SPECIAL EDITION
"World Markets and Opportunities"
JAPAN 2013 cordeditorial@cma.rs |
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Japan is an archipelago of 6,852 islands. The four largest islands are Honshu, Hokkaido, Kyushu, and Shikoku, which together comprise about ninety-seven percent of Japan's land area. Japan has the world's tenth-largest population, with over 127 million people.
Japan is a constitutional monarchy where the power of the Emperor is very limited. As a ceremonial figurehead, he is defined by the constitution as "the symbol of the state and of the unity of the people". Power is held chiefly by the Prime Minister of Japan and other elected members of the Diet, while sovereignty is vested in the Japanese people. Emperor Akihito and Empress Michiko of Japan
A major economic power, Japan has the world's third-largest economy by nominal GDP and the world's fourth-largest economy by purchasing power parity. It is also the world's fourth-largest exporter and fourth-largest importer.
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Japan is a leading nation in scientific research, particularly technology, machinery and biomedical research. Nearly 700,000 researchers share a $130 bln. research and development budget, the third largest in the world. Japan is a world leader in fundamental scientific research, having produced sixteen Nobel laureates.
Japanese Temples are Buddhist temples found throughout Japan, which date back over one thousand years. There are several Japanese Temples which are World Heritage Sites.
Japanese cuisine is known for its emphasis on seasonality of food, quality of ingredients and presentation. Japanese cuisine offers a vast array of regional specialties that use traditional recipes and local ingredients.
The Kimono is the most famous form of traditional Japanese clothing for women. The Kimono is actually a style with many different forms; from the casual to the wedding style, all which have a particular meaning and are wore to different events or occasions.
Garden design is an important Japanese art form that has been refined for more than 1000 years. Gardens have evolved into a variety of styles with different purposes, including strolling gardens for the recreation of Edo Period lords and dry stone gardens for the religious use by Zen monks. Great gardens can be found throughout Japan, with particularly many in the former capital of Kyoto.
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interview
H.E. Mr. Masafumi Kuroki, Japanese Ambassador to Serbia
Fruitful Cooperation The Balkan region is attractive for developing economic cooperation because of its geographical location as a gateway to the European market. I believe that the accession or the efforts of the accession of the countries in the region to the EU will make this region more attractive. I hope that Japanese companies will take this opportunity to develop economic relations with Balkan countries credence between Japan and Serbia, between Japanese Emperor Meiji and Serbian King Milan Obrenovic. How would you rate the political and economic relations between the two countries today? - I am glad that the bilateral relations between Japan and Serbia are very good and friendly at all levels, from the government’s level to the people’s level, based on the fruitful cooperation in political, economic and cultural fields.
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ince the transition, Japan has brought a great deal of assistance to Serbia as part of the building of democratic institutions, infrastructure, and social causes. In this interview, Japanese Ambassador to Serbia H.E. Mr. Masafumi Kuroki speaks warmly about his short experiences in the country and his hopes to increase the ties between Serbia and Japan. Japanese investments, the ambassador notes, have been significant if not numerous. In the first months of his appointment, Ambassador Kuroki has travelled around the country and seen at first hand the opportunities to develop and the work which is ongoing. As he tells us, “Seeing is believing.”
• Over the course of history, Japan, just like the Balkan countries, has been destroyed and rebuilt several times and each time the country came through economically stronger. How would you describe Japan’s status today relative to the global and Asian economies? - Japan has been hit by many natural disasters such as earthquakes, tsunamis
Japan has been hit by many natural disasters such as earthquakes, tsunamis and typhoons but every time we have managed to overcome these difficulties through the perseverance and efforts of the people and with the support of the international community
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and typhoons but every time we have managed to overcome these difficulties through the perseverance and efforts of the people and with the support of the international community. In this regard, I would like to express my deep gratitude
to the warm sympathy and precious support extended by the government and the people of Serbia at the time of the earthquake and tsunami in 2011. Concerning the Japanese economy, it is now the third largest economy in the world with its advanced technology. During the last decade, the Japanese economy has experienced a long-term recession. The government is currently implementing aggressive economic policies in order to revitalize the economy and promote economic growth. The revitalization of the Japanese economy will surely contribute to the Asian and world economies. • What is Japan's assessment of the potential of the Balkan region, and where do you see an opportunity for developing economic cooperation with Serbia and the regional countries? - The Balkan region is attractive for developing economic cooperation because of its geographical location as a gateway to the European market. I believe that the accession or the efforts of the accession of the countries in the region to the EU will make this region more attractive. I hope that Japanese companies will take this opportunity to develop economic relations with Balkan countries. • Do you think that, with growing stability in the Balkan region, the interest shown by Japanese investors will grow too? - Peace and stability are the most important factors for economic activities
including foreign investment. Growing political stability in the Balkan region changes the image of its past and surely encourages foreign investors including Japanese investors to consider this region positively as an investment destination. • In your opinion, how important is the EU integration process for Serbia, and do you think that the beginning of accession negotiations with the EU could improve economic cooperation between Japan and Serbia? - Japan fully supports the efforts of the government of Serbia for accession to the EU. The EU integration process promotes the solution of political issues and the implementation of various reforms in Serbia. It will also contribute to peace and stability in the Balkan region. These factors are important for promoting economic relations between Japan and Serbia. • Which economic branches have the biggest potential in regard to the economic cooperation between the two countries,
Considering that a stable and democratic Serbia is important for the peace and stability in the Balkan region and in Europe, Japan has been providing its grants and technical cooperation to Serbia following the democratization process of the country and what could prompt Japanese investors to come and invest in Serbia? - I think that there are many potential sectors where Japanese investment can
be useful in Serbia. One of the strong points of Japanese industries is the manufacturing sector and technology, particularly small and medium sized enterprises (SMEs). These industries create jobs, transfer technology and increase exports. There are comparative advantages of Serbia for foreign investment such as its geographical location with transport communication, free trade agreements with Central European countries (CEFTA), EU, Russia, and Turkey, etc. and skilled human resources. Seeing is believing. I strongly hope that more Japanese companies will come and see the current situation and the investment environment of Serbia to explore the potentials. • What are the most important projects in the economic cooperation between Serbia and Japan at present? - Japanese products such as cars, motorbikes, electric and electronic appliances and machines are well represented in Serbia but Japanese investment in Serbia is still limited. We have only ⇢
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three investments in the manufacturing sector, namely JTI (Japan Tobacco International), Asahi Beer-Mitsui Corporation (food supplement) and Panasonic. JTI in Senta, which is producing cigarettes and contracting the production of tobacco leaves, is the biggest one with US $160 million. Concerning the infrastructure projects, the Japanese government has provided a concessional loan of €246 million for the construction of flue gas desulphurization equipment at the thermal power plant Nikola Tesla A. This equipment will contribute to environmental protection by reducing the emissions of NOx quite significantly from the thermal power plant. • Could you tell us something more about the POPOS programme of grants aimed at fulfilling the population’s basic needs which the Japanese Embassy has been implementing in Serbia? - The Embassy of Japan has been providing POPOS grants (grass-roots and human security grant aids) to support projects in social sectors such as education (rehabilitation of schools), health (basic medical equipment and ambulances), sanitation (water supply, garbage collection), and the like. These grants are extended through local communities or NGOs to contribute directly to the welfare of the population, in particular, in vulnerable areas. From 1999 until 2012, we assisted 156 projects with a total of €9 million in grants. We continue to provide these grants for 10 projects every year.
