KATHMANDU, Dec 19: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Korea Importers Association (KOIMA) have signed a memorandum of understanding (MoU) to promote the market of Nepali products and expand investment. Chandra Prasad Dhakal, president of FNCCI, and Kim Byung-kwan, chairman of KOIMA, signed the MoU amid an event held in Seoul, the capital of South Korea on Thursday.
KOIMA is an organization established to promote the industrial environment and provide goods to the general public by importing industrial raw materials and especially goods that are not produced in South Korea.
The FNCCI said that it will be easy to expand Nepali production in Korea through cooperation with the organization that was established focusing on imports. It is believed that this will reduce the trade deficit between Nepal and South Korea. Currently, the trade deficit between the two countries is around Rs 7 billion.
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In the context of Nepal’s increasing production of traditional goods like felt, carpets, threads, and others, the FNCCI said that collaboration with foreign partners could open new markets for industrial raw materials and other products.
During an event marking the 50th anniversary of the establishment of diplomatic relations between Nepal and South Korea, and the signing of an agreement, FNCCI President Dhakal expressed that there is immense potential to strengthen economic ties between Nepal and Korea.
Speaking at the event titled ‘Business and Investment Opportunities in Nepal’ organized by the Nepali Embassy in Seoul under the chief hospitality of the Minister for Industry, Commerce and Supplies, Damodar Bhandari, FNCCI President Dhakal said that Nepal's energetic and young manpower, natural resources, proximity to big markets will be important for Korean investors.
Dhakal highlighted the progress made in Nepal’s investment environment and also discussed the recent reforms made with the active involvement of the FNCCI. He provided information on the steps taken to create an investment-friendly environment by amending eight investment-related laws. Additionally, he said that the approval of the bilateral investment agreement framework is a significant step in making foreign investment more accessible.
He also informed investors that the foreign exchange reserves have reached about USD 17 billion and that Nepal has received credit rating for the first time. Dhakal also pointed out the importance of infrastructure development and urged for Korean expertise and investment in roads, railways, airports, urban planning, hotel resorts, cable cars and smart cities.
Dhakal invited the Korean business community to explore business and investment opportunities in Nepal and assured full support through the FNCCI's foreign investment support desk.
