A Review of the Japanese Corporate Presence in Central Asia: Two Waves of Japanese Business Entry into the Central Asian Region

This paper reviews the history of Japanese corporate penetration in the CA region. It identifies two waves of Japanese corporate entry into the CA region over the last 30 years. The first wave started with Japanese companies entering energy-related projects and infrastructure development based on ODA (Official Development Assistance). In the second wave, in the 2010s, Japanese corporate interests were more diverse, and the Japanese business community members in CA entered new areas, such as financing by megabanks, international transportation, and digital technologies. This paper divides the problems faced by Japanese companies into those related to the logistics of the region and those related to a lack of economic infrastructure. Among the logistic problems are the size of the market and the difficulty of transportation due to the location of the region, with no access to major seaports.