Following the political conflicts and disturbances caused by Maoists in apparel and carpet units countrywide, Nepal's repute in world markets decreased. This forced its importers to shift trade to Vietnam last year.
Local businessmen are unable to restore trade with these importers even though a peace accord was signed by Government with the Maoists.
Country has failed to compete globally because of late delivery problems, Namgyal Lama, President, Nepal Freight Forwarders Association (NEFFA) stated to mediapersons. He lamented that Maoist trade unions are creating hassles in 200 garment factories at present, which were previously shut down due to insecurity.
Exports to India fell 0.6 percent last year, as against a 34.7 percent upsurge in the previous financial year, according to Nepal Rastra Bank (NRB) statistics.
Lama was worried about global importers concentrating on Vietnam, India and Indonesia for trade, since products from these countries are competitive and also delivery is always on time.
Top companies are hesitating to conduct business with Nepal, so the near future appears uncertain. NRB has reported that exports of polyester yarn and zinc sheets to India, as well as that of woolen carpets, handicrafts, jewellery and silverware to other nations have fallen. Trade has declined 14.5 percent further this year.
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