Public Procurement in Japan : An outline

The Japanese public procurement market holds huge potential, with EU estimates ranging from €550 billion to €565 billion. EU companies remain relatively underrepresented in this market, partly owing to non-regulatory barriers, geographical distance, and limited market knowledge. EU companies currently active in the sector tend to be larger global players with an established presence in Japan.

In Japan, most government procurement is carried out through competitive tendering procedures open to qualified suppliers. Companies wishing to bid for procurement contracts must apply to the relevant procuring entity for qualification. To improve their chances of participating, potential suppliers are advised to apply for qualification in advance, regardless of whether a specific procurement notice has yet been published.

MOFA, Suggestions for Accessing the Government Procurement Market of Japan

Merits of participating in public procurement

Tendering for government contracts in Japan offers a number of advantages:

1. Government offices often pay above market price for goods and services
2. A very large number of tender notices are issued each year (Between 1.05-1.8 million tenders in 2025)
3. There is a lower risk of non-payment by government offices
4. Participation can provide good PR for your company beyond the public procurement sector
5. Many tenders make no distinction between larger and smaller companies, creating a more level playing field.