the development assistance provided by the Japanese government. Based on the Japanese government’s policy to support the peace, stability and prosperity of the Balkan region, the activities of JICA’s Balkan office cover most of the countries in
We may have different mentalities but I find that both Japanese and Serbian peoples care much for their traditions and culture while pursuing modern technology. We can learn from each other how to maintain a balance between our own cultures and globalization the region with its financial and technical assistance for economic growth and social development of these countries. • In 2000, Japan gave Serbia a lot of assistance in many areas, even at the time when your country was dealing with natural disasters. This act was very well received by the Serbian public. In which other areas can Japan support Serbia? - Considering that a stable and democratic Serbia is important for the peace and stability in the Balkan region and in Europe, Japan has been providing its
• How important is the Balkan office of the Japanese International Cooperation Agency (JICA) in bringing the business people from the two countries and the regional countries closer to Japan? - The JICA is the implementing agency of
Small gesture of support to Japanese people
grants and technical cooperation to Serbia following the democratization process of the country. Japan will continue its financial and technical assistance, particularly, for economic development, environmental protection and basic needs of the population. • It seems that the mentalities of the Japanese and Serbian people are very different. What can we learn from each other? - Interaction and exchange between different cultures enrich each other and deepen mutual understanding between two peoples. We may have different mentalities but I find that both Japanese and Serbian peoples care much for their traditions and culture while pursuing modern technology. We can learn from each other how to maintain a balance between our own cultures and globalization. • The Japanese people have a great reputation in Serbia, and Japanese Ambassadors have left a lasting impression on the Serbian society. You came to Serbia only recently, in March, What are your impressions? - Since my arrival in March, I feel the warm friendship and sympathy from the government and the people of Serbia towards Japan and Japanese people. I met many Serbian people demonstrating their interest in Japan and Japanese culture including the martial arts. I am glad to work in this friendly atmosphere. Over the last three months, I have visited several municipalities such as Ljubovija, Backa Palanka, Novi Sad, Novi Pazar, Senta and Sabac. It is interesting to see the diversity of cultures based on historical background, which is one of the attractiveness of Serbia. I hope to visit more regions and municipalities to discover Serbia in depth. ■
In downtown Belgrade, almost 1,000 Belgrade citizens rallied within a BelgradeJapan gathering, wearing red and white shirts and forming a Japanese flag together, in order to send a message of encouragement to the Japanese people who were struck by a catastrophic earthquake and tsunami March 2011. The Capaign "1,000 Cranes for Japan" has been launched by Serbian blogger community in order to send a message of support to citizens of Japan.
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interview
Chris Woods, General Manager of JTI Adriatica
An Example of Success Our story is a true example of successful foreign investment in Serbia, and it represents a positive signal for other Japanese and international companies to come and invest here
represents a positive signal for other Japanese and international companies to come and invest here.”
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uring his recent visit to JTI, the Japanese Ambassador to Serbia Mr. Masafumi Kuroki said that JTI could be a guidepost for foreign investors in Serbia. When asked why he thought that Japan Tobacco International deserved such a distinction, Chris Woods, General Manager of JTI Adriatica, was quick to return the compliment. “We very much appreciate such recognition and support from H.E. Mr. Kuroki and the Embassy of Japan to Serbia.” “The JTI story in Serbia is a story of continuous growth and development. Since coming to Serbia in 2006, JTI has invested over $140 million, made Belgrade its centre for running business in the Western Balkans, started cigarette production in Senta, and began exporting cigarettes to Montenegro, Bosnia and Herzegovina, Macedonia, Croatia and Albania, and tobacco to the EU,” Mr. Woods noted. “Today, we have around 320 employees in Belgrade and Senta and we engage around 600 seasonal workers and farmers. In addition, our market share is increasing. Our story is a true example of successful foreign investment in Serbia, and it
• One of the challenges the government and tobacco industry are facing is the illicit cut tobacco market. How are you dealing with that? - The Serbian state budget heavily depends on excise and VAT revenues from tobacco products. In 2012 almost 10% of budget revenues rely on excise taxes from tobacco products in addition to VAT. We estimate that illicit trade with cut tobacco will cause at least a €60 million loss to the Serbian state budget in 2013. In addition to state budget revenues, illicit trade impacts all businesses associated with the legitimate tobacco trade – distributors, retailers and manufacturers. This is a problem that has to be addressed with full attention and cooperation between all state institutions and authorities: Customs Administration, Police, Tax Administration, Agricultural, Market and Communal Inspection. In that regard, we appreciate the efforts of the state, the Ministry
The tobacco industry provides jobs for 4,000 people and it is one the largest foreign investors in Serbia with the overall investment of over €1.2 billion in the past 10 years of Finance and Economy and the Tax Administration to deal with this problem. Also, the recent announcement of President Nikolic that the government will suppress all kinds of black market trade including tobacco illicit trade is very encouraging.
