FDI will be promoted, protected, says DPM Shrestha

Deputy Prime Minister and Home Minister Narayan Kaji Shrestha has said that Nepal encouraged, promoted and protected the foreign direct investment (FDI) through significant improvement in its investment regime.

Addressing the Opening Ceremony of the 19th Western China International Fair in Chengdu, Sichuan Province of China today, he said, “Nepal has been pursuing a business and investment-friendly policy. We have made major reforms in our investment regime that encourages, promotes and protects foreign direct investment. Our tax slabs are one of the lowest and our position is fairly good in ease of doing business.”

He said that there are a host of areas including hydropower, industrial manufacturing, infrastructure development, tourism, agriculture, minerals, and mining, among others, to make investment in Nepal.

Noting that after the historical peace process and democratic political change, establishing republic and socialism-oriented inclusive democracy, and promulgation of new constitution, the DPM said Nepal today is focusing on economic development and prosperity for institutionalizing these achievements, and to this end, it is in need of international cooperation including FDI.

“Our laws permit full repatriation of income earned from investment. Foreign companies registered in Nepal can purchase, own and sell land. No discrimination is made between national and foreign investors. There is no policy of nationalization of private industry. The other factor that makes a business competitive in Nepal is the availability of a less expensive workforce, reformed labour laws, and improved industrial relations. We are seriously working on further simplifying the procedures and fully operationalizing the one-stop service. Necessary rules are being developed for the automatic approval of FDI as well.”

On the occasion, Deputy Prime Minister Shrestha called upon businesspeople from China as well as from abroad to attend this International Fair to avail themselves of the opportunities unfolding in Nepal.

He added: “Similarly, I ask you all to visit Nepal and experience for yourself and for your near and dear ones the real natural beauty, cultural diversities and a range of adventurous tourism products Nepal offers. Certainly, you will feel a life-time experience seeing marvelous views of the majestic Himalayas if you are traveling from Chengdu to Kathmandu.”

Stating that the Western China International Fair (WCIF), being organized annually in Chengdu, has become a comprehensive platform for exchanging ideas, promoting trade, leveraging technology, seeking investment opportunities, showcasing our products and potentials, he said most of all, it has become a platform for instilling a sense of fraternity among us, contributing to global peace, harmony, and cooperation.

“As China has achieved great strides in its overall socio-economic development as well as technological advancement, gaining comprehensive power on the global stage; it has consistently been moving to achieve the second centennial goal of becoming a fully developed, strong, and culturally advanced modern socialist nation by 2049 as envisioned by President Xi; Western China has increasingly got priority in terms of development, connectivity, and create regional synergy with deepening regional exchanges and cooperation including with neighboring countries, the theme of this International Fair, that is, “New Era of China, New Journey for Western China’ seems quite timely and relevant.

Nepal appreciates China’s positive and constructive role in helping developing countries to leverage their growth potentials and realize their dream of achieving prosperity and modernization.

Indeed, to our happiness, China has given due importance to building high-quality infrastructures, achieving common prosperity for all, promoting harmony between humanity and nature, building a global community with a shared future, and creating a new form of human advancement and development, among others.

Nepal and China have been enjoying the best of relations and friendship for millennia. Our two countries are connected by rivers and mountains. We are intertwined by geographical proximity as well as cultural affinity. Our two countries have remained good friends, close neighbors, and trusted partners.

Our two countries have stood firm in supporting each other’s sovereignty, territorial integrity, and national independence. Nepal always upholds One China policy and has remained committed not to allow its territory against the core interests of China as well as of any other neighbour.

In order to further deepen our age-old friendly relations and cooperation, we decided to elevate our bilateral relations to the Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity. Similarly, our two countries have been working together to bring our vision of an enhanced level of connectivity through the Trans-Himalayan Multi-Dimensional Connectivity Network under the Belt and Road Initiative.

I feel that this International Fair has remained quite important for Nepal. For this, we have been actively participating in this forum since 2013. In fact, this forum has provided us with immense opportunities for promoting Nepal and our products internationally. I am happy that in this Fair too, some Nepali entrepreneurs are participating and showcasing their products and services. This also helps enhance people-to-people exchanges.

With Sichuan Province, Nepal has historic relations. Nepal and Sichuan have also many similarities in terms of geography, natural beauty, and cultural affinity, among others. Nepal is the birthplace of Lord Buddha and the people of both countries have high regard for Buddha’s teachings and Buddhist philosophies. Of late, Chengdu has become our gateway to China. Sichuan Provide alone occupies more than one- third of our total trade with China. Our transit cargo to and from China goes through this Province. You may note that Kathmandu- Chengdu air distance is shorter than Chengdu-Beijing and Chengdu-Shanghai.”

Expressing his confidence that the new development journey of western China including Sichuan Province and Tibet Autonomous Region of China will provide immense opportunities for Nepal for trade, investment, tourism, technology transfer, connectivity, and cultural exchanges, among others, he wished for a grand success of the 19th Western China International Fair.