top of page
Search

RISK PERCEPTION AND INVESTMENT REALITY IN THE JAPAN–COLOMBIA RELATIONSHIP

Beyond Control Risk


Written by: Angelly Triana, Intern in International Relations


In the worlds of business and international trade, security is measured not only by crime statistics, but also by perception. For countries such as Japan, where public safety is exceptionally high and business culture is geared towards risk management, the standards by which other destinations are evaluated and their perceived safety are key factors. Although Colombia has made significant progress in terms of institutional stability and economic openness in recent years, it still faces structural challenges with regard to the international perception of its security, which has an impact on its global standing.



Photo: controlrisk.com
Photo: controlrisk.com

The Japanese business climate is based on analyses by international firms specialising in corporate security and strategic consulting. These firms are responsible for developing indices and maps that classify cities and countries according to their operational risk levels relating to factors such as crime, political stability, and institutional infrastructure. These reports directly influence investment decisions and business mobility.


Several Latin American cities are rated as high-risk in these types of assessments, including some Colombian cities such as Cali. Despite its significant economic and logistical potential, Cali often falls into categories requiring additional precautions. It is important to note that this does not necessarily mean that investment in these cities is unfeasible, but it does imply that companies must implement stricter security protocols for corporate travel, logistics and personnel management. For Japanese companies, these factors often represent an initial barrier to exploring business opportunities.o.


Source: Banco de la República
Source: Banco de la República

However, the behaviour of foreign direct investment (FDI) in Colombia over the past few decades shows that risk is not set in stone, but rather a variable that can be managed. Despite the contraction in flows and the current international context of economic slowdown, higher financing costs and persistent geopolitical tensions, Colombia continues to position itself as a relevant investment destination.


The other side of the coin:

Focusing solely on the risk dimension when analysing Colombia would lead to an incomplete and inaccurate interpretation. The same risk management approaches that highlight vulnerabilities also reveal strategic strengths. In recent decades, Colombia has established itself as one of the most dynamic economies in Latin America, offering much more than just its high-quality coffee and beautiful flowers. The country boasts a privileged geographic position as a gateway to the region, an abundance of natural resources and growing productive diversification. This is the real trade-off that an objective risk analysis must take into account.


Photo: Twitter
Photo: Twitter

For Japan, a country with a strong interest in importing resources and securing stable global supply chains, these characteristics are particularly relevant. As previously mentioned, Colombia offers opportunities in sectors where Japanese technological expertise can complement existing capabilities, including renewable energy, infrastructure, advanced manufacturing, sustainable mobility, and agribusiness. This also strengthens the diplomatic relations that have been cultivated over more than a century, during which time the two countries have maintained stable ties of cooperation and trade.


Risk as a Factor, Not a Verdict

The relationship between perception and reality is now crucial, as international security rankings act as initial signals that influence the reputation of an investment destination. However, Japanese companies that are already operating in Colombia can provide a more nuanced picture through their direct experience.


They have developed successful operations in sectors such as manufacturing, automotive trade, technology and logistics. It is important to note that they have implemented relatively standard risk mitigation strategies, including territorial security assessments prior to operation, coordination with local authorities, logistical planning and corporate mobility protocols.


In this sense, Japan’s commitment to Colombia is not just rhetoric; it is reflected in concrete investments. For example, in July 2025, Yamaha Motor Co. strengthened its presence in Colombia by acquiring a significant equity stake in Incolmotos Yamaha, thereby reaffirming its commitment to the Colombian market as a regional platform.


Photo: Incolmotos Yamaha
Photo: Incolmotos Yamaha

In the agribusiness sector, Sakata Seed Corporation established its subsidiary, Sakata Colombia S.A.S., in 2024, recognising Colombia as the third-largest market for vegetable seeds in South America and the leading market for flowers.


Photo: Sakata.com
Photo: Sakata.com

Another company with a significant track record is Mitsubishi Electric, which has been operating in Colombia since 1969. It is the only elevator company with its own manufacturing facility in Colombia, which has been located in Bello, Antioquia since 1985. This has given the company a competitive advantage, enabling it to export to Ecuador, Peru, Panama, the Dominican Republic, and Trinidad and Tobago.


In July 2025, Mitsubishi Electric reaffirmed its commitment to Colombia by opening Metric, a training centre specialising in industrial automation in Bogotá, which develops Colombian talent in Industry 4.0 technologies, energy efficiency, and sustainability.


Photo: Juan Diego Zapata Buitrago
Photo: Juan Diego Zapata Buitrago

Conversely, the development of Colombian cities demonstrates that security is not a static condition. Medellín, for instance, has faced considerable challenges for many years due to its association with violence, yet it is now recognised as a global leader in urban innovation and entrepreneurship.


These examples of success and commitment demonstrate that the Japanese presence in Colombia is diverse and forward-looking, grounded in a strategic assessment that recognises the country's capabilities beyond risk rankings.


Conclusion: Turning Perception into Opportunity

Colombia and its companies must implement soft power strategies and continue to build narratives that highlight the country's capabilities and competitive advantages. Although risks must be overcome, stable commercial and economic relations have been established with Japan that are sustained over time and highly beneficial for both countries.


Photo: Presidencia de Colombia
Photo: Presidencia de Colombia

In sum, security should be understood as a manageable variable within an already consolidated economic relationship, rather than as an obstacle. The key to the long-term sustainable development of Japan–Colombia economic ties lies in striking a balance between perception, experience, and opportunity, building on their considerable potential.



References:

 
 
 

Comments

©2025 EDITED BY CCJCI

bottom of page