• The tobacco industry is one of the biggest foreign investors in the country. What needs to be done to attract more business to Serbia? - The tobacco industry provides jobs for 4,000 people and it is one the largest foreign investors in Serbia with the overall investment of over €1.2 billion in the past 10 years. In order to sustain this level of investment and continue to grow, we need to operate in a stable business environment. Such an environment, with minimum turbulence and unexpected changes is also a crucial prerequisite for attracting new foreign investors. And not only that, it is important for operations of every company operating in Serbia. • What are your business plans for the near future? - We came to Serbia with a long term strategy of investing and growing. Our plan is to continue to grow in a sustainable manner and further develop our operations. In addition, we will continue to support development of the local community and promote the Japanese culture and tradition in Serbia. • What do you think of the business conditions in the Serbian tobacco industry? - I would once again like to point out the importance of stable and predictable business environment. Open dialog and business partnership with the Government of Serbia, to which we are committed, is a secure path to create that kind of environment, and enables us to jointly meet challenges such as illicit trade. Continuous improvement – the Japanese management principle of Kaizen – is important in providing future success. ■
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interview
Mr. Kentaro Otani, Economic Attaché of the Japanese Embassy to Serbia
Growing and Getting to Know Each Other I think that a wide economic cooperation between a large country and a rather small one is possible, if each side evaluates the economic value of the other. Speaking of the relationship between Japan and Serbia, Serbia has a smaller market in itself than Japan has, but Serbia has its strength
current bilateral economic relations between Japan and Serbia, I consider that there is still room for them to be strengthened. There are only three major investments from Japan in Serbia so far. Firstly, Japan Tobacco International (JTI) invested in Senta, in the Autonomous Province of Vojvodina and their factory started its operation in 2007. Secondly, Asahi Beer Co. together with Mitsui Corporation commissioned the production of food supplements from yeast to Alltech in Senta. Thirdly, Panasonic opened its factory in Svilajnac in 2010.
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ne of the major obstacles that an investor encounters in choosing a destination is a lack of knowledge about the country in which the investment might be made. This, according to Mr. Kentaro Otani, Economic Attaché of the Japanese Embassy to Serbia, is something which has been an issue between Japan and Serbia. Mr. Otani speaks of the investments which have already been made and the potential for further growth as the two countries make efforts to get to know each other – in terms of cultural values and real market needs.
• Is it realistic to expect a wide economic cooperation between a large country, such as Japan, and a rather small one, such as Serbia?
The relationship between Japan and Serbia is very good. But concerning current bilateral economic relations between Japan and Serbia, I consider that there is still room for them to be strengthened
• How developed do you think are the economic relations between Serbia and Japan? - The relationship between Japan and Serbia is very good. But concerning 66 |
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- I think that a wide economic cooperation between a large country and a rather small one is possible, if each side evaluates the economic value of the
other. Of course, the scale of the each country’s market is one of the important elements, but the gap between the scales can be filled in by the strength of a country with its smaller market. Speaking of the relationship between Japan and Serbia, Serbia has a smaller market in itself than Japan has, but Serbia has its strength. Serbia is situated in the centre of the Balkan region, has good economic relationships with neighbouring countries and preferential trade agreements with the EU, the US, Russia, and Turkey, etc. This strength reinforces the economic potential of Serbia, and makes Serbia more attractive for Japanese companies when they consider investments in Serbia. • Do you think that the differences in the culture, the value system and other differences between Serbia and Japan are aggravating or mitigating factors in the economic cooperation between our two countries? - I cannot deny that the differences can be a factor to aggravate economic cooperation between the two countries, because the difference tends to be a source of misunderstanding. So, it is very important for each country’s people to get interested in the other coun-
try and deepen their understanding of it. The more people of each country understand the other, the fewer misunderstandings arise. • What are the most important Japanese investments in Serbia? Are we going to see more of the Japanese investments here? - Every Japanese investment in Serbia plays an important role in developing the economic relationship between Japan and Serbia. In my view, whether other Japanese investors will come to Serbia or not in the future depends on the success of the abovementioned companies which have had major investments in Serbia. In that sense, any of those investments is very important. • How is your collaboration with the Serbian government, and what do you think of relations with our government in terms of economic cooperation? - I think that the Embassy communicates with the Serbian government very well. But it hasn’t reflected yet to economic relationship in a concrete form between the two countries. For example, the number of investments from Japan to Serbia is limited, as I mentioned above. We hope that such good relations with the Serbian government will bring more tangible results in investments between the two countries. • In which way is the Japanese Embassy helping to bring businesses from Serbia and Japan closer together? - In the field of business, potential investors must be well informed about the real situation of the country in which to invest. But I have to say that the lack of information about each other in both countries is the most imminent problem, as far as the Japanese-Serbian economic relationship is concerned. So, our Embassy with the help of JETRO (Japan External Trade Organization) organized a business seminar for Japanese companies in Dusseldorf in 2010 to be acquainted with the business environment in Serbia. The Embassy also organized a seminar on cutting-edge Japanese technology for coal thermal power
generation in Belgrade in 2012. I think through such activities, business circles of both countries can be expected to know better about the potential of future cooperation. • What branches of the Serbian economy have the biggest chances of attracting Japanese investors? - Serbia produces, as an example, huge amounts of high quality agricultural products, and exports many of them. On
Every Japanese investment in Serbia plays an important role in developing economic relationship between Japan and Serbia
