KATHMANDU, MARCH 14
Prime Minister Pushpa Kamal Dahal has said that the private sector of Nepal and China can play an important role in fostering business and investment opportunities, taking advantage of the conducive policy regime here.
Addressing the Nepal-China Business Forum organised by Confederation of Nepalese Industries (CNI) and China Council for the Promotion of International Trade (CCPIT) today, PM Dahal emphasised that Nepal's growing trade deficit with China and the apparent gaps in commitment and actual investment of FDI from China are some of the issues that can be addressed through this forum.
"Nepal imported goods worth about Rs 232 billion from China during the fiscal year 2021-22 whereas our exports were at meagre Rs 0.67 billion during the same period," Dahal informed.
"We have also requested the Chinese side to help enhance our productive capacity in a range of products with comparative advantage and enlist vegetables, meat products, tea and herbal products in the General Administration of Customs of China (GACC). We have also requested the Chinese side to include some 512 tradable Nepali products in the list of DFQF facilities on a preferential basis. These measures will be important to reduce Nepal's trade deficit. Trade is the engine of growth and our future prosperity lies in our capacity to produce and trade more."
Highlighting the major reforms made in the investment regime to encourage, promote, and protect foreign direct investment, PM Dahal said that Nepal is committed to business- and investment-friendly policies and boasts one of the lowest tax slabs.
He also said that investment in Nepal's nascent industrial development is highly profitable, with potential in various sectors, including hydropower, industrial manufacturing, infrastructure development, tourism, agriculture, minerals, and mining. He invited Chinese investors to explore opportunities in Nepal and assured them of a conducive business environment.
Likewise, CCPIT Vice-Chairperson Zang Shaogang said that the today's forum will help to further consolidate the foundation for bilateral economic and trade cooperation and promote the Chinese and Nepali business communities to march towards a new journey.
Stating that China is Nepal's largest source of foreign capital and tourists and the second largest trading partner, Zang said, "As for investment, China has been the largest source of foreign investment for Nepal for five consecutive fiscal years. Chinese enterprises are also the main players in the Nepali project contracting market. As of the end of last year, China had signed project contracts worth $10.74 billion in Nepal, with a turnover of $5.48 billion. This fully demonstrates the great attention and importance Chinese investors attach to the Nepali market."
To promote the Chinese and Nepali business communities, he suggested expanding bilateral trade and areas of investment cooperation, and CNI and CCPIT should give full play to the role of trade promotion organisations.
Vishnu Agrawal, president of CNI, said the partnership with China in the areas of trade, transit and investment is a matter of utmost importance to Nepal.
Expressing that growing trade deficit with China is becoming a challenge for Nepal, Agrawal highlighted the need for more Chinese investment to minimise the trade deficit.
"It is unlikely that the trade balance between the two countries will be achieved immediately. However, it can be reduced. Although there are various success stories of Chinese investments in industries in Nepal like Hongshi Cement and Huaxin Cement, we would like more Chinese entrepreneurs to come to Nepal in the industrial and service sectors and take advantage of opportunities here."
The CNI and CCPIT had signed a memorandum of understanding (MoU) in 2016, to strengthen the platform and provide professional services, among others.
A version of this article appears in the print on March 15, 2023, of The Himalayan Times.
