Nepal – Finland Relations


Diplomatic Relations:

Nepal and Finland established diplomatic relations on 21 September 1974. The relations between the two countries have been marked by friendship, cordiality and cooperation. The Finnish Embassy was opened in Kathmandu at the Charge d’ Affaires level in 1992, which was upgraded with the appointment of its Ambassador from September, 2011. Nepal has no residential Embassy in Helsinki. The Embassy of Nepal in Copenhagen is concurrently accredited to Finland.

 

Exchange of Visits:

From Nepali side:

  • Deputy Prime Minister and Minister for Foreign Affairs Ms. Sujata Koirala visited Finland in March 2010.
  • The then Prime Minister Mr. Pushpa Kamal Dahal ‘Prachanda’ visited Finland on April 1-3, 2009 on the friendly invitation of the Prime Minister of Finland.
  • Minister for Foreign Affairs Mr. Chakra Prasad Bastola paid an official visit to Finland from 5 to 8 April 2001.
  • Prime Minister Late G.P. Koirala paid an official visit to Finland from 16 to 20 June 1993.
  • Late King Birendra and Queen Aishwarya visited Finland in 1989.

From the Finnish side

  • Heidi Hautala, Minister for International Development visited Nepal in December 2011.
  • Finnish Foreign Trade and Development Minister Mr. Paavo Vayrynen was in Nepal in February 2009.
  • Paivi Luostarinen, Dy. Director General at the Ministry of Foreign Affairs of Finland visited Nepal in April 2003.
  • Toimi Kankaanniemi, Minister of Development Cooperation of Finland, paid an official visit to Nepal in February 1994.
  • Pertti Passio, Foreign Minister of Finland, visited Nepal in January 1991.
  • Tellervo Koivisto, spouse of the President of Finland was in Nepal in April 1991.

Bilateral Consultation Mechanism:

The first meeting of Bilateral Consultation Mechanism was held between Nepal and Finland on 20 February 2019. The two sides took stock of existing bilateral relations and exchanged views on further promoting cooperation in the areas of trade, investment and tourism, among others. They also discussed regional and international issues of mutual interests.

 

Development Cooperation:

Finnish cooperation in Nepal began in 1982 with the grant assistance of chemical fertilizers. Such assistance has increased and widened in recent years. Bilateral consultations on development cooperation between the two countries were held between Nepal’s Ministry of Finance and Finland’s Ministry of Foreign Affairs in 2003, 2007, 2010, 2013, 2016 and 2019 in Kathmandu.

Finland provides assistance through international agencies such as FAO, ILO, UNICEF and UNFPA.

Finland provided relief aid to the victims of 25 April earthquake through development partners. In addition to this, support is also allocated through the EU as well as civil society organizations.

Trade and Investment:

A MoU between FNCCI and its Finnish counterpart was signed in 1993 during then Nepal Prime Minister’s Visit to Finland. Similarly, an agreement between Nepal and Finland on Promotion and Protection of Investment was signed in 2009.

On Investment, the Department of Industry data revealed that there are a total of 10 industries approved with the total Finnish investment of Rs. 335.88 million until 15 July 2020, creating 260 jobs.

Nepal exports handicrafts, woollen carpets, ready-made garments, woollen goods, wooden and bamboo goods to Finland. Likewise, Nepal imports telecommunication equipment, machinery and parts, industrial raw materials, fertilizer, electrical goods, etc. from Finland. Nepal has been experiencing negative balance of trade with Finland over the past years. Finland has been a major trading partner of Nepal among the Nordic countries for the past few years.

Trade between Nepal and Finland is still insignificant, as shown in the table below:

Value in US $.

Year Export Import Balance
2015 949,033 2,720,353 -1,771,320
2016 844,541 3,023,335 -2,178,794
2017 974,491 2,770,254 -1,795,763
2018 1,104,992 1,984,183 -879,191
2019 275,634 339,444 -63,810

Source: TEPC, Nepal

 

Tourism:

Few thousands Finnish tourists visit Nepal every year.  Though the number at present is not very significant, there is prospect of attracting more tourists from Finland. Below data shows the tourism arrival from Finland to Nepal.

Year 2015 2016 2017 2018 2019
Number of Tourists 1,844 1,938 2,288 3,234 4,000

 

Europe and the Americas Division
Ministry of Foreign Affairs
August 2020