The number of investments from Japan to Serbia is limited. We hope that such good relations with the Serbian government will bring more tangible results in investments between the two countries the other hand, Japan doesn't produce much agricultural products, and relies considerably on import. So, concerning agricultural products, I don’t think that Japan has much opportunity to join in the Serbian agricultural market. But Japan is also a technologically sophisticated nation in the field of food processing, as well as industrial products. In that sense, Japan can contribute to the development of Serbian industry for highly processed food, such as health food or supplements, according to the needs of the country. ■ cordeditorial@cma.rs |
GDP (purchasing power parity) $4.617 trillion (2012 est.) $4.516 trillion (2011 est.) $4.551 trillion (2010 est.) note: data are in 2012 US dollars GDP (official exchange rate) $5.984 trillion (2012 est.) GDP - real growth rate 2.2% (2012 est.) -0.8% (2011 est.) 4.5% (2010 est.) GDP - per capita (PPP) $36,200 (2012 est.) $35,300 (2011 est.) $35,500 (2010 est.) note: data are in 2012 US dollars GDP - composition by sector agriculture: 1.2% industry: 27.5% services: 71.4% (2012 est.) Population below poverty line 16% (2010) note: Ministry of Health, Labor and Welfare (MHLW) press release, 20 October 2009 (2010)
Labor force 65.27 million (2012 est.) Labor force - by occupation agriculture: 3.9% industry: 26.2% services: 69.8% (2010 est.) Unemployment rate 4.4% (2012 est.) 4.6% (2011 est.) Investment (gross fixed) 21.1% of GDP (2012 est.) Budget revenues: $2.025 trillion expenditures: $2.57 trillion (2012 est.) Taxes and other revenues 33.8% of GDP (2012 est.) Budget surplus (+) or deficit (-) -9.1% of GDP (2012 est.) Public debt 218.9% of GDP (2012 est.) 205.5% of GDP (2011 est.) Inflation rate (consumer prices) 0.1% (2012 est.) -0.3% (2011 est.)
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interview
Raša Ristivojević, Deputy President of the Serbian Chamber of Commerce
Satisfying Stringent Criteria Business associations in Japan, including the Japanese Chamber of Commerce and Industry, have relegated some of their authority to the Japan External Trade Organization (JETRO). The Serbian Chamber of Commerce has been strongly cooperating with JETRO office in Vienna which covers this part of Europe
sessment of how conducive the investment environment and business climate are to generating profit,” says Deputy President of the Serbian Chamber of Commerce Raša Ristivojević. “Japanese companies in Serbia are mostly dealerships of Japanese goods or trading companies. The following Japanese companies have made the biggest investments here in the last few years - JTI, Alltech Fermin, and Panasonic Electric Works (via a daughter company in Germany).” • Serbia and Japan are on very friendly terms and Japan has helped us greatly with many donations. Why don’t we utilize this friendship better particularly in commerce? - Despite geographically being so far apart, our two nations, as you have pointed out, are on very friendly terms and feel solidarity with each other. We
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elations between Serbia and Japan are traditionally good and friendly. On the other hand, economic relations between the two countries could be a lot better. The Japanese Ambassador to Serbia Mr. Masafumi Kuroki has been quoted as saying recently that he had been working on bolstering economic relations and encouraging Japanese investors to invest in Serbia. A heightened interest shown by Japanese companies for doing business in Serbia is a good sign. To that end, it is very important that Serbia has political and economic stability, while the EU accession process will be an excellent cue for Japanese companies to consider investing in Serbia. “The decision whether a certain company will do business abroad rests solely on that company, and it depends on their as68 |
One of the hurdles in having a closer cooperation is Japanese businessmen not having enough information about Serbia
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are extremely grateful for the donations that have been coming from Japan over the past 15 years. Through these donations Japan has greatly contributed to raising the quality of life in Serbia, whether in public transportation, education, healthcare or environmental
protection. Japan reached out to Serbia when we needed help the most, and we cannot forget that. It came as no surprise that the Serbian people felt deep sorrow and sympathy for the Japanese people when a devastating earthquake and tsunami hit Japan in March 2011. On the other hand, commerce has its own routes and rules. In order to market a product in Japan, companies need to fulfil many criteria in terms of quality, pricing, packaging, delivery continuity and other. Still, the fact remains that Japan imports a lot and that the Japanese people are becoming more receptive to imported products. Our country failed to utilize fully the potential of the Japanese market. Serbia currently exports very little to Japan. In 2012, Japan took the 66th place on the list of the countries to which Serbia exports and the 30th place on the list of the countries from which Serbia imports. Serbia is currently exporting mostly agricultural produce and food to Japan. • Do we have products that could be interesting to Japanese consumers? - For quite some time, Japanese companies have been interested in importing our organic food, wines, frozen fruits, cereals, alcoholic drinks and mineral water. We do think that there is an opportunity for exporting agricultural produce and food. Also, Japanese food producers constantly need ingredients for
their own products, as well as ingredients for developing new products with new tastes. I am referring to fruit and fruit concentrates, berry fruits, vegetables, herbs and other products. We need to use the awareness that Japanese consumers have about using healthy products, including food. Our goal is very clear, but the road to accomplishing that goal is long and hard. Potential exporters to Japan need to be aware of obstacles they could encounter in trying to sell their products in Japan; obstacles like economic and cultural differences, customs duties which correspond to how processed a product is (highly processed products mean higher customs duties), preventing the import of certain products by having non-customs barriers, strict requirements in terms of packing and quality and other. Japanese importers are sticklers for reliable delivery which is something that foreign exporters often fail to honour. • Japan Tobacco International has made one of the biggest Japanese investments in Serbia. Did Japanese companies express their interest for investing in other economic branches in the last few years? - Japan Tobacco International was the first investment Japan made in Serbia. On top of that, Asahi Food and Healthcare Co. Ltd, Alltech and Mitsui Co. made a joint investment in Fermin Company in Senta. Fermin produces food additives and exports to Europe, the US and Japan. Via its daughter company in Germany, Panasonic opened a lighting device factory in Svilajnac. The company has also bought a facility owned by Reum GmbH in Svilajnac. Japanese companies became more interested in investing in Serbia after Panasonic came here. They did express interest for the auto-industry (particularly vehicle parts), but nothing has materialized so far. • Serbia has good IT experts, and there are many young university students who are about to graduate information technology. Do you think that they will be able to attract Japanese investments in this segment?
