Kathmandu, June 20: Prime Minister KP Sharma Oli has urged the Chinese
investors to invest in Nepal’s potential sectors like manufacturing,
hydropower, information technology, services, tourism, mining, and agro-based
industries.
“Nepal is a virgin land for investment. A land of
immense potentials for investment in the areas of hydropower, agriculture,
tourism, services, manufacturing industries, among others,” said the PM while addressing
the Nepal-China Business Forum in Beijing on Wednesday, according to the
Embassy of Nepal in China.
"Our negative list is very small, and we confidently count on
Chinese investment in filling our financial as well as technological gap. I believe our friend China is willing to do
this," he said.
He stated that investing in Nepal now was really a profitable business,
and the government was determined to maintain an investment friendly
environment, not by word but by action.
“With the end
of political transition and strong government in place, situation of law and
order in the country has improved remarkably. So is the situation in terms of
industrial relations," he added.
China remains the largest source of FDI in Nepal and the second
largest trading partner while economic engagement between the two countries has
been growing rapidly.
Our focus on trans- Himalayan connectivity will
create conducive environment for bilateral trade and facilitate increased
movement of goods and services, stated PM Oli.
“Investors always look for market, which is not a
problem in Nepal. As you all know, Nepal is located between two vibrant markets
of the world, India and China, with a population of over 2.5 billion.
Production is the only problem. Our
productive capacity is limited,” he said.
Nepal enjoys Duty Free Quota Free (DFQF) access
into Chinese market to more than 8,000 Nepali products.
Nepal has been requesting China to grant enhanced
level of market access to 512 tradable products. It also has duty free access
to European market and preferential market access to the United States of
America for over 70 products as a Least Developed Country (LDC).
“We are committed to further improving business
climate in the country. We are ready to do everything that enhances your
confidence that facilitate your engagements and that helps you make quick
decision for investment,” said the PM.
He also said that the country had enacted the
laws and policies on foreign investment, Public-Private Partnership, industrial
enterprises, banking and intellectual property.
He said that Nepal was an attractive land for diversified agriculture comprising
the arable land just 80 metres above the sea level to the top of the world.
“It is also a lucrative land for investment in hydro sector with more
than 100,000 megawatt capacity which remains untapped so far. It has a
reservoir of mines and minerals such as iron, cement and precious stones, yet
to be explored,” the PM said.
He assured the Chinese investors that the government of Nepal was
committed to maintain liberal economic policy with private sector as a key
partner, and the present government had no intention to reverse the trend.
He further said that Nepal had low tax slabs, no income tax on earnings
of industry exporting its projects established in Special Economic Zones for
certain period of time, exemption of tax and tax holidays for certain
industries, exemption of duty and fees on key inputs used by an export industry.
“There is a favourable fiscal environment in Nepal,” he said.
Nepal’s law permits full repatriation of income earned from investment
and reinvestment, foreign companies registered in Nepal can purchase, own and
sell land, and no discrimination is made between national and foreign
investors.
Investors also have benefits of cheaper labour force and improved labour
law and industrial relations in the country, he added.
PM Oli said that partnership with Chinese investors to complete the
priority projects such as cross-border railways, transmission lines and
establishment of new international airports, will be very important.
The two countries have signed Memorandum of Understandings (MoUs)
and agreements like Framework Agreement on Promotion of Investment and Economic
Cooperation, MoU on Energy Cooperation and MoU on Investment and Cooperation on
Production Capacity which will facilitate and reinforce the collaboration
between the investors of the two countries.
Nepal has joined the BRI, an initiative launched
by President Xi Jinping, he said.
“We believe that this initiative offers immense
opportunities for collaboration and partnership between our two countries.
Growing attraction of the international community towards BRI has made it one
of the biggest platforms for international cooperation,” PM Oli said.
He said that Nepal-China relations are
multidimensional that encompass political, economic, social and cultural
aspects.
“Our political relations, which are based on the
Five Principles of Peaceful Co-existence, have always remained cordial and
friendly. We share a trouble-free and cooperative relationship. Over the years,
our relations have grown both qualitatively and quantitatively," he said.
He also said that Nepal was committed to One
China policy.
“Our two countries are not only good friends but
also reliable development partners. We want to create success stories. We
believe that China, with its huge financial and technological capability, can
help us to transform our development landscape,” he said.
Published in The Rising Nepal daily on 21 June 2018.
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