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Call to promote exports to compete in world market
KATHMANDU, October 6

Former prime minister and senior leader of Rastriya Prajatantra Party Lokendra Bahadur Chand urged the lawyers and the civil society to protect national interest while transacting business either the international sector after it attained the World Trade Organization’s (WTO) membership.

The former prime minister said that we must think whether we are going to become a buyer or a supplier tin the international arena, otherwise just attaining the WTO membership cannot help us in improving our economic condition. He also advised the lawyers to generate awareness among people about the legal provisions in a simple manner.
 
 
 
‘Corruption hurting cottage industries’
KATHMANDU, September 30

Women entrepreneurs have identified prevalence of widespread corruption in governmental offices and red tapeism as major obstacles faced by businesswomen operating cottage industries.

At a focus group discussion on “Impacts of Corruption on Women Entrepreneurs” organized by Swati, an NGO, most of the participants, who were middle class housewives running small cottage industries, said they have not been able to execute their tasks without paying bribes

Most of the officials do not give information about formal procedures and even if they do they simply reject the documents saying either one thing or the other is lacking. They said that officials of the tax and PAN offices have been harassing them the most. Bribes are paid to get the work done.

Most participants agreed that the legal system that bows to the power of influence and money has been enhancing such malpractices in government offices.
 
 
 
CNI to attend WB meet
KATHMANFU, September 27

The government has involved the Confederation of Nepalese Industries (CNI) in the official delegation of Nepal that will be attending the annual general meeting (AGM) of the World Bank which is scheduled to take place from October 2 to 3 in Washington DC, USA. The CNI delegation team will be working very closely with other members of Nepali delegation in providing inputs and private sector perspectives on issues related to financial sector reforms.
 
 
 
Shortage of furnace oil affects industries
BIRATNAGAR, September 25

Nepal oil Corporation’s inability to supply furnace oil has badly affected the production of dozens of industries . Nepali industries have been consuming an average of 800 to 1200 kiloliters of furnace oil every month, while NOC does not have any stock of it. Most of the industries have closed down their operations while those operating their business are using diesel for the purpose, since diesel is comparatively expensive.

 
 
 
Young business talents celebrating first anniversary
KATHMANDU, September 25

The Nepalese Young Entrepreneurs Forum (NYEF) is celebrating its first anniversary on September 26. The NYEF, a non-profit organisation promoted by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) was established last year with the aim of encouraging potential young entrepreneurs through idea exchange fellowships, education, training and advocacy to enhance entrepreneurs’ skill level allowing them to compete in the Nepalese economy.

According to the FNCCI, the forum in short span of time has expanded its activities to explore new talent. With a successful beginning in the capital, the forum has now expanded its first chapter in Biratnagar.
 
 
 
Youth Entrepreneurs’ Forum set up
KATHMANDU, September 21

Youth Entrepreneurs’ Forum has been established in Biratnagar, to strengthen relationship between entrepreneurs all over the country.

President of FNCCI Binod Bahadur Shrestha inaugurated the Forum. The Forum was established with an initiation of fifteen young entrepreneurs at Biratnagar.
 
 
 
E-Commerce: Essential to enhance SMEs globally
KATHMANDU, September 17

Small and Medium Enterprises (SMEs) plays a crucial role in generating employment across the country. It has a significant contribution to the nations’ Gross Domestic Product (GDP).

A recently published study conducted by the Forester Research shows that more and more Americans and European are buying their goods online, which makes it imperative for the SMEs to use the online business model, to market their products and if possible to sell their products online.

E-commerce benefits both the buyers as well as the sellers. For buyers, e-commerce provides unlimited choice, an option to pick-and –choose from plethora of online vendors depending upon their price and service. For the sellers, e-commerce can be the medium to cut back costs and expand their markets .

As e-commerce isn’t dictated by any geographic barrier, SMEs, by using the online business model, can potentially market their products and services in a global market In Nepalese SMEs can leverage maximum benefits e-commerce as it enables them to expand their market all over the world. Nepali businessmen can get a global audience if they can develop and market their site.

