The government has allocated 23.5 billion yen in 2020 supplementary budget for the subsidy to urge firms to disperse their manufacturing sites throughout the ASEAN region.
Japanese makers will currently be eligible for aids if they shift production out of China to India or Bangladesh, in the growth of a federal government program aimed at diversifying the country’s supply chains.
By broadening the extent of the subsidy program, Japan aims to decrease its dependence on a specific region and to construct a system which can give a stable supply of clinical products and also electronic parts even in an emergency, records Nikkei Asian Review.
The federal government has allocated 23.5 billion yen ($221 million) in 2020 extra budget for the subsidy to motivate firms to disperse their production sites across ASEAN region.
Together with the 2nd round of applications which began on September 3, jobs that will undoubtedly add to the durability of the ASEAN-Japan supply chain were added to the checklist, thinking moving plans to India as well as Bangladesh.
The second round of application targets feasibility research studies on decentralising producing sites, the experimental intro of facilities and also the implementation of version projects. The total amount of aids which will undoubtedly be offered is reported to get to several billion yen, stated Nikkei.
The supply chain of Japanese companies currently much relies upon China. During the COVID-19 pandemic, the products were removed.
In the first round of application which enclosed June, the Japanese government approved 30 production projects, including Hoya’s manufacturing of electronic parts project in Vietnam and also Laos, as well as offered aids of 10 billion yen.
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