Address by Honourable Mr. Narayan Kaji Shrestha, Deputy Prime Minister and Minister for Foreign Affairs at the Pre-Investment Summit Organized by the Embassy of Nepal in Beijing on the Theme of Emerging Nepal: Investment Potentials in Nepal
26 March 2023, Beijing
His Excellency Mr. Bishnu Pukar Shrestha, Ambassador of Nepal to the People’s Republic of China
Mr. Sushil Bhatta, Chief Executive Officer of the Investment Board of Nepal
Officials of the Ministry of Foreign Affairs and Embassy of Nepal in Beijing
Mr. Xu Liang, Deputy Secretary General of China Chamber of International Commerce
Mr. Chen Mili, Deputy General Manager China International Water and Electric Corporation
Leaders of the Business Community,
Distinguished Guests, Ladies and Gentlemen,
Namaskar!!!Good Afternoon!!! Ni Hao!!!
At the outset, let me thank the Embassy of Nepal for organizing such an event in collaboration with the China Chamber of International Commerce and China Council for the Promotion of the International Trade. I am confident this will help in making the Investment Summit to be held in Kathmandu next month a successful one.
It is my pleasure to address this encouraging gathering of distinguished business leaders from our friendly country the People’s Republic of China, who earned a reputation globally as catalysts to growth and innovation.
The primary objective of the Summit is to foster collaboration between our two countries and people for shared prosperity. Business communities are key actors in the socio-economic transformation. Such an interaction can play an instrumental role in attracting ideas, innovation, and investment.
Ladies and Gentlemen
Nepal and China formally established relations in 1955. But both countries have maintained people-to-people contact for millennia. Our ancient land links, marital associations, cultural similarities, mutual understanding, and practice of Buddhism have bonded us together.
We have maintained strong bilateral relations which have remained trouble-free and conquered all tests of time. Respect for each other and understanding have been the bedrock of our relations. We have always respected each other’s sensitivities and concerns. Nepal has an unflinching commitment to the “One China Principle”.
Nepal and China embarked on a transformative journey by signing a MoU on The Belt and Road Initiative Cooperation in 2017. A year later, we decided to invest in railways, roads, aviation, ports, and power grids extending beyond the realm of infrastructure projects under the theme of the Trans-Himalaya Multidimensional Connectivity Network.
Our relationship was upgraded to a Strategic Partnership of Cooperation Featuring Ever-Lasting Friendship for Development and Cooperation during the visit of President Xi Jinping in 2019. Noteworthy progress has been made since then to consolidate these ties.
The once formidable Himalaya range, perceived as a barrier, will be transformed into a bridge of progress heralding a new era of cooperation. We are resolutely dedicated to building a network of connectivity that transcends the Himalayas.
China has been Nepal’s important trading partner and the largest provider of foreign direct investment. China is one of the biggest examples of nations that has achieved tremendous success economically, technologically, and socially.
China has elevated millions of people out of poverty in a short span of time under the visionary leadership of the Communist Party of China. Nepal wishes to learn from the Chinese experience and expertise.
Distinguished Participants,
Nepal is a peace-loving nation. We have successfully concluded our peace process, promulgated the Constitution in 2015, and held democratic elections for the second consecutive term in 2022 under the Constitution.
Now, we are focused on socio-economic transformation. Nepal is effortful to graduate from the status of an LDC by 2026, elevate into a Middle-income country by 2030, and reach a net zero carbon emissions scenario by 2045.
Nepal’s domestic resources alone are not sufficient to achieve these overarching goals. We will require substantial investment, modern technology, and critical infrastructure to bridge these resource gaps.
Nepal attaches top priority to its relations with China. We look forward for an enhanced economic partnership for mutual benefits. Our two nations’ close cultural affinity and geographical proximity provide room for win-win cooperation and we look forward to advancing our engagements with the government as well as corporate sectors.
The CEO of Nepal Investment Board has already made a detailed presentation about the Nepal Investment Summit 2024 earlier.
The primary objective of this event is to encourage Chinese investment in Nepal and foster robust collaboration for enduring growth on both sides.
As you know, Nepal treasures unique investment opportunities. It is the most suitable country for foreign investors due to its proximity to the world’s largest markets China has been Nepal’s important trading partner and the largest provider of foreign direct investment. and fastest-growing economies, China and India. Besides, with a population of 30 million and the availability of a cheap labor force makes Nepal a sizeable market within the country.
Over the years, Nepal continued to be an extremely alluring investment destination for Chinese business leaders. The government has prioritized hydroelectricity, tourism, infrastructure, ICT, and manufacturing industries for investment.
Currently, we are focused on reforming policies, institutions, and procedures in pursuit of establishing a business-friendly environment and attracting foreign investment. Key decisions, including legal, institutional, and procedural reforms were taken at the onset of the Summit.
A forward-looking foreign investment policy has been implemented. Several investment-related legislative instruments have been enacted. They are constantly reviewed and assessed to make them appealing.
Twelve of the laws related to investment are ready for amendment before the Summit, including the Land Acquisition Act. We are fully dedicated to implementing additional policy, regulatory, and procedural reforms. Our next cycle of reforms includes Intellectual Property Rights, among others.
We have already established a “One Stop Service Center” at the Department of Industries to simplify procedures. Nepal Investment Board has been actively engaged in the promotion of foreign investment in the country.
Free visas are issued to Chinese visitors for their visits to Nepal. Nepal boasts a hassle-free visa procedure.
We have adopted a non-discriminatory policy, meaning the status of foreign investment is equivalent to that of domestic industry. It is possible to establish a new business through lease financing, equity investment, joint venture, or technology transfer agreements. The state of the energy supply has been improved. We are currently capable of exporting excess electricity to neighboring countries.
Nepal has the lowest corporate tax rate in the region. Special incentives are extended to organizations that operate roads, bridges, railways, hydropower, transmission lines, and other infrastructure on a “Build Own Operate and Transfer” model. Policies regarding the repatriation of capital and income are relaxed.
Implementation of the Nepal-China Transit Transport Agreement and its Protocol is another advantage for the Chinese investors for a third country export via Chinese ports.
Distinguished Guests
China has been Nepal’s important trading partner and the largest provider of foreign direct investment. As I conclude, on behalf of the Government, and on my own, I would like to reaffirm our commitment that Nepal shall exert utmost diligence in facilitating and safeguarding Chinese investment and entrepreneurs.
I urge all of you to fully capitalize on the distinctive opportunity Nepal offers to China. I eagerly anticipate your arrival in Nepal.
Xie Xie !!!
