His
Majesty's India visit has furthered Economic Ties FNCCI & FICCI
Sign Accord
The State
Visit of His Majesty King Gyanendra Bir Bikram Shah Dev
and Her Majesty Queen Komal Rajya Laxmi Devi Shah to India
has given a tremendous boost to the joint initiatives of the private
sectors of both the countries. An eight member business delegation
led by FNCCI President Ravi Bhakta Shrestha also visited India
as part of the Royal Entourage.
The discussion
of the Nepalese Business delegation with the Indian Ministers,
Officials and Private Sector revealed that there was a very bright
scope of cooperation among the private sector promoteing industry,
trade and tourism and enhance the economic ties between the two
countries.
His Majesty
King Gyanendra Bir Bikram Shah Dev graced a luncheon meeting
and interaction programme organised in honour of His Majesty
in New Delhi on 25th June by the Federation of Indian Chambers
of Commerce and Industry (FICCI) and the Confederation of Indian
Industry (CII).
Speaking on
the occasion as ordered by His Majesty, Minister for Industry,
Commerce and Supplies Purna Bahadur Khadka called on Indian industrialists
and businessmen to make maximum utilisation of the provisions
of the trade treaty concluded between Nepal and India.
He also expressed
the view that trade interactions will be held continually in the
mutual interest of both countries.
On the occasion
FNCCI President Rabi Bhakta Shrestha expressed hope that Nepalese
industrialists will benefit from the technological advancement
of India and mentioned that Indian businessmen have opportunities
to invest in Nepal.
CII Ex-President
Brij Mohan Lal said the long term proposals presented by FICCI
and CII have been accepted by both the countries and added that
Nepal has found a special niche in the hearts of Indians.
FICCI President
R.S. Lodha said although trade has been increasing between Nepal
and India, there are greater potentialities.
In the presence
of His Majesty King Gyanendra Bir Bikram Shah Dev, Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) President
Ravi Bhakta Shrestha and Federation of Indian Chambers of Commerce
and Industry (FICCI) President R.S. Lodha signed a memorandum
of understanding on setting up two separate task forces for mutual
co-operation in the fields of water resources and tourism development.
Present on
the occasion were Minister for Industry, Commerce and Supplies
Purna Bahadur Khadka, Royal Nepalese Ambassador to India Dr. Bhekh
Bahadur Thapa, member of the FNCCI delegation and office bearers
of the Federation of the Indian Chambers of Commerce & Industry.
According
to the MoU the two task forces are to be formed within the coming
three months and agreement is to be reached on kick-starting the
process of planning for giving concrete shape to the new business
partnership.
FNCCI and
FICCI are to set up a task force with the involvement of business
leaders, high level government officials, experts concerned, development
bank, international organisation and other players interested
in hydropower development in Nepal for the development of hydropower
in Nepal.
Emphasis has
also been laid on the need for involving third country investment
and technical expertise for the development of hydro power in
Nepal.
The MoU also
suggests that the governments of both countries reach a power
purchase agreement for their mutual benefit.
FNCCI and
FICCI have also reached understanding on mutual cooperation in
giving priority to Nepal as a tourist destination.
FICCI is to
work with FNCCI to organise programs and conferences for developing
Nepal as an attractive tourist destination and to attract Indian
tourists to the package program to be offered by Nepal.
A memorandum
of understanding (MoU) was also signed between Hotel Association
Nepal (HAN) and Hotel Association of India (HAI) with the objectives
of promoteing cooperation in Hotels, Hospitality and tourism sectors.
The MoU was
signed by HAN President Narendra Bajracharya and HAI president
Lalit Suri on behalf of their respective associations.
Indian side
will send a team to Kathmandu to discuss the possible areas of
cooperation in civil aviation and tourism.
His
Majesty's China visit has furthered Economic Ties : FNCCI & ACFIC
Sign Accord
The State
Visit of His Majesty King Gyanendra Bir Bikram Shah Dev
and Her Majesty Queen Komal Rajya Laxmi Devi Shah to the
People's Republic of China has given tremendous boost to the joint
efforts of the business communities of both the countries.A ten
member business delegation led by FNCCI President. Ravi Bhakta
Shrestha was included in the Royal Entourage.
In the discussions
with the Nepalese business delegation the Chinese Officials and
the entreprenuers have shown interest in areas including hydropower
trade, tourism, agriculture, transpart and civil aviation.
