Stakeholders have stated that the nearly seven-decade-long diplomatic relationship between Nepal and Japan is now moving beyond traditional assistance to a phase of strategic investment and technology transfer. Speakers at the ‘Nepal-Japan Investment Seminar’ held in Kathmandu pointed out that while there are ample investment opportunities in Nepal, investors face problems due to administrative complexities and weak implementation.
Saurabh Jyoti, President of the Nepal Nippon Chamber of Commerce and Industry (NNCCI), stated that the Nepal-Japan relationship, which began in 1956, has now reached a mature stage. He emphasized that future partnership should be oriented towards investment rather than aid-centric, expressing the view that collaboration between Japanese technology and Nepali labor is necessary.
Sunil Ghimire, a representative from NNCCI, presenting data, informed that exports to Japan have significantly increased annually. Mentioning that approximately 273,000 Nepalis residing in Japan can serve as an economic bridge between the two countries, he suggested that the Japanese ‘Kaizen’ work culture should be implemented in Nepali industries.
Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that Foreign Direct Investment (FDI) should be viewed not just as capital but as a source of skills and modern technology. He noted that despite policy reforms, the gap between policy and implementation remains a challenge, suggesting that the ‘One Stop Service’ needs to be made effective.
Devendra Lamichhane, Executive Director of the Nepal Chamber of Commerce, stated that about 99 percent of industries in Nepal are small and medium-sized, creating 70 to 85 percent of employment. He opined that Nepali handicrafts, tea, and coffee could find a large market in Japan if Japanese technology and quality standards were introduced.
Hideaki Takada, a representative from the Japan Chamber of Commerce in Nepal, presented the practical problems faced by investors in Nepal, commenting that legal and administrative complexities are a major obstacle despite the availability of resources and markets.
He complained that the local government failed to fulfill its assurance of providing road access and electricity for a drinking water industry based on Japanese technology being operated in Solukhumbu. He added that the permit process in the energy sector is extremely complex.
He mentioned that negative news regarding strikes and road blockades in Nepal affects tourist arrivals when it reaches Japan. He stated that when large projects are halted due to small local protests, it sends a negative message internationally.
He also pointed out that the system for sending Nepali students and workers to Japan is not yet systematic, and problems are arising due to the manipulation of brokers in both countries. He suggested establishing a system to appoint a ‘Business Liaison Officer’ to facilitate foreign investors from start to finish.
Ito Takato-san, President of the Japan Chamber of Commerce, emphasized the need to strengthen digital transparency and dispute resolution mechanisms. Noting that Nepal-Japan relations are moving from goodwill towards strategic cooperation, he stated that all parties must be ready for a future-oriented partnership.
Seminar participants identified hydropower, information technology, tourism, and agricultural processing as key areas for investment. The conclusion reached was that the ‘World Expo 2025’ to be held in Osaka should be utilized as an opportunity to promote Nepali products and tourism, and that Japanese investment would increase significantly if administrative hurdles were removed.
