Partner: JAPAN - SERBIA 2018 by CorD Magazine

Partner December 2018

●

ISSUE No.# 12

●

ISSN broj 2560-4465

Japan - Serbia

Tradition & Modern Synergy

JAPAN H.E. Junichi Maruyama, Ambassador of Japan to Serbia ● Atsuko Shiotani, Economic Attaché at the Embassy of Japan in Belgrade ● Satoshi Abe, General Director of the Japan External Trade Organisation Vienna Office ● Hideya Kobayashi, Chief Representative, Balkan Office, Japan International Cooperation Agency (JICA) ● Goran Pekez, Chairman of the Board of Directors of the Japanese Business Alliance in Serbia ● Radoš Gazdić, Acting Director of the Development Agency of Serbia (RAS) ● Danijela Čabarkapa, JBAS Executive Director ● Naoki Tsukada, General Manager of the Mitsubishi Corporation’s Belgrade Liaison Office ● Ahmed Bedewy, Yazaki Serbia Plant Manager ● Nebojša Zelenović, Mayor of Šabac ● Shaip Kamberi, President of the Municipality of Bujanovac ● Jasmina Ćamilović, Assistant to the President of the Municipality of Kučevo ● Ivan Bogdanović, President of the Municipality of Lebane

PARTNER

06 08

SEIZE THE DAY COMMENT

WE WANT TO LEARN MORE ABOUT SERBIA

H.E. JUNICHI MARUYAMA, AMBASSADOR OF JAPAN TO SERBIA

SAKURA SCHOLARSHIPS AWARDED

JAPANESE BUSINESS ALLIANCE IN SERBIA (JBAS)

JAPAN TOBACCO INTERNATIONAL (JTI)

PROMISING TIDE

ATSUKO SHIOTANI, ECONOMIC ATTACHÉ AT THE EMBASSY OF JAPAN IN BELGRADE

MARKET

SERBIA IS AN IMPORTANT DEVELOPING

GORAN PEKEZ, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE JAPANESE BUSINESS ALLIANCE IN SERBIA

NEW STRATEGY FOR A NEW ERA

NAOKI TSUKADA, GENERAL MANAGER OF THE MITSUBISHI CORPORATION’S BELGRADE LIAISON OFFICE

INVESTORS RECOGNISE US AS AN ATTRACTIVE DESTINATION

RADOŠ GAZDIĆ, ACTING DIRECTOR OF THE DEVELOPMENT AGENCY OF SERBIA (RAS)

NICE AND POLITE PEOPLE SOCIAL LIFE

HUGE OPPORTUNITIES FOR INVESTORS

TOKYO OLYMPIC GAMES 2020

TRADITIONAL DONATION FOR TWO DECADES

DONATION

21 22

INFLATION OUTLOOK CUTS FOR THE YEARS 2018-2020

BANK OF JAPAN

38 42 44

BRINGING JAPAN CLOSER

JAPANESE COMPANIES READY TO DISCOVER SERBIA & SEE

WE WANT TO CONTRIBUTE TO SERBIAN SOCIETY

HIDEYA KOBAYASHI, CHIEF REPRESENTATIVE, BALKAN OFFICE, JAPAN INTERNATIONAL COOPERATION AGENCY (JICA)

SATOSHI ABE, GENERAL DIRECTOR OF THE JAPAN EXTERNAL TRADE ORGANISATION VIENNA OFFICE

34 35

JAPANESE EFFICIENCY – ŠABAC’S SUCCESS

REALISTIC PLANS FOR SUSTAINABLE DEVELOPMENT

CLEAR VISION OF THE FUTURE

JAPANESE NATIONAL TREASURES

TRADITIONAL CRAFTS IN JAPAN

NEBOJŠA ZELENOVIĆ, MAYOR OF ŠABAC

WE’RE READY TO SHARE OUR EXPERIENCES

DANIJELA CABARKAPA, JBAS EXECUTIVE DIRECTOR

DONATIONS HAVE RAISED THE QUALITY OF LIFE

SHAIP KAMBERI, PRESIDENT OF THE MUNICIPALITY OF BUJANOVAC

JASMINA ĆAMILOVIĆ, ASSISTANT TO THE PRESIDENT OF THE MUNICIPALITY OF KUČEVO

IVAN BOGDANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF LEBANE

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGNER: Jasmina Laković j.lakovic@aim.rs EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović

COPY EDITOR: Mark Pullen TRANSLATION & EDITING MRP EDITORIAL Halifax Translation Services SALES MANAGERS: Biljana Dević, b.devic@aim.rs Nataša Trifunović, n.trifunovic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs

OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Milena Vuković Buha finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić i.novcic@aim.rs

DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com BUSINESS PARTNER JAPAN Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile:+(381 11) 2450 122

E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 12 ISSN: 2560-4465 All rights reserved alliance international media 2018 THIS PUBLICATION IS FREE OF CHARGE The views expressed in this

publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

PARTNER

COMMENT

Seize THE DAY Japan Tobacco International was, for a long time, one of the only members of the Japanese business community in Serbia. Today it seems that some old and new friendships are in the making, and they promise to bring about a change

s of early next year, a number of Japan Overseas Cooperation Volunteers, young Japanese nationals, will come to Serbian local communities to work with Serbian people on rural development, disaster prevention, and support for people with disabilities. While the programme certainly doesn’t bring huge financial assistance, it represents another sign of Japan’s dedication to serving the needs of Serbian citizens. As expected, young Japanese people will certainly deepen their understanding of Serbian society and make lots of friends before returning to Japan. According to one Japan External Trade Organisation (JETRO) report a decade ago, Southeast Europe was then perceived by Japanese companies as “distant” both physically and psychologically. Although these volunteer programmes aren’t specifically intended to have a direct impact on changing such patterns, they are by all means helpful for forging even closer Serbian-Japanese friendships, and also improve business opportunities in the long term. According to the latest data of the Serbian Statistical Office, total foreign trade in goods with Japan in the JanuaryDecember 2017 period amounted to $166.9 million. Total exports to Japan in the same period were orth $50 million, while imports were valued at $116.9 million. The coverage of imports by exports, thus, totalled 42.08%. Those figures are very modest, but that shouldn’t lead any observer to believe that the potential for mutual trade and Japanese investments in Serbia is small. On the contrary, Japanese companies, especially those in the manufacturing sector and ICT, are gradually discovering the region and Serbia. Think for example of the Yazaki Corporation, the Japanese giant of wire-harness manufacturing, which opened its first factory in Šabac in 2017, or the Mayekawa Manufacturing Company,

a producer of industrial refrigeration systems, which recently opened its first office in Smederevo and aims to ultimately establish production there. Some major IT companies, such as SRA, which opened its development centre last year, and NTT Data, which is gradually expanding its office, are among those that discovered Serbia recently. This is huge progress. Japan Tobacco International was, for a long time, one of the only members of the Japanese business community in Serbia. Today it seems that some old and new friendships are in the making, and they promise to bring about a change. The Japanese Business Alliance in Serbia (JBAS), the Chamber of Commerce and Industry of Serbia (CCIS) and JETRO are joining forces to develop business opportunities between Japan and the Western Balkan region. When Japanese Prime Minister Shinzo Abe visited Serbia in 2018, observers noted that the visit represented an important surge of energy for Japanese-Serbian relations. “If the number of influential Japanese companies in SEE increases, that will provide great encouragement for other Japanese companies to follow suit. In that sense, the investments by Yazaki and Mayekawa were a good start, and I think now many Japanese companies are carefully watching how successful they prove to be in Serbia,” said Satoshi Abe, General Director of the JETRO Vienna Office, speaking in an interview for this publication. However, if this is to happen, more efforts still need to be exerted on the side of Serbia and SEE. Central and Eastern Europe was an important investment target for companies from Asia for a long time. That perspective has changed somewhat with the window of opportunity that recently opened to SEE countries regarding possible EU membership. It is now up to the countries of the SEE region to seize the day.

If the number of influential Japanese companies in Serbia and SEE increases, that will provide great encouragement for other Japanese companies to follow suit

PARTNER

INTERVIEW

H.E. JUNICHI MARUYAMA, AMBASSADOR OF JAPAN TO SERBIA

WE WANT TO LEARN

More About Serbia The visit of Japanese Prime Minister Shinzō Abe to Serbia after 31 years was truly epoch-making. As a result, young Japanese volunteers will soon arrive in Serbia, while several Japanese companies have started recognising the benefits of Serbia. Our embassy is willing to help these initiatives

lthough geographically distant, Serbia and Japan are moving much closer to one another: political events, such as the official visit of Japanese Prime Minister Shinzō Abe to Serbia, have increased interest in this market among Japanese companies, while the warmth and compassion felt between our two nations are equally important for discovering mutual ties. What did this January’s official visit of Japanese Prime Minister Shinzō Abe to Serbia bring to bilateral relations between the two countries? - First of all, it should be stressed that PM Abe’s visit to

Belgrade was truly epoch-making. The previous visit of a Japanese prime minister occurred 31 years ago. Since then, no Japanese prime minister visited Belgrade until this January. The highlight of his visit was, of course, the bilateral summit meeting with President Vučić. The two leaders had good chemistry and held intensive discussions on how to further strengthen our existing cordial bilateral relations and how to closely work together to tackle various global challenges. As a result of the bilateral summit meeting, PM Abe announced the Western Balkan Cooperation Initiatives, aimed at promoting cooperation between Japan and the region. Some of the items decided in the Initiative have already been implemented. For example, we appointed an ambassador in charge of Western Balkan Affairs for

PARTNER

BREAKTHROUGH

SUPPORT

COMPASSION

As a result of the Western Balkan Cooperation Initiative, we appointed an ambassador in charge of Western Balkan Affairs for the first time

We expect the Development Agency of Serbia to function as one-stop-service body in support of Japanese investors who are increasingly interested in the Serbian market

Serbia was one of the most generous donors to the victims of Japanese floods among all the world’s countries

Plant Nikola Tesla. This project aims at purifying emissions the first time, dispatched a JICA mission to investigate from this power plant. Given that environmental protection the needs for assistance in the region, invited 17 young is one of the key elements of EU accession, I’m confident people from the region under the MIRAI (meaning “futhat this project is conducive to Serbia’s EU accession ture” in Japanese) Programme, in cooperation with the efforts, in addition to alleviating air pollution. Regional Youth Cooperation Office (RYCO), and held an investment seminar in Tokyo to showcase the region’s potential to Japanese investors. Moreover, I would like to point out that PM Abe was accompanied by a high-powered business delegation consisting of 16 CEOs of Japanese companies. They joined the enlarged bilateral summit meeting and discussed how to promote business relations between our two countries. Since PM Abe’s visit, our Embassy has been receiving more inquiries than ever before from Japanese companies that are seriously considering investing in Serbia. Actually, this year alone saw one Japanese company decide to open a factory in Smederevo and saw Japan Tobacco International (JTI) expand its producI’m fully aware that Serbia needs to tion line in Senta. These are tangible go through a series of tough social and effects of PM Abe’s visit to Serbia. I think there is still much to economic reforms in order to join EU. Finally, I would also like to touch be done on the dissemination But it deserves to be well supported in upon exchange of notes regarding of information about Serbia undertaking these tough reforms. The the dispatch of Japanese Overseas latest statistics on economic growth Cooperation Volunteers (JOCV). Euwithin Japanese society actually show that Serbia’s economic ropean Integration Minister Jadranka reform is delivering positive results. In this regard, I would Joksimović and I exchanged these notes immediately after like to congratulate Serbia on its remarkable economic the bilateral summit meeting. Due to this exchange of notes, growth, which exceeds four per cent. Japan can now dispatch young capable volunteers to Serbia. JICA is currently in the process of selecting participants in How closely are Japanese companies monitoring the the first batch of JOCV, who are to be sent to Serbia shortly. progress of reforms in Serbia. How often does the Embassy receive inquiries regarding investment in Serbia? How would you rate Serbia’s progress in terms of EU - An increasing number of Japanese companies are inintegration? terested in doing business in Serbia. Following PM Abe’s - I know that Serbia has been exerting great efforts towards visit to Serbia, more interest in Serbia among Japanese EU accession, with the aim of joining by 2025. Japan welcomes companies has been demonstrated, including among such efforts from Serbia and is ready to provide support. medium-sized Japanese companies. Serbia is a country Last year saw the Government of Japan extend the 1st yen located a long way from Japan and we don’t have much loan project, worth 200 million euros, for the installing of information on doing business in Serbia. However, some flue gas desulphurisation equipment at the Thermal Power

PARTNER

companies have started recognising the benefits of Serbia and the activities of Serbia with which the Embassy is willing to help. Other Japanese companies doing business in EU countries are also considering the expansion of their business to this region. There are several ways for Japanese companies to enter Serbia. Some Japanese companies go to the Development Agency of Serbia. In this respect, we expect the Development Agency to function as a one-stop-service body in support of those Japanese investors. The Japanese Business Alliance in Serbia (JBAS) can also serve as a portal to Serbia for Japanese companies. It gained membership in the network of the Japan Chamber of Commerce & Industry (JCCI). The Embassy of Japan has been cooperating continuously

with JBAS, the Development Agency of Serbia and also the Chamber of Commerce & Industry of Serbia in attracting the investments of Japanese companies in Serbia, and it will continue with its efforts to increase Japanese investments.

Japan is among the most important investors in Belgrade, amongst other things, when it comes to the construction of a municipal waste processing plant in Vinča. Are you satisfied with the way this investment is progressing? - I have been updated on the status of the waste processing plant project in Vinča. My understanding is that, whilst at some point the project was lagging behind schedule, it is now getting back on track. There are still challenges, but I’m convinced that construction works will begin shortly.