- The Serbian IT industry has an exceptional potential which the state has recognized and made it its priority. A lot of work is being done on bolstering and promoting this sector, from increasing the number of IT experts in the country to stimulating domestic companies which export IT services. The development and promotion of the IT sector will certainly attract Japanese investors.
We have to bear in mind that both in the product and service department, Japanese tourists have very high criteria One of the hurdles in our cooperation is Japanese businessmen not having enough information about Serbia, and this is not only the case with the IT sector but other sectors too. • The whole of Europe has been trying to have as many tourists from Japan as possible, while the Japanese government has been encouraging its people to spend more. How does Serbia fare among Japanese tourists?
- An expert from JICA (the Japanese International Cooperation Agency), who spent some time in Serbia as a tourism advisor, told us that over 200,000 Japanese tourists visit Croatia each year, while in the case of Serbia that number is 3,500. These figures clearly indicate just how we fare as a tourist destination among the Japanese people. The fact remains that many Japanese tourists are travelling to neighbouring countries and that they usually don’t stay long in one place. We need to use this situation and try drawing in Japanese tourists to our country too. Of course, we have to bear in mind that both in the product and service department, Japanese tourists have very high criteria. Apart from devising our tourist offer, which needs to include group trips to historical and cultural sites, we need to improve our tourist infrastructure in order to attract tourists from all over the world. • Have you been cooperating more closely with business associations from Japan? - Business associations in Japan, including the Japanese Chamber of Commerce and Industry, have relegated some of their authority to the Japan External Trade Organization (JETRO). The Serbian Chamber of Commerce has been strongly cooperating with JETRO office in Vienna which covers this part of Europe. Of course, we are open to cooperation with other Japanese associations too. In 2011, we got in touch with the Japanese Machinery Federation and subsequently the Serbian Chamber of Commerce met with the Federation’s delegation in Serbia. ■
Olympus d.o.o. Beograd Djordja Stanojevica 12, 11070 Belgrade, Serbia phone: +381 11 2222 900 fax: +381 11 2222 901 web: www.olympus.rs
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Economic Cooperation between Serbia and Japan
Serbia’s Deficit
According to the data collated by the Serbian Chamber of Commerce, the value of Serbian exports to Japan has been constantly in the region of several hundred thousand US dollars annually with Serbia constantly recording a trade deficit with Japan
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n 2012, Japan took the 66th place on the list of 164 countries to which Serbia exported. The country also took the 30th place on the list of 204 countries from which Serbia imported. Japan’s share in total Serbian imports, in 2012, was 0.84%. According to the data collated by the Serbian Chamber of Commerce, the
value of Serbian exports to Japan has been constantly in the region of several hundred thousand US dollars annually with Serbia constantly recording a trade deficit with Japan. In 2012, Serbia’s deficit in trading with Japan was US $149.2 million. The same year, Serbia exported US $3.9 million worth of goods to Japan, and imported US $153.1 million
Serbia mostly exports miscellaneous food products (yeast and additives for the food industry) to Japan worth of goods from Japan. Serbia mostly exports the following products to Japan: miscel-
Leading SITC segments in exporting to Japan
laneous food products (yeast and additives for the food industry), raspberries, frozen strawberries and other frozen fruits and vegetables, beech and CDs. In 2012, Serbia mostly imported motor vehicles and parts for motor vehicles, specialized industrial machinery, printing accessories, digital cameras, chemical preparations for photography, and medications from Japan. In 2012, the following companies exported the most to Japan: Altech from Senta, Sirogojno, Eurosax, WIPLD Belgrade, Agropartner, Mikrotri Belgrade, and Headcommerce Belgrade. The companies that imported the most from Japan the same year were Toyota Serbia, TRS SWISS Production, RTB Invest, Josipović d.o.o., and CT Computers. The Commerce and Navigation Treaty, signed and ratified in 1959, provides the institutional basis for economic cooperation between the two countries. The Treaty contains a clause for the most favoured nation in trading. However, Serbia has failed to utilize this benefit fully. Japan is one of the biggest donors to Serbia. From 1999, Japan has donated nearly half a billion euros to Serbian medical and educational institutions. The money was also spent on economic and technical assistance and advancing transport. ■
Leading SITC segments in importing from Japan
Miscellaneous food products
Road vehicles
Fruits and vegetables
81%
5% 5% 3% 2% 4%
Miscellaneous finished products, not mentioned elsewhere Mineral ores and scrap metal Clothes Other
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8%
8% 31%
10% 10% 33%
Electrical machinery, appliances and devices Scientific and control instruments Specialized industrial machinery Cameras, wrist watches Other
interview
Milena Argirovic, Country Manager Takeda GmbH Belgrade
Traditional Values for New Times The founding of Takeda dates back to the Edo period in 1781. Over the 230 year history, Takeda has repeatedly and consistently achieved innovation
- Our corporate philosophy in its current form was established in 2002, but the principles it expresses are far from new – they echo ideas expressed by Chobei V in the “Nori - Fundamental Creed,” and are an extension of the values on which the company was founded.
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n today’s business world, many companies are happy when they have 10, 15, and 20-year anniversaries. Japanese pharmaceutical company Takeda, on the other hand, is very proud of its 230 year history. The company successfully integrates traditional values with its strong focus on research and innovation.
