Better connectivity a must to SAsia trade boost, says FNCCI prez

KATHMANDU, JAN 29 -

Federation of Nepalese Chambers of Commerce and Industry ( FNCCI ) President Suraj Vaidya on Monday stressed on enhancing transport and power connectivity within the South Asian region in order to realise true potential of the region.

“For any business to materialise, connectivity through land, water and air is a must,” said Vaidya, addressing a session on ‘South Asia Economic Integration: On a New Path of Progress and Hope’ at the ongoing partnership summit organised by Agra-based Confederation of Indian Industries (CII).

Vaidya also stressed the need for developing renewable energy plants and constructing regional transmission line to allow free trade in power across national borders. Pointing to the low intra-regional trade despite establishment of the South Asia Association for Regional Cooperation (SAARC) in 1985, he blamed the lack of seriousness on the part of the governments to persue regional cooperation and free movement of goods, capital and people.

A recent data shows intra-regional trade in SAARC stands at just six percent, far below that of Association of South East Asian Nations (ASEAN) at 28 percent, European Union (58 percent) and North American Free Trade Agreement (62 percent).

He argued Nepal is still a good place to make investment despite problems, citing examples of success of multinational companies. He said that Surya Nepal, the subsidiary of the ITC, has been one of the biggest corporate tax payers and has taken massive expansion process.

“Unilever pays dividends in excess of 500 percent of its paid up capital, a Norwegian company that invested first in hydropower from the private sector has taken back many times of its original investment, and Ncell, the subsidiary of Telesonera, invested $500 million over the past four years,”  he said.    

Source: The Kathmandu Post