Professional Documents
Culture Documents
RP Global2023
RP Global2023
December 2023
This is the English version of the press
release issued on November 21, 2023
Table of Contents
Key Findings 3
Survey method: A questionnaire was distributed and collected online to 18,726 Japanese companies (local subsidiaries with at least 10% Japanese
investment, branches and representative offices of Japanese companies) in 83 countries/regions selected through JETRO’s overseas office
network. Valid responses were received from 7,632 respondents. The effective response rate was 40.8%.
Characteristics of this year: The latest trends are reported on in the outlook for performance in each country and region and the status of responses to new
issues amid an increasingly challenging environment for international business, including inflation, a slowdown in the Chinese economy,
heightened geopolitical risks, and an increase in regulations motivated by economic security.
Contents of this report: Preceded by results by major region, common global survey items are the following : 1. Operating Profit Forecast , 2. Future
Business Development, 3. Human Rights and Decarbonization, 4.Employment Environment and Wages.
■ Overview of the surveys in each region
Number of Target
Total Respondents Target countries and
Region Businesses Response rate Survey period
(companies) regions
(companies)
Key Findings
1. The number of companies anticipating business expansion in China fell below 30%.
❖ 63.4% of Japanese-affiliated companies overseas expect to be profitable in 2023, the first decline in three years. Deterioration in
performance in China stands out. In South Korea, Hong Kong, Vietnam, and Singapore, the deterioration in business
performance exceeded the improvement.
❖ In China, the number of companies expecting to "expand" their business fell below 30% for the first time since the survey began.
On the other hand, less than 1% of companies expect to "withdraw or relocate to third countries". This indicates a cautious
attitude toward business continuity.
❖ Strong domestic demand in major countries in the emerging economies, such as India, Brazil and South Africa is driving
improved business performance for companies entering these markets. There is an increasing appetite for local business
expansion with an eye to developing markets in neighboring countries and regions.
2. Awareness of business and human rights is growing worldwide, but small and medium-sized enterprises lag
behind in their efforts.
❖ More than 80% of companies recognize human rights in the supply chain as an important management issue. This is an increase
of more than 20 points from the previous year. On the other hand, less than 30% of companies conduct human rights due
diligence, unchanged from the previous year.
❖ The report highlights the reality that the gap between large firms and small and medium-sized enterprises (SMEs) is widening in
terms of respect for human rights and decarbonization efforts. The development of relevant laws and regulations in the
countries where they operate is also considered to have affected the progress of their actions.
❖ The problem of human resource shortages is more serious in developed Western countries. In United States and the Netherlands,
more than 70% of companies face this problem.
❖ Wage base increase rates (nominal) in 2023 are as high as 9.8% in India and 8% in Mexico. On the other hand, in major advanced
European economies, wage base increases continue to be unable to keep pace with high inflation rates.
(Note: “Major countries and regions” in this survey refers to 18 countries and regions: China, Hong Kong, South Korea, Singapore, Thailand,
Indonesia, Vietnam, India, United States, Mexico, Brazil, the United Kingdom, France, Germany, the Netherlands, Russia, UAE, and Copyright © 2023 JETRO. All rights reserved. 3
South Africa, unless otherwise noted.)
