Hon. Zentaro Naganuma

Today I have the honor of meeting and talking with the newly appointed Consul General of Japan. He has graciously agreed to share his background and his observations about Japan and USA relations.

Heidi: Walk us through your background. Have you always wanted to be a consul? Did you study for the diplomatic service?

Hon. Naganuma: I was a student during the Cold War and wanted to work on East-West relations, so I took the foreign service exam and was admitted to the Ministry of Foreign Affairs.  After entering the ministry, I was assigned to a country in Eastern Europe and witnessed the reality of socialism, where there was no freedom of speech and it was difficult to obtain basic goods.  People were deeply angry with this system that suppressed their freedom and human rights.  Their anger was a latent factor in the fall of the Berlin Wall in November 1989 and the so-called “Eastern European Revolution”.  It was a unique experience for me to witness how powerful human emotions can move history.

After that, I worked primarily in multilateral diplomacy at international organizations.  While participating in a variety of negotiations, I experienced how Japan and the United States could work together to lead discussions on issues important to the international community, and I came to realize the importance of the Japan-U.S. relationship.  With this background, it has been a great pleasure to be assigned to the Consulate-General in Houston and to be at the forefront of Japan-U.S. cooperation.

Heidi: What states are included in your territory?

Hon. Naganuma: The Consulate General of Japan in Houston has jurisdiction over two states: Texas and Oklahoma. 

Heidi:  What are some of the goals you have for Texas-Japanese relations?

Hon. Naganuma: We would like to advance economic, cultural, and academic exchanges and see them flourish.

The state of Texas has undergone a remarkable development in recent years, with various economic indicators, such as GDP and population trends, underscoring this momentum. Many Japanese companies, including Daikin, Mitsubishi Heavy Industries, and Toyota, have expanded and established bases in Texas, contributing greatly to the state's growth. Perhaps because of this background, Governor Greg Abbott and the mayors I have spoken with since arriving in Texas have all enthusiastically expressed their appreciation for the economic relationship with Japan and their desire to further develop those ties.

Steve Kean, president and CEO of the Greater Houston Partnership (GHP), Houston’s largest chamber of commerce, expressed his wish to develop cooperation with Japan in the areas of decarbonization, medical and life sciences, and space exploration. Our Consulate holds seminars on decarbonization and space exploration this year, and will do its utmost to further develop cooperation between the business communities of Japan and Texas, including in these areas.

Japan Festivals are held in major cities throughout Texas, and they introduce a wide range of Japanese culture ranging from traditional performing arts to anime and Japanese food, much to the delight of Texans.  It seems to me that Texans’ interest in Japan is growing year by year.  We will continue to work with the organizers of these Japan festivals to ensure that this momentum continues.

The Japanese government operates the Japan Exchange and Teaching (JET) Program, which promotes grassroots internationalization at the local level, primarily by inviting young people from overseas to engage in international exchange activities and foreign language education at local governments and elementary, junior high, and high schools throughout Japan. Since its inception in 1987, the number of countries from which we recruit has grown significantly from 4 to 51, and the number of participants has increased from 848 to 5,861 (as of 2024).  Approximately 1,000 people from the United States are accepted by JET each year, with 65 of this year’s participants coming from Texas or Oklahoma.  Each participant represents the U.S. as a goodwill ambassador to their region and contributes greatly to the development of Japan-U.S. relations. After the program, alumni continue to serve as advocates for Japan in their home countries.

As for the Educational exchange between Japan and Texas, there are joint research and exchange programs carried out by universities, as well as the U.S.-Japan Council’s TOMODACHI Initiative, a public-private partnership born out of Japan’s reconstruction efforts following the Great East Japan Earthquake and Tsunami, which invests in the next generation of Japanese and American leaders through educational and cultural exchange and leadership programs.  The TOMODACHI Initiative offers research internships for Japanese students majoring in science and engineering to attend local Texas universities. In addition, a joint learning program on agriculture and climate change issues is planned for this year.  Moving forward, we hope to work with universities to further develop academic exchange between Japan and Texas, including support for TOMODACHI Initiative programs.

Heidi: What are some of the perks that Japan has for foreign-owned businesses?

Hon. Naganuma: The Japanese government and local governments welcome foreign investment in Japan. JETRO, or the Japan External Trade Organization, also provides information about investing in Japan on its website*. The Japanese market is an expansive free market that continues to grow. It also has a sophisticated business environment, including advanced infrastructure and systems of support. The following is an explanation of the incentives offered by the Japanese government and local governments.

(1) Japanese Government Support

The Japanese government actively encourages foreign direct investment (FDI) in Japan through various incentives. The main incentives for companies include tax credits under the employment promotion tax system and tax deductions for capital investment. There are also incentives related to digital transformation (DX) and carbon neutral investments, as well as open innovation and research and development.

To supplement this effort, relevant government agencies have set up FDI information desks to provide comprehensive support on matters related to private sector business activities, including:

・Investment information, such as market conditions, relevant policies, etc.

・Guidance on permit and license application processes.

・Inquiries related to the handling of requests under the investment pre-application system (the Japanese version of the no-action letter system).

・Other investment-related inquiries and requests.

(2) Local Government Support

In addition to the Japanese government's initiatives, local governments also encourage FDI in Japan through various incentives. For example, Iwate Prefecture offers local tax breaks for projects that lead to industrial revitalization in certain areas. The prefecture also offers loans from designated financial institutions for capital investment to support startups. Kumamoto Prefecture offers a variety of support options for semiconductor-related businesses, including subsidies ranging from three to five percent of the investment amount plus an additional 500,000 to 700,000 yen for each job created. The following websites provide information by prefecture and city to help you select an investment area.

