Hanoi, May 10. Prime Minister KP Sharma Oli has said Nepal is a virgin land for investors. Investment anywhere and everywhere is full of potentials with assured rate of return.
Addressing the Viet Nam-Nepal Business Forum here Friday, Prime Minister K P Sharma Oli reminded the Vietnamese investors that Nepal’s advantage lies in our rich natural resources, abundance of labour forces and the location between two largest markets. Investment in Nepal will open avenues to the world’s two largest markets; India and China.
The PM further made elaborate that there are opportunities for investment in multiple sectors –hydropower, agriculture, mineral resources, medicinal herbs, hospitality industry and financial markets in Nepal. As an LDC, Nepal has preferential access to some of the international markets.
According to him, labour cost is low and competitive. The country enjoys a demographic dividend, with 57 percent of working-age population. Every year over 500 thousand youths enter into job market. Similarly, large number of English speaking and digitally connected youths are Nepal’s important asset. This makes ICT sector another area for profitable investment.
Moreover, PM Oli shared that Nepal successfully organised the Investment Summit recently. The Summit saw participation from over 40 countries including Viet Nam. During the Summit, investors pledged to finance 18 mega projects.
Various other features and facilities relating to investment in Nepal were shared by the PM. “We have created an investment-friendly environment through the enactment of necessary laws and announcement of a series of policy measures. Protection of foreign investment is guaranteed by law.
The new Foreign Investment and Technology Transfer Act ensures national treatment to foreign investment. We have adopted liberal investment and business policies; simplified the procedures; ensured one stop service to open and close business ventures. We have allowed foreign investment in almost all sectors. Negative list is kept at minimum,” mentioned PM Oli in the address.
Private sector as he said was taken on board as an indispensable partner for economic development. Public -Private Partnership and Investment Act had paved the way for synergetic engagement of both sides for investment.
“Nepal has flexible labour policy. A universal, contribution-based social security system is being implemented. It has ended the possibility of labour strikes and frequent industrial disputes. We have introduced low tax regimes and created conducive fiscal environment. Our tax regime is transparent, predictable and investor friendly,” he underscored, adding that simplified and liberal visa rules apply to the investors and their dependents.
Other features he shared were simplified laws and rules pertaining to land acquisition, company registration, environment assessment and infrastructure development, attempts on agricultural modernisation, digitisation and Youth Employment programmes, dedicated organization as Nepal Investment Board, Department of Industry and Industrial Promotion Board, accessible government machinery and robust institutional setup, aims to increase participation in Global Value Chains (GVCs).
According to him, the success of competitive and economic development lies in innovation and knowledge. Nepal aspires to innovate at level of small and medium sized enterprises as well. RSS