• Takeda was one of the first Japanese pharmaceutical companies to establish a presence not only in Serbia, but in Europe too. What innovation is your company bringing to the European pharmaceutical market? - Takeda is a science-led organization with a rich pipeline and molecule-to-market capabilities to meet the demands of the rapidly changing healthcare environment and the needs of patients. A passion for discovery is at the core of Takeda’s ability to deliver superior healthcare solutions to make a difference to patients’ lives and drive company success. Our focus is on six core therapeutic areas – metabolic and cardiovascular, oncology, central nervous system, respiratory and inflammatory, general medicine, immunology and vaccines. • Considering traditional Japanese values such as integrity and dedication, could you tell us something about your corporate philosophy?
Our focus is on six core therapeutic areas – metabolic and cardiovascular, oncology, central nervous system, respiratory and inflammatory, general medicine, immunology and vaccines
• Because of the global economic downturn, many companies have reduced their business activities, unlike Takeda, which keeps on growing. What are your commercial plans for Serbia, and what are your plans for expansion? - Takeda is one of the few pharmaceutical companies in Serbia that was growing in 2012 as opposed to many others who were decreasing number of employees. Hopefully we will continue to do so in the years to follow. Takeda is able to ensure growth in times of economic austerity by maintaining a smart primary care approach. As a company, Takeda has invested in a new commercial model that takes into account the swiftly changing reality of today’s healthcare environment. Rather than relying on mass marketing, the model focuses on the deployment of professionals who will effectively engage with different stakeholders. We as a company intend to stay in Serbia for the long-term and to deliver our innovative products to Serbian patients. In the near future we will be focused in the field of haematology, nephrology, diabetes, bringing some of the life saving products (for lymphoma patients), but also products that will significantly improve healthcare in some other therapeutic areas such as diabetes. Additionally,
we will continue the partnership with a broad medical community and stay dedicated to some of the areas where Takeda already has a heritage, such as gastroenterology. • Takeda has been nurturing a tradition that spans an incredible 230 years. Could you tell us something about the company's history? - The founding of Takeda dates back to the Edo period in 1781 and Chobei Takeda I. What started out as a small family business dealing with Japanese and Chinese medicine grew steadily through its commitment to business, integrity and frugality. Over the 230 year history, Takeda has repeatedly and consistently achieved innovation. During the 1960s, the company expanded its overseas operations. We have integrated TAP Pharmaceutical Products with Takeda Pharmaceuticals North America, Takeda Global Research & Development, acquired US-based Millennium Pharmaceuticals, and more recently, acquired Nycomed, a Swiss-based pharmaceutical company. The merger with Nycomed has strengthened us as a company and afforded us a complete European footprint which will be crucial to future success. Takeda had a strong product pipeline, and Nycomed had 100% geographic coverage in Europe, so together we are a formidable force. Our portfolios of medicines are complementary, and together we achieve a critical mass. Whilst our company is changing rapidly to meet the demands of the environment, not surprisingly, values of the past are supporting and continue to influence the Takeda of today. ■
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Culture
Traditionally Rich and Diverse Culture Japanese culture is rich and diverse, dating back to 10,000BC when the Jomon people first settled in Japan
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t is widely known for its traditional arts as well as its contemporary pop culture. Today in Japan it is still possible to see kimono-clad women shuffling down the street with umbrellas overhead, or oversized sumo wrestlers battling it out in the ring. A sophisticated cuisine, unique social customs, and refined performing and visual arts also contribute to a culture which has become attractive, and sometimes fashionable, to many foreigners Painting
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Japanese painting has had a rich history. Many of today's Japanese painters work in styles that are heavily influenced by popular cul-
Poetry
A haiku consists of just seventeen mora (words). These mora are organized into three lines of five, seven, and five words each
Takashi Murakami
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ture and anime. The most popular and well-known of these contemporary painters is probably Takashi Murakami. He is part of a studio collective, which is called Kaikai Kiki. His work focuses on Japanese society in the post-war period. One of the intentions of his art is to blur the lines that separate fine art from its commercial counterpart. Japanese painting has a unique and colorful history. The creative innovation of modern artists melding popular and fine art points to an interesting future for painting in Japan.
haiku poetry
The Manyoshu is said to be the oldest anthology of Japanese poetry. It was finished during the early Heian period and gathered together ancient works. The poems are arranged in approximate chronological order. Many of them use a fixed form that is named chola and tanka. However, the poems that were credited to Emporer Yuryaku in the first volume have no fixed form. The first poem is a song
of love for a girl with whom the poet had a chance meeting and also a song of ritual that praises the land's beauty. It is still used in court rituals. Most of the three first sections are written by seventh and eight century poets. Kakinomoto Hitomaro and Nukata no Ōkima are two of the most recognized of them. In fact, Hitomaro is regarded as one of Japanese literature's best poets of all time. One of the most unique forms of traditional Japanese poetry is the haiku. A haiku consists of just seventeen mora (syllables). These mora are organized into three lines of five, seven, and five syllables each. The haiku is a very strict form, but has been able to achieve amazing popularity with people around the world. In fact, the haiku is so popular that there are entire periodicals devoted just to the art form, such as Modern Haiku magazine.
Traditional Japanese music usually refers to Japan's historical folk music
Music Traditional Japanese music usually refers to Japan's historical folk music. One of the defining characteristics of traditional Japanese music is its sparse rhythm. Regular chords are also absent. It is impossible for a person to beat time to the music. All of the rhythms are ma-based, and silence is an important part of the songs. The focus is on creating music that flows in an attempt to mirror the behavior of nature. It is usual for songs to start off at an extremely slow pace and to pick up speed as they progress. Then, they get slow again before transitioning into long and drawn out finishes.