JETRO provides comprehensive online support for foreign and foreign-affiliated companies entering the Japanese market and expanding their business, including the services listed in the above sections.

For more information, please refer to the below URLs.

Foreign Direct Investment in Japan

JETRO support

（Japanese）https://www.jetro.go.jp/invest/jetros_support/
（English）https://www.jetro.go.jp/en/invest/jetros_support/

National Government incentives

（Japanese）https://www.jetro.go.jp/invest/support_programs/incentive/
（English）https://www.jetro.go.jp/en/invest/support_programs/incentive/　

Local Government incentives

（Japanese）https://www.jetro.go.jp/invest/region/#navi
（English）https://www.jetro.go.jp/en/invest/region/　

Cabinet Office: INVEST JAPAN Foreign Direct Investment Promotion

（Japanese）https://www.cao.go.jp/invest-japan/link/contact/index.html
（English）https://www.cao.go.jp/invest-japan/en_index.html　

Heidi: Can an American citizen buy property in Japan?

American citizens can buy property in Japan. Japan has a policy of reciprocity regarding the purchase of real estate by foreigners, so if a buyer’s home country allows Japanese citizens to purchase real estate, then it is possible for that buyer to purchase real estate in Japan.

Heidi: What are your main exports? What does Japan import from the U.S.?

(1) Top commodity exports to the U.S. as percentages (2023)
35.0% - Industrial goods and raw materials (energy products, chemicals excluding pharmaceuticals, etc.)
29.3% - Capital goods, excluding automobiles (engines, parts, etc.)
12.7% - Consumer goods, excluding automobiles and foodstuffs (medical and dental supplies, pharmaceuticals, etc.)

Top exports to Texas in USD 

1)  Automobiles, auto parts ($10.4 billion)
2)  Nuclear energy -related equipment ($2.9 billion)
3)  Electronic machinery, audio and television equipment, related parts ($1.8 billion)

(2) Top commodity imports from the U.S. as percentages (2023)

27.7% - Capital goods, excluding automobiles (power generation machinery, electrical equipment, parts, etc.)
24.4% - Consumer goods, excluding automobiles and foodstuffs (household and kitchen appliances, other household goods)
21.6% - Industrial goods and raw materials (energy products, metal and non-metal products, etc.)

Top imports from Texas in USD

1) Mineral fuels, oils, etc. ($7.3 billion)
2) Organic chemicals ($2.3 billion)
3)Nuclear energy-related equipment ($1 billion)

Heidi:  When a visitor arrives in Japan, what are some of the places one must visit?

    When you are at home in Japan, what do you like to see and do?【広文班】

Hon. Naganuma: Although Japan is about half the size of Texas, approximately 3 million tourists visit our small island nation every month. Many of these visitors cite Japanese cuisine and food culture as the reason for their visit. In fact, Tokyo has more than 180 restaurants with one or more Michelin stars and has held the record for the most starred restaurants since 2008.  As you can see, Tokyo is an obvious choice of destination, but Osaka and Kyoto are also very popular among tourists and should definitely be part of anyone’s first visit to Japan.  If you’re interested in visiting other cities, however, I highly recommend my hometown of Niigata City.  It’s easily accessible from Tokyo – about two hours by shinkansen (bullet train) – is famous for excellent rice and fish, and the sushi is exceptional.  In addition, there are 14 Japanese cities that have sister city relationships with Texas, including Chiba and Houston, Sendai and Dallas, Kumamoto and San Antonio, and Oita and Austin, so I encourage you to visit these as well.

Japan is a country with abundant nature and a spirit of hospitality. It is a nation inhabited by people who respect others and have a strong desire to contribute to their society. There is much in Japan that I still have yet to see, so when I return, I would like to travel around the country, visiting new places and talking to many people. Also, once I return to Japan, I would like to continue to be involved in the kind of international exchange that my work currently allows.

Heidi: What are some of the things we can do to promote economic growth in Japan?

Hon. Naganuma: Energy is indispensable as the foundation of industry. Texas, and Houston in particular, play an outsized role in terms of energy security as a major exporter of LNG and other energy and low-carbon fuels. We would like to continue to foster strong relationships in the energy sector, including sectors related to decarbonization as well as in other key industries such as space exploration, medicine, and advanced technologies, to further develop vital industries.

Heidi: Is there anything you would like our readers to know that we did not cover here?

Hon. Naganuma: Expo 2025 (the World Expo) will be held in Osaka, Japan from April 13th to October 13th, 2025.

This will be the third time in 20 years that Japan hosts the World Expo, an opportunity for the world to come together in one place under this year’s theme of “Life.” The Expo allows for the diverse values of our world to interact, foster connection and creativity, overcome global crises, protect individual lives, and reconsider the way life should be and how we might live it. In this way, we strive for an Expo that shows the world hope for the future.

As of July 2024, 161 countries and regions and 9 international organizations have announced their participation, each with pavilions where visitors can experience their diverse lifestyles, innovations, traditions, and initiatives for the future. In addition, a wide variety of events are planned for each day, including those that promote traditional and modern Japanese culture and Japan’s regional charm.  Finally, National Days and Special Days will be held to honor international participants. Expo 2025 will run for six months beginning in April of next year, so please come and visit Japan during the event.

For more information or any questions contact:

Heidi Powell-Prera
Editor in Chief iF Magazine
(713) 927-9038
heidipp@ifmagazine.net
Heidi@globalvisioncontemporary.com

Hon. Zentaro Naganuma
Consul General of Japan Houston
(713) 652-2977

11110 Bellaire Blvd., Ste. Ste.218
Houston, TX 77072 USA
Phone: 832-526-3335
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