Japan & Asia Markets

How Is Japan's Expansion into Asia Changing in 2026?

The environment surrounding Japanese companies'overseas operations is changing rapidly. Shifts in supply chains, digital transformation, talent shortages, and growing local demand are creating new opportunities across Asia.

According to JETRO's FY2025 Survey on Business Conditions of Japanese Companies Operating Overseas, 5,109 Japanese companies operating across Asia and Oceania participated in the survey. 66.5% expected to report a profit for 2025, indicating that overseas operations continue to maintain overall profitability.

At the same time, companies expanding overseas continue to face challenges including securing talent, responding to local markets, and optimizing supply chains.

Growing Business Opportunities Across ASEAN

For Japanese companies, ASEAN is becoming more than a production base. The region is increasingly viewed as an important market for capturing local and regional demand.

JETRO's survey found that 46.8% of Japanese companies operating in ASEAN planned to expand their business over the next one to two years. Many companies are strengthening their sales functions and increasing their focus on local markets.

Vietnam stands out within the region, with 56.9% of Japanese companies surveyed indicating plans to expand their business.

This reflects a broader shift in Asian business strategies—from establishing production bases toward expanding sales, services, and locally driven operations.

Talent Is Becoming a Critical Factor in Overseas Expansion

Successful international expansion requires more than capital and market knowledge. Companies also need talent capable of driving business in local markets.

JETRO's research shows that more than one-third of Japanese companies operating overseas reported that securing talent had become more difficult over the past two years. Talent shortages are particularly visible in markets where Japanese companies are actively expanding, including Vietnam, India, and Brazil.

Companies are therefore strengthening both recruitment and retention strategies through initiatives such as university partnerships, social-media recruitment, skills development, and employee engagement programs.

Connecting Japanese and Local Talent

Cross-border expansion also increases the importance of professionals who can connect headquarters with overseas operations.

Companies increasingly need people who can:

• Understand both Japanese business practices and local markets

• Manage teams across different cultures

• Navigate local business environments and customer expectations

• Facilitate communication between overseas offices and headquarters

• Drive business initiatives across multiple countries and regions

As a result, companies need to consider not only where to expand, but also what talent and organizational structure are required to support that growth.

Four Key Considerations for Companies Expanding in Japan & Asia

1. Understand market-specific business environments

Markets across Asia differ significantly in terms of demand, competition, costs, regulations, and talent availability. Understanding each market individually is essential.

2. Strengthen local talent acquisition and development

Recruiting and developing professionals with strong knowledge of the local market is essential for sustainable overseas growth.

3. Leverage cross-border talent

Professionals who understand both Japan and overseas markets can help bridge differences in business culture, communication, and management.

4. Align talent strategy with business strategy

International expansion should address not only “Where should we expand?”, but also “Who will drive the business forward?”

Looking Ahead: Japan & Asia

Japanese companies' expansion across Asia is evolving from simply establishing overseas operations toward deeper engagement with local markets and increasingly integrated cross-border business models.

For sustainable growth, companies need to understand not only market opportunities but also the talent landscape in each region—and build the right approach to recruit, develop, and retain the people who can support long-term growth.

At A-GOLD, we leverage our talent network across Japan and Asia to support companies with international expansion, cross-border recruitment, and local team building.

Understand the Japan & Asia market. Connect with the talent that drives your next opportunity.