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Nepal’s Export Potential. International Trade Center(ITC), Geneva Researcher: Andreas Lendle. Nepal’s. Examined 18 products and services Great Export Potential: Large cardamom Lentil Tea Instant Noodles Medicinal herbs and oil. Nepal’s. Tourism and Labor: Services found to

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Nepal’s Export Potential

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Nepal s export potential

Nepal’s Export Potential

International Trade Center(ITC), Geneva

Researcher: Andreas Lendle


Nepal s

Nepal’s

Examined 18 products and services

Great Export Potential:

  • Large cardamom

  • Lentil

  • Tea

  • Instant Noodles

  • Medicinal herbs and oil


Nepal s1

Nepal’s

Tourism and Labor: Services found to

show much promise

Labor: Largest export worth US $ 2.4 billion

and will remain in future too.

Tourism: US $ 352 million in 2008.

Lentil: US $ 22 million followed by

pashmina products and large cardamom


Nepal s2

Nepal’s

Potential was determined on the basis of:

  • Existing level of export

  • Size of the world market and conditions of

  • market access (tariff structure)

  • Domestic supply condition.

    Medium-level export potential (Other

    sectors)

    Ginger, honey, silver jewellery, pashmina products,

    wool products, information technology and business

    process outsourcing(BPO) services and engineering

    services


Nepal s3

Nepal’s

Low Potential

Handmade paper, health services and

educational services

Examined 18 sectors: 12 goods and 06

service sector

Comparative Advantage

9 products in terms of tariffs being imposed on

Nepal against its top five competitors


Nepal s4

Nepal’s

Advantages in (Tariffs)

Ginger, honey, tea, Instant Noodle,

Medicinal herbs, silver Jewellery,

Transformer, Pashmina and Wool products

in terms of tariffs.

Disadvantage Against Other Competitors

Handmade paper, Lentil


Nepal s5

Nepal’s

Suggestions

Reduce high dependency on India for

export of:

  • Cardamom, ginger, Lentil and Tea.

  • Brand these products including Noodles

    Offshore Business

  • Significant potential but hardly utilized

  • Some sectors needed government support despite

    their low potentials as they can have a significant

    impact on poverty reduction


Nepal s6

Nepal’s

Socio-Economic Impact

  • Instant Noodle

  • Handmade Paper

  • Medicinal Herbs and wool products and

  • Services like tourism and labor


Business environment nepal

Business Environment: Nepal

Environment Scaring Away Investors

  • Security

  • Law and Order

  • Load Shedding

  • Credit Difficulties and continuous poor

    performance environment in the World Bank

    Ranking

  • No Loan, high interest rate(14-15%) not

    feasible

  • Labor problem


Be nepal

BE: Nepal

World Bank(2010). Logistic Performance

Index(LPI)

  • Nepal: One of the top poorest performers in

    the world in terms of:

  • Logistical support while exporting and

    importing goods

  • Worse than other South Asian Countries

  • Stands at 147th position out of 155 countries rated

  • Somalia: Worst Performer

  • Germany: Best Performer


Be nepal1

BE: Nepal

Reasons

  • Freight cost due to landlocked nature

  • No easy access to sea port like Switzerland

  • No railway

  • No fast track road

  • Existing road infrastructure is also poor and frequently obstructed

  • Syndicate system and increase in transportation cost


Be nepal2

BE: Nepal

World Bank: Doing Business 2010

Nepal’s Position 123 from 121 in 2009

Deteriorating Areas:

  • Starting business

  • Dealing with construction permits

  • Paying taxes

  • Level of Labor Rigidity

  • Getting Credit

  • Trading Across boarder

  • Protection of investors


Be nepal3

BE: Nepal

  • Nepal’s position is the worst in South Asia

    regarding labor rigidity, one step ahead of

    Afghanistan in trading across boarder

  • Remained same in the areas of enforcing contracts and closing business

  • Did better in Ease of registering property in which Nepal performed the best in South Asia


Be nepal4

BE: NEPAL

CONCLUSION

‘One after another report about the worsening situation in Nepal to do business scares away the potential investors from within the country and outside.’


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