Exploring Japan–Serbia cooperation in innovation, investment and sustainable development
Goran Pekez, Chairman of the Board of the Japanese Business Alliance in Serbia (JBAS) and Corporate Affairs and Communications Director for the Western Balkans at Japan Tobacco International (JTI), discusses Japanese investments, regional cooperation, and prospects for sustainable development in Serbia and the wider region.
How would you assess the current level of economic cooperation between Japan and Serbia? Which sectors do you believe hold the greatest potential for further development?
Economic cooperation between Japan and Serbia is currently at a very high level and continues to grow in a direction that promises even stronger partnerships in the future. Over 30 Japanese companies are operating in Serbia, including 15 manufacturing facilities. If we also count exporters, importers and distributors, that number exceeds 60. Last year marked a significant milestone when Serbia hosted the largest-ever Japanese business delegation, with representatives from 70 companies. Their strong interest in investing and expanding their operations here shows that Japan sees Serbia as a serious and reliable partner. This is supported by several factors – well-developed industrial centres, a skilled workforce with good English proficiency, favourable investment conditions, an extensive network of trade agreements, and a stable business environment.
Japanese institutions and organisations such as the Embassy of Japan to Serbia, JETRO (Japan External Trade Organization), JICA (Japan International Cooperation Agency) provide strong support to the Japan Business Alliance in Serbia (JBAS) in helping Japanese companies better understand the Serbian market, find the right partners, and start doing business here more easily.
As for sectors with the greatest growth potential, it’s hard to single out just one. Serbia offers competitive advantages in many areas. Beyond the traditionally strong industrial manufacturing sector, opportunities are increasingly emerging in areas such as digitisation, smart cities, energy, healthcare, artificial intelligence, and process automation – all aligned with Japan’s strategic vision, “Society 5.0,” initiative, which we are gradually implementing here in Serbia as well. There is also a growing interest in projects related to environmental protection and energy efficiency, indicating a breadth of opportunities for new partnerships and investments.
Japanese companies are recognised in Serbia for their technological sophistication and business culture. What new investments or projects is JBAS currently monitoring or supporting?
Currently, one of the most significant directions of our activity is the “Society 5.0” initiative in Serbia – a concept developed by the Japanese government in 2016, which represents a “super-smart society” centred on people, where technological advancements are applied to enhance human well-being and everyday life. This initiative focuses on integrating advanced technologies in key sectors, including smart cities, renewable energy, industrial process automation, and advanced healthcare, to create sustainable solutions to global challenges such as climate change, an ageing population, and more efficient resource management.
It is also important to note that EXPO 2025 in Osaka further inspires us, as its theme, “Designing the future society for our lives”, is directly related to the principles of Society 5.0. In this sense, the exhibition in Japan not only provides insight into the latest technological solutions but also encourages us to consider how we can adapt and implement them in Serbian society and economy.
Green transformation is no longer a choice
What roles do sustainability and green transformation play in Japanese-Serbian economic relations? Are there any joint projects planned in these areas?
Sustainable development and green transformation are becoming an increasingly important pillar of cooperation between Japan and Serbia. Japanese companies, renowned for their high environmental standards and innovative technologies, make significant contributions to Serbia’s efforts to transition to more efficient and environmentally friendly economic models.
We already have several concrete examples of successful collaboration in sustainability. One such example is the initiative by Toyo Tire, which, recognising the importance of environmental protection and following principles of corporate social responsibility, opened the “Taiyo” solar power plant in Inđija in 2023. This investment represents their contribution to the development of green energy and a healthier living environment, with an estimated reduction of about 200,000 tons of CO₂ emissions over the plant’s lifetime. Similarly, the waste-to-energy plant in Vinča, developed with support from the Japanese company Itochu and the Japan International Cooperation Agency (JICA), is expected to reduce CO₂ emissions by approximately 210,000 tons annually.
Japanese technology has also made a significant contribution to modernising Serbia’s energy sector. For example, the flue gas desulfurisation system at the Nikola Tesla A Thermal Power Plant reduced sulfur dioxide emissions by up to 30 times, and the same technology is currently being implemented at block B of the same plant. These projects not only improve air quality but also help Serbia align with European environmental standards.
One of the potential future projects gaining attention is the Bistrica Reversible Hydroelectric Plant, which is being developed as a long-term solution for energy storage and stabilisation of the energy system, a key factor for a reliable shift to renewable energy sources. Working together on these projects not only promotes environmental responsibility but also creates opportunities for new investments, technology transfer, and long-term partnerships. Green transformation is no longer a choice but a necessity, and we are glad that Japan-Serbia cooperation is moving towards concrete and measurable results in this field.
To what extent are digital transformation and innovation present in Japan-Serbia economic cooperation? Is there room for stronger connections in the IT sector and the startup ecosystem?
Digital transformation and innovation are becoming increasingly important within Japan-Serbia cooperation, and I believe this area holds great potential for the future. Serbia boasts a highly skilled IT sector, featuring educated and creative professionals, a well-developed infrastructure, and a growing number of startups that closely follow global trends. During last year’s visit of the Japanese business delegation, a visit to the Science and Technology Park in Novi Sad was organised. The guests had the opportunity to see firsthand the innovative solutions coming from Serbia, as well as meet talented young experts behind them. Their response was extremely positive.
The support that Japanese institutions provide to this sector is also an important signal. The Ambassador of Japan to Serbia, His Excellency Mr. Akira Imamura, recently visited the innovation centres in Niš and Novi Sad, thereby showing a concrete commitment to supporting digital development and entrepreneurship in Serbia. JBAS also actively supports such initiatives, recognising them as crucial for long-term sustainable growth.
Collaboration is further strengthened through concrete programs, such as the “Ninja” program, which connects Serbian startups with Japanese partners and investors, aiming to provide our young tech companies with access to knowledge, capital, and new markets. At the same time, through the active cooperation of science and technology parks and joint projects, preconditions are created for an even stronger institutional connection.
Additionally, digitalisation of public services in Serbia—including eHealth and digital governance—opens new opportunities for cooperation. Japanese companies, with their expertise in innovative solutions and digital infrastructure, can be valuable partners in this process, particularly in areas such as smart cities, automation, and sharing best practices in the public sector.
Technology must serve people
How important is the cultural dimension in the economic relations between Japan and Serbia, and how does JBAS nurture and promote mutual understanding?
The cultural dimension in economic relations between Japan and Serbia is of great importance. Japanese companies operate on the principles of long-term relationships and trust, which is why we seize every opportunity to support the building of ties between Serbian and Japanese companies, helping them meet, get to know each other, and develop cooperation in line with their respective business cultures. Differences certainly exist, but our experience shows that it is precisely through direct interaction and joint projects that they become a bridge, not an obstacle. JBAS is here to accompany members at every step, from the initial meeting to the establishment of stable partnerships, offering support in communication, knowledge exchange, and the adaptation of local business approaches.
In this sense, we view EXPO 2025 in Osaka as an excellent opportunity to deepen our mutual understanding further. One of our members (JTI) is sponsoring a cultural program at the Serbian pavilion, which will involve joint performances of Serbian and Japanese musicians. Together with the Serbian Chamber of Commerce and the Embassy of Japan in Belgrade, we designed a rich and carefully structured support platform for our members. It includes visits to some of Japan’s most advanced smart cities, direct connections with Japanese companies and institutions, as well as discussions on joint projects that can bring concrete benefits to the Serbian economy.
Through such initiatives, our members not only expand their business horizons but also learn how to cooperate with Japanese colleagues in the spirit of mutual respect and trust, which is the foundation of any successful Japanese business practice.