In globalization, where access to information is key to success, it’s imperative that Nepalese entrepreneurs start using e-commerce as a viable tool to market their product and more importantly make in roads into alien territory.

According to Satyendra Khadgi, who runs an e-commerce training center for the SMEs called ensewa, Nepalese entrepreneur haven’t been able to leverage the maximum benefits from the e-commerce business model.
 
 
 
Industries reopen, but production to take time
KATHMANDU, September 16

Most of the industries that were closed due to insecurity from Maoist, reopened Thursday. But industrialist say that it will take them some time to begin production.

 
 
 
Workshop on management of chambers held
KATHMANDU, September 15

A three day long chamber management workshop in the capital was inaugurated by Yubaraj Khatiwada member of National Planning Commission. The workshop was organized jointly by Industrial Enterprise Development institute, SNV/Nepal and GTZ, SEQUA Chamber support programme.

The objective of the workshop was to bring a coordination between different rural enterprises working in the field of industrial development to achieve development goals. The workshop will help support the activities of industry and commerce associations and help industrial enterprise development institute to make its rural based development programmes more effective.

Also a 23 member study team consisting of representatives from Humla, Jumla, mugu and Dolpa are conducting research on activities supported by the industry associationof Nepalgunj, Butwal, Narangadh, Ratnanagar, Bhaktapur and Lalitpur to find out their effectiveness. The industrial enterprise development institute is conducting rural enterprise assistance programme in Karnali and Mechi.
 
 
 
Closure of one industry affects at least three others
 KATHMANDU, September 13

Fears of losing business have started brewing among entrepreneurs of small industrial units that supply raw materials necessary goods and services to industries, which have pulled down shutters due to the threat of Maoists’ labor wing.

A quick survey conducted by the Post has found that the closure of one industrial unit has adversely impacted at least three supporting industries.

Multiplier effect seen on flour, spices, packaging and transportation companies due to the closure of Mayos and Wai Wai noodles factories can be taken as case in point

 
 
 
Fresh bidding for BSF’s privatization next week
KATHMANDU, September 10

Cabinet meeting was hold and decided to call a fresh bidding for the privatization of state-owned Birgunj Sugar Factory (BSF).

A recent report had stated that there is a need of investment of some Rs 100 million in the factory to bring it to normalcy and resume operation. Responding to tender call for the privatization of BSF, two private parties, Indu Shankar sugar Mill (ISSM) and Birgunj Medical College (BMC) has submitted their technical as well as financial bids.

However, the privatization committee, under he recommendation of a technical committee, rejected the technical bid of BMC, making ISSM the sole competitor in the race.
 
 
 

Govt to bring new act for CSIs
KATHMANDU, September 10

An Industrial Fair was organized by the Federation of Nepal Cottage and Small Industries in the capital. Speakers at the program stressed the need for result oriented approach for the holistic development of the cottage and small industries (CSI) in the country.

Raghuji Pant, Minister for Labor and Transportation said that as mentioned in the budget or the current fiscal year, a new act for cottage and small scale industries is being drafted, which will streamline the business activities in the sector and benefit the segment as a whole. Pant stated that a fund has been allocated for the development of cottage and small scale industries.

Ang Dendi Sherpa, President of Federation of Nepal Cottage and Small Industries(FNCSI) said that FNCSI has been incessantly striving towards the promotion and development of cottage and small-scale industries in the country.

 
 
 
Exports dip by 50%
HETAUDA, September 8

Export from Makwanpur district has dipped. The main reason behind the slump in exports is the existing civil war, industrialists and businessmen pointed out. The trade figures on exports did not show any progress even after an addition of five more industries, totaling to 22 industries in 2060-61.
 
 
 
US buyers ignoring Nepali products
KATHMANDU, September 5

The buyers in the United States are hesitating to purchase Nepali products. The US importers who have been importing Nepali products for almost two decades are now ‘rethinking’, due to unfavourable situation in Nepal. Alternatives are sought for the import of Nepali goods. India and other countries are being considered as an alternative exporters.

