Chandra Prasad Dhakal, President of Federation of Nepalese Industries and Commerce, has said that Prime Minister KP Sharma Oli's visit to China has succeeded in conveying the message that there is a good investment environment in Nepal.

Chairman Dhakal was speaking at an interaction program organized by News Agency Nepal on the implementation of BRI after the Prime Minister's visit to China.

Chairman Dhakal, who is also a member of the visiting team, said that during the visit, there was a good opportunity to brief the Chinese businessmen about the potential areas for private sector investment, existing laws, initiatives taken by the private sector, etc.

He said that there was a good discussion between the two parties on the amendment of traditional laws and facilitation of foreign investment. He claimed that having a credit rating is good in itself and it is also improving, which conveys the message of a suitable opportunity for investment in Nepal.

President Dhakal said that discussions were also held for direct flights from major cities in China to Pokhara and Lumbini International Airports.

He said, "During the visit, it was a good opportunity to inform the Chinese businessmen about the areas of potential investment by the private sector, relevant laws and initiatives taken by the private sector.

Having a credit rating is good in itself and improving it has sent the message of a suitable opportunity for investment in Nepal. We have also asked for direct flights from major cities in China to Pokhara and Lumbini International Airport.

President Dhakal said that it is good for tourism that China has declared 2025 as the year of visiting Nepal. He informed that the development of road, air, rail and communication network has been prioritized.

Nepal-China Business Summit: Government and private sector commit to continuous reforms to attract foreign investment.

The government and private sector have committed to continuous reforms to attract foreign investment, including Chinese investment, in Nepal. During Prime Minister KP Sharma Oli's visit to China, the Nepal-China Business Summit was jointly organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), China Council for the Promotion of International Trade (CCPIT) and the Embassy of Nepal in China.

The summit emphasized policy and procedural improvements while advocating for investment expansion and trade facilitation. Aimed at promoting bilateral trade, developing the tourism sector and attracting Chinese investment to Nepal, the summit was graced by Prime Minister KP Sharma Oli as the chief guest.

He highlighted the improving investment climate in Nepal and urged investors to explore opportunities in the country. Acknowledging the historical ties between Nepal and China, he emphasized that these mutual relations have promoted economic development.

Prime Minister Oli underscored 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 investment. He also commended the FNCCI for its initiatives in promoting investment, tourism and exports internationally.

While acknowledging China as Nepal's largest investor and second largest trading partner, he expressed concern over the trade deficit between the two countries. Highlighting the market potential for Nepalese agricultural products in China, he called for efforts to facilitate trade. Addressing the summit at the CCPIT headquarters in Beijing on Wednesday, Chinese Vice Minister of Commerce Ling Ji noted the long-standing relationship and increasing economic activities between China and Nepal.

He mentioned China's growing investment in Nepal and assured further expansion in the future. Noting that China is Nepal's second largest trading partner, Vice Minister Ji pledged to facilitate transit for Nepal to trade with other countries through Chinese routes. He mentioned that Nepal would benefit from China's decision to provide duty-free access to products from least developed countries from December.

China is Nepal's largest committed investor and second largest in actual investment. Vice Minister Ji expressed China's willingness to cooperate with Nepal in tourism and agriculture, and suggested encouraging more airlines to expand services between the two countries. This is the second edition of the summit, following a similar one organized in September 2023. Addressing the summit, FNCCI President Chandra Prasad Dhakal outlined the initiatives taken to improve the business environment over the past year. He highlighted that the government, at the request of FNCCI, has amended eight investment-related laws and prepared a draft bilateral investment treaty.

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

Dhakal highlighted Nepal's abundant investment opportunities in hydropower, tourism, manufacturing and IT-enabled services. He noted that tourism infrastructure such as ropeways, theme parks and resorts have significant potential for foreign investment. Stating that Nepal is an attractive destination for Chinese tourists, he urged the Chinese government to prioritize Nepal in its tourism agenda.

FNCCI's request led to the formation of a High Level Economic Reform Commission and FNCCI President Dhakal, as a member, pledged to work towards improving the domestic business environment. He assured continued support to investors through the FNCCI's FDI Help Desk. Mr. Dhakal welcomed China's announcement to provide duty-free facilities for products from least developed countries, effective December.

CCPIT Vice President Zhang Shaogang recognized FNCCI as a long-standing partner and emphasized the importance of the summit in promoting bilateral trade. He assured CCPIT's cooperation in increasing Chinese investment in Nepal and import of Nepalese products. He also announced upcoming economic partnership programs in collaboration with FNCCI. Sushil Gyawali, CEO of Investment Board Nepal, highlighted Nepal's investment potential and the Board's role in facilitating Chinese investment.

Manoj Paudel, Chairman of FNCCI's Foreign Investment and International Relations Forum, identified opportunities in hydropower, tourism infrastructure, manufacturing and services in Nepal. He noted that Nepal's abundant natural resources and young labor force provide a comparative advantage. The summit was attended by 120 Chinese entrepreneurs and about 50 Nepalese entrepreneurs representing FNCCI, the Federation of Nepalese Industries, and the Nepal Chamber of Commerce.

Senior officials from both governments and members of the Prime Minister's delegation also attended. The summit was preceded by a business-to-business meeting.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.