Otto Benz – President, German Chamber of Commerce and Industry in Japan
Otto Benz took over the presidency of the German Chamber of Commerce and Industry in Japan (GCCIJ) last December. “Since then, as you know, we’ve had rather a turbulent time,” says Benz, who is also Lufthansa’s general manager for Japan. “The focus of the chamber suddenly changed this spring due to factors which we have all had to cope with.”
But now, he reports, “almost all companies are back to normal operations.” Temporary supply-chain problems were overcome even more quickly than expected, “a positive surprise which shows the strength of Japanese society to overcome difficulties in a decisive and fast way,” he says.
The second-largest European chamber of commerce in Japan, the GCCIJ offers assistance to both German companies here and those in Europe thinking of investing in Japan. “In a nutshell, the German chamber is a competence centre for all the people who need to understand this market, its culture and its people,” says Benz.
The chamber, which has 25 staff, has published its own monthly magazine for the last 20 years, and also sends out a newsletter twice a week with information on Japanese business, politics and society.
Benz highlights the important “social networking” side to the chamber’s work. An example is the GCCIJ’s “famous German asparagus dinner”. It has been held in Osaka for 10 years, Tokyo seven and in Nagoya once – for the first time this year. Donations collected at this year’s events, at which diners were served imported German white asparagus and wine, went to support disaster-stricken areas of Japan.
There are also, of course, the chamber’s annual dinners in Tokyo and Osaka, which Benz describes as “a perfect opportunity to invite clients and be together as a big family.”
The GCCIJ is a strong supporter of the EBC, and its members are enthusiastic participants in the EBC’s many committees. “We all support the EBC as the political arm of the EU chambers, because we are convinced that we need this unified approach,” say Benz.
He draws particular attention to the EBC’s ongoing preparations for an EU-Japan FTA. “The scoping exercise is an excellent opportunity for those German industries that have a huge interest in a fair and balanced agreement between Europe and Japan.” The chamber is both encouraging and helping companies to prepare the necessary documentation, and leveraging its close relationship with industry associations in Germany.
The chamber also works hard to help companies invest in Japan. “It is not an easy market to access; we know that,” says Benz. But he argues that if Japan is serious about opening up its markets, there will be plenty of future opportunities.
The energy business in particular has many people talking. Germany has already pledged to phase out all of its nuclear reactors by 2022. It’s an ambitious goal, even though Germany, unlike Japan, has the advantage of being able to buy power from its neighbours.
“The [Japanese] public is aware of the need for an intelligent energy system. Change has to come,” says Benz. He notes that “Germany has long-term experience and investment in alternative energies.”
Another reason to invest in Japan is to use a Tokyo operation as a springboard to other markets. “If you can be a supplier to Japanese companies in Japan, then you can be a supplier to their operations elsewhere in the world,” Benz stresses. “Showing your competence in Japan means you can be a supplier for those companies anywhere in the world.”
While countries like China and India receive the lion’s share of attention, “Japan is a mature market with excellent profit margins for companies doing the right business in the right way. There are still opportunities to invest in this market,” he says.
“We believe that certain sections of German business should be better represented here,” says Benz. “Japan is still of great importance. It is one of Germany’s main trading partners, and it will remain so.”