The cherry blossom tree is a symbolic flower of Japan. It would be very nice if more Serbian citizens could share the feeling of enjoying cherry blossoms with us

Serbia recently advanced on the list of the World Bank’s Doing Business Index, but not as much as it would have liked. What would you recommend as the Japanese recipe for improving the country’s business climate? - According to the latest Index, Serbia advanced to 43rd this year, which is only nine places behind Japan. As the gap in the positions of Japan and Serbia isn’t that great, it may be easily reversed in the future. It is not recommended that

Serbia simply copy some solutions from other countries. Serbia has been proceeding in its own way in the creation of a stable political and economic environment, which has resulted in budget consolidation, a reduced unemployment rate and a growing number of foreign investments. The IMF mission recently pointed out that it is necessary to continue the efforts of structural reforms, as well as to finalise the privatisations of state-owned companies and banks. In that respect, Serbia is aware of the direction of reforms and we will fully support Serbia on such efforts.

During your recent participation in the meeting of the Association of Japanese Businesspeople for Southeast Europe, you planted several Japanese cherry blossom trees in Belgrade. Should Serbian towns and cities be adorned with more of these trees? - Cherry blossom is a symbolic flower of Japan. In ancient times, when Japanese people said “flower” they automatically meant cherry blossom. This tree is gorgeous when it blossoms, but is fairly short-lived. That must be why we love it more than any other flower – due to its transient beauty. It would be very nice if more Serbian citizens could share this feeling of enjoying cherry blossoms with us.

To what extent have the ordinary people of our two countries been brought closer together as a result of the mutual concern and care shown by citizens of both Serbia and Japan in response to assisting the victims of various natural disasters? - First of all, I would like to express my deepest appreciation for Serbia’s donation, which amounted to approximately

PARTNER

half a million euros for the victims of floods in Japan last July. Serbia was one of the most generous donors to the victims among all the countries of the world. I am also deeply touched by the fact that the Serbian people didn’t forget what we did for the victims of the 2014 flooding in Serbia. Every time I express my appreciation for Serbia’s donation, Serbian people always tell me that they never forgot our assistance of 2014. As Ambassador of Japan, I will do my best to let the Japanese people know more about this kind of strong link and friendship between our two countries. I think there is still much to be done on the dissemination of information regarding Serbia within Japanese society. Once again, I thank the Serbian people very much. You recently presented the “Japanese Ambassador’s Award” to one publishing company that fosters the tradition of traditional and contemporary Japanese literature. Which kinds of occasions result in this award being presented? - That depends on many aspects, but we generally decide to present such awards when we recognise a longterm and continuous contribution to Japan, or to Japan-Serbia relations. Publishing agencies “Kokoro” and “Tanesi” have been contributing to the disseminating of information regarding our culture in Serbia through the publishing of a substantial number of Japanese books or books on our country. We appreciate such efforts and thought that the Belgrade Book Fair would be the best occasion to express our gratitude.

Olympics as well. In the same way, the city of Kashiwazaki in the Nigata prefecture, located in the central part of Japan, is waiting to welcome the Serbia water polo team. I personally visited these two cities this year, and am proud to say that they are perfectly ready! The Japanese love to host major sporting events and are well experienced. We will also host the Rugby Union World Cup in 2019. I’m certain that Japan will work hard to live up to its reputation and that preparations will be completed well in advance. Signs have recently emerged suggesting that Japan is starting to build Industry 5.0., which is centred around people. What would you say to Serbia, which is exerting efforts to stride over the threshold of Industry 4.0?

- “Society 5.0” represents the 5th I personally visited Hofu Japan will host the 2020 Olympic form of society in our human history, Games. How are preparations advancand Kashiwazaki, two cities chronologically following hunting, ing and will everything be completed farming, industry and information. earmarked to host Serbia’s To balance economic advancement in time for you to receive athletes? - The Tokyo Olympics will be held with the resolution of social problems volleyball and water from 24 th July to 9 th August 2020. bring about a human-centred polo teams during the 2020 and society, this fourth Industrial revoluWe were happy to witness Serbia’s women’s volleyball team qualifying Olympic Games in Japan, and tion realises the advanced fusion of for the big games by winning gold am proud to say that they cyberspace and physical space. In a society realised with “Society 5.0”, all medal at the recent World Chamare perfectly ready types of data will be gathered from pionships in Japan. Actually, Hofu, sensors installed throughout physical a city located in Western Japan’s spaces via the Internet of Things. All I can say is that Japan Yamaguchi prefecture, welcomed the same team before is striving seriously to achieve the world of “Society 5.0”, the championships. The city was declared as the “host but there will be many challenges ahead before we can town” for Serbia’s volleyball teams (Men and Women) and realise such an extraordinarily advanced society. plans to assist athletes in their preparations before the

PARTNER

NAOKI TSUKADA, GENERAL MANAGER OF THE MITSUBISHI CORPORATION’S BELGRADE LIAISON OFFICE

NEW STRATEGY For a New Era Recognising that businesses have life cycles that are influenced by environmental and other factors, Mitsubishi Corporation (MC) will re-profile its portfolio by proactively demonstrating the company’s strengths through the implementation of its mid-term corporate strategy by 2021

nderthenewstrategy,MCwillbeimplementingaframework of portfolio-based decision making to enable a holistic view of industry. We will then determine the fields in which it needs to be more proactive and where it needs to replace its assets on the basis of changes in the operating environment. MC’s portfolio will be structured as a 12-sector matrix, with upstream, midstream and downstream areas along the vertical axis, and four categories along the horizontal axis; Living, Mobility & Infrastructure, Energy & Power Generation and Services, the last of which will include businesses in IT, logistics, finance and so on.

ity to ensure that the company adapts to the changing times, so we will reshape our portfolio accordingly. In terms of growth mechanisms, we clarify MC’s cyclical growth model, through which we will identify Potential Growth Sources and nurture them into Core Businesses, and fundamentally review those that have reached stages at which we are unable to add further value. Those reviews will include reallocating capital where necessary. We will also reform our HR system to ensure reciprocal growth between the company and its employees. Of course, all measures are aimed at achieving our financial targets. We are confident that, by successfully executing measures described, MC can set its earnings target for fiscal year 2021 and continue with its progressive dividend scheme. We will also be aiming to increase its dividend payout ratio to 35%, which will enable a dividend of 200 yen per share.

What forms the basis of the Midterm Corporate Strategy? - The Midterm Corporate Strategy 2021 was conceived on the basis of a number of assumptions regarding the external environment in which MC operates. For a start, we expect to see more advances being made in digital technologies and more platform businesses emerging, trends that will likely trigger business model reforms that cut across various industries. In fact, such developments are already underway in the automotive and power industries, and it’s fair to say that we are now truly in the midst of Determining the best approaches the “Fourth Industrial Revolution.” It would to digitisation and platform not be a stretch to suggest that the world’s economy will be driven by these new busibusinesses is also a crucial issue nesses in the future. What are the priority changes that MC will implement during the medium term period? - MC’s portfolio strategy was, from an historical perspective, the first aspect that needed to be reviewed. It is our responsibil-

for MC, as our decisions will undoubtedly play a big role in shaping its future. We have a responsibility to adapt to the changing times, and to build our envisaged portfolio

What challenges do you expect to emerge during the realisation of such ambitiously advanced operations? - We are aware that these changes have also brought challenges, some of which are being faced by general society, such as how to better protect personal information, and others that are confronting corporations, such as how to adapt existing business models. Determining the best approaches to digitisation and platform businesses is also a crucial issue for MC, as our decisions will undoubtedly play a big role in shaping its future. We have a responsibility to adapt to the changing times, and to build our envisaged portfolio.

PARTNER

INTERVIEW

SATOSHI ABE, GENERAL DIRECTOR OF THE JAPAN EXTERNAL TRADE ORGANISATION VIENNA OFFICE

Japanese Companies Ready To

DISCOVER SERBIA & SEE While some prominent Japanese companies already operate in Serbia, huge potential for further cooperation has yet to be explored. The investments by Yazaki and Mayekawa were a good start and today many Japanese companies are carefully watching how successful they are in Serbia. In efforts to provide more information to potential Japanese FDI, Serbian can learn from the Czech example

nce very much uncharted territory, Southeast Europe is today becoming a new interesting target for Japanese investors. While Serbia already hosts some prominent Japanese companies, huge potential for further cooperation has yet to be explored. For this special edition we spoke with Satoshi Abe, General Director of the JETRO Vienna Office, about preconditions for furthering cooperation between Serbian and Japanese companies, JETRO’s engagement in Serbia and the region, and the synergies created between the Japanese Business Alliance in Serbia (JBAS), the European Enterprise Network – Chamber of Commerce & Industry of Serbia (CCIS), and JETRO in developing business opportunities between Japan and the Western Balkans.

What are the characteristics of Japanese Investments in SEE, and particularly Serbia, today? - These are mainly investments by the manufacturing industry. For example, the Yazaki Corporation, a Japanese giant of wire-harness manufacturing, opened its first factory in Šabac in September 2017. As a recent development, the Mayekawa Manufacturing Company, which is a manufacturer of industrial refrigeration systems, has opened its first office in Smederevo and is set to eventually launch production there. Although the level of investment is limited, it is also important that major IT companies, such as SRA, which opened its development centre last year, and NTT Data, which is gradually expanding its office, exist in Serbia.

PARTNER

ENCOURAGEMENT

If the number of influential Japanese companies operating in SEE increases, that will be provide encouragement for other Japanese companies to follow suit

PROSPECTS

Now that Japanese companies are more active in Europe and a new EPA has been signed between Japan and the EU, there is a great chance for Serbian companies to find their place

OPPORTUNITY

SEE has more opportunities for Japanese investments than CEE, in the sense that infrastructure is getting much better and economic development accelerated recently

for example, in Serbia’s neighbouring countries, such as What has held back Japanese investments and trade Hungary and Romania. with SEE? As for the psychological distance, I have to admit - A lack of business information regarding SEE countries, that there is still a certain psychological distance. That perhaps, and also a lack of Japanese “pioneers”. distance might be caused by a lack of correct informaThere are actually some big Japanese companies tion. For example, even many Japanese expats resident already doing business in SEE, but compared to the in Europe don’t know enough about the technologic level CEE region that number is still small. If the number of and quality of workers in SEE. influential Japanese companies operating in SEE increases, that will One good example of the How would you describe the difbe provide encouragement for other promotion of Japanese FDI ference between CEE and SEE in Japanese companies to follow suit. terms of opportunities and chalIn that sense, the investments by is in the Czech Republic. lenges for doing business with jaYazaki and Mayekawa were a good In Prague there is a “Japan pan today? start and I think many Japanese companies are now carefully watching Desk” within Czech Invest, so - I think SEE has more opportunities CEE, in the sense that infrato see how successful they will be that Japanese companies can than structure is getting much better and in Serbia. However, we need more information, including information come to the desk for follow-up economic development accelerated recently. It is important that you about the status of reforms in the support even after having promote such aspects, as well as political and economic areas etc. invested in Czechia the existence of CEFTA and strong ties with the EU. The challenges for According to one JETRO report a SEE are ensuring the transparency and stability of the decade ago, SEE was perceived by Japanese compabusiness environment and a clear strategy to promote nies as “distant” physically & psychologically. How Japanese FDI in SEE. would you describe today’s understanding between Today in CEE, due to increasing FDI not only from these two business cultures? Japan but also from China, Korea and, of course, from - I would say that the physical distance is no longer an the EU, it is becoming increasingly tougher to hire skilled issue, as many Japanese companies have already invested,

PARTNER

This is a great chance for Serbian companies. Additionally, we support Serbian agricultural producers exporting to Japan. Which Japanese companies could find the Serbian market interesting? - I would say those in the manufacturing industry for sure. This should not be limited to the automotive industry, since the Japanese car industry has already invested heavily in Czechia, Poland, and other Western European countries. The Serbian IT industry may also have an opportunity to work with Japanese companies, and perhaps also the agricultural sector. What are your expectations when it comes to the inclusion of Serbian suppliers in Japanese value chains? - It is not my expectation, but I think Japanese companies definitely expect a cost benefit and quality. The manufacturing sector,

workers and engineers. You may stress that it is much easier to hire in a much broader sense than What does it mean for the Japan good people, including multilingual External Trade Organisation Vienna workers. the automotive industry, office to become an honorary memRegarding administrative isthe Serbian IT industry and ber of the Japanese Business Allisues, for example, Czech Invest, ance in Serbia? How do these two the investment promotion agency perhaps the agricultural organisations cooperate? of Czechia, has a clear strategy to sector have opportunities - It is a great occasion for us to listen promote Japanese FDI. It opened to work with Japanese to Japanese companies in Serbia its own office in Japan and provides regarding how things are going in plenty of business information in the companies Serbia and what challenges they Japanese language. In Prague there face. Once issues arise that require the necessary supis a “Japan Desk” within Czech Invest, so that Japanese port of the Serbian government to resolve, together with companies can come to the desk for follow-up support the Japanese Embassy in Serbia and JBAS, JETRO can even after having invested in Czechia. officially request the support of the Serbian Government. In which areas is JETRO most active in Serbia? What kinds of opportunities for future mutual coop- In the promotion of foreign direct investments from eration do you see? Japan and help for Japanese companies to find new - Of course, JETRO finds potential “customers” who’re suppliers in Serbia. During the so-called “lost twenty considering doing business with or in Serbia and inyears,” the business activities of Japanese companies in troduced them to JBAS. And JBAS provides practical Europe became sluggish compared to those in the U.S. advice based on the experiences of JBAS members. and China, for example, but now it seems to me that they Furthermore, In my view, JBAS is an extremely active again regard the European market as being important, organisation and I expect that we, together with JBAS because they gained strength following the economic and CCIS, can work together on the development busirecovery and began to utilise their resources again, ness between Japan and the Western Balkans. Actually, and also because a new EPA has been signed between this is already starting. Japan and the EU.