One of the
important outcomes of the visit was the positive indication from
the Chinese side to provide preferential entry of goods manufactured
in Nepal. The Chinese side has also indicated their willingness
to provide the necessary technical support to increase Nepal's
third country trade. The two sides would make best use of the
upcoming sixth meeting of the Nepal-China Non Governmental Cooperation
Forum for strengthening bilateral economic ties. The FNCCI would
also take the initiative of reaching a tripartite understanding
among Nepal, India and China on economic issues to achieve a regional
goal of economic development at the upcoming meeting of the Nepal-China
Non Governmental Cooperation Forum.
In the presence
of His Majesty King Gynendra Bir Bikram Shah Dev, a memorandum
of understanding MoU was signed between the Federation of Nepalese
Chambers of Commerce and Industry (FNCCI) and the All-China Federation
of Industry and Commerce (ACFIC).
FNCCI President
and Co-Chairman of Nepal China Non Governmental Cooperation Forum
Ravi Bhakta Shrestha and Executive Vice-Chairman of ACFIC and
Co-Chairman of China-Nepal Non Governmental Cooperation Forum
Zhang Xuwu signed the memorandum at a function held at the Portman
Ritz-Carlton hotel in Sanghai.
Under the
MoU signed on 14th July the ACFIC and the FNCCI will continue
to cooperate with each other for expediting the activities of
the Nepal China Non
Governmental
Cooperation Forum established as per the agreement between the
two governments in 1996.
The ACFIC
and the FNCCI shall increase contacts and exchange information
with regard to trade, technical transfer, and investment, and
shall exchange each other's publications with the objectives of
promoting bilateral trade and investment.
ACFIC and
FNCCI shall encourage and assist its members to cooperate with
their counterparts for the promotion of joint ventures and trade
between the two countries.
Both sides
agreed to form a task force for trade and investment including
hydropower, tourism, agriculture and transport and civil aviation
to make practical recommendations for promotion of economic links
in these fields.
Both sides
will promote visits of trade missions and project study groups
from the economic and trade circles and offer all possible and
relevant services from their respective sides.
Both sides
shall cooperate in jointly organising workshops, seminars exhibitions,
trade fairs, conferences, technical seminars, and displaying of
samples and literature of new products and areas of mutual interest.
Speaking on
the occasion as order by His Majesty, Minister for Health
Sharat Singh Bhandari, member of the entourage, said that the
government was willing to function as a facilitator to promote
investments.
There has
been a consensus between our leaders that increased interaction
at the people to people level including at the business level
should be enhanced to consolidate our bilateral relations, he
said.
Welcoming
His Majesty the King on behalf of the All China Federation,
Executive Vice Chairman Zhang Xuwu said, "the history of relations
between China and Nepal is long. We can work jointly for bilateral
interest and development. The role of the businessmen, industrialists
and investors will be important in raising the mutual interest
from the non governmental sector.
At the function,
FNCCI President Shrestha expressed the view that the industrial
and trading sector had been joining hands in consolidating ties
between Nepal and China at the peoples' level and increasing trade
and investment.
Royal Nepalese
Ambassador to China Rajeshwar Acharya. His Majesty's Press
Secretary Mohan Bahadur Pandey, Foreign Secretary Madhuraman Acharya,
Chinese Ambassador to Nepal Wu Congyong and high ranking officials
of the entourage and memebrs of the FNCCI delegation were present
at the signing ceremony.
His Majesty
the King also graced a lunch hosted by representatives of
the industrial and trading sector of China and also of Nepal.
Trade
& Cooperation Agreement between Nepal & China
The government
of the People's Republic of China is to provide a grant assistance
of Rs. 780 million for the fiscal year 2002/2003 under Nepal China
economic and technical cooperation.
The grant
received will be utilised to construct an 18 km road between Rasuwa
and Syaphrubesi, to open a Civil Servants Hospital and for a Polytechinic
Institute at Banepa.
Agreemetns
to this effect were signed on 10th July by Minister for Health
Sharat Singh Bhandari on behalf of Nepal and Minister of Overseas
Trade and Economic Cooperation Si Kwang Sing on behalf of the
People's Republic of China.
Similarly,
an agreement on trade was signed by Chinese Vice Foreign Minister
Wang Yi and Nepal's Foreign Secretary Madhuraman Acharya.
