The Government of Japan committed itself to doubling Japan’s FDI stock from its 2001 level within five years (i.e. by the end of 2006) to 13.2 trillion yen 

($119 billion) in 2006. The Japanese Prime Minister, in his General Policy Speech in January 2006, stated that Japan would achieve this goal and even 

set the goal of further doubling this level by 2011, to $26 trillion yen.

Judging from recent trends in FDI inflows into Japan, however, it will be difficult to achieve the goal set for end 2006. By the end of 2001, Japan’s inward 

FDI stock was 6.6 trillion yen ($60 billion). FDI inflows during the period 2002-2005 were 3.8 trillion yen. In order to reach a stock of 13.2 trillion yen, 

inflows of some 2.8 trillion yen ($25 billion) would be required in 2006. Japan has never received such a high level of inflows. 

Another and possibly fatal blow to attaining the target was GM’s and Vodafone’s selling off of their Japanese interests in 2006: GM reduced its share in 

Suzuki from 20% to 3% for 0.2 trillion yen ($2 billion) and Vodafone sold its affiliate Vodafone Japan to Softbank (Japan) for 1.7 to 2 trillion yen 

($15 billion).

Source: World Investment Report 2006, UNCTAD