PARTNER

JAPAN TOBACCO INTERNATIONAL (JTI)

BUSINESS

Sakura Scholarships AWARDED From murals, via white collars and problems with waste, to mobile payments for public transport... These are just some of the topics addressed over recent months by the five recipients of the Sakura scholarship, which is awarded by the Embassy of Japan and company Japan Tobacco International (JTI) to students and researchers in Serbia for for research work on the topic of Japan

akura scholarship recipients – Isidora Gatarić, Marko Veljković, Nataša Krpina, Sanela Milosav and Vanja Končarević – have completed their research works and, according to the words of the commission, fully met “Preserving the environment through the application of the expectations and in some cases even exceeded them. Japanese waste recycling and waste management system in SerOne of the most interesting works is certainly that of Nataša bia” was the topic of the work by Sanela Milosav, who considers, Krpina “Connecting Japanese and Serbian Culture through appliamong other things, that charges for utility services should be cation of the Kaizen philosophy and the principles of Sanzara in calculated according to the amount of waste produced, and not the painting of murals and organising of educational interactive the surface area occupied by a company or household, because workshops”. Nataša organised several workshops on the topics the population would thereby be motivated to work on reducing of Japan and Japanese art, with a focus on solving the problem the amount of waste they generate. of vandalism, and engaged in the promotion of Japanese culture Japan has a mobile payment system that was being used by as in Inđija, where she lives. Her activities inspired the alternative many as 47 million people just three years after its introduction. culture centre “Sprat” in Inđija to create a contest for fine art Vanja Končarević, one of the scholarship recipients, proposed the works and handicrafts on the topic of connecting the Japanese advancement of contactless payments in Serbia, specifically for and Serbian culture, with the winner being a proposal for a mural public transport, citing the statistic that the Japan’s state coffers on the “Sprat” building. received as much as 10 billion dollars from this type of payment Equally as interesting was the work of Isidora Gatarić, who in 2009 alone. posed the question “To what extent are citizens of Serbia really The contest for the Sakura Scholarship marks its seventh devoted to Japan and Japanese culture – an analysis of sentianniversary this year. Intended for students or researchers ment based on the Naïve Bayes algorithm”. With the help of this who aren’t permanently employed, it awards funds for good realgorithm, Isidora analysed her sample search ideas in any of several areas: from The contest for the Sakura from Twitter and came to the conclusion the Japanese language, via literature and that the most frequent terms related to Scholarship marks its seventh culture, social and technical sciences, to Japan relate to business (more precisely, anniversary this year. Intended economics and the Kaizen philosophy. The Honda and Toyota), which further suggests Sakura scholarship is named after the tree for students or researchers who of the Japanese cherry blossom, known that Serbian citizens are impressed with the Japanese method of doing business. aren’t permanently employed, as a symbol of happiness and prosperity. Marko Veljković dealt with economic All scholarship recipients justified it awards funds for good research crime – characteristics, legal mechanisms expectations with their research work, ideas in any of several areas: and experiences of Japan and Serbia, and ensuring that those granting the scholarhis conclusion was that both countries from the Japanese language, via ship also had the opportunity to learn have good systems on paper, but that in literature and culture, social and something new, enriching their knowledge practise there are “white collar criminals” and ennobling and improving themselves. technical sciences, to economics The small Sakura community is growing, in both Serbia and Japan, those such cases more often reach the public eye in Japan. now with 35 scholars after seven years. and the Kaizen philosophy

PARTNER

INTERVIEW

ATSUKO SHIOTANI, ECONOMIC ATTACHÉ AT THE EMBASSY OF JAPAN IN BELGRADE

PROMISING Tide

Compared to ten years ago, economic relations between the two countries have – by and large – expanded significantly. Measured in terms of the number of Japanese direct investment in Serbia, we are seeing seven times as many companies today as there were a decade ago. Important political events, as well as some recent investments of Japanese companies in Serbia, are forming the basis for longer-term partnerships

t seems that a new era of economic relations between Serbia and Japan started in 2017 and that both countries are willing to exert considerable efforts in order to better familiarise ourselves with one another and to discuss venues for cooperation. For this special edition, we discussed the potential for a possible upsurge in mutual cooperation with Atsuko Shiotani, Economic Attaché at the Embassy of Japan in Belgrade. How would you rate overall economic relations between our two countries? - Compared to ten years ago, economic relations between the two countries have – by and large – expanded significantly. If we look at the number of Japanese direct investments in Serbia, it has increased sevenfold. Since I started working at this Embassy in June last year, I have witnessed a number of major economic events, such as the opening of Yazaki’s factory in Šabac, the launch of construction of a Flue Gas Desulfurisation system at Nikola Tesla Power Plant by Mitsubishi Hitachi Power Systems, progress achieved on the PPP project for waste management in Vinča by ITOCHU-SWEZ. It should also be noted that the Japanese Business Alliance in Serbia (JBAS) initiated its activities and that an investment by MAYEKAWA for setting up production lines of industrial refrigerators is taking shape. I would say that economic relations started expanding as of early 2017, and continue growing. The highlight among recent economic events was Japanese PM Shinzo Abe’s visit to Serbia in

January 2018, during which he was accompanied by the CEOs of 16 Japanese companies. They had a chance to attend a meeting with Serbian President Aleskandar Vučić and also had a business meeting with Serbian companies. I received positive feedback from those Japanese companies, which I hope will bring more Japanese companies to Serbia. During PM Abe’s visit, he announced the Western Balkan Cooperation Initiative. As an important part of that Initiative, we held the Japan-Serbia Business Forum last October in Belgrade. Also as part of that Initiative, we will have an Investment Seminar for the Western Balkans in Tokyo on 7th December 2018, to which chambers of commerce from the Western Balkans are invited. I hope these recent business events that are taking place in both Belgrade and Tokyo will facilitate business among Japanese and Serbian companies and strengthen economic relations between the two countries. What should Serbian businesspeople wanting to enter the Japanese market know about the specific demands of your market? - This year, by collaborating with JBAS, the Japan External Trade Organisation (JETRO) Vienna Office, the Chamber of Commerce & Industry of Serbia (CCIS) and the Development Agency of Serbia, the Japanese Embassy organised several events focused on Japanese business. The biggest event was the Japan-Serbia Business Forum last October. There Serbian businesspeople had the opportunity to learn more about establishing cooperation with their Japanese counterparts.

PARTNER

COMMITMENT

The decision-making process of Japanese firms seems to be slow, but once theyâ&#x20AC;&#x2122;ve made decisions on business partners they tend to stay in those partnerships for a long time

COOPERATION

Japanese companies are willing to cooperate with the Serbian government to improve the countryâ&#x20AC;&#x2122;s business environment by sharing the difficulties theyâ&#x20AC;&#x2122;ve experienced in doing business in Serbia

Japanese companies appreciate the long-term partnership. The decision-making process of Japanese firms seems to be slow, taking a lot of time compared to Western norms. However, once Japanese companies have made decisions on business partners, they tend to stay in the partnership for a long time. It should also be mentioned that, once Japanese companies make decisions to establish partnerships with foreign companies they provide assistance to their business partners in order to achieve the standards demanded by the Japanese market. Foreign companies might be required to improve their production operations for the Japanese market, but that is a win-win situation, as they can improve the quality of their products and simultaneously gain long-term access to the large Japanese market.

OPPORTUNITIES

Serbia has the potential to expand the quantities of its exports of frozen fruits and vegetables, but also wine and honey. IT-related products can be another area of future trade

In your opinion, why has the trade exchange between our two countries remained at a relatively low level? - Very little information on the mutual economies is among the biggest reasons. At the Japan-Serbia Business Forum, Serbian companies that have been successfully doing business with Japanese partners shared their experiences. The information based on their business experiences was very useful for Serbian companies that are considering options for doing business with Japan. The JETRO Vienna Office can be of great help to those Serbian companies. There is also a lack of information about the Serbian business environment in Japan. The Government of Japan will host the Investment Seminar for the Western Balkans on 7th December 2018 in Tokyo, to which the CCIS and other chambers of commerce from the region are invited. I hope this

PARTNER

Seminar will help Japanese companies gain information about condition for doing business in Serbia. I would also like the Serbian Government to come to Japan too, in order to invite Japanese investment in Serbia and to share information with Japanese companies, which I believe is one of the most effective ways. There is no trade agreement between Japan and Serbia at present. Considering the fact that the Japan-EU Economic Partnership Agreement is about to enter into force, we can expect an expansion of the trade volume once Serbia becomes an EU member state.

Which Serbian products do you think could prove successful on the Japanese market? - Serbia is currently primarily exporting tobacco to Japan, as well as some agricultural products, such as frozen fruits and vegetables. Since the Japanese market is big and accommodates a large variety of goods, Serbia has the potential to expand quantities of its exports of frozen fruits and vegetables. I think other agricultural products, such as wine and honey, also have potential to be exported to Japan. Serbia has been successfully developing its IT industry in recent years and, in my opinion, IT-related products can be one of the areas for future trade.

stop administrative service agency when they have trouble in dealing with laws and procedures even after they came to Serbia. Japanese companies are willing to cooperate with the Serbian government in order to improve the country’s business environment by sharing the difficulties they have experienced in doing business in Serbia. Which questions are most commonly posed to you by Japanese entrepreneurs considering entering the Serbian market? - Companies that haven’t yet come to Serbia ask fundamental questions, such as whether the country is a safe place to live, whether it’s under threat of war and if it’s politically and economically stable. In my opinion, those questions are posed because there is little information about Serbia in Japan. Companies that have decided to enter the Serbian market or that are already doing business here ask about administrative procedures regarding registration processes. In fact, some companies even had difficulties identifying the institutions in charge of issuing licenses and certificates. In which ways is the Embassy of Japan in Belgrade involved in the promotion of Japanese business in Serbia? - The Embassy of Japan supports the promotion of business among Japanese companies by holding events in our premises. For example, we recently had a handover ceremony for Toyota vehicles to the Serbian Olympic and Paralympic committee and a round-table for the JBAS healthcare group with the Serbian authorities. In last October’s Japan-Serbia Business Forum, we had a “Suppliers Day” event for Japanese companies, at which representatives of Japanese companies had B2B meetings with potential suppliers from Serbia.

I hope that business events taking place in both Belgrade and Tokyo will facilitate business among Japanese and Serbian companies and strengthen economic relations between the two countries

What kinds of experiences have Japanese businesses operating in Serbia had? - The overall impression of Japanese companies regarding Serbia is positive, but after arriving in Serbia some of them have faced several complicated administrative procedures that are difficult to overcome. Transparency and predictability in the enforcement of laws is very important for businesspeople. Prior to their investment, the Development Agency of Serbia supports them in coming to Serbia. Japanese companies hope that the Development Agency of Serbia will become a one-

The Japanese philosophical concept of Kaizen is becoming increasingly popular In Serbia. Has it also found its place in Japan within the scope of the digital revolution? - Kaizen first started at Japanese manufacturing factories, in order to gather ideas to improve efficiency in the working domain. This method is now spreading worldwide. I am glad that it is proving interesting to many Serbian companies. This year the Embassy cooperated with JBAS in staging two joint Kaizen events. Kaizen is now applied not only in manufacturing areas, but also in other sectors like the services industry and even individual worker efficiency. It can also find good applications in a digitalised society.

PARTNER

BANK OF JAPAN

ECONOMY

INFLATION OUTLOOK CUTS

For The Years 2018-2020

The Bank of Japan (BOJ) cut its inflation outlook at the end of October for the three years through fiscal 2020 amid tepid price gains and heightened risks to the global economy

The revisions put the central bank’s elusive 2 per cent he Japanese central bank’s policy-setting board, inflation target, which the central bank has pursued since meanwhile, decided after a two-day meeting to 2013, even further from reach. keep long-term and short-term interest rates at Kuroda maintained, however, that upward momentum their current ultra-low levels and to continue its in prices remains in place given tight labor market condilarge-scale asset purchases. tions and rising wages. BOJ Governor Haruhiko Kuroda promised that the “I don’t think the picture has changed much for prices,” central bank would respond should economic and price he said. conditions take a turn for the worse. The central bank also downgraded its outlook for “If we see downside risks having a large impact (on growth in Japan’s gross domestic product for the curthe Japanese economy), we could take action through rent fiscal year ending in March by 0.1 percentage point monetary policy,” he told a press conference. “We could to 1.4 per cent. lower interest rates...or if there is clearly a significant In decision, the BOJ maintained a pledge to keep impact we will adjust the monetary policy itself.” interest rates low for “an extended period of time” as Among risks, Kuroda specifically pointed to heightened households and firms brace for an increase in the nationtrade tensions between the United States and China, which wide consumption tax in October next year. are feared to spill over to the rest of the world by reducIt kept its benchmark for the 10-year government ing trading volume and undermining business sentiment. yield at around zero per cent while He said the U.S. Federal Reserve’s allowing for some flexibility, and rewinding down of its own monetary The BOJ cut its forecast for tained a short-term interest rate of easing measures also poses the risk inflation in fiscal 2018 to 0.9 minus 0.1 per cent for some funds that of triggering an outflow of capital from emerging markets. percent compared with 1.1 per cent financial institutions keep parked at the central bank. The BOJ cut its forecast for inexpected in July. Projections The BOJ also maintained a symflation in fiscal 2018 to 0.9 per cent for fiscal years 2019 and 2020 bolic pledge to increase its holdings of compared with 1.1 per cent expected in July. Projections for fiscal years were both cut by 0.1 percentage government bonds at an annual pace of 80 trillion yen ($707 billion), and 2019 and 2020 were both cut by 0.1 point to 1.4 per cent and made no changes to its purchases of percentage point to 1.4 per cent and 1.5 per cent respectively assets such as exchange-traded funds. 1.5 per cent, respectively.

