Japanese Major Law Firm Resumes Overseas Expansion After 3 Years "Escaping the Impact of COVID-19"

Five Major Law Firms Establish Offices in Seven Overseas Locations
Increased Demand in Southeast Asian Market Amid US-China Tensions

In the aftermath of COVID-19, major Japanese law firms, which had been reluctant to expand overseas since 2020, are reportedly establishing overseas offices for the first time in three years. In particular, with increasing legal demand related to mergers and acquisitions (M&A) amid the US-China trade dispute and the shift of supply chains to Southeast Asia, competition among large law firms from Japan, Singapore, the UK, and others is expected to intensify.

According to the Nihon Keizai Shimbun (Nikkei) on the 7th, Japan's five major law firms will open seven new overseas offices this year in locations including Indonesia, the United States, and Europe. This marks their first overseas expansion in three years since the COVID-19 pandemic began in 2020. The number of overseas expansions by law firms, which was zero in 2021, is expected to increase significantly this year. Nikkei analyzed that this is due to the rising legal demand for overseas M&A by Japanese companies and local labor issues.

A presentation on the Southeast Asian market is being held at the Bangkok branch of the Japanese major law firm TMI Associates. (Photo by TMI Associates website)

The Southeast Asian market is especially attracting attention from major law firms. Earlier this year, Mori Hamada & Matsumoto and Nagashima Ohno & Tsunematsu, both among the top five firms, opened new branches in Jakarta, Indonesia. Other major firms such as Nishimura & Asahi and Anderson Mori & Tomotsune already have local subsidiaries there. All the 'Big 4' law firms have thus entered Jakarta. In April, Miura Law Office, considered a mid-sized firm, is also set to expand there. They plan to cover accounting, taxation, and legal services to target demand from local companies. In January, Nishimura & Asahi also expanded into Kuala Lumpur, Malaysia.

The scale of local offices in Southeast Asia is also set to expand significantly. Nagashima Ohno & Tsunematsu plans to double the number of employees at its Singapore branch by 2028. Mori Hamada & Matsumoto also aims to increase its number of international lawyers to 400 within ten years, 2.5 times the current number.

This appears to be influenced by the fallout from US-China tensions. The US announced semiconductor export restrictions to China related to advanced technology, and global companies are shifting many of their Chinese factories to Southeast Asia, including India and Vietnam. Japan, which has expressed willingness to join semiconductor regulations, is focusing on developing emerging markets instead of investing in China.

In fact, according to a survey conducted last year by the Japan External Trade Organization targeting Japanese companies, 30% responded that they are considering expanding their business in China over the next 1-2 years, while 70% said they are considering entering India, showing a clear difference. Additionally, as the economic level in Southeast Asia rises, real estate development companies involved in land development and e-commerce management firms are also entering the market.

Nikkei analyzed that alongside overseas expansion, the presence of Japanese law firms in the Asian market is growing. A lawyer from Nishimura & Asahi said, "Recently, we have been handling cases unrelated to Japan, such as Taiwanese companies entering Vietnam." They plan to enhance their international recognition and transform into global law firms.

Nikkei expects that as interest in the Southeast Asian market grows, competition for contracts between Singaporean and British law firms will become fierce. Singaporean law firms are also actively expanding overseas, while British law firms are handling legal demands related to plant projects.

This content was produced with the assistance of AI translation services.