I. Operating Profit Forecast
18.3%
Pharmaeutical(n=42) 78.6 7.1 14.3
Trends in proportion of profitable enterprises (by major region) Operating Profit Forecast for
80 (%) Major Countries and Regions in 2023
0% 20% 40% 60% 80% 100%
Northeast
75 Asia South Africa(n=43) 86.0 7.0 7.0
Korea(n=75) 84.0 10.75.3
Europe
70 North America UAE(n=68) 76.5 14.7 8.8
France(n=70) 75.7 10.0 14.3
65.0 64.5 63.4
65 Brazil(n=106) 74.5 17.9 7.5
62.6
Latin Total for The Netherlands(n=84) 72.6 16.7 10.7
60 America
ASEAN all Indonesia(n=472) 71.4 16.5 12.1
regions United Kingdom(n=98) 71.4 18.4 10.2
55 48.0 Middle East India(n=285) 70.9 12.3 16.8
Germany(n=255) 68.2 19.2 12.5
50
Africa Singapore(n=407) 67.6 18.7 13.8
United States(n=714) 64.8 16.5 18.6
45
Hong Kong(n=187) 63.1 24.1 12.8
Thailand(n=587) 63.0 18.1 18.9
40
China(n=693) 60.3 19.5 20.2
Mexico(n=217) 59.0 17.5 23.5
35
Vietnam(n=786) 54.3 21.2 24.4
Southwest Asia
Russia(n=73) 30.1 15.1 54.8
30
2019 2020 2021 2022 2023 Profit Breakeven Loss
(Note: Total for all regions includes Oceania and Russia. Copyright © 2023 JETRO. All rights reserved. 6
I. Operating Profit Forecast
0 -20 -20
of increase
Top
Equipment & Travel 2024(n=86)
2024(n=52) 51.9 40.4 7.7 81.4 15.1 3.5
2023(n=63) 47.6 19.0 33.3 5 Legal, accounting and 2023(n=63) 49.2 36.5 14.3
Textiles
industries by ratio
2024(n=63) 50.8 38.1 11.1 tax services 2024(n=63) 42.9 49.2 7.9
2023(n=476) 46.2 30.3 23.5 2023(n=86) 45.3 39.5 15.1
Transportation equipment Banks
parts (Motor vehicles etc.) 2024(n=475) 39.2 46.3 14.5 2024(n=87) 34.5 56.3 9.2
2023(n=239) 43.1 30.5 26.4 2023(n=74) 41.9 37.8 20.3
Real estate
Food products 2024(n=75)
2024(n=230) 53.0 40.0 7.0 42.7 45.3 12.0
2023(n=83) 42.2 31.3 26.5 2023(n=120) 41.7 25.8 32.5
Apparel & textile products Wholesale
2024(n=84) 36.9 53.6 9.5 2024(n=120) 41.7 41.7 16.7
Electrical and electronic 2023(n=268) 17.5 34.3 48.1 Warehousing 2023(n=396) 23.2 23.7 53.0
components 2024(n=266) 44.4 41.7 13.9 & Logistics 2024(n=394) 33.8 51.8 14.5
ratio of decrease
Top
Fabricated metal 2023(n=226) 28.8 29.2 42.0 2023(n=717) 28.2 37.8 34.0
Trading
products 2024(n=224) 41.5 45.1 13.4 2024(n=714) 38.2 51.8 9.9
2023(n=70) 35.7 24.3 40.0 2023(n=120) 41.7 25.8 32.5
Non-ferrous metals Wholesale
2024(n=69) 37.7 50.7 11.6 2024(n=120) 41.7 41.7 16.7
2023(n=214) 37.9 22.4 39.7 2023(n=68) 36.8 39.7 23.5
Plastic products Retail
2024(n=214) 45.8 44.9 9.3 2024(n=69) 50.7 34.8 14.5
Increase Remain the same Decrease
Increase Remain the same Decrease Copyright © 2023 JETRO. All rights reserved. 9
(Note: Top 5 industries in Increase/ Decrease in 2023 are listed for each (n=50 or more).
