From Southeast Asia to Japan: The Bold New Frontier in the Global Race for Talent

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For decades, Japan was known as a nation of closed borders when it came to foreign workers—proud of its domestic workforce, wary of outside labor, and slow to embrace global diversity. Yet today, a remarkable transformation is underway. Faced with an unprecedented demographic crisis and economic stagnation, Japan is turning toward its neighbors in Southeast Asia to secure what it now calls kodo gaikokujinzai—highly skilled international talent.

This pivot is more than a strategy to fill gaps. It is a recognition that the future of Asia—and Japan itself—rests on shared talent, shared innovation, and a shared destiny.

A South Korean CEO in Tokyo Leading the Way

In the bustling tech hub of Shibuya, Tomato Co., Ltd. is rewriting the rulebook. Founded in 1988 by South Korean entrepreneur Bae Han-Tae, the app development firm has built a workforce where 70% of its 175 employees hail from overseas—South Korea, China, Vietnam, and Indonesia among them.

For Bae, this is not just about numbers; it’s about values. “Overseas talents are not only highly skilled but also bring a passion to succeed,” he explains. “Having come all the way to Japan, they are exceptionally committed.”

Bae’s recruitment journeys to Indonesia and Vietnam underscore a growing reality: Southeast Asia is no longer just a partner in trade—it is the beating heart of Japan’s future workforce. And Tomato doesn’t simply hire; it nurtures. The company arranges visas, greets new hires at the airport, provides furnished dormitories, and adapts workplace culture. When Indonesian Muslim programmer Muhammad Aljundi joined in February 2024, Tomato immediately introduced prayer breaks and adjusted schedules to accommodate religious practices.

It is this robust support system—personal, cultural, and professional—that makes Tomato a magnet for Southeast Asia’s best and brightest.

The Corporate Shift: From Eyewear to Engineering

Tomato is not alone. Major eyewear chain OWNDAYS Inc., with 1,200 employees, now counts international staff across 10% of its workforce. Every year, 20 to 30 of its new hires are global recruits, many from Southeast Asia. With outlets in Singapore, Malaysia, Vietnam, and beyond, OWNDAYS knows that international talent does more than bridge labor shortages—it enriches customer service, sparks innovation, and creates a workplace alive with different perspectives.

To ensure smooth integration, the company even acts as guarantor for foreign recruits seeking housing—an often daunting barrier in Japan’s rental market. For OWNDAYS, global hiring is not an experiment; it is a necessity for survival and growth in a world where customers demand multilingual service and multicultural awareness.

From “Labor-Closed” Nation to Open Competition

Japan’s demographic decline is severe. In 2024, births plummeted to just 686,061—an all-time low. The fertility rate fell to 1.15, far below the replacement level. With an aging society and shrinking workforce, Japan can no longer sustain economic growth without opening its doors.

Government policy is finally catching up. Since the 2012 introduction of a points-based system for highly skilled professionals, certifications have skyrocketed from just 313 to over 55,000 by 2024. The 2023 launch of J-Skip made the system even more attractive, offering perks like spousal work rights and the ability to bring parents to Japan.

And yet, despite these moves, foreign-born residents still make up only 2% of Japan’s population—far below the OECD average of 11%. If Japan is to truly compete with South Korea, Taiwan, and even Europe and the Middle East, it must go beyond paperwork and incentives. It must reinvent its workplace culture.

Beyond Tokyo: The Provinces Compete for Global Talent

The challenge is even sharper outside Japan’s major cities. In Mie Prefecture, 500 kilometers from Tokyo, securing international workers requires active outreach. With no Shinkansen access and little history of foreign integration, Mie leaders realized they could not simply wait.

In 2024, they held their first joint recruitment session in Vietnam, connecting local SMEs with engineering and design graduates. By January 2025, Governor Katsuyuki Ichimi personally signed agreements in Hanoi to ensure a pipeline of skilled professionals. “Our industries—from semiconductors to petrochemicals—require talent. Without it, our economy cannot thrive,” he declared.

Mie’s efforts are a glimpse of the future. More regional prefectures are planning similar missions in Southeast Asia, recognizing that Japan’s survival depends on a nationwide—not just metropolitan—embrace of global hiring.

The Challenge Ahead: Work Culture Versus Global Standards

For all its progress, Japan still faces an uncomfortable truth: foreign professionals often complain of long working hours, endless meetings, and slow promotions. These entrenched practices, once symbols of dedication, now serve as barriers to innovation and deterrents to global talent.

If Japan is serious about being a destination of choice, it must evolve. Diversity is not just about numbers—it’s about voice, opportunity, and empowerment. Southeast Asia offers a young, dynamic, and ambitious pool of professionals in IT, engineering, and construction. But to keep them, Japan must prove it can be more than a temporary stop.

Toward a Shared Asian Future

The race for global talent is no longer abstract—it is urgent. Japan, once a “labor-closed” country, is now in open competition with the world. Southeast Asia stands at the center of this transformation, its young professionals shaping the destiny of Asia’s most advanced economy.

What is emerging is not a one-way street but a partnership: Japanese firms offering stability, resources, and opportunity, while Southeast Asian talent contributes energy, creativity, and global perspective.

The question is no longer whether Japan will open its doors. It already has. The real test is whether it can create an environment where global talent not only comes—but stays, thrives, and calls Japan home.

Because in this shared future of Asia, the nations that win the race for talent will also win the race for tomorrow.

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