PARTNER

INTERVIEW

HIDEYA KOBAYASHI, CHIEF REPRESENTATIVE, BALKAN OFFICE, JAPAN INTERNATIONAL COOPERATION AGENCY (JICA)

We Want To Contribute To

SERBIAN SOCIETY

As of 2019, JICA will launch a new programme in which Japan Overseas Cooperation Volunteers, young and energetic Japanese youngsters, will work with Serbian people in the local community on rural development, disaster prevention and support for people living with disabilities. I would take this opportunity to ask the Serbian people to provide a warm welcome for these young people

he Japan International Cooperation Agency (JICA) Senior Volunteer Programme was launched in Serbia in 2008 and today marks a decade of its existence. We spoke with Mr Hideya Kobayashi, Chief Representative of the JICA Balkan Office, about major achievements and ongoing programmes but also a new JICA project to be launched at the beginning of 2019.

What major achievements has JICA so far recorded? - Over the last 10 years JICA has dispatched richly experienced Senior Volunteers (SV) in the field of Japanese language education, sport, private sector development, social welfare etc. As for Japanese language education, JICA has dispatched 5 SV to the Belgrade high school specialised in foreign language studies (Second Belgrade Gymnasium) and our SV provide not only advice to Serbian teachers on teaching methods and direct mentoring for students, but also do their best to introduce Japanese culture, which is extremely interesting to students. Many pupils of this school have gone on to enter the

Japanese Language and Literature Department at the Faculty of Philology in Belgrade. When it comes to kendo, four SV have been dispatched to date and, under the coaching of our SV, the Serbian Kendo National Ladies Team won silver at the 2016 European Championships. As for the field of business management, JICA also dispatched two SV to the former Serbia Investment and Export Promotion Agency (SIEPA), and they visited, in total, more than ten manufacturing companies more than 100 times to introduce 5S and kaizen activities, as well as exerting efforts to implement them. Could you outline some of the most important ongoing programmes? - JICA is currently implementing a defined cooperation project in priority aid fields that include: 1) private sector development; 2) environment protection; 3) healthcare. As for private sector development, JICA has for more than 10 years been implementing, in collaboration with the Development

PARTNER

BONDING

I expect members of the Japan Overseas Cooperation Volunteers to come to represent a “bridge” between Serbian and Japan in the future, and for a deep relationship to form between our two nations

SUPPORT

JICA has dispatched vastly experienced Senior Volunteers in the fields of Japanese language education, sport, private sector development and social welfare to assist Serbia over the last ten years

Agency of Serbia (RAS), Mentoring service system development. Presently, JICA is implementing the Project for the Establishment and Promotion of Mentoring Services for SMEs in the Western Balkans (Phase2) in Serbia. The Mentoring Service has been provided through RAS to SMEs and, based on the kaizen concept, we aim to improve the quality of mentoring services by introducing a factory diagnosis method etc. In addition, we have also introduced the same mentoring service in B-H, Macedonia and Montenegro, and are continuing with implementation. More than 2,000 small and medium-sized enterprises and entrepreneurs have received this service in Serbia. In the field of environmental protection, JICA has been implementing the ODA Loan Project “Flue Gas Desulphurisation (FDG) Project at Thermal Power Plan Nikola Tesla A” in Obrenovac. The biggest FGD facility in the world will be installed at TPP Nikola Tesla A and the aim is to reduce air contamination. Construction is planned to commence in January 2019, with the project to be completed by May 2021. Following completion of this FGD project, emissions of dust and SO2 from TPP Nikola Tesla A will fall drastically and we expect the EU’s environmental standards to be achieved. When it comes to the field of healthcare, in Serbia - where the cancer rate is high and where one of the primary causes of death is breast cancer - JICA has installed breast cancer diagnostic equipment (mammography) and aims to contribute to the improvement of recovery rates by directing efforts towards training and educational activities for medical personnel.

ACOMPLISHMENT

More than 2,000 small and medium-sized enterprises and entrepreneurs have received our service in Serbia

How are volunteers selected and recruited? - JICA collaborates with the Ministry of European Integration and the Standing Conference of Towns and Municipalities in opening new volunteer posts. JICA first evaluates if the created posts match the volunteer manpower in Japan, then after the official request has been submitted to JICA by the Serbian Government, we final undertake recruiting within Japan.

There are two rounds of recruiting, in spring and autumn, and we invite applicants from all over Japan to apply. We do that through an advertisement placed in mass media and explanatory meetings in every region of Japan. We make a decision on successful applicants based on the screening of application documents, numerous interviews, health check-ups, as well as evaluations of character and skills. The successful volunteers then go to two locations within Japan where we have JICA volunteer training centres and, following 70 days of training on language, cross-cultural understanding and social development, they are dispatched to the countries to which they are assigned.

The world’s biggest Flue Gas Desulphurisation facility will be installed at TPP Nikola Tesla A, and the aim is to reduce air contamination. Construction is planned to begin in January 2019

How many volunteers have been engaged in Serbia and in which areas? - JICA has dispatched a total of 18 volunteers to date. five SV as Japanese language teachers, four SV for kendo, two SV for business management, three SV for disability aid, two SV for tourism, one SV for food processing and one SV as a nurse.

A new JICA programme is soon to be launched in Serbia. Could you tell us what it’s about? - When Japanese Prime Minister Shinzo Abe visited Serbia in 2018,

PARTNER

the Serbian and Japanese governments forged an agreement (mofa.go.jp/press/release/press4e_001868.html) to dispatch Japan Overseas Cooperation Volunteers (JOCV). Based on this mutual agreement, it is planned for JICA to start dispatching JOCV as of January 2019. The programme has three objectives: to cooperate in economic and social development and the reconstruction of developing countries; to promote international goodwill and deepen mutual understanding; and to develop international perspectives and give that experience back to the Japanese community. The JOCV concept has a history dating back over 50 years as a programme that dispatches relatively young people (aged

under 39) to foreign countries, and to date JICA has dispatched more than 44,000 volunteers to 91 countries worldwide. JOCV are characterised by the fact that they are deployed at a community grass-roots level and work through activities to resolve problems together with the local people.(www.jica.go.jp/volunteer/ outline/publication/pamphlet/pdf/JICAvolunteer_en.pdf) The year 2017 marked celebrations of 50 years of JOCV. JICA received the Magsaysay, the so-called “Asian Nobel Peace Prize”, in 2017, representing recognition of JICA’s contribution to developing the economy and society of the Asia region on the basis of the ideal and philosophy of living and working with the local people. (www.jica.go.jp/english/news/press/2016/160727_02.html) The fields planned for dispatching JOCV to Serbia mainly relate to rural development, disaster prevention, support for people living with disabilities, sport and other areas. JICA will dispatch the first JOCV to support sport for people living with disabilities in January 2019. Young and energetic Japanese people will work with Ser-

bian people at the level of the local community, deepen their understanding of Serbian society and make lots of friends before returning to Japan. I expect JOCV members to come to represent a “bridge” between Serbian and Japan in the future, and for a deep relationship to form between our two nations, not only financially, but also culturally speaking. I would take this opportunity to ask the Serbian people to provide a warm welcome for the JOCV. How do young Japanese people personally volunteer to assist Serbian municipalities? - Dispatched volunteers, in cooperation with people from counterpart agencies, are tasked with analysing problems and endeavouring to solve them by utilising their skills and experience from Japan. Unlike infrastructure development projects, where huge amounts of money are invested, there is probably no major impact in financial terms that can be seen in this case, but I am convinced that JOCV members will have quite a major positive impact on the community in Serbia.

KAIZEN has been introduced to the Serbian manufacturing scene and is functioning well, which I find not only similar, but extremely engrossing

What motivates young Japanese people to volunteer? - I personally think that JOCV members want to utilise their skills and experience and that they are aware that they can grow as people and professionals while contributing to the socio-economic development of the country to which they are dispatched. I also think they recognise this as a great chance for them to learn a lot from the people (community) in the partner countries. Do you see any similarities between Japanese and Serbian business prac-

tises and cultures? - When I visited one of the tobacco factories of Japan Tobacco International, I was very impressed that they have thoroughly incorporated kaizen, 5S and TQM at the factory. KAIZEN is a business improvement exercise that originated on the factory floors of the manufacturing industry and with it there is no need to invest money, rather just to start improving every day, first with small things, then later bigger. There are no Japanese personnel currently deployed at JTI’s factory, but through a “bottom-up approach” teamwork is emphasised and KAIZEN has been introduced to the Serbian manufacturing scene and is functioning well, which I find not only similar, but extremely engrossing.

PARTNER

INTERVIEW

GORAN PEKEZ, CHAIRMAN OF THE BOARD OF DIRECTORS OF THE JAPANESE BUSINESS ALLIANCE IN SERBIA

Serbia Is An Important

DEVELOPING MARKET We must work stronger to promote opportunities to do business in Serbia among Japanese business circles and spread the word in larger circles, as trade cooperation can be enhanced between Serbian and Japanese companies in both Europe and Serbia

lowly but surely, Serbia is becoming an attractive destination for Japanese investors. The recent visit of Japanese PM Shinzo Abe to Serbia certainly set the new tone, but behind the surge in interest among Japanese companies in Serbia as an investment destination is a long term mutual effort of many Japanese institutions, led by the Japanese Business Alliance in Serbia. We spoke about the new venues of cooperation with Goran Pekez, Chairman of the Board of Directors of Japanese Business Alliance in Serbia (JBAS) and Corporate Affairs and Communications Director at Japan Tobacco International.

What are the most important impressions following the Japan-Serbia Business Forum? What can you conclude about the possibility of improving mutual economic cooperation? - The business forum was an excellent opportunity to present all the areas in which Japan and Serbia already cooperate and to emphasise and target the potential to further improve business cooperation, especially considering that the total exchange between the two countries in 2017 amounted to almost 170 million USD, while in the first half of 2018 it amounted to 104 million. The main conclusion is that we must have continuity

PARTNER

RECOGNITION

The visit of Japanese Prime Minister Abe sent a strong message to Japanese businesses that Serbia is recognised as a relevant partner

INITIATIVE

We will emphasise supplier initiative even more in the period ahead, given that it is an excellent way for Japanese companies to learn more about Serbia through local partners

when it comes to promoting and informing businesspeople on both sides about opportunities for cooperation in order to further enhance current collaboration, which is also recognised as one of JBAS’s main tasks. In the first place, we have to work stronger on promoting opportunities to do business in Serbia among Japanese business circles at all levels. We also shouldn’t forget that Japanese companies are operating worldwide, and that trade cooperation can be enhanced between Serbian and Japanese companies in both Europe and Serbia. The Japan-Serbia Business Forum is a direct result of this years’ visit of Japanese PM Abe to Serbia. Aside from the forum, what are the key effects of that visit? - The visit of Japanese PM Abe is extremely important and sends a strong message to Japanese businesses that Serbia is recognised as a relevant partner. We are already experiencing an increase in the number of inquiries coming from Japanese companies and we hope to see an increase in the presence of Japanese companies in Serbia, as well as further intensification of cooperation with Serbian partners. There will a presentation of the business potential of the Western Balkan region in Japan during December, which will further spread the message of stronger cooperation in the future. More specific initiatives aimed at promoting closer cooperation between Serbia and Japan are to be planned in the next year as well.

SYNERGY

Cooperation and mutual understanding between the Government of the Republic of Serbia and foreign investors is key to positioning Serbia as an attractive location for doing business

Following the conference part of the Forum, there was a Suppliers Day event for Japanese companies in Serbia. What are the impressions on possible cooperation? - The Suppliers Day was very useful, as an opportunity for suppliers from Serbia to present their capacities and show our Japanese colleagues the options available to them. More than 40 meetings were held during the event, while JBAS is still in contact with some of the attending companies, exploring the further potential for cooperation in the country. Supplier initiative is something that we will emphasise even more in the period ahead, considering that it is also an excellent way for Japanese companies to learn more about Serbia through local partners, and very often those partnerships are a way for Japanese companies to enter local markets and carry out investments. This is very important due to fact that Japanese companies think in a long-term way. I know that first-hand, as I’ve been working at Japan Tobacco International for more than 15 years. They carefully estimate and fully analyse the potential market and its potential in every aspect.

We must work stronger on promoting opportunities for doing business in Serbia among Japanese business circles at all levels

JBAS has recently joined the network of international Japanese chambers of the Japan Chamber of Commerce & Industry – JCCI. In which areas is this support most valid? - Being part of the JCCI network is a matter of privilege and sends a message to the Japanese business society that an institution is a relevant partner. This cooperation is one more step towards strengthening institutional support for bilateral

PARTNER

Each year sees more and more companies attend. This year there were about 60 representatives of 21 companies operating in Serbia, and I can definitely confirm that there is growing interest.

relations between Japan and Serbia, but is also significant on a broader level, since JCCI’s network includes 17 business associations from across the whole of Europe. JCCI is an influential organisation with a very long history, and is also an opinion leader in economic circles. It represents the local chambers by presenting their suggestions to the Japanese government and other bodies, as well as helping with implementation. It is also a valuable source and channel for receiving updates and information about opportunities on the Japanese market, but also sending a message about the potential of the local market. The 2nd Kaizen Congress Serbia was held recently, under the organisation of the Kaizen Institute and JBAS, and JTI has for years been organising a Kaizen open doors event at its factory in Senta. Is there any interest in this concept? - JTI is the first factory in Serbia that fully applies Kaizen, thanks to which productivity has been increased by 50 per cent and the amount of waste generated has been reduced by 70 per cent. So, Kaizen is something that truly makes a difference! Incremental improvements form the basis of the Kaizen philosophy, and these can be achieved with minimal financial investments and optimal use of available resources. Kaizen emphasises employee initiatives, and employees should be continually motivated to give proposals for the improvement of their workspace and the work they do. JTI regularly implements the best proposals of employees, who are rewarded for good ideas. Thanks to that, ways of working and thinking are significantly changed, employees feel appreciated and can clearly see their contribution to the company’s business. The fact that one of the best employee proposals brought savings to the company amounting to over 70,000 dollars, enabling the improvement of machines for packaging and better use of tobacco, says a lot about the cost-effectiveness of Kaizen. That’s why we believe that the wider use of Kaizen could contribute to faster development of the Serbian economy, and that’s why we traditionally organise the Open Door day.

