Nepal Encourages Japanese Investment in Key Sectors

Nepal's Ambassador to Japan, Durga Bahadur Subedi, recently urged Japanese companies to increase their investments in Nepal, especially in sectors like tourism, healthcare and technology. He praised Nepal's affordable and reliable workforce, noting that Japanese firms have traditionally invested less in Nepal compared to European companies.

The Ambassador highlighted Nepal's youthful population and the government's implementation of liberal, investment-friendly policies and regulations. Currently, over 30 Japanese companies operate in Nepal according to records kept by Japan's Ministry of Foreign Affairs, and the Ambassador expressed optimism for growing Japanese investment.

Conversely, as of June 2023, over 150,000 Nepalese resided in Japan, making them the sixth largest immigrant group in the world's third biggest economy, behind immigrants from China, Vietnam, South Korea, the Philippines and Vietnam.

Additionally, more than 45,000 Nepalese students study in Japan, exceeding those from any country except China, with numbers projected to continue rising.

"In 2019, we concluded a memorandum of cooperation on bringing skilled workers from Nepal to Japan," said Ambassador Subedi, noting this agreement has significantly increased Nepalese migrating to Japan for work, in addition to popular destinations like neighboring India and countries including Malaysia, Qatar, Saudi Arabia and Bahrain.

Ambassador Subedi praised Japan and its suitability for Nepalese people: "Japanese industries are good; Japanese companies are good; Japanese salaries are good; and Japanese weather is good for Nepalese people." He also pointed to cultural, family and religious similarities between the two countries.

The Ambassador additionally promoted Nepal as an excellent tourist destination renowned for activities like mountain climbing, trekking, paragliding, bungee jumping and rafting, with attractions including Mount Everest and the coexistence of ancient civilizations, Buddhism and Hinduism.

He also mentioned goods produced in Nepal can cross the border into India duty-free, creating a unique opportunity for Japanese companies to manufacture in Nepal and easily access the vast Indian market.

While Japan currently exports automobile parts and industrial goods to Nepal, there is a trade deficit, which Ambassador Subedi stated Nepal plans to address by sending a large trade delegation to promote Nepali products like tea, coffee and carpets.

Lastly, he noted various Nepali infrastructure projects have been aided by Japanese government development programs spanning agriculture, education, energy, hydropower, transportation and communications sectors.