The "depreciation of the yen" has progressed rapidly these days.
The "depreciation of the yen" has the positive side of boosting corporate profits and attracting foreign tourists by exporting to overseas, and the negative side of increasing the price of imported goods and increasing the burden on companies and households. ..
Financial results for the fiscal year ending March Final profit increased due to depreciation of the yen Approximately 70%
For large companies operating overseas, foreign currencies such as dollars earned overseas can be exchanged for more yen, so the "depreciation of the yen" has been regarded as a "tailwind" for the Japanese economy. ..
SMBC Nikko Securities analyzed the financial results of 891 companies that had announced their financial results by the 12th of this month among the companies listed on the first section of the former Tokyo Stock Exchange. The number of companies whose final profits increased compared to the previous year was 631, which is about 70%.
There are a number of cases in which the final profits reach record highs, centered on companies that have strengths in exports, such as Toyota Motor Corporation, Mitsubishi Corporation, and Mitsui & Co., Ltd.
However, it has been pointed out that the benefits of the "depreciation of the yen" can no longer be expected.
Japanese companies have been relocating their production bases overseas in order to make them less susceptible to the effects of foreign exchange rates amid the long-standing appreciation of the yen.
According to a survey conducted by the Development Bank of Japan every year, mainly for large companies, overseas bases accounted for 31.6% of the bases invested by manufacturing companies in 2002, 20 years ago. Last year it increased to 52%.
The ratio of overseas production has increased and exports from Japan have not increased, and the direct merit of yen depreciation has diminished compared to before it was a major exporter.
In addition, for small and medium-sized enterprises that often develop their businesses in Japan, the "depreciation of the yen" further pushes up raw material prices and increases the burden. 53.3% of SMEs answered, "It's bigger", which is more than half.
Soaring labor costs overseas
Japanese companies with overseas bases are having an impact on their management due to the recent "depreciation of the yen", which has caused the labor costs of locally hired employees to soar.
An IT company in Tokyo established a subsidiary in Hanoi, Vietnam seven years ago, and has used it as a development base for household account book applications.
We hired Vietnamese engineers locally, and about 10 people are working at the base in Hanoi, and the operating costs and labor costs of the development base are remitted from Japan in "yen" and exchanged for the local currency "don". increase.
However, the yen has been declining not only against the US dollar but also against various currencies, and last year it was mainly traded at 1 yen = 200 dong to 210 dong, but since last month, the yen has further depreciated. The price dropped to the 1 yen = 173 dong level at the beginning of this month.
As a result, personnel expenses, equipment expenses used at bases in Vietnam, and operating expenses such as office rents have increased by about 20% from last year.
There was also a way to limit the effects of fluctuations by making a foreign exchange contract with a bank, but it is said that measures could not be taken because the burden of fees would be high due to the limited budget.
For this reason, the company is considering reducing the number of new graduates hired locally, which was planned, but in Vietnam, where economic growth continues, companies in each country continue to compete for IT engineers. However, I am concerned that if we continue to do so, we will lose to overseas companies in terms of hiring ability, which may lead to a decline in competitiveness.
President Shohei Ejiri of Smart Idea said, "Prices are rising in Vietnam, so we have to raise employee salaries by that amount, but the impact of the depreciation of the yen is a very annoying situation. Western companies are steadily advancing. However, as the dollar rises, it is becoming more difficult to compete at salary levels. "
Expert "The possibility that the depreciation of the yen will continue"
Mr. Miyanaga, Director of Economic Research Office, Development Bank of Japan, which specializes in macroeconomics, said, "The depreciation of the yen can be expected to have the effect of boosting travel to Japan and real estate investment. Since the structure is well established, the depreciation of the yen will increase profits and have a positive effect on the Japanese economy as a whole. Even so, the benefits are not evenly distributed to each company and consumer. It is important that the benefits of the weak yen spread to subcontractors and have a positive impact, such as raising wages. "
On the other hand, Mr. Miyanaga said, "The positive effect of the depreciation of the yen is that Japanese companies are expanding overseas and their export bases are smaller than before, and Japan is no longer a country with a trade surplus like it used to be. It is also true that it is shrinking year by year. In recent years, Japanese companies have increased their investment overseas, including M & A, but if the yen depreciates, the ability to buy overseas goods will become relatively small. " increase.
Regarding the outlook for the Japanese economy, "I was wondering if there would be bright signs coming out of the corona vortex, but global inflation and the depreciation of the yen caused a big wave of soaring raw material prices, and in corporate activities. There are many opportunities to be aware of the negative aspects of the depreciation of the yen. Since this level of depreciation of the yen may continue, it is just a cost, such as further increasing the added value and devising ways to keep the profit margin. There is a time when we have to think about measures other than down. "