II. Future Business Development
Direction of Business Development for the Next 1-2 Years Direction of business development for the next 1-2 years
(by Major Countries and Regions) (by industry)
Total for all regions(n=7,582) 47.0 47.5 Manufacturing Industries(n=3,374) 43.4 50.8
India(n=295) 75.6 22.7
Brazil(n=106) 68.9 24.5
Non-Manufacturing Industries(n=4,208) 49.9 44.9
South Africa(n=52) 57.7 38.5 Top 5 industries with the highest percentage of "expansion"
Vietnam(n=841) 56.7 40.8
Medical equipment(n=52) 69.2 26.9
Mexico(n=218) 56.4 39.4
Germany(n=253) 54.9 41.9 Food products(n=240) 67.1 31.7
Korea(n=76) 53.9 44.7 Medicines (n=43) 65.1 34.9
UAE(n=100) 53.0 40.0
Worker dispatching/Staffing(n=43) 62.8 34.9
France(n=70) 51.4 47.1
The Netherlands(n=84) 51.2 47.6 Consulting(n=109) 60.6 37.6
United States(n=721) 49.9 45.4
Indonesia(n=497) 49.5 46.3
Bottom 5 industries with the lowest percentage of "expansion"
United Kingdom(n=98) 43.9 53.1 Iron and steel (n=88) 35.2 59.1
Thailand(n=595) 42.2 54.1 ICT equipment & office machines(n=46) 34.8 54.3
Singapore(n=418) 41.9 52.9
Transportation equipment parts(Motor vehicles… 34.5 55.9
China(n=710) 27.7 62.3
Hong Kong(n=195) 20.5 70.3 Apparel & textile products(n=84) 33.3 59.5
Russia(n=71) 4.2 53.5 Transportation equipment (Motor vehicles etc.)(n=112) 24.1 71.4
0% 20% 40% 60% 80% 100%
■Expansion ■To maintain the current status ■Expansion ■To maintain the current status 0% 50% 100%
■Reduction ■Withdrawal/ Relocation to third countries ■Reduction ■Withdrawal/ Relocation to third countries
(NOTE) Includes industries with n=40 or more.
Copyright © 2023 JETRO. All rights reserved. 11
Ⅱ. Future business development
◼ In Brazil, the percentage of "expansion" increased approximately 15 points from the previous year. In Brazil and India, robust
domestic demand for automobiles and other products is supporting business expansion by Japanese companies. Uncertainty
over the economic outlook and market recovery in China put downward pressure on sentiment.
Trends in the percentage of “expansion" by major region Percentage of respondents who answered "expansion"
compared to the previous year (Point)
Total for North Latin
(by country, selected from the following table)
all regions America America
Europe Northeast ASEAN -10 -5 0 5 10 15 20
80% Asia
Southwest Asia Middle East Africa Brazil 14.7
France 10.1
70%
South Africa 9.9
Germany 7.8
60% United Kingdom 6.5
Mexico 5.0
Prospects for the share of sales within the company's group in the country/region where the company is located
Outlook for the next 2-3 years (%) Outlook for the next 5 years and beyond
(%)
Total for all regions(n=6,107) 37.8 53.3 8.9 Total for all regions(n=6,091) 47.1 41.7 11.2
Hong Kong(n=186) 18.8 67.7 13.4 Hong Kong(n=186) 22.6 58.6 18.8
全体
Total
Manufacturing industries(n=3,094) 27.6 68.8
Total for all regions(n=5,177) 46.4 All industries(n=217) 51.2 47.0
India
印
China(n=513) 69.0 Manufacturing industries(n=145) 55.2 43.4
Thailand(n=462) 57.7 All industries(n=31) 38.7 58.1
South Africa
南
Manufacturing industries(n=14) 50.0 42.9
Indonesia(n=368) 53.1
All industries(n=588) 37.9 60.5
India(n=218) 50.8 Vietnam
越
Manufacturing industries(n=380) 43.2 55.8
Vietnam(n=567) 48.3 All industries(n=176) 31.8 66.5
Mexico
墨
United States(n=548) 43.2 Manufacturing industries(n=118) 28.0 70.3
Brazil(n=77) 42.7 China All industrie(n=528) 30.9 66.5
中
France(n=42) 39.7 Manufacturing industries(n=383) 33.4 64.0
All industries(n=374) 29.1 68.7
Korea(n=53) 37.0 Indonesia
尼
Manufacturing industries(n=246) 28.5 70.3
Mexico(n=176) 35.8
All industries(n=39) 28.2 71.8
Singapore(n=251) UAE
U
34.5 Manufacturing industries(n=11) 27.3 72.7
Hong Kong(n=126) 33.4 The All industries(n=53) 26.4 69.8
蘭
70
60
50
94.1 93.3 92.6 90.4 89.9 87.8 86.5
82.3 85.5 84.8 84.2 83.0
40 79.8 78.1 77.3
73.2
32.4 30.9
30
25.7 27.1 25.3 27.2
22.5 23.3 21.9 21.6
20 20.8 19 20.1 19.1
18.4
12.7
10
Specific initiatives being implemented as HRDD Initiatives to identify and assess human rights risks
77.7
Formulate and publish a human rights 67.3
policy Gathering information to understand risks
32.2 33.2
Conducting on-site investigations and audits
Publicize company's initiatives
by the company
(%)
0 20 40 60 80 100 (Note) Only companies in the North American and 0 20 40 60 80 100
(Note) Only companies in North America and Europe that responded (%) European regions that have implemented