We are already experiencing an increase in the number of inquiries coming from Japanese companies and we hope to see an increase in the presence of Japanese companies in Serbia as well, as cooperation with Serbian partners intensifies further

What is your vision for JTI’s operation within the next five years? - JTI came to Serbia with a longterm strategy of investing and growing both locally and regionally, and I am proud to say that a lot has been done in previous years. Since 2006, we have invested over 180 million USD in Serbia, modernised utilities, launched cigarette production, and began exports to Montenegro, Bosnia-Herzegovina, Macedonia, Croatia and Albania, as well as exports of tobacco to the EU. Our factory had 84 employees when we started, while now we employ almost 300 people in Senta and Belgrade, as well as engaging around 1,000 farmers and seasonal workers. We have increased our production and tripled our market share. So, our vision is to grow even stronger, to continue developing and expanding our operations in the Adriatic region.

Given that you have excellent knowledge of this market, what would you say to companies that are considering coming here? - When it comes to the business environment in Serbia, for foreign investors such as JTI, predictability and stability of the environment are crucial. That is what enables us to maintain the current level of investment, growth and employment. And that stands not only for foreign investors, but for all companies operating in Serbia. Cooperation and mutual understanding between the Government of the Republic of Serbia and foreign investors is key to positioning Serbia as an attractive location for doing business, and JTI strongly supports that open dialogue. Our continuous growth and investments in Serbia send a clear message to potential investors that this country is an important developing market, and we hope to see an increase in the presence of Japanese companies in Serbia, as well as further new business projects with Serbian partners.

PARTNER

DONATION

During Japanese fiscal year 2017 (from April 2016 to the end of March 2017), the Government of Japan provided total assistance of €958,415 to the Republic of Serbia in the areas of education, health, social care and environmental protection

SIGNING CEREMONY

TRADITIONAL DONATION For Two Decades

he Grassroots Human Security Grant Aid Projects (GGP) saw grant contracts signed during February 2018 for 13 GGP projects that were approved in the following sectors:

procurement of medical equipment; 6.) Clinic for Gastroenterology and Hepatology in Belgrade - €81,850 for the procurement of medical equipment.

GGP PROJECTS IN THE EDUCATION SECTOR Funds totalling €58,578 were allocated with the aim of improving conditions for education in the Republic of Serbia for 2017. One grant contract was signed with the Boarding School for Children with Hearing Impairment and Speech Disorders “11. Maj” in Jagodina, worth €58,578, for the procurement of a special vehicle and printing equipment.

GGP PROJECTS IN THE ENVIRONMENTAL PROTECTION SECTOR With the aim of improving of environmental protection in the Republic of Serbia, funds totalling € 440,375 were allocated for 2017. Six grant contracts were signed with following institutions: 1.) Public Corporation “7. oktobar” in Novi Knezevac - €61,255 for the procurement of a sewage transport vehicle; 2.) Public Corporation “Vodovod” in Lebane - €78,370 for the procurement of a skid steer loader; 3.) Public Corporation “Putevi Cicevac” in Cicevac - €81,390 for the procurement of a backhoe loader; 4.) Public Corporation “Komunalac” in Ljig - €81,425 for the procurement of a refuse collection vehicle; 5.) Public Corporation “Mladenovac” in Mladenovac - €62,345 for the procurement of a refuse collection vehicle; 6.) Public Corporation “Komunalac” in Titel - €75,590 for the procurement of a refuse collection vehicle. Since 1999, 221 GGP Projects have been implemented in the Republic of Serbia. Inclusion of the aforementioned projects, the total amount of assistance provided for Serbia by Japan through Grassroots Human Security Grant Aid Projects (GGP) exceeds €13.9 million. The total amount of Japanese assistance to Serbia in all forms during the same period exceeds a value of €507 million.

GGP PROJECTS IN THE HEALTHCARE SECTOR With the aim of improving healthcare services in the Republic of Serbia, funds totalling €459,462 were allocated for 2017. Six grant contracts were signed with the following institutions: 1.) Health Clinic Uzice - €74,863 for procurement of an ambulance and medical equipment; 2.) General Hospital in Prijepolje - €58,014 for the procurement of medical equipment; 3.) Health Clinic Kucevo - €81,690 for the procurement of medical equipment; 4.) Institute for the Health Protection of Mother and Child of Serbia “Dr. Vukan Cupic” in Belgrade - €81,195 for the procurement of medical equipment; 5.) Health Clinic Golubac - €81,850 for the

PARTNER

INTERVIEW

DANIJELA ČABARKAPA, JBAS EXECUTIVE DIRECTOR

We're Ready To

SHARE OUR EXPERIENCES Our aim is to increase the involvement of Japanese business circles in the creation and further improvement of conditions for doing business in Serbia by providing recommendations and examples of the successful practices of JBAS members, as well as Japan itself

he Japanese Business Alliance in Serbia (JBAS) currently has 32 members and is growing. JBAS gathers together Japanese companies, but also Serbian companies that cooperate closely with Japanese companies or which wish to establish closer collaboration with the Japanese business community. JBAS members are active in various industries and most of them have chosen Serbia as a hub from which they cover their business activities in the region and further afield. JBAS members operate in the automotive, healthcare, IT, food&beverages, electronic, machine and services industries. For this special issue we spoke with Danijela Čabarkapa, JBAS Executive Director, about the Alliance’s activities and plans for 2019. In a practical sense, what does joining the network of international Japanese Chambers of the Japan Chamber of Commerce & Industry mean for the Japanese Business Alliance in Serbia? - By becoming part of the Japanese Chamber of Commerce and Industry (JCCI) network of international Japanese Chambers, JBAS has been listed as one of the main points of contact for Japanese companies in Serbia when it comes to business cooperation and is recognised as a relevant and reliable JCCI partner. The JCCI network is an additional source of information for our members regarding opportunities to establish closer cooperation with the Japanese business society, but also a channel for

sharing information about developments and potential in Serbia. With this collaboration, one more step has been taken towards strengthening the institutional support to advance bilateral business cooperation between Japan and Serbia, which was one of our goals for this year. Together with strong support from the Embassy of Japan in Serbia, and in close cooperation with the JETRO (Japan External Trade Organisation) Vienna Office, which is in charge of cooperation with Serbia and the Balkan Office of JICA (Japan International Cooperation Agency) – with both organisations also being JBAS honorary members – joining the JCCI network has enabled us to establish clear channels of support with all relevant Japanese institutions dedicated to providing support to developing business cooperation. Which challenges do JBAS members most commonly face and how can the Alliance help them? - The challenges faced by our members differ depending on the industries in which they are active, their business approaches and the size of their business, which is why the type of support offered by JBAS also differs. Our support includes a wide range of activities – from creating networking opportunities, targeting potential partners, providing information about the specific legal framework, procedures, regulations and potential business opportunities, to providing opportunities for enhancing knowl-

PARTNER

edge regarding certain targeted areas of importance for doing business, which are just some of the services worth mentioning. In order to provide the best possible support to our members, and to shape activities by targeting the needs of members, we have also created a number of industry groups within JBAS. Their aim is to increase the involvement of Japanese business circles in the creation and further improvement of conditions for doing business in Serbia by targeting areas for improvement and providing recommendations and support from JBAS members through the consideration of successful examples and practises of other countries where our members operate, as well as Japan itself. Which activities do you organise for your members? - The activities of the association are created in accordance with the main goals of the Alliance: to provide support for the business activities of the Alliance’s members, promote Serbia as a business destination and support the advancement of the Japanese business presence in Serbia, increase the involvement of Japanese business circles in the creation and improvement of conditions for doing business in Serbia and to promote the Japanese business culture and values. This includes creating networking opportunities and providing links to potential business opportunities through collaboration with partner organisations and the organising of seminars, conferences, delegation visits and activities within our industry groups.

such delegations, one accompanying Japanese Prime Minister Abe on the occasion of his visit to Serbia, and the other related to the Japan-Serbia Business Forum. Experiencing a positive trend when it comes to the increasing interest and presence of Japanese companies in Serbia was one of the reasons why JBAS was established, and this positive trend is even stronger and more noticeable following the PM’s visit. We are experiencing an increase in the number of inquiries related to opportunities for doing business in Serbia, and they vary from general questions about conditions for doing business and requirements related to operating in certain industries, to inquiries related to the tangible realisation of investment projects. Most inquiries are related to the automotive, machine and metal industries, but also the energy and environmental protection sectors. How do you cooperate with other bilateral chambers of commerce? - We must say that in this first year of our active work we have enjoyed great cooperation with colleagues from other bilateral business associations and chambers. As members are always seeking networking opportunities and opportunities to remain up-to-date and to learn something new that will enhance their business activities, we often combine our strengths to support members. This cooperation includes the organising of seminars, thematic presentations, lectures, speed business meeting events, international business receptions and other networking platforms. The feedback we receive from our members is very positive and we will definitely continue such collaboration and try to find ways to enhance it further and define additional areas for establishing closer cooperation to our mutual benefit.

JBAS has fulfilled all goals set in 2018 related to the establishing of clear support channels with all relevant Japanese institutions dedicated to providing support to developing business cooperation

What kinds of questions are most often posed to you by Japanese companies considering the possibility of starting to do business in Serbia? - It is very important to emphasise the fact that Serbia has to be constantly promoted as a potential location for doing business, along with its potentials, among Japanese business circles in order to ensure the availability of relevant information and the interest of Japanese companies when it comes to the potential establishment of cooperation with Serbia. This is, and will remain, one of JBAS’s goals aimed at supporting the increasing presence of the Japanese business society in Serbia. This also clearly shows the importance of institutional cooperation, both with Japanese and Serbian institutions. Last year we had a Japanese business delegation that came to Serbia with JETRO for the first time after almost ten years, while this year we’ve already had two

PARTNER

INTERVIEW

RADOŠ GAZDIĆ, ACTING DIRECTOR OF THE DEVELOPMENT AGENCY OF SERBIA (RAS)

Investors Recognise Us As An

ATTRACTIVE DESTINATION The Development Agency of Serbia (RAS) has around a hundred active projects at any given moment, which confirms the fact that Serbia is an extremely attractive investment destination. At the same time, there is a growing number of foreign investments that imply the transfer of higher-level technology. In the period ahead, RAS will continue to work intensively on the inclusion of local companies in international supply chains

erbia will attract around 2.5 billion euros worth of foreign investments again this year, which confirms its status as the region’s most attractive location for investment. However, Radoš Gazdić, acting director of the Development Agency of Serbia (RAS), has announced changes in the structure of investments and a shift towards investments with a higher level of technology. Nevertheless, Serbia’s reality is regions with lots of unemployed workers, where investments in labour-intensive branches still represent a way of mitigating poor economic prospects. How is the structure of foreign direct investment in Serbia when it comes to the transfer of new technologies? - The Republic of Serbia has for the last several years already been recognised by leading international institutions as a leader in attracting direct investment and as an extremely attractive investment destination. The presence of leading world companies from different industries has manifold significance – investment, knowledge transfer, the introduction of new standards, training of local workers and the improvement of competitiveness, but certainly also as a kind of promotion and sign for other companies that have not yet decided to launch operations in Serbia. Lately

there has been growth in the kinds of direct investments that imply the transfer of new technologies, as we have projects that include higher level technologies. Some examples of this include ZF Friedrichshafen AG in Pančevo (production of electronics for hybrid vehicles), Continental in Novi Sad (development centre for electronic systems for vehicle interiors), Integrated Micro-Electronics in Niš (production of print circuits), Johnson Electric, Siemens and similar firms. There is certainly a logical progression for there to be a greater emphasis on this type of investment in the period ahead. What share of foreign direct investment has been made in the IT sector specifically? - The Government of the Republic of Serbia has defined the IT sector as one of its priorities. The Strategy for IT Development for the 2017-2020 period has been adopted, along with the Action Plan for its Implementation. Through its commitment to the digital transformation process, and accordingly its support to the creative industries and education, Serbia is keeping pace with the Fourth Industrial Revolution. When it comes to the IT sector, we can say that it’s actually developing more through domestic companies. It is now almost commonplace to say that our IT specialists and IT companies are very well known and recognised around the world, that our students are traditionally winners of various international competitions, such that our IT engineers are today almost a resource that is in a deficit.

