Current trends in labor-oriented Japanese manufacturing investment in Taiwan, Singapore, and South Korea are described. Japan's labor resource-induced overseas investment in manufacturing is of relatively recent origin and largely concentrated in neighboring countries. Japan's utilization of foreign labor requires an understanding of intricate sociocultural factors. This understanding has been relatively easy in the case of Taiwan and South Korea since Japan shares many characteristics with the life styles of these countries. Initially, Japan established light manufacturing industries in Taiwan, South Korea, and Singapore. However, once the pressing problem of unemployment in these countries is partially alleviated by this light industry base, most will strive to upgrade their industrial structure. This trend demonstrates that foreign capital investments are initially means to industrialization in a host country only until the success of the industrialization changes the climate for foreign investment. In this respect, it may not be long before Japanese investment in low technology manufacturing reaches a saturation point in Taiwan, and South Korea. Numerous tables are appended.