Japanese local governments with accumulated
management know-how of the waterworks business dispatch engineers to developing
countries and accept trainees from them, but they do not seem serious about
promoting business through these efforts. The central government is involved in
the development of water facilities in foreign countries though official
development aid programs, but Japanese companies rarely participate in the
management of the facilities. This is the reality caused by the lack of
strategy. A water purification plant constructed in Cambodia as part of a Japanese
ODA program was about to be sold to a foreign company in 2006, partly because the
plant was too sophisticated for the local staffs to manage.
In foreign countries, Japanese companies
are often not awarded a contract because the projects they offer need a high
initial investment, even though their technology and competitive edge are
evaluated highly. It is vital to provide both hardware and software for stable
and secure water supply in foreign countries. Japan has to realize the
importance of understanding the needs of a target country, having its
competitive edge understood by the target government, and getting involved in
the project from the very beginning to materialize business.
The Japanese government is discussing a new
type of public-private partnership project with the Vietnamese government, in
which the governments approve a project proposal submitted by a private
company. Metawater submitted a proposal for the water project in Hanoi, and the
project may be implemented as part of Japan’s ODA should it be approved. This
system benefits Japanese companies whose technologies are not in a favorable
position in a price competition.
As you have observed in this series
articles, France and Great Britain excel in developing foreign markets in the
water business. The key is the support from the central government. It is
urgent for Japan to increase its presence in the world market with the support
from the central government that includes sales activities of high-ranking government
officials and submission of project proposals in the government-level
negotiations, placing emphasis on the technological advantage and product
differentiation. (To be continued)
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