PM Dahal addresses Nepal-China Business Summit (Full Text of PM's Statement)

BEIJING, Sep 24: Prime Minister Pushpa Kamal Dahal reached Beijing on Sunday morning, and addressed the Nepal-China Business Summit, jointly organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and CCPIT, the umbrella organization of Chinese industrialists and businessmen, in coordination with the Embassy of Nepal in China.

The full statement of PM Dahal addressing the program themed "Facilitating Investments in Nepal: An Interaction with Chinese Business Enterprises" is as follows:

Minister of Commerce of the People’s Republic of China His Excellency Mr. Wang Wentao,
Chairman of the China Council for the Promotion of International Trade,
Chairman of the Federation of Nepal Chamber of Commerce and Industries,
Leaders of the business community,
Distinguished Guests, Ladies and Gentlemen,

Namaskar!!!Good Afternoon!!! Ni Hao!!!

Thank you, FNCCI and CCPIT, for this excellent partnership in organizing the "Nepal-China Business Summit" in collaboration with our Embassy here in Beijing. 

I feel privileged to address this forum of prominent leaders of the business fraternity from both of our countries. We consider you as the engine of growth and driver for technological innovation and change.  

This event stands as an important occasion in our pursuit of enhanced economic partnership between Nepal and China. Engagement of this kind is certain to pave the way for stronger business-to-business relations and investment ties between our two countries.

I am here to convey the message that Nepal is a land of untapped opportunities where businesses can thrive, and entrepreneurs and investments are welcomed. 

Among other things, our demographic dividend, with a majority of youthful citizens and a median age of 24 years, puts us in a great position to grow businesses. 

Bountiful water resources, significant hydropower generation capacity, a thriving agricultural sector that can address our food security needs, rich forests with timber and non-timber products, a flourishing tourism industry, and a growing ICT sector are some of the attractive areas of investment that would generate a high return to the investment. 

This Summit should focus on building a strong collaboration between the private sectors of the two countries to achieve high and sustained growth for the mutual benefit of our people. 

Dear Friends, 

This is my third visit to China as the Prime Minister of Nepal and 5th as the leader of Nepal. Every time I am in this great country, I feel amazed by the speed and scale of its development in many spheres. From infrastructure to industrialization, from human development to poverty alleviation, from education and health services to science and technology, the advancement China has made under the able stewardship of the Communist Party of China is rarely seen in the history of human civilization. 

I wish to congratulate the Government and the people of China under the leadership of President Xi Jinping for successfully achieving the first centennial goal of lifting Chinese people from the poverty line and convey my best wishes for the second centennial goal of making China a modern socialist country in all respects. 

As a close neighbour, it is but natural for Nepal to desire for enhanced economic partnership with China for mutual benefits. There are so many enabling factors anchored in the close affinity and geographical proximity of our two countries that need to be utilized to promote mutually beneficial cooperation.       

Ladies and Gentlemen,

Nepal and China are close friends and trusted partners. Our two countries enjoy close, deep-rooted and multifaceted bilateral relations, which are based on the principles of peaceful coexistence, mutual understanding, mutual benefit and win-win cooperation.

Our relations exemplify how two neighbors of different geographical sizes, populations and levels of development can be trusted friends and partners. These relations, guided by immense goodwill, mutual respect, shared aspiration and appreciation of each other’s concerns, have ever been growing on many fronts of mutual interest. 

The history of Nepal-China friendship and fraternity is not confined to modern times. The recorded account of relations starts from the 5th century when Nepali monk Buddhabhadra travelled to China with the message of Buddhism while Chinese monks Huang Xing and Fa Xian travelled to Nepal and studied Buddhism. In the 7th century, Nepali Princess Bhrikuti was married to Tibetan King Songtan Gampo, and in the 13th century, Nepali famous artisan Araniko came to China and enriched Chinese architecture with the genius of arts, architecture and sculpture, as displayed in Nepali-styled pagoda temples.

The interactions then happened on multiple fronts. Traders and merchants from both sides traversed across the Himalayas selling goods and building bonds. With their indomitable spirit, these early travellers conquered the barriers of mountains and helped generate growth and prosperity. 

Today, we are seeking to further build on the very economic linkages that our ancestors shaped up.         

Nepal-China bilateral trade has continued to grow in a steady and consistent manner. China is the largest source of foreign direct investment and the second-largest trading partner for Nepal. 

However, the burgeoning trade deficit is a matter of serious concern for my country, which we seek to address. We are making continued efforts to facilitate trade and finds ways particularly to increase Nepal’s export to China. This can be done by enhancing our productive capacity, improving physical infrastructure and making quality certification mechanisms more robust.  

We have seen that the export of Nepali products such as tea, herbal medicine, citrus food, buffalo meat, coffee, ginger, and yarn to China have great potential and should, therefore, be prioritized. We need to reduce technical barriers and ensure preferential treatment of these products. 

The export of the first batch of haylage from Nepal to China in the recent past should make us confident that more such export is possible.  