As Nepal exports more than 50% of its products to the US, the recent development back home has affected exporters. The dependency by US importers and Nepali products is decreasing. Unless the situation improves, US buyers may not buy products. The customs clearance, delay in delivery of goods and other bureaucratic hassles have also affected the exporters at present times. The problems such as customs, airport problems and road transportation have further damaged potentials of the export sector.
 
 
 
Govt must open dialogue: Experts
KATHMANDU, August 16

Entrepreneurs and human right activists have charged the government with failing to make serious attempts to initiation dialogue with the Maoists to make the rebels withdraw their demands for the indefinite closure of 12 renowned industrial houses.

The allegation comes on the eve of an indefinite strike called by the Maiost –affiliated All Nepal Trade Union Federation (ANTUF) on Surya Nepal, Hotel Soaltee, Bottlers’ Nepal, Makalu Yatayat, Aqua Minerals, Tankeshwor Garments, Elite Fuel Concern, Pashupati Steel, shangahai Plastic, Norsang carpet, Shraman Apparel and Yeti Carpet.

Sudip Pathak, President of a Human Rights Organization said that if the government gives permission to broker the talks, and if it can guarantee the safety of the delegation, then talks can b held without delay.

 
 
 
ADB to help boost SMEs’ access to finance in China
MANILA, August 2

Asian Development Bank (ADB) will help boost access to finance for small and medium enterprises (SMEs)in the People’s Republic of China (PRC), through a technical assistance (TA).

The TA will promote development of SME credit guarantee companies through an effective policy, regulatory, and operational framework. It will also support institutional reforms and the financial strengthening efforts of credit guarantee companies, developing standardized procedures and templates for various aspects of their operations.
 
 
 
KU to form business assistance center
KATHMANDU, July 29

Kathmandu University is planning to set up a business assistance center in collaboration with Virginia Tech that will serve as an educational and research resource for micro and small enterprises.

The center aims at bridging the gap between the academia and the private industry. “The center is being set up with a view to extending knowledge from the university to the private sector.” said Dr. Bijay KC, Dean of Kathmandu University School of Management

The center will offer all kinds of services that a business firm needs-ranging from project design to market exploration. It will also help firms obtain data and analyse information to promote their business and compete in world markets. Encouraging women’s entrepreneurship and developing women’s managerial skills will be a special priority of the center.

The center is likely to come into operation from early next year will remain as an autonomous body under the School of Management. The clients, too will be inducted into the board to be headed by a director.
 
 
 
Expand IT in villages: Experts
KATHMANDU, July 28

At the inauguration of a conference organized by the South Asian Network Providers’ Association (SANPA) Minister of Science and Technology- Balaram Garti Magar, emphasized the need for public and private sector participation in enabling citybased information technology services to rural populations.

He highlighted the importance of bridging the gap between those with access to It and those without to rid the country of the “digital divide”. He spoke about the government’s ongoing effort to amend the Information Technology Act and to introduce the long pending E-Commerce act to facilitate the development of IT in Nepal.

Sharad Chandra Shah, vice-chairman of a high level IT commission, expressed his concern at Nepal’s pervasive digital divide and asked for immediate government intervention
 
 
 
Govt to miss Competition Act deadline
KATHMANDU, July 28

Nepal will break the WTO committed deadline for enactment of the Competition Act, as the lead ministry –The Ministry of Industry, Commerce and Supplies (MoICS) – and the Ministry of Law are still at loggerheads over conceptual mattes and the Act’s enforcement mechanism.

Nepal committed to enforce the Act by the end of July,2004, but the finalized draft that the MoICS forwarded to the MoL has been in limbo for about a month The two ministries are still volleying the draft to and forth. The government is planning to again postpone the schedule, to mid-January,2005.
The Competition Act, which aims to establish fair competition in the market, is an important tool of free market policy. It not only ensures a level playing field for market players, but also protects the domestic industries from unfair pressure from influential local and foreign industrial giants.
 
 
 
FNCCI underlines global business
KATHMANDU, July 12

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) organized a program on “Developing Global Competitive Business Advantages for Nepal”.

