Japan: An Economic Giant Fueling Global Competitiveness and Digital Transformation
Japan is the world's fifth-largest economy, with a GDP (Gross Domestic Product) of
$4.186 trillion as of 2025. Japan is renowned for its advanced technologies, highly skilled workforce, and export-driven industries, offering a fertile ground for both domestic and international business participation. Japan's stable economic policies, low inflation, and commitment to innovation have positioned the country as a global leader in economic development. The government's targeted investments across various sectors, including infrastructure, renewable energy, and Information Technology, have primarily positioned Japan as a long-term leader in the global economy.
Information Technology (IT) is one of the most crucial sectors in Japan, estimated to achieve a revenue of
¥US$92.11 billion in 2025. Japan is home to some of the world's largest electronics, robotics, and semiconductor manufacturers, including Sony, Hitachi, Mitsubishi Electric, Panasonic, and more, which have positioned the country at the forefront of AI integration, smart manufacturing, and renewable energy tech.
The healthcare sector in Japan is expected to grow with a CAGR (Compounded Annual Growth Rate) of
3.8% from 2024 to 2029, fueled by an aging population that now accounts for
29.3% of the country's total population. The demographic shift has also driven the demand for pharmaceuticals, biotechnology research, medical devices, and telemedicine platforms. Moreover, the sector is also growing due to breakthroughs in regenerative medicine, AI-assisted diagnostics, and healthcare robotics, enabling the country to maintain its status as a leader in medical research and development.
The Infrastructure and Construction sector is one of the most vibrant in Japan, driven by urban redevelopment, seismic-resilient infrastructure upgrades, and preparations for major international events. According to
Market Research Japan, the Construction and Infrastructure sector is projected to grow at a 2% CAGR (Compounded Annual Growth Rate) by 2028, driven by increasing demand for modern, energy-efficient, and disaster-resistant designs. Moreover, the country is also focusing on cutting-edge technologies, including 3D printing, automated machinery, and eco-friendly construction materials.
At the core of this thriving business environment lies Japan’s highly regulated and transparent public procurement system, which operates at two levels: the Central Government and Local Governments (47 prefectures and their municipalities). Central procurement covers large-scale national projects managed by ministries and agencies, while local procurement addresses region-specific needs. The Procuring agencies publish tenders on official e-tendering portals, such as the Government Electronic Procurement System (GEPS), aiming to ensure fair competition and compliance with domestic laws, as well as international agreements like the WTO Government Procurement Agreement (GPA).
Understanding Japan's Central Government Procurement
Japan has a highly structured and transparent central procurement system, which is specifically designed to ensure fair competition, value for money, and compliance with international trade agreements. Japan's national-level procurement is governed by the Government Procurement Agreement (GPA) under the World Trade Organization and domestic regulations, including the Accounting Act and the Budget Act.
Japan's central government procurement opportunities are published on the
Japan External Trade Organization portal by various ministries and agencies, including the Ministry of Finance (MOF), the Ministry of Land, Transport and Tourism (MLIT), and the Ministry of Defense. They regularly issue tenders for goods, services, and large-scale infrastructure projects.
To apply for Japan's active tender opportunities, vendors must undergo a qualification screening process that assesses their financial stability, past performance, and technical capabilities. Moreover, vendors must be compliant with anti-corruption laws, environmental sustainability policies, and cybersecurity standards. Foreign suppliers can also apply for Japan Public Procurement Business opportunities through GPA commitments by carefully reviewing bidding rules, documentation requirements, and language considerations, since most official tenders are in the Japanese language.
Top 3 Sectors Offering Tendering Opportunities for Japan’s Central Government
Listed below are three major sectors offering Japan's public procurement business opportunities.
1. Construction
Japan's central government is investing heavily in modernizing its infrastructure, aiming to maintain resilience against natural disasters and improve connectivity.
Most
construction tenders include highways, bridges, tunnels, and urban redevelopment projects with a main emphasis on earthquake-resistant designs and advanced engineering solutions.