PARTNER

On the other hand, we should certainly mention the Microsoft development centre in Belgrade, which opened back in 2005 as the only one in this part of Europe and only the fifth worldwide. Likewise, in Novi Sad Schnedier Electric also has its own research, development and production centre for the optimised management of electricity that is one of only four such centres that this company has worldwide. Do you monitor or otherwise evaluate the successes of the many programmes that now exist to include domestic companies in world trade or production chains, given that they usually follow some form of investment in local suppliers? - Through its activities, RAS focuses in particular on the inclusion of local companies in supply chains.We actually approach this in two ways – firstly by attracting direct investments that have a need to include domestic/local suppliers in their production chain, and then through support for the advancement of domestic SMEEs to ensure their inclusion in international supply chains. In the previous year we launched a pilot programme to support the inclusion of SMEEs in supply chains, which has been significantly improved this year and will also remain in focus next year. According to your estimates, what kind of result will Serbia record this year in terms of FDI? - According to the statistics of the National Bank of Serbia, inflows to the Republic of Serbia based on foreign direct investments (net financial obligations) amount to slightly over two billion euros. That’s 5.4% more than in the same period last year. With this in mind, we can conclude that this year will be at the same level as last (when the noted inflow amounted to just over 2.5 billion euros), if not with slightly higher amounts of investment. The Development Agency of Serbia has around a hundred active projects at any given moment, which confirms the fact that Serbia is a leader in attracting direct investments and an extremely attractive investment destination.

vestment location, such as competitive operating costs, a high quality and highly educated workforce, access to a market of over 1.1 billion consumers via free trade agreements, political and economic stability, financial incentives, operations in free zones and so on, the geographic position and developed transport infrastructure are certainly among the most significant factors. It is a fact is that developed infrastructure reflects the level of development of each country. For every company, whether domestic or foreign, the location where they will operate is very important, as is its connectivity to major transport arteries. The greatest concentration is always around the main routes, such as motorways, frequently utilised national roads, railways, airports and the like. If we take this year alone as an example, we have examples of some very significant investments that followed the improvement of transport infrastructure. Connected to this is the arrival in Čačak of companies Wieland and Vorwerk, and the fact that Leoni and Taypa Textiles are constructing their own factories in Kraljevo, which will together create thousands of jobs and invest more than 100 million euros. How much has the shortage of workers, which some investors complain about, become a problem for attracting FDI? - Workforce availability differs from municipality to municipality. In those municipalities with low unemployment rates, we won’t have labour-intensive projects. On the other hand, we have municipalities with high unemployment rates and there the focus is on investments that imply labour-intensive projects. There is certainly a determination to achieve the balanced development of all regions or municipalities. There are also sometimes situations in which there is a lack of knowhow and skills among the available workforce. That is resolved through education. The introduction of dual education is a good step towards advancing the education of future generations, and ultimately towards increasing the opportunities for them to be provided with prospects for future employment through their work and experience in a real working environment. Here we also have examples of good practise through cooperation with investors like Johnson Electric, which cooperates with a technical secondary school in Niš and the technical colleges of the University of Niš.

In the previous year we launched a pilot programme to support the inclusion of SMEEs in supply chains, which has been significantly improved this year and will also remain in focus next year

How much has investment in the construction of a motorway network impacted on strengthening interest among investors when it comes to less developed parts of Serbia? - Apart from the other advantages that Serbia offers as an in-

PARTNER

BUSINESS

NEBOJŠA ZELENOVIĆ, MAYOR OF ŠABAC

JAPANESE EFFICIENCY – Šabac's Success

Photo: Đurađ Šimić

The City of Šabac is the location of the largest Japanese investment in Serbia – by company Jazaki. Their factory employs more than 2,000 local workers from Šabac and is surrounded by more than 50 companies, both domestic and foreign, within the Šabac Northwest Industrial Zone - the largest such zone in Serbia (covering 600 hectares). With the purchase of the plot, investors receive land that's fully equipped in terms of infrastructure, which sets the City of Šabac apart compared to many other Serbian cities

or its strategy of attracting foreign direct investment, Šabac is ranked among the top 10 cities of the future according to prestigious FDI publication The Financial Times. This City also holds the NALED Local Development Champion acknowledgement for its support of the economy, i.e. with its “one-stop-shop for the economy”, which enables businesspeople to complete their tasks in one place. The authorities in Šabac, however, haven’t focused only on the success of the city’s economy, but rather in parallel develops other branches, in order for quality of life in this city to be at the highest level. As much as seven per cent of the City budget is allocated to culture, which is the highest in Serbia. “I believe that investments follow people, and not the other way around. Investments are the result of a good work ethic and good attitudes. If everyone in the City does the best they can for citizens, then we will have more citizens who love and enjoy life in the city, and with that also more investments. And that’s precisely what’s happening in Šabac,” says Mayor of Šabac Nebojša Zelenović. Šabac even went a step further by transferring part of the authority into the hands of citizens, with citizens exclusively having the power to decide how funds collected from property taxes will be spent. “We brought a decision with which we enabled the citizens to first propose projects, then to vote to select the project they want implemented in their part of the city. The selected project

then becomes part of the budget, and the quality of life in the community improves. Thus, in different parts there’s been the construction of a medical clinic, a sports dome for a school, a church... We believe that citizens who choose freely make the best decisions,” explains Mayor Zelenović. It was because of this decision that Šabac earned NALED’s Local Development Champion award, and thus became the only city to be awarded in the two categories in this competition. Šabac is the Serbian city that issues construction and usage permits the fastest, and the local self-government in which location licenses are obtained the fastest. It also differs from other cities in the fact that it has a Central Wastewater Treatment Plant, which has now been functioning for two years. Free Zone Šabac is a winner of two Financial Times’ awards this year – for new investments and workforce training. The worker training implemented by the City of Šabac as assistance upon gaining employment was recognised, as was the development of the Regional Development Training Centre, which will enable employers to find qualified workers very easily. The arrival in this city of Japanese company Yazaki confirmed that Šabac is the best place to invest, because it was precisely this city that was chosen, in fierce competition amongst others, for this largest greenfield investment in Serbia. Supporting all of this is the statistic that Šabac had 12,500 unemployed people two years ago, while now that figure stands at 7,655.

PARTNER

SHAIP KAMBERI, PRESIDENT OF THE MUNICIPALITY OF BUJANOVAC

BUSINESS

Donations Have Raised

THE QUALITY OF LIFE

In 2017, the Japanese government made the Municipality of Bujanovac a donation of €109,000 for the Project for Basic Needs of the Population (POPOS)

hanks to donations, the Municipality of Bujanovac has covered all rural settlements and to a great extent resolved the problem of help to the population in the health and communal departments. Besides this, the municipality has developed a catalogue: Invest in Bujanovac, with a description of sites available for investment (brownfield and greenfield) and vacant business premises, Shaip Kamberi, Mayor of Bujanovac spoke to CorD magazine.

What did the Japanese Embassy’s donation consist of? - The donation consisted of one medical vehicle for the needs of our health centre and one water tanker for our utility company Komunalac. The Bujanovac health centre received a modern ambulance. This has made a great improvement to health care, especially in remote local communities. That makes the work of the Health Centre easier, especially for patients in need of urgent help. The water tanker is used mostly to improve the supply of water to outlying local communities, especially in rural areas of the municipality. Despite the fact that the municipality of Bujanovac has solved the issue of water supply by constructing autonomous wellsprings over a large part of its territory, the very geographical configuration of our municipality is such that we cannot cover all populated areas with water supply systems.

The tanker donated by the Japanese embassy also plays a vital role for these settlements, so our utility company has been enabled to take care of those parts of our territory. Bujanovac has completed almost all of the logistics required for further development. What is the current economic structure of Bujanovac and what are your expectations? - The most important industries are: the food industry, nonferrous metals, furniture, plastics, mining, tobacco, textiles and construction. In its General Regulatory Plan of 2014 the municipality of Bujanovac provided locations for industrial zones. A detailed development that is in progress in partnership with the European PROGRES programme will define construction in the Sector 6 manufacturing and commercial zone and in the commercial zone along Corridor 10, on an area of 60 ha that is 30% built. With support of the PROGRES programme these locations have been elaborated in detail to provide the required infrastructure for the zones. The municipal Office for Local Economic Development has prepared a written description of the procedures required for issuing a building permit, which contains data on the entire construction process consisting of the following phases: lease of construction land; location permit; building permit; building; permit for use; enrolment in the cadastre. The Guide to obtaining a building permit is multilingual and the printed version can be found in the Municipal Service Centre and in other departments of the municipal administration. The Municipality of Bujanovac has developed a catalogue ‘Invest in Bujanovac’, and prepared lists of available locations for investment (brownfield and greenfield) and vacant business premises.

These donations are of vital importance for our citizens

How have these donations influenced the quality of life in Bujanovac? - These donations are of vital importance for our citizens. The services of our health centre are in the field every day trying to meet the needs of all our people. This state-of-the-art vehicle enables effective and high-quality help wherever the need arises.

PARTNER

BUSINESS

JASMINA ĆAMILOVIĆ, ASSISTANT TO THE PRESIDENT OF THE MUNICIPALITY OF KUČEVO

Realistic Plans For

SUSTAINABLE DEVELOPMENT The Municipality of Kučevo this year received a Japanese Embassy donation totalling €81,690, and these funds will be used to procure mammography equipment, an ultrasonic device and CR devices

he Municipality of Kučevo has clear goals for its further development, and its focus is on investments in the sustainable development of small and medium-sized enterprises, especially in the field of the wood industry, which is justified by the fact that 50% of the municipality’s total surface area is covered by forestland. To what extent will the donation from Japan contribute to improving healthcare in your municipality? - The noted equipment will be used for preventative checks aimed at detecting diseases early. The donation itself represents a major contribution to improving healthcare protection for the citizens of our municipality. This isn’t the only donation of the Japanese Embassy to our municipality, and I would take this opportunity to thank the Japanese people on behalf of the citizens of the municipality of Kučevo. Kučevo and Homolje have a very specific geographical and climatic position. Has there been interest among foreign investors in the unique food products of your region? - The municipality of Kučevo is located in the south-eastern part of the Braničevo District and encompasses the outlying foothills of the Homolje mountains, with a gradual transition to the Stična Valley. This means that the municipality is situated in a temperate continental climate zone, while in higher areas it transitions to a mountainous type climate, which ranks the municipality of Kučevo among the municipalities with specific geographical and climatic conditions. As such, the municipality has been the subject of interest among individual investors. Dubai-based company “Ecotec Global LTD.” bought, on the basis of value-based management of “Platani”, land plots covering a total area of two hectares in the village of Kučajna. The launch of implementation of this investment is expected to come through the construction of a dairy and the production of firm goat’s cheese. This investment also encompasses a trout breeding operation, a bulk-buying centre for honey, the collection and processing of

forest produce and medicinal herbs, and the later construction of an ethno village. Negotiations are underway with a German investor that plans to establish the organic production of old varieties of cereal crops, fruits and vegetables. The end goal of this investor is to construct a factory for the processing and packaging of organic products, as well as to construct its own laboratory to control the quality of products. We hope that at least one investor will recognise the specificities and advantages of this region and realise their plans, which would be of great significance not only to the municipality of Kučevo, but also to the other municipalities of the Braničevo District. In which areas is help essential for you and in what would it be worth investing? - We have realistic potential for sustainable development. According to the local sustainable development strategy, the primary goal of the municipality is to improve the economy and encourage the creation of SMEs, utilising the natural potential for the development of agriculture, with a particular focus on the production of health food and the development of tourism as a separate branch of the economy. With consideration for existing resources, we consider that there should be investment in small and medium-sized enterprises that operate specifically in the field of the wood industry, given that 50 per cent of the municipality’s total surface area is under forest cover. We also shouldn’t overlook natural resources like limestone and quartz, as well as appropriate raw materials for the production of cement, in which the municipality has a long tradition. It is also important to invest in the production of health food, in the development of livestock farming and associated dairy and meat industry capacities. Particular emphasis should be given to the justification for, and sustainability of, investments in the development of tourism, due to the climatic and geographical characteristics of this area, air quality, an unpolluted environment and a large number of natural assets and historical sites. I hope that investors will recognise our potential.

According to the local sustainable development strategy, the primary goal of the municipality is to improve the economy and encourage the creation of SMEs, utilising the natural potential for the development of agriculture

PARTNER

IVAN BOGDANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF LEBANE

BUSINESS

CLEAR VISION Of The Future

This March saw the Municipality of Lebane receive a donation from the Embassy of Japan in the amount of 78,370 euros

“T

he municipal development strategy defines the resources to be developed and activities that will lead to higher living standards for the local population. The BFC SEE certification programme provides municipalities with clear guidelines on how to create a sound business climate and apply internationally recognised standards for efficient and transparent local administration, thus becoming more appealing to investors,” stresses Ivan Bogdanović, President of the Municipality of Lebane.

has been done since then to improve the business environment in Lebane? - The Municipality of Lebane views the certification programme as the basis for the promotion of its investment potential and a means of improving its business environment. In accordance with local municipal standards, the municipality is organised in such a way as to provide comprehensive and efficient responses and support, with the intention of creating a favourable environment and conditions both for existing and future investors.

For which project was the doWhich priorities would you sinnation received and what bengle out as being most important efits will it bring to the citizens for Lebane’s further economic of Lebane? development? - The donation is intended for - Our 2014-2021 Development the purchase of a loader and to Strategy sets our developmental covering auditing costs. We are priorities. We will boost agriculture by extremely grateful to the representaAttracting new investors, increasing production through farm tives of the Japanese Embassy. This with the aim of creating jobs, consolidation and by stimulating the mini loader will be of great importance production of organic food. Tourism in to us, because it is a universal-type is also a significant part the region will include existing potenmachine with multiple operational of the strategy tial capacities and natural resources, characteristics and will be used for while reviving tourist attractions such cleaning streets, removing breakas Cariin Grad and the Teodora Visitor’s Centre, which are ages and repairing damaged asphalt. With this donation, a priority. Attracting new investors, with the aim of creatthe Municipality of Lebane will improve its level of utility ing jobs, is also a significant part of the strategy. SMEs services significantly, which was also one of the promises will also be given substantial incentives. Furthermore, made by the leadership of the local self-government. The we will improve infrastructure while considering the citizens will have multiple benefits from this donation. environment and the need to raise the living standards of our population. These are the clear development plans Lebane signed a declaration on joining the regional BFC of our municipality. standard certification programme a few years ago. What

PARTNER

JAPANESE BUSINESS ALLIANCE IN SERBIA (JBAS)

In its first year of activities, the Japanese Business Alliance in Serbia (JBAS) has been working energetically to present the Alliance and its goals and vision, as well as bolstering the foundations of the association that gathers together members of the Japanese business society in Serbia, meeting the requirements of its members, promoting cooperation between Japan and Serbia and building its network of institutional partners

BRINGING

Japan Closer

12TH DECEMBER 2017 The 2 nd regular JBAS General Assembly session, which provided the occasion for JBAS members to meet the new Ambassador of Japan to Serbia, H.E. Junichi Maruyama, took place on the premises of the Embassy of Japan in Belgrade.

