary strengths and expertise in various service sectors, making them natural partners for cooperation and trade in the service industry As a result, in the tourism and hospitality industry, Vietnam will become more of a popular tourist destination for Japanese travelers, and this trend is expected to continue Japan's aging population and increasing affluence may result in more Japanese tourists seeking travel experiences in Vietnam Additionally, Japanese hospitality and tourism businesses may explore investment opportunities in Vietnam to cater to this growing demand Secondly, Japan and Vietnam will become more affiliated in the financial services As Japan is known for its advanced financial services sector and Vietnam has been experiencing rapid economic growth, this combination will create potential for collaboration and knowledge sharing between the two countries Japanese financial institutions may consider expanding their presence in Vietnam, offering a wider range of services such as banking, insurance, and investment products Last but not least, the provision of education and training between the two will offer endless opportunities in the future As Japan is now still focusing in training high-skilled workforce for foreingers, including Vietnam to come to work in the country, this will result in more personnels choosing their career in Japan while also helping the overall Vietnamese workforce to have their skill level improved and to a certain extent, the exchange of valuable technological advancement from Japan into Vietnam through such collaborations With Vietnam on the rise and broader relationship between the two, Japan will prove itself to be more important than ever to the Vietnamese government and to both countries’ mutual relationship in terms of service industry improvements and economic development as a whole CONCLUSION The Japanese cabinet did indeed implemented much needed policies or make quite striking reforms to improve the service industry in the long term with many ambitious vision had been actualized by all efforts made, turning Japan into a service – based nation and marking it as one of the world’s most attractive service providers in the global scale With many successes found after the enactment of much needed policies, most of Japan’s development in important fields are still heading towards the right path as more development can be seen throughout the whole period of 2015 – 2022, barring some hinder made by the impact of the pandemic However, as there were also many issues surfaced before and after the implementation of the established policies by the cabinet, I believe that the Japanese government needs to have a more steadfast direction in focusing on such problems including an everaging population and the lack of much needed workforce is certainly dealing more burden to the development of the country as well The cabinet needs to be more opened in terms of recruiting and allowing easier immigration of international workforce as well as international students and intellectual to come to Japan to contribute to the growth of country, not to just only limiting to the general thinking of protecting Japanese culture from disapperance to hinder the overall development The Vietnam – Japan cooperation in the service industry proved to be much strengthen between the period of 2015 – 2022 as Japan was trying to shift towards a long – term invesment path into Vietnam through the focus into the service industry in terms of finance, tourism, hospitality…as Vietnam was also proving that it is the perfect country to attract Japanese collaboration As the future draws near with the two countries entering the 50 years celebration, it is predicted that the mutual collaboration of the two will continue to be solidified with a strengthen ties in terms of strategic partnership as Japan will continue to be the most important investor in numerous fields and provide more capital to the development to Vietnam, while on the other hand, the same can be said as Vietnam will provide more and more high-skilled, much needed young workforce to an ever-aging nation such as Japan to ensure a more stable inflow in terms of labour force A bright future, can be said for this relationship REFERENCES Shiraishi Shigaeki, RIETI, "In fact: The service sector in Japan" https://www.rieti.go.jp/en/columns/a01_0364.html Ministry of Foreign Affairs of Japan, 外務省, "Japanese territory" https://www.mofa.go.jp/territory/page1we_000006.html#:~:text=Loc ation,and%20the%20East%20China%20Sea GLOBAL SEO SERVICE, "Top 15 countries by GDP in 2022" https://globalpeoservices.com/top-15-countries-by-gdp-in-2022/ Britannica, "Economic 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