Traditional Japanese music has three main types, instrumental, court music, and theatrical. One type of theatrical music is Kabuki. Kabuki music can be sub-divided into three categories. The first is Gidayubushi, which is similar to joruri music. Joruri is a type of narrative music that uses shamisen and has four styles. The second type of kabuki music is Shimoza ongaku and is played for kuromisu (lower seats) below the theater stage. Another form of theatrical music is called noh. The hayashi-kata play Noh music. They use taiko, kotsuzumi, fue, and otsuzumi instruments to make the sounds. The oldest Japanese traditional music is gagaku. Gagaku is a form of court music. Gagaku includes dances, songs, and a blend of other genres of Asian music. Sculpture Japanese sculpture is a very interesting form of Japanese art. During the 1970s, a new artistic movement called mono-ha became popular. This movement placed importance on the material world and brought about the end of the anti-formalism. Mono-ha's
focus on people's relationships with objects was widely accepted in the art world. It led to a greater appreciation of the environment and brought Japanese sculpture back to the forms and principles that had been embraced before the anti-formalism movement. The biggest precept that came back into prominence was reverence for the Buddha and his teachings. The artists of this period rejected much of what was being done in the West. The movement created a new art style that was contemporary and Asian. Although it was very unique to Japan, it became a large part of the international art scene of the time. Outdoor sculpture became popular with the 1969 opening of the Hakone Open-Air Museum. This movement hit its stride in the 1980s. During this time, many cities had huge outdoor sculptures in plazas and parks. Major architects would plan to include sculptures as they were designing their buildings. Outdoor museums emphasized how sculpture could be placed naturally in the environment. Most of the pieces were made out of plastic, stainless steel, or aluminum. During the decade of the 1980s, natural materials like wood became prominent in most works by Japanese sculptors. Sculptures started to move to more enclosed spaces like inner courtyards. Systematic gestural motion was one of the most popular techniques of the sculptors of this period, most notably Hidetoshi Nagasawa, Kyubei Kiyomizu, and ⇢
Hidetoshi Nagasawa cordeditorial@cma.rs |
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Japanese theater is a traditional form of entertainment that can be enjoyed by anyone, whether fluent in Japanese or not Shigeo Toya. Shingeo Toya came to prominence, along with a group of fresh new Japanese sculptors in the 1980s. This movement was called post-Monoha. It used elements of nature, primal forces, and the Zen aesthetic, which were the focus of the Monoha movement, and added a fresh artistic process to them by carving and coloring the work. These sculptors added additional layers to the works and reasserted the artists' hands in the pieces.
films produced. Movies have been produced in Japan since 1897, when the first foreign cameramen arrived. In a ranking of the best films produced in Asia by Sight & Sound, Japan made up eight of the top twelve, with Tokyo Story ranked number one. Japan won an Academy Award for the Best Foreign Language Film four times, again more than any other country in Asia. Some notable Japanese films are Rashomon, Tokyo Story, Seven Samurai, Godzilla, Ugetsu, Yojimbo, Harakiri, The Woman in the Dunes, In the Realm of the Senses, Tampopo, Grave of the Fireflies, Akira, Ninja Scroll, Ghost in the Shell, Hana-bi,
One of the world's best directors, but also one of the greatest screenwriters to ever grace Japan was Akira Kurosawa (March 23, 1910-September 6, 1998) Akira Kurosawa
Theater Japanese theater has a long, rich history. There are four main types of traditional theater in Japan. These are noh, kyogen, kabuki, and bunraku. Each of these forms of theater performance is very distinct and unique
With its various schools and styles ikebana continues to be an exciting and unique facet of Japanese culture from the another. Noh theater, also called nogaku, is a form of musical drama. The Japanese started performing Noh in the fourteenth century. Most of the characters in these plays are concealed by masks, and men play both the male and female roles. The subject matter consists of a few historical stories. Lady Aoi, based upon events recounted in the eleventh century's famous Tale of Gengi novel, is Noh theater's 74 |
most often-performed play. It is common for the performances to last an entire day. Five plays are usually performed during each showing. The earliest scripts for Kyogen theater date back to the fourth century. Noh plays were only put on to entertain people in the upper classes. During that time, Kyogen was performed to give Noh theater an intermission between acts. It would link the Noh play's theme with what was going on in the world at the time by using slapstick and farce. One difference between Noh and Kyogen performances is that the Kyogen performers do not wear masks and the Noh performers do.
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Japanese theater is a traditional form of entertainment that can be enjoyed by anyone, whether fluent in Japanese or not. Cinema The cinema of Japan has a history that spans more than 100 years. Japan has one of the oldest and largest film industries in the world – as of 2010 the fourth largest by number of feature
Battle Royale, and Spirited Away. One of the world's best directors, but also one of the greatest screenwriters to ever grace Japan was Akira Kurosawa (March 23, 1910-September 6, 1998) Ikebana Ikebana is the unique Japanese art of arranging flowers. It is a very disciplined art form that brings together humanity and nature. The art of ikebana is very unique to Japanese culture and remains very popular to this day. It is regularly featured on television shows, taught as part of school curriculums, and generally admired by everyday people. Seikei Bijin (Artificial Beauty) is one of the most popular programs that features ikebana on Japanese television. The basic theme of the show is that natural beauty is a very important part of life. With its various schools and styles ikebana continues to be an exciting and unique facet of Japanese culture. ■
Etiquette in Japan
How to Save Yourself from Embarrassment The code of etiquette in Japan governs the expectations of social behavior in the country and is considered very important. Like many social cultures, etiquette varies greatly depending on one's status relative to the person in question • The most senior Japanese person will be seated furthest from the door, with the rest of the people in descending rank until the most junior person is seated closest to the door. • It may take several meetings for your Japanese counterparts to become comfortable with you and be able to conduct business with you. • This initial getting to know you time is crucial to laying the foundation for a successful relationship. • You may be awarded a small amount of business as a trial to see if you meet your commitments. • If you respond quickly and with excellent service, you prove your ability and trustworthiness. • Never refuse a request, no matter how difficult or non- profitable it may appear. The Japanese are looking for a long-term relationship. • Always provide a package of literature about your company including articles and client testimonials. • Always give a small gift, as a token of your esteem, and present it to the most senior person at the end of the meeting.
