The Serbia–Japan investment agreement entered into force on 30 July, establishing a legal framework designed to protect bilateral investments and support future industrial cooperation between the two countries.
The treaty introduces national treatment and most-favoured-nation treatment after establishment, guarantees fair and equitable treatment, provides protection against uncompensated expropriation, ensures the free transfer of funds and establishes formal dispute-settlement procedures.
Legal framework supports future investment
By September 2025, Japanese companies had invested approximately €813 million in Serbia, supporting more than 4,200 jobs. Major Japanese investors operating in the country include Japan Tobacco International, Panasonic, Toyo Tire, Nidec and Hi-Lex. The agreement does not include commitments for immediate new investment. Instead, it strengthens the legal environment for future projects by providing investment protections and predictable rules that can support corporate investment decisions.
Toyo Tire expands research activities
Among existing Japanese projects, Toyo Tire is investing €29 million in a research and development centre in Inđija. The facility is scheduled to begin operations in January 2027 and will complement the company’s existing tyre manufacturing plant and planned solar generation capacity. The project represents an expansion beyond manufacturing into research and development activities.
Focus on higher-value industrial investment
The investment treaty provides a framework that could support additional Japanese projects in sectors including higher-value automotive systems, electronics, energy efficiency, industrial automation and research. The agreement comes as Serbia seeks to expand investment beyond labour-intensive manufacturing, while the country’s manufacturing sector continues to record a decline in employment.
