Nepal-China Business Summit: Nepal commits to reforms to attract investment 

KATHMANDU: The government and private sector in Nepal have committed to continuous reforms to attract foreign investment, including Chinese investment.

During Prime Minister KP Sharma Oli's visit to China, the Nepal-China Business Summit was organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the China Council for the Promotion of International Trade (CCPIT), and the Embassy of Nepal in China. The summit focused on policy and procedural improvements to boost investment and trade facilitation.

Prime Minister Oli, the chief guest at the summit, highlighted the improving investment climate in Nepal and urged investors to explore opportunities. He emphasised the historical ties between Nepal and China, noting their role in economic development. Oli also stressed the importance of government and private sector cooperation in fostering a favourable business environment and protecting both domestic and foreign investments.

He expressed concern over the trade deficit with China and highlighted the market potential for Nepali agricultural products. 

Chinese Vice Minister of Commerce Ling Ji, speaking at the summit, acknowledged the long-standing relations and increasing economic activities between the two countries. Ling assured further expansion of China's investments in Nepal and mentioned that Nepal would benefit from China’s decision to provide duty-free access to products from least-developed countries starting in December.

This summit follows a similar event in September 2023. FNCCI President Chandra Prasad Dhakal outlined recent initiatives to improve the business environment, including amendments to investment-related laws and the establishment of a High-Level Economic Reform Commission.

Dhakal also announced Nepal's first credit rating, ranking second-best in South Asia after India, which he said creates a secure environment for investors. He highlighted investment opportunities in hydropower, tourism, manufacturing, and IT-enabled services, and urged the Chinese government to prioritise Nepal in its tourism agenda.

The summit featured participation from 120 Chinese entrepreneurs and 50 Nepali entrepreneurs, representing FNCCI, the Confederation of Nepalese Industries (CNI), and Nepal Chamber of Commerce (NCC). High-ranking officials from both governments and members of the Prime Minister's delegation attended the summit. A business-to-business meeting was held before the summit.

This was the fourth international summit organised by FNCCI in the past 18 months, following events in Beijing, New Delhi, and Dubai.