LONDON, Nov 14: Japan is “worried” that foreign investors may withdraw capital because of the international financial crisis, the head of the country’s external trade agency told AFP on Friday.

Speaking on the sidelines of a Britain-Japan trade symposium in London, Yasuo Hayashi said that potential withdrawal of foreign investment would make it difficult for Japan to meet its targets.

“The problem is that, because of the recent financial turmoil, we are worried about the withdrawal of foreign investment from Japan,” the chairman and chief executive of Japan External Trade Organisation (Jetro) said.

“Those who have invested in the past may withdraw their investments -- financial organisations, like (insurance company) AIG, may sell their shares to, for instance, Japanese companies.”

Hayashi said that such capital flight would make it difficult for Japan to meet its target of drawing accumulated foreign investment totalling five per cent of gross domestic product by 2010.

That figure currently stands at three per cent.

He said that foreign investment was “crucial” for any country’s development, since it could also bring international expertise to the country.

“It’s almost impossible in this global economy to grow on the values which one country has -- we need to introduce other values to grow more and to grow better.” —AFP