Contractors interested in these Japanese tendering opportunities must comply with construction safety standards, environmental guidelines, and sustainability requirements, which ensure quality and disaster-resilient outcomes.
2. Information Technology
Digital transformation is a top priority in Japan due to the ambition to achieve high-tech technologies first worldwide.
Japan's central government regularly issues tender opportunities for cloud computing, cybersecurity, AI solutions, e-government platforms, and digital infrastructure upgrades.
Vendors interested in
IT tenders must meet strict data security standards, ensure compatibility with government systems, and comply with accessibility requirements, while also demonstrating innovation for smart governance.
3. Defense
Japan allocates a substantial portion of its central budget to defense to address regional security challenges. To fulfill this requirement, Japan's Ministry of Defense (MOD) issues
defense tenders for the procurement of advanced weapon systems, naval vessels, aircraft, and cybersecurity infrastructure.
Suppliers interested in participating in Japan's defense sector tenders must fulfill stringent security clearances, confidentiality obligations, and international compliance standards, while also adhering to Japan's defense procurement policies and international treaties.
How does the Public Procurement Process Work in Japan?
Here, we've outlined the step-by-step public procurement process for goods and Services from the JBIC's official ODA loan-funded projects document.
1. Need Assessment and Preparation
First, the Japanese government must identify a specific need for acquiring goods, services, and works. Once identified, the procuring agencies must select the appropriate type and size of contract based on the project's complexity, while following the International Competitive Bidding (ICB) process in the majority of cases.
2. Tender Issuance and Advertisement
Government procurement agencies issue contract opportunities on Japan's official procurement portal through a two-stage bidding process, where bidders are primarily required to submit technical proposals and then financial proposals to demonstrate their technical qualifications and financial capacity.
Under all cases of ICB contracts, bid opportunities are published in at least one newspaper of general circulation in the Borrower's country to attract more qualified leads. Additionally, procuring agencies must also attach a bidding document with the opportunity, which consists of detailed information about the project. It is specifically designed to help bidders understand project expectations.
3. Bid Submission, Evaluation, and Award of Contract
Bidders must first submit technical offerings without prices, based on the minimum operating and performance requirements. Only technically qualified bidders would be invited to submit final technical and financial proposals.
Authorities evaluate bids, comparing them based on which one conforms to the technical specifications and has the lowest evaluated cost (not necessarily the lowest submitted price), and will award the contract accordingly.
4. Contract Management and Closure
Once the contract is awarded, the bidder begins work in accordance with the required terms and conditions. When the vendor delivers the project and the authorities cross-check everything, final payments are made. Then, the authorities close the project. Additionally, vendors are also required to provide the necessary post-delivery support and maintenance.
To gain more detailed insights into Japan’s public procurement process, click on the link to download the official document:
https://www.tendersontime.com/documents-library/japan/procurement-goods-and-services-1789/
Understanding Japan's Local (Prefectural & Municipal) Procurement System
Japan's local procurement system is managed by 47 prefectural governments and numerous municipalities, each with its own procurement regulations. This decentralized framework allows Japan's local governments to address regional infrastructure, healthcare, education, and environmental needs, while adhering to the country's overarching procurement guidelines.
Local
public procurement opportunities are typically published on prefectural and municipal portals such as the Tokyo Metropolitan Government e-Procurement System and Osaka Prefecture Procurement Portal. In comparison to central government contracts, local tender opportunities often involve small-scale but high-frequency projects, creating significant opportunities for vendors across diverse sectors, including public works, municipal services, ICT projects, and other local initiatives.
Participating in these Japanese local tender opportunities requires contractors to undergo a qualification screening at the local level, which is different from the central system, and provide documents in Japanese. Additionally, contractors must comply with local ordinances, tax obligations, labor laws, and sustainability standards. Many local procuring authorities give more preference to vendors who contribute to regional economic growth, particularly those promoting local employment and environmentally friendly practices. Japan's localized procurement approach is specifically made to meet operational needs and support the country's broader goals of balanced regional development.
