A report released by the Development Bank of Japan on the results of a capital investment plan survey conducted in June 2025, targeting private corporations.
The 2025 fiscal year capital investment plan shows characteristics of "maintaining double-digit growth despite uncertain outlook." Large enterprises (capital of 10 billion yen or more) achieved their third consecutive year of growth in 2024 fiscal year capital investment, reaching a high level of 10.5% increase compared to the previous year since the bubble era, driven by AI computing infrastructure construction in telecommunications/information and automotive electrification investment. For 2025 fiscal year, it shows a 14.3% increase compared to the previous year, falling below 20% for the first time in four years at the planning stage, but maintaining double-digit growth despite uncertainties such as US tariff strengthening.
By industry, manufacturing maintains high growth of 21.0% increase through continued automotive electrification investment and decarbonization investment centered on materials industries, while non-manufacturing shows a moderated growth of 11.3% increase due to reaction from high growth in the previous fiscal year.
Regarding the impact of US tariff strengthening, while not yet materialized, movements to reduce China operations are notably apparent, with companies reducing China operations also showing supply chain diversification movements including Japan. Overseas capital investment plans for 2025 fiscal year fall below domestic investment growth, continuing the trend of declining overseas investment ratios.
In corporate management, many companies recognize price increases and labor shortages as risks, with price pass-through and wage increase stances maintained, though wage increase pace is decelerating. In human investment, movements to view wage increases as human investment for talent acquisition are accelerating, with the proportion of human investment in broad-based investment continuously rising.
Digital investment has continued at high levels since COVID, with AI utilization further increasing. In decarbonization, as initiatives gradually become concrete, price pass-through emerges as the biggest challenge. Currently focused on energy saving and renewable energy, but attention to new technologies centered on hydrogen and ammonia for new energy is also rising in the medium to long term.
The article demonstrates that Japanese companies' capital investment maintains robust growth despite external environmental uncertainties, driven by investment responding to structural changes in electrification, decarbonization, and digitalization.