The meeting was a great opportunity for member companies to present their businesses and exchange information about their activities and plans, and to discuss conditions for doing business in Serbia with Ambassador Maruyama. The meeting saw the setting of foundations for the establishment of industry groups within JBAS, enabling more focused activities aimed at increasing the inclusion of the Japanese business community in the creation and improvement of conditions for doing business in Serbia. 15TH JANUARY 2018 An official delegation headed by Japanese Prime Minister Shinzō Abe and including a business delegation of sixteen Japanese companies – operating in the fields of IT, trade, food

& beverage production, the automotive industry, machinery, construction and the transport sector – visited Serbia. The Embassy of Japan in Serbia, JBAS, the Chamber of Commerce & Industry of Serbia (CCIS) and the Development Agency of Serbia (RAS) jointly organised a business event with the goal of informing the Japanese business delegation about business opportunities in Serbia and creating networking opportunities with existing memebrs of the Japanese business society

in Serbia gathered under the umbrella of JBAS and Serbian companies operating in the IT and food & beverage sectors. The activities of the Japanese business society and JBAS in Serbia were presented by JBAS President Goran Pekez. 21ST FEBRUARY 2018 JBAS and RAS signed a Memorandum of Understanding with the goal of efficiently coordinating activities aimed at

PARTNER

The Italian-Serbian and French-Serbian chambers of commerce, the Nordic Business Alliance and - for the first time - JBAS jointly organised a Speed Business Meeting event. This unique event concept provided an opportunity for more than 40 member companies of these four business associations to present their companies, meet potential business partners and establish numerous new business contacts. The goals and activities of JBAS were presented by JBAS Executive Director Danijela Cabarkapa. 21ST MAY 2018 further supporting the enhancement of economic cooperation between Japan and Serbia. The MoU was co-signed by JBAS Executive Director Danijela Cabarkapa and RAS Acting Director Rados Gazdic. JBAS and RAS will work together on connecting the businesspeople of the two countries with the goal of strengthening business relations and cooperation, exchanging information about business opportunities in both countries and providing support to businesspeople doing business in Japan and Serbia, enabling an exchange of knowledge and better understanding of the respective business cultures and values of the two countries, all of which should lead to the further intensification of business cooperation between Japan and Serbia. 29TH MARCH 2018

JBAS member EuroCons Group, together with JBAS and the German-Serbian Chamber of Commerce, organised a seminar entitled “Significant novelties in air filtration, impact on health and energy efficiency”. M2M (member to member) activities were recognised by JBAS as an approach of great importance.

The third regular JBAS General Assembly session took place on the premises of RAS. Under the scope of educational activities carried out within JBAS, the gathered members had a chance to learn more about the mentoring programme implemented in cooperation with the Japan International Cooperation Agency (JICA), an honorary member of JBAS, through a presentation held by Ana Zegarac, director of the RAS sector for planning and development. Moreover, under the auspices of JBAS’s social responsibility activities, the work of the SOS Children’s Villages Serbia Foundation was presented by its national director, Vesna Markovic-Jokanovic. 24TH MAY 2018 More than two hundred guests, including members of the Japanese Business Alliance in Serbia, the German-Serbian, Swiss-Serbian, Italian-Serbian and French-Serbian chambers of commerce, the Croatian and Slovenian business clubs, the Nordic Business Alliance, the Belgian-Serbian, Canadian-Serbian and Hellenic business association, as well as representatives of the diplomatic corps, gathered together with the goal of

26TH APRIL 2018

PARTNER

expanding their business networks at an international networking reception organised jointly by 11 bilateral business associations at Belgrade’s Vizantija raft restaurant. 6TH JUNE 2018 Japan Tobacco International (JTI), a JBAS founding member, organized a Kaizen Open Door Day at its Senta factory for

present JBAS activities, while members of the association supported the ceremony with their presence.

the seventh consecutive year, with other JBAS members also joining the initiative. Every year sees JTI provide interested companies with an opportunity to learn more about the tangible results provided through implementation of Japan’s kaizen business philosophy and support for the exchange of good practises that contributes to the further development of Serbia’s business environment.

10TH SEPTEMBER 2018 JBAS, in cooperation with the Chamber of Commerce & Industry of Serbia, JBAS member Kaizen Institute Serbia and JBAS honorary member Japan External Trade Organisation (JETRO), organised a seminar dedicated to the Japanese business culture, entitled “How to do business with Japan – introduction to the KAIZENTM approach”. Participants were greeted by Atsuko Shiotani, First Secretary at the Embassy of Japan, Marko Kovacevic, Head of the CCIS EU Integration Centre, and JBAS Executive Director Danijela

2ND JULY 2018

JBAS joined the Japan Chamber of Commerce and Industry (JCCI), which represents the network of international Japanese Chambers. With this collaboration, one more step was taken towards strengthening institutional support available to enhance bilateral cooperation between Japan and Serbia. 30TH AUGUST 2018 JTI organised a ceremony to mark the launch of a new production line at its factory in Senta, which was formally opened by Messrs Rasim Ljajic, Serbian Deputy Prime Minister and Minister of Trade, Tourism and Telecommunications, Ambassador Maruyama, István Pásztor, President of the Assembly of the Autonomous Province of Vojvodina, and Yasutake Tango, Chairman of Japan Tobacco Group. It was confirmed at the time that JTI’s Senta factory is the most successful among the group’s 27 plants worldwide. JTI used the opportunity to

Cabarkapa, while presentations and lectures were held by Bojan Scepanovic, Director of Kaizen Institute Serbia, Ivana Varnicic, HR business partner at Dr. Oetker, Slobodan Anic, country manager at Ametek, and Takuro Nozawa, Director of the JETRO Vienna Office. 24TH/25TH SEPTEMBER 2018 The 2nd KAIZENTM Congress Serbia, co-organisd by Kaizen Institute Serbia and JBAS, took place on 24th and 25th September 2018. The first day of the congress was determined as the conference day (JBAS had representatives on three of five panels), while the second day included two gemba walks, with visits to factories organised. The first panel, dedicated to Japanese investments in Serbia and including the participation of JTI’s Goran Pekez (JBAS President), Panasonic’s Dirk Bantel (JBAS Board of Directors Member), Mitsubishi Corporation’s Naoki Tsukada (JBAS Board of Directors Member), the Itochu Corporation’s Shigeo Hashimoto, Rados Gazdic of RAS and Danijela Cabarkapa of JBAS, familiarised participants with

PARTNER

Representative Office in Serbia and JBAS Board of Directors member Naoki Tsukada, Djordje Ljubojevic, Head of Sales at the Sirogojno Company, RAS Acting Director Rados Gazdic

the activities of the Japanese business society in Serbia, whilst also addressing questions related to the potential contributions of the Japanese business community to the further improvement of the business environment in Serbia and what can potentially be done to support the further advancement of Japan’s business presence in Serbia. 9TH OCTOBER 2018

A Speed Business Meeting, jointly organised by the Slovenian Business Club, the Belgian-Serbian Business Association, the Canadian-Serbian Business Association and JBAS, was held at Belgrade’s Hyatt Regency Hotel and brought together representatives of more than 40 companies that are members and partners of these four business associations. 17TH OCTOBER 2018 Japan’s Parliamentary Vice-Minister for Foreign Affairs, Kenji Yamada, visited Serbia on the occasion of the Japan-Serbia Business Forum, which was organised in cooperation with JBAS, the European Enterprise Network, the CCIS, JETRO and the Embassy of Japan, and which served to emphasise positive trends in the advancement of relations between Japan and Serbia, confirming Japan’s dedication to the further intensification of cooperation between the two countries. The forum included a conference part dedicated to exploring opportunities for doing business with Japan, a panel discussion dedicated to business cooperation between Japan and Serbia, which gathered together JBAS Executive Director Danijela Cabarkapa, JBAS President and JTI Corporate Affairs and Communications Director for the Western Balkans, Goran Pekez, General Manager of the Mitsubishi Corporation

and Mihailo Vesovic, Advisor to the CCIS President, and the first ever supplier day event for Japanese companies in Serbia, with more than forty meetings held. 16TH NOVEMBER 2018 A round-table event jointly organised by JBAS, the Embassy of Japan and the CCIS, and addressing the topic “Importance of medical innovations in improving healthcare – experiences of the Japanese business community”, was held on the premises of the Embassy of Japan in Belgrade. The event was opened by Japanese Ambassador to Serbia H.E. Junichi Maruyama, Prof. Ph.D. Vladimir Djukic, Deputy Minister of the Ministry of Health, JBAS President Goran Pekez and Mirjana Vucicevic, Head of the Pharmaceutical and Medical Economy Association of the CCIS. Representatives of the JBAS Healthcare group - Jovica Lukic, JBAS Healthcare Group President and Country Manager at Astellas Pharma Ltd., Milena Argirovic, Country Head for Serbia/Bosnia-Herzegovina/Montenegro at the Takeda GmbH

Representative Office for Serbia, Dejan Tomovic, General Manager of Nipro Medical d.o.o. and Nenad Tiodorovic, TIS Market Development Manager for the Balkans at TERUMO EUROPE N.V – presented the activities and innovative solutions of their respective companies, while participants – who included Sasa Jacovic, Director of the Medicines and Medical Devices Agency of Serbia, and representatives of the National Health Insurance Fund – had the opportunity to hear more about the activities of the JBAS Healthcare Group and proposals to further enhance cooperation.

PARTNER

SOCIAL LIFE

Nice And

POLITE PEOPLE

Japan seems to be shrouded in stereotypes like no other country. From obscure vending machines to speaking toilets, from the shyness of Japan’s people to their eccentric subculture fashion. Amidst preconceptions and memes, we’re left wondering – what is Japan really like?

he fact is that Japanese people are incredibly nice and polite. From anime to sushi, Japan leaves its cultural fingerprints all across the globe. It is known as a quirky, innovative country that is the source of many a trend mostly innovative and useful. However, there is one aspect of this developed nation that has undergone an undeniably unique evolution, especially compared to other countries in Asia and Europe. I am talking about communication in a global world. And especially the often-lauded kindness of Japanese people has everything to do with this. “Japanese people are so nice!” is a sentence that you’ll often read or hear from travelers, no matter where they’re from. Of course, meeting people with kind and gentle personalities plays a big role in this perception of Japan, but

nice people like that can be found all over the world. So, where does this stereotype come from? One reason is the concept of “omotenashi,” a word that is often translated with “hospitality,” although that word falls short to encompass everything that omotenashi means. It’s more than genuine kindness towards guests, it’s also a sharp eye for detail, awareness for individual needs, and the effort to always go the extra mile. Another factor is that no matter how crowded it gets, in a train, for example, Japanese people always strive to “abide by the rules,” which essentially means paying attention to social codes, etiquette, and manners – even if it is bothersome. This mindset has very real effects. If you lose your wallet in Japan, the likelihood of it not being stolen but instead returned to the nearest police box is almost

PARTNER

ridiculously high. These situations are often anecdotally told as a positive stereotype about Japan, but also are a prominent part of travel stories. This is the kindness that Japan is famous for. However, this kindness is not tied to specific situations or people. Rather, it is an integral part of what being Japanese means. It is especially visible when someone from Japan interacts with someone from a different country, but looks entirely different between two Japanese people. You could say that being aware of the gaze of people around myself is part of the Japanese nature, as well as the ever-present principle of not causing trouble to anyone else. Especially the latter is a concept that every child growing up in Japan is taught right from the start. “If everyone does it like this, Japan surely will be a pleasant place to live in” is the idea behind it. However, the effort to not cause trouble is accompanied by another one: the effort to look good in the eyes of others. This mix of principles creates the unique concept of “tatemae,” best translated as “public position” as opposed to private thoughts or real beliefs. Therefore, the famous Japanese kindness is a result of the desire of wanting to be seen favorably by others. If you work in a Japanese company, you’ll participate in “nomikai,” big drinking parties that usually involve entire departments. In other countries, forming friendships with your colleagues over a shared lunch or beer after work is fairly common – Japan is a different matter, though. Because of the constant awareness of not involving and troubling others, as well as worrying about how others see you, forming honest, open friendships can be hard. The drinking parties are a good example for this. With a large number of people, the atmosphere is relaxed and fun and you might have a great time with the person next to you. After talking for a while, you’ll probably suggest: “Let’s go have a drink sometime!” It sounds like the beginning of a new friendship and indeed, you might find yourself in a bar for a beer after work with your new friend some days later. However, if you’re talking to a Japanese person, their heartfelt “Yes, sure!” could also be a case of tatemae. Agreeing to something while actually having no genuine intent to follow through is a prime example.

