"Research on human rights impacts of Japanese investments in Southeast Asia" March 2021

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Key issue

• Labour rights

Of all of the alleged violations linked to Japanese businesses in southeast Asia, over half (59%) relate to labour rights. The majority of these alleged labour rights violations (68%) involve migrant workers who were placed under Japan’s Technical Intern Training Programme (TITP). Migrant workers are an ever-present feature of global supply chains. They work in all sectors and all geographies. Low-skilled migrant workers are however amongst the most vulnerable to exploitation and abuse. Compounding this, they are also often among the least able to assert their rights. A report stated that for many, a lack of viable options to sustain a livelihood at home increases their willingness to accept risks inherent to migrating for work abroad.

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• Land rights and environmental impacts

[...] These items involve large-scale projects, such as the development of industrial and special economic zones (SEZ), coal power plants, hydropower and the supply of timber. On top of abuses against local communities, some of these items naturally have detrimental effects on the environment as well, such as deforestation. These issues account for 26% of the total relevant items.

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• Complicity

A few items, particularly those relating to Myanmar involve the issue of complicity to the perpetuation of human rights violations. The United Nations Independent International FactFinding Mission on Myanmar stated that two powerful military conglomerates, Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC)—which own businesses across diverse sectors of the economy were directly involved in gross violations of international human rights law and serious violations of international humanitarian law, particularly the grave crimes committed against the Rohingya.

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Key sectors

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• Financial

[...] Japanese banks have financed coal power plants such as the Vung Ang 2 coal-fired power generation project in Vietnam financed by Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation (SMBC), Sumitomo Mitsui Trust Bank, MUFG Bank, Mizuho Bank, Mitsubishi Corporation, and Chugoku Electric Power Company [...]. The high-end commercial development project in Myanmar was also backed by a mixture of public and private Japanese finance, with some of the country’s biggest institutions – including JBIC, SMBC, Japan Overseas Infrastructure Investment for Transport and Urban Development (JOIN), Tokyo Tatemono, Fujita Corporation and Mizuho. Japanese financing has also been linked to palm oil and rainforest destruction; tropical deforestation and associated social risks, with investors such Askul, Fuji Oil, Itochu, Marubeni, Oji Paper, the Sumitomo group, along with the aforementioned Mitsubishi UFJ and Mizuho.

• Construction

[...] For example, the construction company Hiwada was alleged to have violated the rights of Vietnamese technical trainees who were forced to clean up the Fukushima nuclear site. Labour rights, including freedom of association, were also linked companies supplying timber for the construction of the New National Stadium for Tokyo 2020. These companies included Shin Yang, Japan Kenzai, Itochu Kenzai and Zedtee. The development of Infrastructure is also associated with rights abuse. There are 3 items related to the aforementioned Thilawa SEZ which involves the Myanmar Japan Thilawa Development Ltd. (MJTD). Similar allegations are linked to the Dawei SEZ. Lastly, the industrial development opposed by groups from Karen in Myanmar involves JICA.

• Energy

[...] The Bhimasena coal power plant which involves violence and threats against impacted communities, including two attacks on human rights defenders is a joint venture project of ITOCHU and J-Power. The Upper Yeywa dam project in Myanmar linked to abuses and complicity with the Myanmar military also involves Japanese business, such as Toshiba.

• Agriculture

[...] Japan sources palm oil from Malaysian suppliers which have been reported for labour rights violations. In the fisheries sector, a major source of seafood for Japan, a report alleges that forced labour is rampant. Other examples of abuse include a Vietnamese technical trainee who was forcibly repatriated in Kanagawa in 2018. Further, a Japanese fishing company, Watarai Company Ltd, was fined for underpaying Indonesian workers.

• Food and Beverage

In the food and beverage industry, three items involve Japanese brewery, Kirin, and its alleged complicity with the Myanmar military accused of rights violations. As of today, however, Kirin has severed ties with the Myanmar military. [...] In addition, Suntory Beverage & Food was included in a report of companies showing limited progress on efforts to address forced labour. Finally, labour violations are also linked to the automotive, textile and apparel industries.

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