that they have implemented HRDD were included. HRDD to any extent are included. Copyright © 2023 JETRO. All rights reserved. 21
III. Human Rights and Decarbonization
Action for decarbonization (Manufacturing, Top 10) Action for decarbonization (Non-manufacturing, Top 10)
Transportation equipment
Transportation equipment… 76.7 17.5 5.8 XXXXXX
Holding company(n=34) 64.7 14.7 20.6
(Motor vehicles etc.) (n=103)
Electricity, Gas, Heat supply &
63.9 23.0 13.1
Ceramic products(n=47) 66.0 19.1 14.9 Water(n=61)
Scope 2: Top 3 Mining, (31) 58.1% ICT equipment & office machines, (37) 54.1% Nonferrous metals, (55) 50.9%
Scope 3: Top 3 Banks, (41) 62.1% Consulting, (44) 56.8% Trading companies, (470) 54.5%
(Note) (1)only industries with n=30 or more (2) Figures in parentheses represent the number of companies that responded validly.
What is Scope 1,2,and 3?
Upstream One‘s own company downstream
Scope3 Scope3
Scope1
Supply Categories outside Scope1 and 2 Categories outside Scope1 and 2
Fuel Scope2
Chain Example Example
⚫ Products and services purchased combustion Use of electricity,
Flow ⚫ Transportation and delivery
⚫ Capital goods Industrial heat, and steam ⚫ Use of products sold
⚫ Transportation and delivery process ⚫ Disposal of sold products
⚫ Employee transfers
(Source: Ministry of the Environment and Ministry of Economy, Trade and Industry, "Green Value Chain Platform")
Copyright © 2023 JETRO. All rights reserved. 24
III. Human Rights and Decarbonization
Common challenges regardless of region or industry Restrictions and regulations regarding solar power generation
Cost increase/cost-effectiveness Country Contents
• Cost of installing equipment to accommodate decarbonization Regulations for the installation of solar power generation
• Costs of fuel for renewable energy and decarbonization (e.g., SAF) Indonesia
equipment, etc. (28 companies)
• High cost of recycled materials and other raw material that contribute to
decarbonization Solar panel installation permit regulations, time consuming (22
Vietnam
• Cost increase due to compliance with carbon pricing system companies)
• Difficult to ensure profitability, inconsistent with economic rationality
Private solar power generation above a certain amount requires
Lack of policies, subsidies and other support Mexico
approval (17 companies)
• Broad policy framework exists, but specific roadmap and details are unclear Thailand Unable to sell solar power (4 companies)
• Delays in administrative permits
• Lack of subsidies and incentives for decarbonization efforts India Regulation of capacity to sell solar power (3 companies)
Lack of awareness of decarbonization, lack of infrastructure Calculation of emissions(inclu. Scope 3), and information disclosure
• Lack of awareness of decarbonization among government, public, and local Country
suppliers; difficulty in passing on prices Contents
/region
• Lack of infrastructure such as public transportation, renewable electricity supply
• Lack of local suppliers and supporting industries The US • No international standards for calculating emissions
Delayed development of systems and infrastructure related to EV 7 • Difficult to quantify emission
companies • Responding to climate change-related disclosure requirements
• Lack of EV charging facilities
• Lack of subsidies for EV purchases • Response to CBAM, speed gap within the EU
• Zero Emission Compliance for Commercial Vehicles (California, USA) • Difficult to ascertain emissions from suppliers and transportation
Europe
• New EVs by 2035 (France) • Scope 3 criteria unclear, no uniform standards
20
• Differences between Japanese and overseas clients in
Green Power Certificates, development of carbon pricing companies
calculation methods and standards
• Insufficient supply of green power certificates and skyrocketing prices (China, • Compliance with European Sustainability Reporting Standards
Taiwan, Malaysia)
• Early development of emissions trading markets (Thailand, Brazil, Chile, UK, • Response to Mandatory Climate-Related Information Disclosure
Other
(Australia)
Taiwan, Indonesia, Philippines) regions
• Response to Scope 3 Disclosure Request (Singapore)
• No bilateral credits (JCM) have been introduced (Laos, India, Ghana, Kenya,
South Africa)
Copyright © 2023 JETRO. All rights reserved.