Friends,

Nepal is an attractive destination for foreign investments, as it is endowed with enormous natural and human resources. It has the special advantage of strategic business location due to proximity to two of the world’s largest markets and fastest-growing economies. 

We have vast untapped potential in the hydropower, agriculture, tourism and transport sectors. 

For Chinese enterprises, in particular, Nepal remains a very attractive investment destination. There is a huge scope for boosting Chinese investment in Nepal in areas, such as hydropower generation, infrastructure, tourism, SMEs and startup businesses, ICT, agriculture, including highland agriculture, herbal and pharmaceutical industries, e-commerce, new and renewable energy, and so on.

Nepal is all set to graduate from Least Developed Country status in 2026 and aspires to become a middle-income country by 2030. Graduation for us is an opportunity to upscale our productive capacity and undertake structural transformation, which requires a significant amount of investment in critical infrastructure and cutting-edge technology. We count on Chinese investment to fill our financial and technological gaps. 

Today, the international business environment is facing a range of challenges posed by an economic downturn, geopolitical turmoil and shifting priorities of the nations. What we see around is decelerated growth, increased inflation, rising food and energy prices, and on top of that, the sheer uncertainty of the global market. 

Crisis also brings opportunity. I believe that our business leaders are capable enough to turn this global downturn into opportunities by innovation and by doing things differently. We need to enhance economic engagements in the neighborhood for greater synergy and efficiency. 

Ladies and Gentlemen, 

With a view to creating an environment conducive to business and investment, Nepal has introduced various business-friendly policies and laws to tap the opportunities provided by a peaceful and stable political climate in the country. 

We have introduced a forward-looking Foreign Investment Policy.        

We have enacted the Foreign Investment and Technology Transfer Act, 2019, Public Private Partnership and Investment Act, 2019, Industrial Enterprises Act, 2019, Special Economic Zones Act, 2019, and many more investment-related legal instruments for facilitating and accelerating investments in Nepal. 

The business environment in Nepal is improving as reflected in several reports.  

We are actively pursuing the reform and strengthening of institutions. The “one-stop service centre” has been established at the Department of Industries in order to facilitate investors through simplified and streamlined processes. Similarly, the Investment Board of Nepal has been working actively to promote large-scale foreign investment in prioritized sectors on a fast-track basis. 

We are committed to making further reforms in policies, regulations and procedures.  

The macroeconomic conditions of our economy are relatively stable and conducive to long-term investments and economic growth.  The labour laws are flexible and supportive of the security of industry as well as of economic growth and efficiency. 

The Industrial Enterprises Act, the Company Act and tax laws and regulations have also been reviewed from time to time to foster a business-friendly environment. Almost all sectors except a few are open for foreign investment.  

Foreign investment is treated at par with domestic industry. You may establish a new company with equity investment, invest as a joint venture or through lease financing as well as by technology transfer agreements.

The energy supply situation has improved significantly. Now we are in a position to export surplus power. Roads, railways and aviation, industrial parks and other infrastructures are under expansion, which would contribute to the efficiency and effectiveness of business. 

We have the lowest corporate tax rate in our region. Special industries and enterprises that are operating roads, bridges, railways, hydropower, transmission lines, etc. under the ‘Build Own Operate and Transfer (BOOT)’ basis are provided special incentives. 

Dear Friends,  

Over the years, our two countries have taken important initiatives to improve cross-border connectivity by building more infrastructure and economic connections. Under the framework of the Nepal-China Trans-Himalayan Multi-Dimensional Connectivity Network, we are working to develop cross-border economic zones, road corridors and railway, transmission lines and air connections. 

Nepal joined the Belt and Road Initiative in 2017 and we are now working to finalize its implementation plan.

Just a few days back, Nepal successfully imported goods from a third country through a Chinese port, making it an important step in the implementation of the Nepal-China Transit Transport Agreement and its Protocol.  

Chinese tourists are provided with free-of-charge visas to visit Nepal.

President XI and I have reached a broad consensus on strengthening economic cooperation and partnership between our two countries. We will make further decisions on promoting cross-border connectivity during this visit. 

We will continue to take further measures to reinforce economic engagement between the two countries. 

Ladies and Gentlemen,       

Before I conclude, let me reiterate our commitment, Nepal will make every possible effort to facilitate and protect Chinese investors and entrepreneurs to take full advantage of the unique opportunity that Nepal has to offer and explore the benefit from the new avenues that have opened up in Nepal. 

Dear Chinese friends, I am eager to welcome you to Nepal. 

It is important to keep up the momentum of enhanced economic cooperation and engagements between our two countries.

Strong collaboration and exchanges between the private sectors of the two countries can meaningfully contribute to the further development of the Nepal-China economic relationship for mutual benefit.

Being in possession of tremendous potential, Nepal can no longer be a country of poverty and privation. 

My government has been making an all-out effort to achieve high yet sustained economic growth to bring qualitative change in people’s lives. 

Our people deserve a better life. And we will deliver it.  

Let us work together and prosper together.

Once again, I thank the organizers for convening such a meaningful event. I wish the Summit a great success.

I thank you all for your attention. Xie Xie!!