Opposed to what you might think, this doesn’t count as lying. Instead, it comes from the same kindness that tourists note about Japanese people. The actual intention is not as important as keeping the conversation pleasant and making the other person happy. For us Japanese, it’s a nice thing to do, even if the drinks will never happen. Even after having looked at the stereotype of the “nice Japanese people” more closely, there is no denying that kindness is an inherent part of the Japanese mindset. Every person growing up in Japan carries it with them. However, the island nation of Japan is also under the influence of globalization, adopting and adapting to cultural influences from all around the world. Japan is historically known

for rapid development and the last few decades are not an exception. However, human interaction and communication might not be able to keep up with those changes. Modern Japan changes from one day another, both on a technological and a cultural level. The country is home to a plethora of personalities and while everyone tries their best to coexist alongside one another, the Japanese kindness seems to turn into a shield. Even if Japanese see someone being in trouble, he tend to put his own feelings first and won’t approach because he navigate the world under the concept of not bothering and involving – for them, it’s a way to keep the balance and avoid trouble. This could be the key to communication on Japan. This shield of kindness always seems to come before any interaction, and getting through can be really tough.

Another factor is that no matter how crowded it gets, in a train, for example, Japanese people always strive to “abide by the rules,” which essentially means paying attention to social codes, etiquette, and manners – even if it is bothersome

PARTNER

TOKYO OLYMPIC GAMES 2020

NEW NATIONAL STADIUM FOR TOKYO 2020 SUMMER OLYMPICS

HUGE OPPORTUNITIES For Investors The Tokyo Metropolitan Government estimates that over the 18 year period between the announcement of Tokyo 2020 in 2013 and 2030 – 10 years after the actual games – Japan would see an economic impact of ¥32.3trn (€248 bln) for hosting the event. They also expect the number of people in employment to rise by 1.94 million nationwide 44

f the ¥32.3trn, the “direct effect” generated by direct investment and expenditure to host the games (such as maintenance costs for venues, operating expenses including security and transportation, and corporate marketing expenses) is estimated to be around ¥5.2bn yen. While the “legacy effect” is projected to be ¥27.1trn (€208bln) – far larger than the direct one – and this includes the impact on transport infrastructure development, the creation of barrier-free access, an increase in tourists visiting Japan, the use of competition venues post-event, and the expansion of sports participation. In this sense, it is more important for the Japanese economy to maximise the legacy effect. Based on analysis of figures from previous games’ hosts,

PARTNER

BY KATSUNORI KITAKURA

to be a whopping 635 billion yen, but the private sector is investment in construction related to the games will increase expected to spend much more than that. Mizuho Research significantly in 2018, and that infrastructure and services will Institute sees the private sectorâ&#x20AC;&#x2122;s Olympic-inspired investcontinue to be improved in the lead up to 2020. In addition to ment topping 10 trillion yen. the gamesâ&#x20AC;&#x2122; facilities, there is expected to be an increase in investment for new developments and renovation of hotels and commercial facilities, as well as maintenance and service improvements for airports, railways and public transport. In addition, demand for human resources (such as construction workers, salespeople, security and interpreters) will continue to increase, and thus lead to a growth in personnel related services. Also, as overseas visitors increase, there is expected to be a positive impact on the tourism and restaurant industry, as well as businesses related to fishing and agriculture. We can also expect to see progress in technology- related initiatives, such as automatic driving and services using artificial intelligence (AI) and the internet of things (IoT). THE IMPACT OF THIS FUTURISTIC OLYMPICS WILL BE FELT FOR YEARS TO COME Undoubtedly, the games offer many opportunities for investors. Among The estimates include urban reinfrastructure related companies, the newal projects in Tokyo. The office and focus is on Nomura, which is involved residential buildings are expected to in the design, construction and mancost 400 billion yen. Transportation agement of commercial and exhibition links and other infrastructure is seen facilities. Totesusu Kogyo, a construction at 3.7 trillion yen. company with particular strengths in East Japan Railway is also involved railway construction, is also to be noted. in Olympic-triggered construction. It As for service related companies, Star plans to pre-open a train station between Mica, a leading company in pre-owned Tamachi and Shinagawa stations in condominiums, is worth a mention for its 2020. And Shinagawa Station is to be focus on renovating flats and switching upgraded to accommodate maglev trains them to temporary lodgings to provide that will run along the Linear Chuo Shinkansen Line, which alternative accommodation to hotels. Gurunavi, which provides will start carrying passengers between Tokyo and Nagoya, web based recommendations of restaurants, has also caught central Japan, in 2027. our eye. In the human resources sector, the tightening labour JR East, as it is better known, is also renovating seven market and the growing need for workers will benefit staffing other stations in Tokyo, including Harajuku â&#x20AC;&#x201D; which will be agencies such as Hito-Communicatinos. While in the restaurant the closest JR station to the main stadium. sector, our interest is in Hiramitsu, which established itself Around 60,000 hotel rooms will be added across the with luxury French cuisine in Japan and will now be developing country at a total cost of nearly 1 trillion yen, according to a its brand through local Japanese cuisine. Nikkei estimate. Mori Trust, a Tokyo-based property developer, The construction bill for all Olympic facilities is expected

The Games offer many opportunities for investors. Among infrastructure related companies, the focus is on Nomura, which is involved in the design, construction and management of commercial and exhibition facilities

PARTNER

TOKYO

plans to open two Edition hotels, a superluxury Marriott brand, in central Tokyo in 2020. As for the Olympic technology showcase, Japan plans to fully start 8K broadcasts in 2018. Also, 5G, or fifth-generation cellular service, is expected to be ready for the Olympics. And Nissan Motor intends to have autonomous cars driving on public roads by that summer. From a tourism perspective, in 2016 the central Japanese government doubled its target for the number of foreign visitors to Japan to 40 million visitors per year in 2020, and 60 million visitors per year in 2030. Tourism is one of the main pillars of prime minister Abeâ&#x20AC;&#x2122;s growth strategy, and it is seen as a trump card for regional revitalisation in Japan. The government has accelerated the relaxation of its tourist visa conditions, and has supported the repair of and the introduction of multilingual signage to over 200 cultural assets nationwide. This demonstrates a switch from placing importance on simply conservation to actively promoting tourism, as well as other areas such as attracting large international conferences and cultivating workforce in the industry. In addition, in 2019, a year before Tokyo 2020, Japan will become the first host of the Rugby World Cup in Asia, and will also

NEW FACIAL RECOGNITION SYSTEM FOR TOKYO 2020 OLYMPICS

The government has accelerated the relaxation of its tourist visa conditions, and has supported the repair of and the introduction of multilingual signage to over 200 cultural assets nationwide. This demonstrates a switch from placing importance on simply conservation to actively promoting tourism

host the G20 summit. These measures and events will increase the number of foreign visitors who repeat their visit even after Tokyo 2020, and therefore the sector is a hot spot for investment opportunities in the country. All of this still need to be considered in light of any moves by the Bank of Japan (BoJ). Last month (July 2017), the Japanese central bank decided to keep monetary policy unchanged, upwardly revising growth prospects, cutting the inflation outlook, and postponing the achievement timing of the 2% inflation target from around 2018 to around 2019. This was a clear signal sent by the BoJ to the market that policy changes

PARTNER

will not be made for the time being. Although it has been three years since the ultra-monetary easing policy was implemented to achieve 2% inflation in two years, the path to achieving this target is distant and it will not be easy to reach the postponed inflation target by 2019. Meanwhile, central banks in other major countries are ending monetary easing programmes. This means that there is now a clear difference in the stance of the BoJ and central banks of other major countries. Therefore, in the foreign exchange market, we expect the depreciation of the yen to continue up to 2020 due to the difference in the direction of monetary policy. Our belief is that this will continue to work positively for Japanese stocks in the future. And it will also be a welcome bonus for visitors who will make the long journey to Japan to enjoy Tokyo 2020 and the Rugby World Cup. 'WORLD ROBOT SUMMIT' COMING TO JAPAN IN 2020

The author is lead strategist at SuMi TRUST

NEW BULLET TRAIN COMING FOR 2020

PARTNER

TRADITIONAL CRAFTS IN JAPAN

Japanese National Treasures

Japanese crafts are as old as Japan itself. Rural crafts were made with natural materials to provide for daily necessities, and with time they became increasingly complex and sophisticated. Crafts were then produced to be exported and to help the economy. Apprenticeships were long and difficult, necessary to master the techniques to work with ceramics, metal, and lacquer ITO SHINSUI WAS THE PSEUDONYM OF A NIHONGA PAINTER

raditions were passed down from the teacher to the student (orally or in writing), and industrial production was introduced only during the Meiji period. The feudal lords were no longer able to support the artisans, and industrial production replaced handmade objects as one of the most important part of Japanese exports. However, Japanese people worked to conserve ancient objects and designated them as National Treasures, and in 1890 the Imperial Household Artists was founded. After WWII,

a bigger effort was made to protect the intangible cultural properties of Japan, and thanks to this, a wide number of arts still exist. PAINTING The oldest of the Japanese visual arts, painting, is complex and highly varied. Its history has been influenced by Chinese and western art, and some of its most popular subjects are religion, landscapes, ideograms, birds, and flowers.

PARTNER

KAWANABE KYOSAI - TIGER

During the Meiji period, Japanese traditional painting was called nihonga, mostly to distinguish it from western painting. The main difference lies in the materials used. The painting is done on a base made of paper, silk, wood, or plaster; and the colors come from natural pigments. To master the painting technique, a long training is often necessary. Among the many influences, nihonga relies on three other concepts: wabi, a transient beauty; sabi, the beauty of natural aging; and yĹŤgen, profound grace. These concepts can be easily seen behind some of the work of masters

Japanese people worked to conserve ancient objects and designated them as National Treasures, and in 1890 the Imperial Household Artists was founded. After WWII, a bigger effort was made to protect the intangible cultural properties of Japan, and thanks to this, a wide number of arts still exist

like Kawanabe Kyosai, whose Tiger is famous all over the world; and Katsushika Hokusai, who painted the most famous Japanese painting ever: The Great Wave off Kanagawa. TEXTILE Looking at Japanese textiles is a good way to get an insight into Japanese society. Textiles, in fact, are a social badge and identify the wearer and his/ her social status. Japanese textiles have a preference for natural materials and traditional ways of decorating. Silk, hemp, and cotton are the main

KAGEDO JAPANESE ART, LATE 19TH CENTURY

PARTNER

KUTANI YAKI WARE HONKIN HANATSUME MATCHA TEA CEREMONY BOWL

BONSAI

materials used, and weaving and dyeing techniques vary from place to place. In Okinawa, materials are dyed before weaving, while in Kanazawa it is common to use a paste for resist-dyeing, which creates intricate patterns. The Ainu people from HokkaidĹ? mainly use indigo dyeing, maybe the most common dyeing process. Silk fabrics (when used for kimonos) are batch-dyed, whereas some colored damask employs dyed silk warp thread and do not need to be further dyed. Cotton fabrics commonly uses plain weave. Among the many dyeing techniques, stencil dyeing and freehand pasteresist-dyeing are respectively used for yukata (the summer kimono) and curtains. WOODCRAFT AND BAMBOO In Japan, woodcraft has a long history, with each region displaying its own peculiar products. Wood has always been widely used for houses, temples, household items, marquetry (yosegi), and furniture like tansu, a mobile storage cabinetry. Bamboo is mainly used for baskets, interior goods, etc. Creating these crafts is a laborious process that must be

TAKANORI AIBA - TINY SCULPTURE CELEBRATING THE ART OF BONSAI

performed by highly-skilled artisans. Any small mistake would be evident. To make a yosegi, timberis cut into oblong rods (different woodis used for different colors). Rods are glued together to form the desired pattern, and, as a final touch, coatings of lacquer are finally applied. Basket weaving (kagome) is an art by itself. The woven arrangement is made by laths, composed by interlaced triangles; any point where two laths cross has four neighboring points, so that a pattern of trihexagonal tiling can be formed. CERAMICS Some of the oldest ceramics on earth has been found in Japan, and, through the long history of the country, dozens of different styles have been developed, especially under the influence of the pivotal tea ceremony. In the past, pottery was made by pressing the clay into shape; the use of the wheel and of coiled methods developed later. Tools are usually made of wood or bamboo. Some of them are a Japanese version of commonly used tools, while others were especially invented in Japan.

PARTNER

Some of the oldest ceramics on earth has been found in Japan, and, through the long history of the country, dozens of different styles have been developed, especially under the influence of the pivotal tea ceremony

FUJISAN WHITE RAKU WARE TEA BOWL, EDO PERIOD

IKEBANA - RIKKAâ&#x20AC;&#x2122;S ORIGIN LIES IN THE 16TH CENTURY TATEHANA STYLE

HAKONE PARQUET WORK TISSUE CRAFT

Pottery and porcelain in Japan are unique, mostly because of the unique techniques used. Yuri-kinsai is the gold-leaf application technique that creates some of the most unusual objects. Nerikomi is the traditional technique of creating patterns, using colored clay. Blue and white pottery is maybe the most widespread technique, known all over the world, which came to Japan through China. LACQUERWARE The origin of lacquerware, as well as pottery, can be traced back to prehistory. Japanese lacquerwares are made of wood, covered with multiple layers of lac juices, which make the object waterproof and resistant. Daily objects, tea ceremony utensils, and incense containers are commonly made of lacquerware and many different

techniques are used to obtain the final object. Urushi-e is the oldest decorating technique (also used for woodblock prints), and it simply consist of painting something with actual lacquer; while maki-e is used to apply gold as a decoration. IKEBANA AND BONSAI Ikebana is the art of flower arrangement. It originated during the 6th century and knew its peak under Buddhist masters during the 16th century. Nowadays, there are more than 1,000 schools of ikebana all over the world, all of them guided by the Buddhist concept of life preservation. With ikebana, humanity and nature are brought together. Shape, line, and form are extremely important, and through every arrangement the artist tries to convey a special meaning. Bonsai is an art that produces extremely small trees, using traditional cultivation techniques, which are created for the contemplation of the viewer.