Investors keen to explore Nepal for investment

By A Staff Reporter,Kathmandu, Apr. 29: Representatives from friendly countries, development partners, diplomatic missions and domestic and foreign private sectors expressed the desire to explore Nepal’s potential sector by increasing investments. They made their remarks while addressing the 3rd Nepal Investment Summit which kicked off in Kathmandu Sunday.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal urged investors from around the world to seize the opportunity and invest in Nepal's expanding economy. 

President Dhakal emphasised the country's colossal untapped sectors and its potential as an investment destination. He highlighted Nepal's strategic location between the economic powerhouses of China and India, underscoring its significance as a gateway to vast markets. 

He emphasised the abundant opportunities across various sectors, including tourism, infrastructure, energy, agriculture, and ICT. Dhakal particularly underscored the immense potential in renewable energy, citing recent agreements for power trade with India and Bangladesh as indicators of Nepal's capability in hydropower generation and regional trade. 

He also highlighted the need for modern infrastructure in tourism, agriculture, and technology sectors to harness Nepal's rich cultural heritage, natural beauty, and young, dynamic workforce. 

Moreover, Dhakal emphasised the importance of investing in technical education to bridge the gap between demand and supply of skilled human resources, thereby boosting both domestic employment and remittance inflows. 

He commended the government's efforts in implementing business-friendly policies and initiatives to facilitate foreign investment, including recent amendments and bilateral investment agreements. 

Highlighting FNCCI's role in boosting investor confidence through international business summits in New Delhi, Beijing, and Dubai, Dhakal assured continuous support and commitment from the Nepali private sector for joint ventures in all potential sectors. 

“Nepal's unparalleled natural beauty, including the majestic Himalayan range and diverse cultural heritage, makes it a prime destination for adventure seekers, nature enthusiasts, and cultural tourists,” said President of Confederation of Nepalese Industries (CNI) Rajesh Kumar Agrawal. He asked the foreign investors to explore the diverse array of opportunities that Nepal offered across various sectors.  

“Together, let us seize this moment to capitalise on the momentum generated by this summit and translate it into tangible investments that drive job creation, infrastructure development, and socio-economic progress,” he said.

As the country continues to invest in improving connectivity and promoting its unique attractions, the tourism industry is poised for substantial growth, providing lucrative opportunities for investors seeking to capitalize on Nepal's burgeoning tourism market, he said.

He said that investments in the development of hydropower infrastructure not only contribute to Nepal's energy security but also offer export opportunities to neighbouring countries. 

President of Nepal Chamber of Commerce and Industry Kamlesh Kumar Agrawal stressed on the need of strategic investment, innovative and long-term partnership for prosperity of the country. “Every growth chapter begins firstly with a change in mindset. As I stand in front of you and heartily welcome you all, the feeling of hope and optimism is present in the vision of developing Nepal,” he said.

“We realize that capitalising on the potential cannot be achieved alone, however, it is very much possible through strategic investment, innovative and long-term partnerships, and unwavering commitments,” said Agrawal. 

President Agrawal urged international investors to invest in the fields of tourism, hydropower, infrastructure and information technology in Nepal. He said that Nepal was the best destination in the world due to its cheap labour force compared to the world, neighbouring India and China's consumer market.

Agrawal said, "There is a statistic that 57 per cent of the population is in active labour in Nepal, labour costs are also very cheap. Here, the goods produced through investment can be brought to the markets of neighboring India and China, which have nearly 3 billion people combined.”

Through the video message, Minister for Commerce and Industry, government of India Piyush Goyal urged the foreign investors, including India to invest in Nepal’s potential sectors. He expressed his solidarity for the continuous support for the development of Nepal citing that Nepal-India ties are as high as Himalayas.

On the occasion, Chairman of CIDCA Luo Zhaohui said the Chinese investors are highly interested for the investment in Nepal’s hydropower, tourism, industrial and agricultural parks. Stating that the investment was naturally for profit, he said that the ease and investment friendly environment were a must to attract foreign investment.

Ambassador of China to Nepal Chen Song said that Nepal had a huge potential for investment and huge prospects of markets. Over the years, China has become the source of foreign investment and economic development of Nepal, he said.

Ambassador of India to Nepal Naveen Srivastava said that recent long-term power trade agreement signed between Nepal and India was a new dimension of increasing investment in hydropower sector of Nepal. 

Highlighting that the government of India has a priority to neighborhood policy, he assured that the investment from India would increase for the potential sectors of Nepal for the social and economic development of Nepal.

Ambassador of United States of America to Nepal Dean R. Thompson expressed his satisfaction to support Nepal’s commitment to transform Nepal into an even more attractive investment landscape. 

Nepal Investment Summit 2024 is a great platform to bring together leaders from different sectors, policymakers, and investors around the globe and highlight Nepal as a promising destination for foreign investments, he said.

The United States is committed to partnering with Nepal in energy, tourism, technology, and manufacturing sectors to increase private sector investment and improve its inclusive economic growth.

Atul Keshap, senior vice-president of United States Chamber of Commerce, said that the development and unlocking of Nepal’s rich hydropower resources – with the right set of policy and regulatory frameworks – could position the country as an energy hub and exporter to the wider region, which will see considerable growth in energy consumption and demand in the coming decades.

Hosting the Nepal Investment Summit helps signal to the world that Nepal is open for business, he said and added that they want to understand the current business environment and investment landscape in Nepal, as well as the government’s reform agenda and priorities in the immediate and medium term. 

“We will be taking that information back to Washington D.C. and our American and multinational member companies, who already have investments and operations throughout the region, including India, Bangladesh, Sri Lanka, and beyond,” he said.

American businesses have been investing and operating here in Nepal for more than half a century – but America only accounts for about 3 per cent of the FDI, he said. 

American firms like MetLife and Coca-Cola have contributed directly to the development story of Nepal and provided employment opportunities, skilling and training, and so much more for their communities, he said.

“Creating an environment that will attract American investment and partnership is a much better prospect than investment that is tied to debt obligations and ownership. This Investment Summit presents the opportunity to further enact economic reforms which will truly open Nepal to global markets and world-leading businesses,” he said.

Two agreements have been signed 

During the Summit, two agreements were signed between the private sectors. An agreement was signed between domestic and foreign private sector organisations for professional cooperation. 

One agreement was reached between the Federation of Nepalese Chambers of Commerce and Industry and the National Chamber of Commerce and Industry of Malaysia on promoting bilateral trade and investment.

President of the Federation of Nepalese Chambers of Commerce and Industry Chandra Prasad Dhakal and the President of National Chamber of Commerce and Industry Tan Sri Soh Thian Lai signed the agreement on behalf of their respective institutions.

Similarly, another agreement has been signed between two business groups of Nepal and India for cooperation in data centre construction and operation. 

An agreement has been signed between BLC Holding Group Nepal and Yotta Data Services, India for setting up a data centre. BLC Group Managing Director Megha Chaudhary and Chief Executive Officer of Yotta Data Services, India Sunil Gupta signed the agreement.