As one of the world’s most advanced and innovative economies, Japan continues to offer significant opportunities for Swedish companies. Strong infrastructure, a highly skilled workforce, advanced manufacturing capabilities, and a world-leading innovation ecosystem make Japan an attractive market across multiple sectors.

At the same time, companies report a more demanding operating environment. Labour shortages, limited access to specialist talent, regulatory complexity, and global economic uncertainty continue to affect competitiveness and business decisions. Companies also point to currency pressures and digitalisation challenges as ongoing concerns.

Cooperation between Sweden and Japan remains strong within sectors such as advanced manufacturing, healthcare, mobility, digital solutions, life sciences, and sustainability. Japan’s continued investments in innovation, digital transformation, energy resilience, and industrial renewal continue to create opportunities for Swedish companies offering sustainable and high-value solutions.

Competitiveness in Japan is closely linked to partnerships, brand awareness, product development, sales competence, and long-term customer relationships. The Swedish brand continues to be associated with quality, innovation, sustainability, and reliability.

Japan is widely regarded as an attractive and stable market with strong infrastructure, high levels of personal safety, and a reliable business environment. However, companies also point to talent shortages, regulatory complexity, and administrative burdens as ongoing challenges.

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ABOUT THE SURVEY

To assess the opportunities and challenges faced by Swedish companies in international markets, Team Sweden conducts annual Business Climate Surveys across multiple markets worldwide. This year’s survey in Japan includes responses from 73 Swedish companies operating in the country. Industrial companies represent a significant share of respondents, while professional services and consumer companies also make up a considerable share. The majority of respondents have been active in Japan for more than five years.

We would like to extend our sincere appreciation to all participating companies and respondents for their contributions to this report. Team Sweden in Japan hopes that the findings will serve as a basis for continued dialogue with Japanese authorities and other relevant stakeholders.