The Japanese economic issue becomes more critical for the world economy as the country is the world third largest economy, and for this reason,firstly, in this paper is going to analyze the development of Japanese economic from 1980 till now with the critical evaluation of the Japan position in the world and the country’s role in ASEAN.Secondly, this paper puts more consideration on the Japanese ICT industry, which is the largest sector of its economic with the regard of internal policy that affect the industry competitive advantages.In addition opportunity and difficulty of foreign company in Japanese ICT sector will be demonstated by analyze IBM company which has enter Japan for a long period of time.Lastly,the paper also evaluate Japanese multinational company ‘s challenge in the global position and Toyota company is used for demonstrated in this part. Although Japan is a small country in term of area, but in economic size perspective is contrast. According to BBC Japanese economy is the world's third-largest. The country has been very success economic expansion after the devastation of World War II and The Japanese asset price bubble from 1986-1991.The rapid growth has noticed since the second half of the 20 century. Japan’s economy after the world war II was very booming. The country has accelerated developments in infrastructure and production.During the economic boom, Japan was put into the world’s second largest economy just behind USA.According to the economy was expanded too fast ,it result in excess money surplus in economic system and eventually inflation.Government put an effort to decrease inflation level by increase interest rate and encourage household save money at banks , then the plenty of fund flowed to banking (Colombo , 2012).As bank had surplus fund available and eventually, bank made an aggressive lending.The combination of country’s export, relax financial regulation and overabundant liquidity in banking system finally led to overconfidence in economy and the bubble. The problem during this period also because of in 1985, Japan signed the Plaza Accord with United States, and led to a sharp rise in the Yen, lower domestic interest rates, thus accumulated the massive economic bubble. (Brian 2014) The collapse of an asset price bubble in the late 1980s created a huge negative impact for decades, during 1990s Japan economic was dragging down, then the country faced GDP shrinkage and deflation. This difficult period was known as ‘the lost decade’. However, after the crisis, the economic slow recovery, GDP continued climb year by year.Since then the country’s economy has kept fluctuating. Even now the Japanese policy has kept recovering the problem stream form ‘the lost decade’.To stimulate economic government lunched QE policy by injecting more money into the economic system in 2000 .According to this policy country’s economic indicator has an improvement.The stronger baking sector and economic as a whole reflected in the GDP growth averaged 1.8% per year from 2003 to 2007.( Harari,2013) Japan has continually developed in the economy after the crisis and eventually reach its peak of GDP in 2010 at $5,495 billion(Hinks, 2014). Japan is concerned as the one of the powerful countries in international trade and the high tech industry perspective. Its well know high-tech industries includes automotive, ICT and industrial. In those industries, Japan has many world’s leading companies such as Toyota, Sony, Mitsubishi, Panasonic. Besides, the industries were the key part to drive total GDP in Japan. Japan current position is the world's top 10 exporter and the world is the core exporter of electronic equipment and machinery. It counts for 79.6% of the overall value of its global export which China and the USA is the main trade partner. The country economic keeps moving upward trend but unfortunately the crisis occurs again, in 2008 because of the subprime crisis in the USA, it affects Japan’s total export sharply decreased by 11.8 % (Fukao and Yuan, 2009). Furthermore, in 2011, earthquake and tsunami brought negative influence Japan economic, it destroyed many manufacturing plants. The disaster not only affects Japan, but also their trade partner and stagnation of many supply chains such as automotive and electronics. GM, Car manufactured in the US, had to close their plants due to shortage of materials from japan as many automotive plants in Thailand also faced this situation. Japan, first established a formalized ASEAN-Japan Dialogue Relations in 1977, since then it had closely economic cooperated between ASEAN and Japan Free Trade Area. The good relationship between Japan and ASEAN’s has a positively impact in the country’s economy.There are several why this trade relationship with the ASEAN member is important for Janese economic.Firstly, the Japanese market demand is not quite that large because the small number of the population while the market d