As the Japanese economy suffers from sluggish domestic demand amid stubborn deflation and the graying of the population, and as Japanese companies are challenged by Chinese and South Korean firms in overseas markets, the Ministry of Economy, Trade and Industry's Industrial Structure Council has unveiled "Industrial Structure Vision 2010," aimed at raising Japan's competitiveness.
To shift from such heavy reliance on the car industry, the council calls for developing five key strategic areas: (1) infrastructure-related industries such as those that construct nuclear power plants and railways, (2) industries related to the environment and energy, (3) industries to promote health and help with child rearing, (4) culture-oriented industries such as fashion and (5) advanced industries including robotics.
It says that growth in these areas would expand Japan's markets by ¥149 trillion and create 2.58 million jobs by 2020, including ¥23.7 trillion in the environment and energy-related industries, whose products will include electric cars and smart grids, and ¥12.3 trillion in the infrastructure-related industries and creation of 1.134 million jobs in medical, nursing care, health and child-care services. METI hopes the idea will be included in the government's growth strategy to be announced this month.