Last Updated: May 12, 2010

Bilateral Relations

Nepal-Japan Relations


Political Relation

Nepal-Japan relations date back to the late eighteenth century. Japan is a longstanding friend and development partner of Nepal for years. Japanese Monk Ekai Kawaguchi visited Nepal thrice in 1899 on his way to Tibet. He wrote lengthy letter to then rulers offering Japanese assistance. A group of 8 Nepalese students were sent to Japan to study in the fields of agriculture, engineering and gun power making during the Rana Regime in Nepal.

Diplomatic Relations:

Nepal and Japan established diplomatic relations in 28 July 1956. Embassy of Nepal was established in Tokyo in 1965 and Japan established its embassy in Kathmandu in 1967. Nepal has two Honorary Consulates General in Osaka and Fukuoka.

Major Bilateral Visits

From Nepalese side

Former Prime Minister Girija Prasad Koirala visited Japan in 1998.
Former Deputy Prime Minister and Foreign Minister Madhav Kumar Nepal visited Japan in 1995.
Former Foreign Minister Chakra Prasad Bastola visited Japan in 2000.
Former Deputy Prime Minister and Foreign Minister Sujata Koirala visited Japan from 20-27 March, 2009.

From Japanese side

Their Majesties the Emperor and Empress (then as Crown Prince and Crown Princess) visited Nepal in 1960 and 1975.
Their Majesties the Emperor and Empress, Crown Prince Naruhito, Prince Akishino and Princess Kiko have visited Nepal in 1997.
Former Prime Minister of Japan Yoshino Mori visited Nepal in 2000.

Development Cooperation

Japan has been providing economic and technical cooperation to Nepal since early 1960s. Japan provided Grant Loan for the first time in 1968 and it has written off the debt many times. The areas of economic cooperation include human resource development, social services including health, agriculture, infrastructure development, environment protection and culture.

Economic Relations

Trade Relations

Japan is one of the important trading partners of Nepal. Nepal exports pashmina products, ready-made garments, woolen goods, carpets, handicrafts, handmade Nepalese paper and paper products, leather goods, and silverware and jewelries. The imports from Japan to Nepal include vehicles and spare parts, electronic goods, machinery and equipment, iron and steel products, photographic goods, medical equipment and fabric.

Trade figures for the last three fiscal years with Japan include:

FY 2007/08

FY 2008/09

FY 2009/10

Export

Import

Balance

Export

Import

Balance

Export

Import

Balance

488,053

4,148,086

-3,660,033

572,659

6,111,189

-5538530

554,158

6,267,573

-5,713,415

Source: Trade Promotion Centre, GON, 2009/10


Investment

Japan is a major partner in the area of Foreign Direct Investment (FDI) in Nepal. More than 100 Japanese companies have invested their capital in joint ventures in Nepal. Areas of investment from Japan include Hotels, TV assembly, Tourism, Food Industries, Horticulture, Herbal Cosmetic production and others. Japan has made an investment of total Rs.1171.74 Million in 154 different industries creating 6,683 jobs. The direct investment made by Japan in Nepal is as follows:

Rs. in Million

FY 2008/09

FY 2009/10

FY 2010/11

Total Investment upto now

Investment Ind. Jobs Investment Ind. Jobs Investment Ind. Jobs
33.17 6 117 20.20 4 135 30.75 8 233 1171.24
Source: Department of Industries, GON, 2067/68
Tourism

Nepal continues to be a attractive destination for Japanese tourists. Lumbini, Great Himalayas, our age-old traditions and cultural artifacts, temples and genial nature of Nepalese are some of the best attractions for the Japanese.

The trend of Japanese tourist arrival in Nepal is as follows:
By Air

Year

January-November

2008

2009

2010

2010

2011

19,694

19,045

20,458

18,079

19,436

Source: Nepal Tourism Board, GON

Major Agreements

In 2003, Agreement on Technical Cooperation, an umbrella agreement, was signed between the two governments covering trainings, sending of Japanese experts, volunteers, study missions, project type assistance, machineries and equipment and development studies.

Another important milestone event is the signing of an MOU between Japan International Technical Cooperation Organization (JITCO) and the Ministry of Labor and Transport Management (MOLTM) in December 2003 for sending industrial trainees from Nepal to Japan.
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