Growing business exchanges between Serbia and Japan, particularly in the energy, IT and environmental sectors, present significant opportunities for cooperation and new investments
Last year saw significant efforts to strengthen economic ties between Serbia and Japan. Here we discuss the long-term opportunities arising from recent business exchanges with JETRO Budapest General Director Yasunari Miyauchi.
How would you summarise the success achieved during your recent visit to Serbia, and what are the next steps you expect to follow up on?
— We were able to send a delegation of 70 companies, about 100 people, to Serbia last year. The most important result was that we were able to see the investment environment in Serbia with our own eyes and to talk with local businesspeople to find out the possibilities of business exchanges between our two countries.
It was also a great benefit for us to learn about the activities of the many start-up companies that are active in Serbia. We are truly grateful to the Serbian president and other high-level government officials who actively engaged in dialogue with us and welcomed Japanese companies nationwide, including by operating charter flights.
Through the delegation’s dispatch, for example, some of the participating companies were so assured by the visit that they’ve begun working in earnest to set up manufacturing bases. There are also companies considering collaborations with Serbian start-up companies. Still others are working to promote energy and environment-related equipment in order to solve local social issues.
As the next step, we hope that these Japanese companies will make steady progress in their respective businesses, while we will continue to support them in any way possible.
To what extent are Japanese companies currently leveraging the capacities of the Serbian IT sector and the country’s skilled workforce and competitive labour costs?
— Several Japanese companies have established new manufacturing facilities in Serbia over the past few years and are utilising skilled local workers in their production activities.
When these companies established their operations in Serbia, they compared investment costs with other countries and ultimately evaluated labour costs in Serbia as being competitive. Competitive labour costs in the Balkans, including Serbia, have been attracting attention in recent years, due to inflation across Europe.
Several Japanese companies are exploring business exchanges in the fields of energy and environmental protection
We also had an opportunity to visit the Novi Sad Science & Technology Park, which confirmed that it is producing very talented IT professionals. We were also able to confirm that some Japanese companies are already developing their business by utilising these IT talents. These excellent IT human resources are one of Serbia’s strengths and we can expect further cooperation with Japanese companies in the future.
The Japanese business delegation that visited Serbia last year included representatives of companies from the sectors of IT and digitalisation, energy and environmental protection, as well as other industries. In which of these areas have you identified the greatest potential for cooperation?
— In the fields of energy and environmental protection, even after sending delegations, several of the participating Japanese companies are exploring the possibility of business exchanges, and we are supporting them continuously.
It may be possible to solve social issues confronting Serbia with the technical capabilities of Japanese companies. We may also be able to utilise the capital of Japanese companies to launch new projects in Serbia. Potential exists for business cooperation between our two countries in this area.
What does EXPO 2025 Osaka mean for improving trade opportunities between Serbia and Japan?
— This is an excellent opportunity to make Serbia a country that’s known to the Japanese public and business community.
Specifically, the Belgrade Expo will be held in 2027 and is likely to attract attention to Serbia. This opportunity can be used to increase the brand value of Serbia’s exports and services in Japan.
In addition, the Expo is an opportunity to promote Serbia’s products and services directly to Japanese businesspeople. Japanese buyers and traders are expected to visit the Expo, which may lead to entering new markets or increasing market share on existing markets. We should take advantage of this opportunity to greatly expand trade between the two countries.
What do you see as the major challenges to improving the trade balance between Serbia and Japan?
— Japan’s trade balance with Serbia recorded a deficit of around 46.59 billion yen in 2023. Japan exports to Serbia rubber products, pharmaceuticals, textile yarn etc. while it imports cigarettes, clothing, fruits and vegetables etc.
Japan has been importing more than it exports, and the deficit has been increasing, but improvement was seen in 2022.
One of the main issues for improving the trade balance is the further diffusion of products that take advantage of Japan’s technological capabilities in Serbia. We need to further increase business exchanges with each other and identify business opportunities.
OPPORTUNITY EXPO 2025 Osaka will present an excellent opportunity to showcase Serbia to the Japanese public and business community | POSSIBILITIES One of the main issues for improving the bilateral trade balance is the further diffusion of products that take advantage of Japan’s technological capabilities in Serbia | RESOURCES Excellent IT human resources are one of Serbia’s strengths and we can expect further cooperation with Japanese companies in the future |
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