Top 3 Sectors Offering Tendering Opportunities for Japan's Local (Prefectural & Municipal) Procurement System
Below, we’ve mentioned three major sectors offering tendering opportunities for Japan’s local procurement system.
1. Transport
Japan's local government frequently issues
transport tenders for road maintenance, public transit systems, and local infrastructure upgrades, aiming to improve the country's urban mobility and reduce congestion.
Vendors interested in the Japanese tenders in this sector must be compliant with regional transport regulations, safety standards, and sustainability requirements, as many projects focus on eco-friendly and energy-efficient solutions.
2. Pharmaceuticals
Japan's aging population is creating a growing demand for
pharmaceutical tenders, which include pharmaceutical supplies, vaccines, and essential drugs, as well as public health initiatives such as health campaigns, at the local level.
If you are interested in these tender opportunities, you must adhere to the standards of the Pharmaceutical and Medical Device Agency (PMDA). Moreover, you are also responsible for ensuring timely delivery and high-quality control measures.
3. Agriculture
The agriculture sector plays a central role in rural prefectures, where local governments issue
agriculture tenders for irrigation projects, farming equipment, seed distribution, and sustainable farming technologies. The primary objective is to support food security and enhance local agricultural productivity.
To apply for these procurement opportunities, vendors must meet environmental compliance guidelines and technology integration standards, particularly for smart farming solutions.
Looking for more Japanese tenders? Visitors can click on the link to explore sector-wise tender opportunities in Japan:
https://www.tendersontime.com/japan-tenders/sectors/
How TendersOnTime Can Help You Win Japan Government Procurement Contracts?
Here we’ve highlighted how TendersOnTime can help you win government procurement contracts in Japan.
1. Centralized Access to Procurement Notices
The Japanese government procurement process is divided into two levels: central, provincial, and municipal. This results in tendering opportunities being scattered across multiple sites and portals, including the official Japan Government Procurement portal and prefectural e-tendering platforms. TendersOnTime aggregates all the opportunities in one place, saving you a lot of time that may be wasted on surfing over dozens of portals manually. Instead, you can invest that valuable time into creating the best tender offer.
2. Real-Time Alerts for Sector-Specific Opportunities
Japan offers thousands of tendering opportunities across various sectors, including ICT, healthcare, infrastructure, automotive, and renewable energy. So, it is very normal to miss out on a potential opportunity, which may cost you millions. Here, TendersOnTime offers a real-time notification feature that alerts you to significant tender opportunities, filtered by sector, location, contract value, and agency. Therefore, subscribing to TendersOnTime can ensure that you don't miss out on any relevant opportunity.
3. Regulatory and Compliance Insights
TendersOnTime can help you comply with local regulations, Japanese Industrial Standards (JIS), and WTO GPA obligations by providing you with summaries of eligibility requirements, compliance guidelines, and document templates. Moreover, we also help international suppliers with language and documentation barriers. This way, vendors can submit fully compliant bids on time.
4. Support in Cross-Border Participation
Foreign suppliers can participate in Japan’s tenders above the WTO GPA thresholds with the assistance of a local representative or a joint venture partner. TendersOnTime provides market intelligence, advisory connections, and networking opportunities with Japanese partners, reducing entry barriers and facilitating the smooth integration of international firms into Japan’s procurement ecosystem.
5. Competitive Intelligence and Past Award Data
Winning in Japan requires more than submitting a low bid — suppliers must demonstrate quality, reliability, and innovation. TendersOnTime provides access to past award data, bidding patterns, and agency preferences, giving vendors a competitive edge to tailor proposals based on how similar tenders were awarded in the past.
Click on the link below to directly visit the page for a glimpse into Japan tenders:
https://www.tendersontime.com/japan-tenders/
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