The program explored the most lucrative areas of global business that Nepal might potentially exploit. The program also focused on the threats and challenges that will meet the country’s entry to the global trade regime.

SP Goel, an electrical engineer who worked for Larsen & Turbo for 30 years, was the only speakers of the program. He said that Nepal should select development options carefully and should focus on areas like tourism, clothing and carpet exports, horticulture, and software development, and software development, in which it can compete in the global market. Nepal must face to compete in the global arena. He said that the problems like overpopulation , poverty, education and healthcare should be prioritized.
 
 
 
‘Cut business costs to induce efficiency’
KATHMANDU, July 10

At a one day workshop on “ Trade Facilitation: Nepalese Priorities”, participants stressed that, given Nepal’s recent accession to the World Trade Organization, there is an urgent need for the country to cut business costs to induce efficiency. While the private sector has to do its bit to enhance the competitiveness of domestic enterprises, the government should change its orientation and make investments in trade facilitation to help businesses cut transaction and logistical costs.

Dinesh Chandra Pyakhurel, Secretary of he Ministry of Industry, Commerce and Supplies said that there is a serious need to reduce trade and transit costs to induce cost effectiveness in trade. This can only be done by reducing the huge operational costs that are associated with trade in Nepal.” He also emphasized the need to simplify customs rules, automate customs data processing, improve customs governance, and generate an efficient system of data and information dissemination, among others.The government is making preparations to set up economic processing zones and garment processing zones, among others.

Ratnakar Adhikari, Executive Director of South Asia Watch on Trade, Economics and Environment (SAWTEE), said that trade facilitation is important to convert market access into market entry. He also underscored the need for trade facilitation to be included as one of “Singapore Issues” at the WTO.
 
 
 
Koirala hails trade
BIRATNAGAR, July 10

The Morang Trade Association, Girija Prasad Koirala, President of the Nepali Congress, stated that trade and industries form the backbone of the nation. He added that the problems faced by entrepreneurs are the problems faced by the nation and the Maoist insurgency is the current national problem.

President of the Association Kishor Pradhan stated that the present crises has been hitting the business sector hardest and has caused man industries to shut down. Inadequate government intervention has resulted in a decline in business sector investment. “Parties should work together for the economic as well as social welfare of the nation,” he said.
 
 
 
80pc small industries closed
KATHMANDU, July 7

Plagued by the ongoing conflict, around 80% of small an cottage industries in the district have been closed down so far.

According to the figures released by the district office of the Small and Cottage Industry (SCI) , only 358 industries out of 1,746 registered with the office, are currently in operation. Of 1,746 industries registered, only 630 have so far renewed their license. There are a total of 995 manufacturing industries, of which 803 are presently out of operation. The number of food mills stood at 371 in the district.

The district also has 43 agro based industries, of which only six are in operation. Likewise of the total of 354 construction companies, 66 are operational.

Earlier, the SCI’s district office had revoked the licenses of around 283 industries, as they had failed to re-register over the last five years. Of the 283, a total of 197 are manufacturing industries, 65 are service-oriented companies, eight ate agro-based industries, one is a tourism- based industry and 12 are construction companies.

Bal Krishna Karki, President of the District Cottage and Small Industries Association , said that the ongoing violence has resulted in the closure of a significant number of industries. He added impractical government policies have led these to the verge of collapse.
 
 
 
Registration of CSI down
DANG, July 6

Due to the ongoing conflict, registration of industries in the district has declined as compared to the last years’ figures. Frequent strikes and blockades and insecurity felt by the industrial sector are the main reasons for this decline, according to Ramnath Sharma, Chairman at the office of the Cottage and Small-scale Industries.

At present, there are 1,390 industries registered in he district. Only 267 industries have, so far, renewed their registrations. The deadline for renewal expires in just a few days.

A total of 184 new industries wee registered in 2001/02 while the number was 150 in 02/03. However, only 88 industries have so far been registered this fiscal year.

Revenue has fallen with the decline in registration. The office collects Rs 600 for registered of a new industry with capital of up to Rs 100,000 and Rs 15,000 for industries with capital of up to Rs 500,000.