A trade treaty
between the Tibet Autonomous Region of China and Nepal was also
renewed on 10th July. The treaty which was to be renewed every
ten years had not been renewed for the past six years. The agreement
now signed provides for automatic renewal of the treaty every
ten years.
The treaties
were signed separately amid a function organised at the Great
Hall of the People in the presence of His Majesty King Gyanendra
Bir Bikram Shah Dev and President of China Jiang Zemin.
Nepal
to open honorary consulate in Shanghai
Nepal is to
open an honorary consulate in Shanghai, a highly prosperous and
major commercial city of China. Documents releating to this were
exchanged in Beijing on 11 July.
According
to foreign Secretary Madhuraman Acharya, the consulate office
will be opened after appointing a consul for Shanghai. It is expected
that Chinese tourists will increase in nepal and trade transactions
will grow once the consulate is opened in Shanghai.
At present,
Nepal has consulate generals in the Tibet autonomous region of
China and Hong Kong.
FNCCI
sets up Human Resources Development Unit
A Human Resources
Development Centre has been set up at the building of the Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) with a view
to develop technical and managerial manpower and thereby make
the economy of the country sustainable.
The centre
will impart training in areas such as managerial efficiency, industrial
relations, child labour, social responsibility and institutional
good governance.
The government
of Japan has provided assistance for the Centre.
Japanese Ambassador
to Nepal Zeinji Kaminaga and FNCCI President Ravi Bhakta Shrestha
jointly declared the centre open on 16 July.
The Ambassador
Kaminaga and FNCCI President Shrestha released the management
development programme book containing details of programme for
the Centre from 2001 to 2003.
FNCCI
and Swiss Contact/SIP-P reached an agreement
Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) and Small
Industries Promotion Programme (SIPP) of Swiss-Contact under the
Swiss agency for Development and Cooperation (SDC) reached an
agreement on 19 June 2002 for the promotion of small-scale industries.
The Small
and Medium Enterprises Development Project (SMEDP) at FNCCI would
develop training courses, promote business development service
(BDS) as well as formulate strategies for sustainable development
of small and medium sized industries, as per the agreement.
SMEDP will
be responsible for implementation, regulation and monitoring of
small industries development programmes according to the agreement
signed between two parties.
First vice
president of FNCCI Binod Bahadur Shrestha and Leon Houndret, Project
Manager of Swiss-Contact/SIPP signed the agreement papers in a
function at FNCCI secretariat.
As per the
agreement, SMEDP will run instructor training and industrial awareness
programmes for entrepreneurs in Kathmandu, Butwal, Hetauda and
Birgunj. The agreement will come into effect from June 2002 to
June 2003.
SABF
Cell established in FNCCI
A cell of
South Asian Business Forum (SABF), established in Federation of
Nepalese Chambers of Commerce and Industry (FNCCI) was formally
inaugurated on June 22. The cell was jointly inaugurated by Niranjan
Baral, Joint Secretary at Ministry of Industry Commerce and Supplies,
Binod Bahadur Shrestha, First Vice President of the FNCCI and
Sudipto Mandal, chief of Operation and Policy Coordination Programmes
Department, Asian Development Bank. The SABF was constituted under
an active participation of countries including Nepal, India, Bangladesh
and Bhutan with a view to expedite South Asian sub-regional economy
cooperation, especially to promote joint-investments, trade and
commerce.
Business
Representatives of various sectors to be made CIPs
His Majesty's
Government has decided to announce the Commercially Important
Persons (CIPs) from the country's investors, employers and exporters
to encourage the country's trade and industry sector.
The Ministry
of Industry, Commerce and Supplies said recently that the announcement
of such persons would, in return, provide impetus to the country's
economy.
Every year
25 persons will be declared CIPs from among the exporters of the
country's main export goods such as ready-made garment, woolen
hand-woven carpet, wool and pashmina goods, processed leather,
handicraft toothpaste and soap, jute and jute products, and also
from among the biggest employers and biggest investors for a two-year
period. The Presidents of the Federation of Nepalese Chambers
of Commerce and Industry and Nepal Chamber of Commerce will also
be declared ex-officio CIPs.
FNCCI-EC
Chairman elected for ILO Governing Body
The Chairman
of the Federation of Nepalese Chambers of Commerce and Industry-Employers
Council (FNCCI-EC) Suraj Vaidya was elected as alternate member
of International Labour Organisation (ILO) Governing Body in its
90th conference at Geneva. The conference was convening from June
3-20, 2002.
