Business climate changing in Japan

Tuesday, May 20, 1997 | 11:59 a.m.

The political climate is slowly changing in Japan, allowing more business opportunities for Americans there.

Kiyohiko Nanao, consul general of Japan, admitted it's a slow process, but he's confident the Liberal Democratic government of Prime Minister Ryutaro Hashimoto is making progress "at a realistic pace."

Nanao was in Las Vegas for a series of events sponsored by the Japan-America Society of Nevada, a nonprofit organization dedicated to promoting cooperation and friendship between the people of Japan and Nevada.

He spoke at a luncheon and toured UNLV on Monday and played in the first JASN Friendship Golf Tournament on Sunday. Nanao also met several Las Vegas businessmen with Japanese ties.

Based in San Francisco, Nanao is one of the most influential and senior Japanese officials in the United States and his office oversees concerns of Japanese citizens in Nevada, Utah and Colorado.

Nanao said he has observed a steady change in attitude toward Americans conducting business in Japan since 1992. He said the Gulf War was a catalyst for change as Japanese citizens re-examined their role in international affairs.

Deregulation and a lowering of trade barriers is a goal of the current administration, Nanao said, adding that the government is working to explain how working with international partners will help solve some of the internal issues with which the nation has been wrestling.

America's direct investment in Japan has been growing at a rate of about 13 percent a year since 1980 to $40 billion, Nanao said.

Nanao is a firm believer that the development of solid business relationships requires a mutual understanding of culture.

"Business and commerce go hand in hand with cultural understanding," Nanao said in an interview prior to his luncheon address.

He praised the Japan-America Society of Nevada for promoting cultural awareness while developing business relationships.

Many members of the JASN are involved in the tourism industry and use some of the contacts in the organization to generate sales.

The tourism industry continues to be one of the primary beneficiaries of JASN networking, but Nanao said some global companies based in Japan are looking for opportunities in Southern Nevada because of the healthy business climate.

Ken Ivory, past president of the JASN, said the Japanese have a fascination for learning what makes top industrial performers click, which is why Las Vegas is under the microscope. Meanwhile, Japanese development companies are bidding on Southern Nevada construction projects.

Asked whether the Japanese encounter resentment from local businesses with which they compete, Nanao said it occurs occasionally, but that most people recognize that restricting the marketplace ultimately narrows opportunities for everyone.

The Japanese are diversifying in Southern Nevada in the same way the local economy is slowly changing. While most Japanese companies are in some way tied to the tourism industry, Ivory said three additions to the local economy that don't have ties to tourism include Kajima Engineering & Construction of Henderson; JCM, a North Las Vegas division of Japan Cash Machine, which distributes currency acceptors on slot machines; and Nikkiso, a facility for cryogenic pumps for natural gas.

Nanao also visited with members of the economics and finance faculty at UNLV.

Nasser Daneshvary, associate dean for the College of Business, discussed a residency program that would bring Japanese educators to teach on the Las Vegas campus. He and two other business professors, Keith Schwer and Mel Jameson, also discussed the possibility of establishing student exchange programs that would immerse UNLV students in the Japanese culture and business landscape.