Reported about 1 year ago
The weakening yen not only fuels tourism in Japan but also attracts many manufacturers back to Japan to establish production lines, as the advantageous exchange rate increases export competitiveness. Companies in various industries, such as cosmetics and rice, are moving manufacturing facilities back to Japan to leverage the favorable currency exchange rate, aiming to reduce costs and enhance the competitiveness of their products in overseas markets. This shift reverses the trend since the 1990s, where a strong yen led to the migration of manufacturing out of Japan, with Japan now being seen as a cost-effective manufacturing base attracting global companies seeking competitive production locations. Examples include Cosmax, a Korean cosmetics contract manufacturer, setting up its first factory in Japan by 2025 to cater to Japanese customers and potentially export to Korea, China, and Western markets, and JVC Kenwood transitioning all production lines back to Japan from the US.
Source: YAHOO