The Consular District: Kyushu/Yamaguchi

Prefectures : Fukuoka, Kumamoto, Kagoshima, Nagasaki, Saga, Oita, Miyazaki, Yamaguchi
Population: 15 million
GDP: $434.5 billion
Major Industries: Agriculture & Fishery, Electric Machinery (semiconductors), Transport Equipment (motor vehicles and shipbuilding), Retail/Services

Kyushu/Yamaguchi Region

The Kyushu/Yamaguchi Region of southwestern Japan consists of seven prefectures on Kyushu Island (Fukuoka, Oita, Saga, Nagasaki, Kumamoto, Miyazaki, Kagoshima) and Yamaguchi prefecture on the southern tip of Honshu, with a combined population of over 15 million. The region's $435 billion economy constitutes Japan's fourth largest economic center, representing about 10 percent of national GDP – comparable in size to the Netherlands. This region is traditionally known as Japan's gateway to Asia and enjoys extensive historical, cultural, and trade ties with continental Asia, particularly South Korea, Taiwan and mainland China. The United States remains an important trading partner, but trade with Asia is predominant and Kyushu is becoming increasingly integrated into the East Asian regional economy.

Kyushu has a strong agricultural sector, producing about 20% of Japan's agricultural output, and ranks first in Japan in livestock output (about $6.2 billion in 2004). But its dynamism stems from a diversified economy that includes many high-tech industries. Dubbed Japan's "Silicon Island", Kyushu accounts for 25% of Japan's total production of semiconductors. American companies like Texas Instruments and Teradyne have facilities here. Northern Kyushu also boasts nearly 10% of Japan's automobile output, with Toyota, Nissan, and Daihatsu operating state-of-the-art final assembly facilities, and Honda has an advanced motorcycle plant in the region. Kyushu is also home to Japan's leading shipbuilding production, Japan's two space-launch facilities, and Yaskawa Electric, one of the world's leading robotics manufacturers. The southern prefecture of Kagoshima is home to Japan's two space launch facilities at Uchinoura and Tanegashima. Other important industries include steel manufacturing, shipbuilding, tourism.

With a population of 1.3 million, Fukuoka City is the economic, educational, and cultural center of Kyushu. In 2006 Newsweek International selected Fukuoka City as one of the “World’s 10 Hottest Cities.” While manufacturing is prevalent in Fukuoka prefecture's surrounding areas, the city's economy is services-based, with many large retail outlets and regional headquarters offices for banking, insurance, and real estate. Living expenses (including housing) and office rents are lower than in Japan's other large metropolitan areas. The city enjoys excellent transportation infrastructure, including Kyushu's principal international airport, high-speed ferry service to South Korea, and the southern terminus for Japan's "Shinkansen" (bullet train) network. (In the spring of 2011 Kagoshima will become the southern terminus of Japan’s bullet strain network when the Kyushu Shinkansen line extending south from Fukuoka is completed, cutting travel time from Fukuoka’s Hakata Terminal to only 80 minutes. The service will link Fukuoka and Kumamoto in about 30 minutes.)

The Economic/Commercial Section of the U.S. Consulate in Fukuoka has been actively assisting U.S. businesses and promoting their interests in the region for over 40 years. The Consulate believes many sectors of the Kyushu/Yamaguchi economy offer promising opportunities. With its long history of openness to foreign influences, the Fukuoka area has an established reputation as a useful test market for new consumer products, services, and retail concepts before they are expanded to wider areas of Japan. Familiar U.S. retail names (Toys 'R' Us, Costco, Starbucks, and The Gap, just to name a few) have an active market presence. Major American companies have established research and production facilities in electronics, computers, and medical devices, and are also active in architecture, design and construction, energy, insurance and finance. In recent years U.S.-based investment funds have made major acquisitions of hotels and related leisure facilities in Kyushu. Another sector of growing interest is environmental products and services. In particular, Kitakyushu City in Fukuoka prefecture, a historical center of heavy industry, is seeking to become a regional leader in environmental remediation and recycling. Good export prospects exist in many other sectors, including building materials, medical equipment, and health care products.