Embassy of Japan in Nepal

Economic Relations


Bilateral trade between Nepal and Japan is steadily increasing; however, the trade balance is in favor of Japan. In the last fiscal year, 2006/07, exports to Japan amounted to an estimated NRs. 559.45 million (0.949% of total exports) whereas imports from Japan amounted to an estimated NRs. 3.228 billion (1.63% of total imports). Now Nepal is facing a lot of challenges ahead, such as quality control and standardization of its products.

In this regards, the campaign of 'One Village One Product' (OVOP) would be helpful to introduce unique Nepalese products to global markets including Japan and also to increasing the volume of export items in the days to come. OVOP is the campaign which started in 1979 in Oita Prefecture Japan, with the aim to promote villages by manufacturing products in a small village, designed for the worldwide market.

The Nepal Government is positive about this campaign and started promoting some products in 2005. Although the campaign is at grass roots level, it can be linked to agro-business and trade promotion. Considering that about 65% of the total population is engaged in agriculture, promoting that part can be essential for the development of Nepal.


Since Nepal is blessed with natural and cultural resources like the scenic Himalayas and cultural heritages, many Japanese love to visit Nepal. However, because of the internal political conflicts, the number of the tourists from Japan has decreased; 41,000 Japanese tourists arrived in 2001 but in 2006 it was down to 18,400.

However, seeing some progress in the peace process, tourism saw a big revival this year. The number of tourists from Japan who came between January and November 2007 has increased by 23.9% over that same period in 2006. Furthermore, some tourists are compelled to abandon their travel because of the lack of air seats. In order to facilitate better tourism, improving air access and accommodation are urgently required, as well as restoring peace and political stability.

Copyright (c): 2012 Embassy of Japan in Nepal