Kankouju or ‘Public Agency Orders’ relates to the budget of public procurement spending reserved specifically for SMEs.  This earmarked budget is regulated by the Act on Ensuring Receipt of Orders from the Government and Other Public Agencies by Small and Medium-sized Enterprises established in 1966.  

In fact, more than half of the tenders are reserved for SMEs. The Japanese government sets a target for each year, in FY 2013. 56% of the total expected demand of €61.7 billion was reserved for SMEs.

 Link: http://www.meti.go.jp/english/press/2013/0625_02.html 

 While this involves a substantial part of Japan’s government procurement, there is little English information available on Public Agency Orders.  In Japan, it is however regarded as an important way to create and sustain employment for SMEs.

 Link:  Japan’s Policy on Small and Medium Enterprises (SMEs) and Micro Enterprises (September 2013)

The Small and Medium Enterprise Agency is tasked with the support of SMEs in securing government contracts.  Among others it has developed the following activities:

  • Management of a designated portal site in Japanese for public agency orders at http://www.kkj.go.jp/s/
  • Support of establishment of business cooperatives of SMEs to gain access to larger government contracts.  (kankouju tekkaku kumiai)  This enables a group of SMEs to achieve a higher supplier ranking.  Foreign companies can also form or take part in such a business cooperative.
  • Maintaining “Public Agency Orders’ Consultancy Centres” in all 47 prefectures. For list (in Japanese) see here.

Statistics produced by the Japanese government on the share of contracts awarded to SMEs suggest that among the national government ministries and affiliated organisations, the Ministry of Education, Culture, Science and Technology, The Ministry of Agriculture, Forestry and Fisheries, and Ministry of Labour, Health and Welfare awarded a substantial share of their procurement to SMEs.

EU-Japan Centre News

More
Call for tender to outsource the services of the “Japan Tax and Public Procurement Helpdesk in...
The EU-Japan Centre in Tokyo is regularly publishing "Industry and Policy News" from various...
30 YEARS OF INDUSTRIAL COOPERATION - RESPONDING TO THE CHANGING NEEDS For the past three decades,...

Events

More
Europe
14/11/2017
With a view to helping raise industrial competitiveness, the EU-Japan Centre has organised in-depth visits to world class European plants since 2013. During the visits, participants will learn about...
Online
01/12/2017
An 8-part lecture series giving a sound introduction to the practical concepts of applied lean. The EU-Japan Centre Lean Masterclass consisted of lectures, by Professor Richard Keegan, focussing on "...

Library

More
November 2017 Japanese Industry and Policy News Topics covered in the November issue: LEGISLATION...
EU-Japan Newsletter, Issue #60 December 2017. The Centre is pleased to...
Brief Japan Industrial Reports ADDITIONAL REPORTS AVAILABLE on www....
October 2017 Japanese Industry and Policy News Topics covered in the October issue: LEGISLATION...