Reassessing Our Strengths

The international landscape is increasingly uncertain. Military tensions have become prolonged, as exemplified by Russia’s invasion of Ukraine and the escalating situation in the Middle East, while shifts in U.S. trade policy are undermining the global free trade system.

Turning to Japan, although the country is emerging from a prolonged period of deflation, the business environment remains challenging. Companies continue to face sharp inflationary pressures and the need to raise wages, and this is no exception in the Tohoku–Niigata region. In particular, disparities in the ability to pass on rising costs and secure human resources are accelerating a growing polarization among firms.

Meanwhile, the structural issue of population decline is becoming increasingly severe. The Tohoku–Niigata region has the highest rate of decline among all regions in Japan. Over the past approximately 25 years, the working-age population has decreased by 2 million (25%), and the total population is projected to fall by a further 3.1 million (30%) over the next 25 years. The outflow of young people and women to the Tokyo metropolitan area also shows no sign of abating. This represents a critical juncture affecting not only the labor force but also the very sustainability of regional economies and societies.

In light of these circumstances, the government has launched “Regional Revitalization 2.0,” aimed at implementing adaptive measures to sustain society on the premise of a declining population.

To overcome these formidable challenges and realize a sustainable society, it is essential to fully leverage the unique strengths of each region while creating an environment in which every individual can demonstrate diverse capabilities. This will require close collaboration among regional stakeholders and a unified commitment to transforming local communities, businesses, and workplaces.

The Tohoku–Niigata region is, upon reflection, endowed with numerous strengths unmatched elsewhere: world-class tourism resources, highly attractive agricultural and marine products, and forward-looking scientific and technological projects, as well as prime locations for renewable energy development such as offshore wind power. By harnessing these advantages, we aim to foster innovation, create high value-added industries, and generate new flows of people into the region, including an expansion of “related populations” with ongoing ties to the area.

Fiscal year 2025 marks the final year of the third medium-term plan toward realizing the Tohoku Economic Federation’s New Vision 2030, “Dynamic Tohoku.” As the culmination of our efforts to date, and guided by the principles outlined above, we will strive to achieve the “Three SHINKA”: the deepening of our strategies, the evolution of our organizational capabilities, and the realization of our true value as a comprehensive economic organization.

To this end, we will further strengthen collaboration among industry, academia, government, and financial institutions, accurately respond to changes in the economic and social environment, and accelerate efforts to address regional challenges and support corporate transformation. We sincerely look forward to your continued understanding, support, and cooperation.

General Inocorporated Association
Tohoku Economic Federation
Chairman,