Vietnam, Nepal Aim for Stronger Business Ties

A delegation of more than 50 Nepalese businesses, led by Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), recently visited the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi as the two countries celebrated 50 years of diplomatic relations.

VCCI Vice President Nguyen Quang Vinh receives the Nepalese business delegation

At the meeting, Nepalese Ambassador to Vietnam Dhan Bahadur Oli said that the largest-ever Nepalese business delegation to visit Vietnam - including companies active in key sectors such as energy, high-tech agriculture, medicinal herbs, handicrafts, tourism, education, healthcare, finance, and technology - demonstrates the strong interest of Nepal’s private sector in expanding economic cooperation with Vietnam. He said this is an opportune time for both countries as they move into a new phase of collaboration with the private sector at the center. Ambassador Oli added that completing and signing a memorandum of understanding between the two business organizations would create an important foundation for future trade and investment promotion and for strengthening business ties.

VCCI Vice President Nguyen Quang Vinh affirmed that Vietnam sees Nepal as a promising partner in South Asia. He said that although economic and trade ties between the two countries are still modest, they have grown steadily, rising from US$9.35 million in 2012 to US$47 million in 2017 and reaching nearly US$100 million in recent years. Vietnam primarily exports phones and components, processed agricultural products, pepper, plastics, and consumer goods. Nepal exports textiles, spices, handicrafts, and raw materials to Vietnam.

He also said that VCCI has completed the documents needed to seek approval to sign an MoU with FNCCI. However, because of time constraints, the review process could not be finished before the meeting. Even so, both VCCI and FNCCI agreed that the MoU is an important step to create a stable coordination channel, share market information, promote trade, help businesses find partners, and resolve procedural challenges.

VCCI Vice President Nguyen Quang Vinh suggested that both sides prioritize promising areas such as high-tech agriculture, agricultural processing, hydropower and renewable energy, information technology, e-commerce and the digital economy, tourism, logistics, and education and training. He also recommended maintaining regular delegation exchanges, organizing thematic workshops and B2B meetings, supporting businesses in joining trade fairs and exhibitions, and working together to resolve visa-related issues to make trade easier.

FNCCI President Dhakal said that economic ties between Nepal and Vietnam can grow even faster because the two economies complement each other well. Nepal has strengths in handicrafts, tea, coffee, herbs, medicinal plants, and natural products, while Vietnam has strong export capacity in agricultural goods, food, machinery, electronics, and competitively priced consumer products. “Once the MoU between FNCCI and VCCI is signed, it will be a key step in turning opportunities into real transactions and real projects,” he added.

He also said that Nepal is carrying out important reforms to attract investment, including simplifying licensing procedures, improving foreign investment regulations, shortening customs and tax processing times, and developing an investment protection framework to give international investors greater confidence. These reforms are making Nepal’s investment environment more transparent, predictable, and business-friendly.

The meeting raised expectations for a more substantive cooperation between the two business communities. The MoU between VCCI and FNCCI is expected to mark an important beginning for stronger business ties, greater trade and investment, and joint projects that support sustainable growth in both Vietnam and Nepal.

By Thu Huyen, Vietnam Business Forum