Nepal,
China sign money deal, Yuan convertible currency now
The Nepal
Rastra Bank (NRB) and the Central Bank of China recently singed
an agreement to facilitate the payment of currency between two
countries.
NRB governor
Dr. Tilak Rawal and Chinese Ambassador to the Kingdom of Nepal
Wu Kongyong signed agreement on behalf of their respective governments.
According
to the agreement the Chinese tourists visiting Nepal can easily
exchange their Yuan into the Nepalese currency as per the existing
exchange rate.
As per the
agreement the Nepalese commercial banks deposit their Yuan in
the Bank of China - in Jhangmu (Khasa), which is ultimately paid
for the import of Chinese goods into Nepal.
In case of
trade deficit with China, Nepal would pay in dollar to reconcile
the deficit Yuan that is deposited in Jhangmyu Bank. With this
Nepalese importers do not have to carry dollar to import Chinese
goods. The importers pay in Nepalese currency through the commercial
banks in Nepal and that is paid in Yuan.
One US dollar
is equivalent to 8.30 Yuan, which has been at the fixed rate for
many years. "The exchange rate of Yuan with the Nepalese currency
will also be fixed," says NRB.
It is expected
that the new system would have remarkable impact in the Nepalese
economy and help enhance economic growth.
With the Yuan,
the NRB maintains convertibility of Nepalese rupees with the currency
of 15 countries until now.
According
to a NRB press release, the new provision would help narrow down
the volume of trade deficit with China by attracting more Chinese
tourists into Nepal.
Among 22 countries,
China has included Nepal as one of the destination for tourism.
Therefore, Nepal can benefit a lot with the new provision, says
NRB.
Nepal
second best tourist destination
Nepal has
been found to be the second most preferred tourist destination
in a survey carried out by "Observer" and "The Guardians", two
popular periodicals published from Britain.
New Zealand
with 95.95 percent score had secured the first position and Nepal
with 94.95 percent second position on the basis of questions put
to 15,000 persons in 180 countries about the services and conveniences
offered to tourists.
Observer has
published the finding of the survey, it is learnt from the Royal
Nepalese Embassy in Britain.
Nepal
& UAE sign MoU
A memorandum
of Understanding (MoU) on operation of air services has been signed
between His Majesty's Government and the United Arab Emirates
(UAE) following bilateral talks between the delegations of the
two countries in Kathmandu recently.
At the talks,
the two sides agreed to review the memorandum of understanding
reached between Nepal and the UAE on 13 October 1999 as well as
the provisions of the Preliminary Aviation Agreement (ASA), and
incorporate additional provisions in them after making timely
amendments in them.
As per the
understanding reached between the two countries, the number of
weekly flights of designated airlines of the two countries would
be increased from the present 8 flights per week to 12 flights
a week.
An agreement
has been reached under which a country designation more than one
airlines to operate flights between the two countries will be
required to give permission for operating only 50 percent or six
flights out of the weekly 12 flights.
However, the
provision of 50 percent flights a week limit will not be applicable
for the country designating a single airline to operate the flights.
As per the
understanding, Royal Nepal Airlines Corporation (RNAC) has been
designated as the sole recognised airline company on behalf of
Nepal under the present context while the gulf air and emirates
air have been designated as the recognised airlines companies
on behalf of the UAE.
Tourist
arrivals rising
Tourist arrival
trend for the first five months of 2002 revealed almost 45 percent
decline against the flow of visitors arriving last year. International
visitors arriving in Nepal by air in May 2002 alone indicate a
35 percent decline over the same period last year.
The pace of
decline however has slowed in this month, reflecting summer arrivals
as slightly picking up basically from the Indian market segment,
states a press release issued by Nepal tourism Board recently.
The total
number of Indian visitors in May 2002 was 7,847, representing
a decline by 28 percent; the declining trend is quite low compared
to previous months. Third country arrivals too dipped during May
2002 by 40 percent.
American,
European and Japanese markets were down by 49, 43 and 30 percent
respectively.
Improvement
in Indian arrivals seems to have been contributed slightly by
the launch of 'Fly-n-Win' scratch scheme, jointly launched by
Royal Nepal Airlines Corporation (RNAC), in coordination with
Nepal Tourism Board from May 1st till the end of July 2002 targeting
the Indian market segment.
The mild weather
of Kathmandu was no less an attraction to provide relief to Indian
visitor's who have been suffering from the scorching heat of Indian
metropolises, says the release.
