Nepal-China Business Summit held in Beijing

PM Oli highlights investment climate

 

Kathmandu, Dec. 4

The government and private sector of Nepal and China have reiterated their commitment to continuous reforms to attract foreign investment, including Chinese investment, in Nepal.

According to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Nepal-China Business Summit organised in Beijing during the visit of Prime Minister KP Sharma Oli to China emphasised policy and procedural improvements while advocating for investment expansion and trade facilitation.

The Summit was jointly organised by the FNCCI, the China Council for the Promotion of International Trade (CCPIT), and the Embassy of Nepal in China. PM Oli was the chief guest at the event.

“The summit, aimed at promoting bilateral trade, developing the tourism sector, and attracting Chinese investment in Nepal. PM Oli highlighted that the investment climate in Nepal is improving and urged investors to explore opportunities in the country,” the FNCCI informed in a statement on Wednesday.

Acknowledging the historical ties between Nepal and China, he emphasised that these mutual relations have fostered economic development.

Prime Minister Oli underlined the priority given to cooperation between the government and the private sector in fostering a conducive business environment. He described the private sector as the backbone of the economy and reiterated the government’s commitment to protecting both domestic and foreign investments. Additionally, he commended FNCCI for its initiatives in promoting investment, tourism, and exports internationally.

According to the FNCCI, while acknowledging China as Nepal's largest investor and second-largest trade partner, PM Oli expressed concern over the trade deficit between the two countries. Highlighting the market potential for Nepali agricultural products in China, he called for efforts to facilitate trade.

Speaking at the summit held at CCPIT headquarters in Beijing on Wednesday, Chinese Vice Minister for Commerce Ling Ji noted the long-standing relations between China and Nepal and the increasing economic activities. He mentioned China’s growing investments in Nepal and assured further expansion in the future.

Vice Minister Ji also pointed out that China is Nepal's second-largest trade partner and committed to facilitating transit for Nepal to trade with other countries via Chinese routes. He mentioned that Nepal would benefit from China’s decision to provide duty-free access to products from the least-developed countries starting this month.

China is Nepal’s largest committed investor and the second-largest in actual investments. Vice Minister Ji expressed China's willingness to collaborate with Nepal in tourism and agriculture and suggested encouraging more airline companies to expand services between the two countries.

This is the second edition of the summit, following a similar one organised in September 2023. FNCCI President Chandra Prasad Dhakal, addressing the summit, outlined the initiatives taken to improve the business environment over the past year.

Dhakal also announced Nepal's first credit rating, ranking second-best in South Asia after India, which he said had created a secure environment for investors. He emphasised the need for proactive government and private sector efforts to enhance border infrastructure and establish direct flights between China and Nepal at Bhairahawa and Pokhara airports.

Dhakal highlighted ample investment opportunities in hydropower, tourism, manufacturing, and IT-enabled services in Nepal. He noted that tourism infrastructure, such as cable cars, theme parks, and resorts, has significant potential for foreign investment. Stating that Nepal is an attractive destination for Chinese tourists, he urged the Chinese government to prioritise Nepal in its tourism agenda.

CCPIT Vice President Zhang Shaogang assured CCPIT's cooperation in increasing Chinese investments in Nepal and importing Nepali products. He also announced upcoming economic partnership programmes in collaboration with FNCCI.

Likewise, Investment Board Nepal CEO Sushil Gyawali highlighted Nepal's investment potential and the board’s role in facilitating Chinese investments.

The summit saw the participation of 120 Chinese entrepreneurs and around 50 Nepali entrepreneurs representing FNCCI, the Confederation of Nepalese Industries, and Nepal Chamber of Commerce. High-ranking officials from both governments also attended, along with members of the Prime Minister's delegation.

This was the fourth international summit organised by FNCCI in the past 18 months. Similar conferences were previously held in Beijing, New Delhi and Dubai in collaboration with CCPIT, Confederation of Indian Industry, and Dubai Chambers.

Published in The Rising Nepal daily on 5 December 2024.