Japanese business in Azerbaijan

Azerbaijan, Baku, Nov. 11 / Trend /

Trend Analytical Center expert Leyla Abdullayeva

The economic relations between Azerbaijan and Japan are in line with the close cooperation over 20 years.

The prospects for trade and economic cooperation between Azerbaijan and Japan will be discussed during the next meeting of the Azerbaijan-Japan Joint Economic Commission in Baku on November 22-23.

The relations between countries are dynamically developing. Much was done over these years. Japan one of the first supported Azerbaijan's far-seeing oil strategy. Today two major Japanese companies Itochu and Impex are involved in the Contract of the Century. Such leaders of Japanese business, as Mitsubishi, Mitsui, Marubeni, Sojits are involved in the energy and infrastructure projects in our country.

Taking into account Japan's rich experience in the areas of infrastructure and transport, the Azerbaijani government considers it appropriate for Japanese companies to participate in various projects on railway construction of high speed trains, suspension bridges, high-speed roads.

There are specific proposals from Japanese companies and investment institutions to develop, for example, rare minerals, construct a refinery on land and oil waste treatment, even to purchase and process sturgeon hides.

An artesian well in the village of Soganverdiler, Barda region of Azerbaijan abandoned for 20 years was restored within Japan's project "Improvements in irrigation systems in eight villages in Barda and Agjabadi" at the end of September 2011.

At present, Azerbaijan implemented 142 projects worth $10.6 million within the Japanese program "Grassroots and Human Security". The total amount of Japan's official assistance to Azerbaijan to improve economic infrastructure, agriculture, social and cultural sphere, human resources, etc. exceeded $1 billion.

Thus, Japan is among the leading countries on deposits in the country in the structure of foreign investments in Azerbaijan's economy. According to the Azerbaijani State Statistical Committee, Japan invested in Azerbaijani economy 160.6 million manat in January-September 2011.

Japanese investments in Azerbaijani economy

Azerbaijan is one of the active importers of Japanese technique, technologies and mainly cars. According to the Azerbaijani State Customs Committee, the trade turnover between Azerbaijan and Japan amounted to $125.6 million in January-September 2011 or 22.7 percent more compared to the same period of last year.