In the heart of Europe, land-locked Luxembourg, with a population of only around 681,000 and an area of 2,586.4 square kilometers, offers unmatched advantages to Japanese businesses wanting a presence in the European Union.
Bordered by Germany, Belgium and France, the tiny duchy is the ideal logistics and business hub to the EU.
Because of its history and location, Luxembourg has nurtured a multicultural environment where over half the population is foreign-born. Collaboration across languages and cultures, once a necessity, has become a competitive edge.
In such a setting, Japanese companies find it easier to navigate the complexities of international business, supported by a workforce fluent in English, French, German and Luxembourgish.
“Japan and Luxembourg have always enjoyed excellent relations based on the long-standing friendship between the Japanese imperial house and the grand ducal family. Just this year, Grand Duke Henri visited the country in May, followed by Crown Prince Guillaume in July,” said Japanese Ambassador to Luxembourg Tadahiro Matsubara.
“Luxembourg is an important partner because we share fundamental values and principles. Our countries are strengthening partnerships across all areas. We have broadened discussions on possible areas for future financial cooperation,” he said.
Beyond diplomatic ties, Japanese firms have also shaped Europe’s innovation landscape from Luxembourg.
“When it comes to fintech in Europe, Rakuten Europe Bank is the only fintech arm from here. We have been defining our own business models by collaborating with other companies. And we plan to invest more to scale our business,” said Rakuten Europe Bank CEO Toshihiko Otsuka.
With its sound governance, transparent institutions and robust legal framework, Luxembourg has long been a magnet for global investors and attracted a new crop of entrepreneurs and innovators.
“We are witnessing Luxembourg’s evolution into a metropole where ideas are born, research thrives and transformation begins,” said Esch-sur-Alzette Mayor Christian Weis.
This commitment to forward-thinking industries is echoed by companies like RSS-Hydro.
“Our mission is to use geospatial modeling and AI (artificial intelligence) to accelerate disaster analysis and climate risk mitigation. We aim to break barriers and deliver real-time insights for better decision-making,” said RSS-Hydro CEO Guy Schumann.
For entrepreneurs like Makiko Grafin von Oberndorff, Luxembourg’s location and openness are ideal.
“Our goal at House of Japan is to bridge cultures by sharing Japanese tradition, food and products from Luxembourg to the world. We’ve already secured a license to export sake internationally from here,” she said.