(Note) CBAM: Carbon Border Adjustment Measure in the EU 26
IV. Employment Environment and Wages
Administrative staff
Germany 7.9 29.6 31.8 19.8 10.8
(n=3,718)
1. Warehousing and logistics (90.0%)
Manufacturing(n=107) 66.4 33.6 2. Transportation equipment parts Senior manager
(Motor vehicles etc.) (88.1%) 13.1 22.0 18.6 19.8 26.5
Non- (n=3,718)
68.5 31.5 3. Chemical and Petroleum products
manufacturing(n=130)
(64.7%) IT professional
14.1 20.7 14.1 9.1 42.0
0% 50% 100% (n=3,718)
Worsening Remain the same Improving (Note) The top and bottom three DI values for change in human resources and employment
status for manufacturing and non-manufacturing from industries in which n=30 or
Note: (1) Compared to the same period the previous year (August-September 2022),
(2) The right graph shows only industries in which n=50 or more. more. Copyright © 2023 JETRO. All rights reserved. 30
IV. Employment Environment and Wages
10
9 9.7
9.5
7.7
8
5.5
8.0
7 4.7 5.8 6.3
5.5 4.0 5.6 5.5
6 6.4 6.5 6.5
6.2
6.0 3.4
5 5.5 5.7 5.5 5.6 5.5
5.4 5.2 4.1
4.9 4.9 2.2
4 4.5 3.6 3.4 4.6 4.6
3.1 4.2
3.9 4.0 3.8 4.0 3.8 3.6
3 3.7 3.7 3.5 3.5
3.2 3.2
1.5 2.9
2
0.7
1
0
(n1=86, n2=81)
(n1=91, n2=87)
(n1=42, n2=36)
(n1=50, n2=45)
(n1=56, n2=54)
The Netherlands
United Kingdom
(n1=213, n2=206)
(n1=196, n2=186)
(n1=369, n2=352)
(n1=614, n2=604)
(n1=191, n2=169)
(n1=497, n2=478)
(n1=511, n2=487)
(n1=292, n2=283)
(n1=426, n2=418)
(n1=163, n2=161)
(n1=79, n2=68)
(n1=72, n2=57)
South Korea
South Africa
United States
Hong Kong
Singapore
Indonesia
Germany
France
Thailand
Vietnam
Brazil
Mexico
UAE
China
India
+81-3-3582-5177
Japan External Trade Organization (JETRO)
Research & Analysis Department
ORI@jetro.go.jp
International Economy Division
〒107-6006
6F ARK Mori Building, 1-12-32 Akasaka,
Minato-ku, Tokyo
◼ Disclaimer of Liability
Responsibility for any decisions made based on or in relation to the information provided in this material shall rest
solely on readers. Although JETRO strives to provide accurate information, JETRO will not be responsible for any
loss or damages incurred by readers through the use of such information in any manner.
All rights reserved
Copyright © 2023 JETRO. All rights reserved.