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ome conventions may be very regional practices, and thus may not exist in all regions of Japan. Some customs have changed over the course of Japanese history. The following are generally accepted modern customs in Japan when it comes to business. Japanese understand that it is very difficult for foreigners to work in Japan. They will not expect you to speak or read Japanese, or be conversant with their strict cultural nuances and protocol. Mistakes are allowed as long as genuine respect is shown at all times. Japanese will usually try to help you but often feel embarrassment at their own lack of understanding or English language ability. However, this is only a very basic level introduction and is not meant to stereotype all Japanese people you may meet. Business Meeting • Appointments are required and, whenever possible, should be made several weeks in advance. • It is best to telephone for an appointment rather than send a letter, fax or email. • Punctuality is important. Arrive on time for meetings and expect your Japanese colleagues will do the same. • Since this is a group society, even if you think you will be meeting one person, be prepared for a group meeting.
Never refuse a request, no matter how difficult or nonprofitable it may appear. The Japanese are looking for a long-term relationship
Meeting • Greetings in Japan are very formal and ritualized. • It is important to show the correct amount of respect and deference to someone based upon their status relative to your own. • If at all possible, wait to be introduced. • It can be seen as impolite to introduce yourself, even in a large gathering. • While foreigners are expected to shake hands, the traditional form of greeting is the bow. How far you bow depends upon your relationship to the other person as well as the situation. The deeper you bow, the more respect you show.
• A foreign visitor ('gaijin') may bow the head slightly, since no one expects foreigners to generally understand the subtle nuances of bowing. Business Negotiation • The Japanese are non-confrontational. • They have a difficult time saying 'no', so you must be vigilant at observing their non-verbal communication. • It is best to phrase questions so that they can answer yes. For example, do you disagree with this? • Group decision-making and consensus are important. • Written contracts are required. • Japanese prefer broad agreements and mutual understanding so that when problems arise they can be handled flexibly. • Never lose your temper or raise your voice during negotiations. • Some Japanese close their eyes when they want to listen intently. • The Japanese seldom grant concession. They expect both parties to come to the table with their best offer. Dining On the rare occasion you are invited to a Japanese house: • Remove your shoes before entering and put on the slippers left at the doorway. • Leave your shoes pointing away from the doorway you are about to walk through. • Arrive on time or no more than 5 minutes late if invited for dinner. • If invited to a large social gathering, arriving a little bit later than the invitation is acceptable, although punctuality is always appreciated. • Unless you have been told the event is casual, dress as if you were going into the office. ■
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Japanese donations
The Joy of Giving and Helping The POPOS Programme (the Donation Programme for the Population’s Basic Needs) is an important channel used by Japan to make donations in Serbia. So far, 63 healthcare facilities in Serbia, 64 schools and 29 local public enterprises, NGOs and other organizations have received the POPOS assistance nels used by Japan to make donations in Serbia. The POPOS assistance usually goes to healthcare institutions, elementary schools and nurseries, public utility companies, welfare institutions, various associations, international and local NGOs, local authorities and other organizations. So far, 63 healthcare facilities in Serbia, 64 schools and 29 local public enterprises, NGOs and other organizations have received the POPOS assistance. Since 1999, when the programme started, Japan donated close to
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ellow buses in the streets of Belgrade have been widely accepted as a symbol of Japanese donations in Serbia. Every morning, these clean, air-conditioned, comfortable buses transport close to 200,000 people. There are 93 yellow buses in Belgrade – 18 single and 75 double buses. To this day, these vehicles are in excellent condition and the commuters just love them. Maybe none of these buses would be here if the Japanese didn’t have just one requirement before making the €17 million donation – that the buses should be regularly maintained. It takes the workers of the public transport company Belgrade (GSP Beograd) only four minutes to wash a bus, much less time than their counterparts in Europe need. All buses are washed in detail every three months. Even after ten years since the buses were donated to the public transport company Belgrade, the representatives of Japanese Government make sure that they come and see them every single time they visit Belgrade. In the last 14 years, Japan has donated €450 million worth of assistance which was mostly spent on humanitarian aid – medical equipment, school supplies, buses for public transport and water supply. Japan usually assists emerging countries, in their economic recovery, through direct investments. The POPOS Programme (the Donation Programme for the Population’s Basic Needs) is one of the important chan76 |
In the last 14 years, Japan has donated €450 million worth of assistance which was mostly spent on humanitarian aid
The POPOS Programme (the Donation Programme for the Population’s Basic Needs) is one of the important channels used by Japan to make donations in Serbia
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€9 million in this way. Bearing in mind that this is just a fraction of the total Japanese donations amounting to half a billion euros, it is clear that Japan has been helping Serbia in many other ways. The POPOS assistance is a one-off grant. The organization that receives this
assistance is required by the Japanese Embassy only to accept the general terms of assistance. There are no additional requirements. This financial assistance is usually spent on repairing school and nursery buildings (mostly replacing windows and doors, renovating toilets, roofs and floors), medical supplies and ambulance vehicles, garbage trucks and containers, tank-cars and sweepers, specialized vehicles for the transport of persons with disabilities, equipment for welfare institutions and so on. Of course, the POPOS assistance is not only limited to these cases. The Japanese Embassy is more than willing to provide more information about other assistance opportunities. The maximum budget per project is ¥10 million (approximately €79,000). Due to the difference in exchange rates, this amount, expressed in euros, varies each year. The Embassy receives applications for the POPOS assistance throughout the year. The Japanese government has been giving financial assistance to environmental protection projects by making donations to public utility companies in Serbia and Montenegro. The donations are usually trucks for the collection and disposal of garbage, garbage containers, special recycling containers, recycling presses, specialized vehicles for water pipes and sewage maintenance, and the like. The Japanese government and Japan Foundation also give grants for culture, arts and intellectual exchange/ cooperation programmes. Institutions, organizations and individuals can apply. The Japan Foundation funds cultural exchange, students of Japanese language and culture, student exchange and other similar projects. ■
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