Sourcing from Nepal: Finding the right supplier

This article is an excerpt from Sourcing From: Nepal, a series of reports that provides buyers sourcing information from alternative manufacturing hubs in Asia. To read the entire articles, click here. The Sourcing From series is produced by the Hinrich Foundation, a development organization that aims to promote sustainable global trade by, among others, helping create jobs in emerging Asia. It also produces industry-specific sourcing reports through Online Developing Country Sourcing.

Purchasing or sourcing from a lesser-developed country such as Nepal is full of challenges. Creating a reliable connection with quality suppliers is a must for the success of any export business.

In most cases, it might not be possible for export clients to visit the country and explore potential suppliers before initiating the sourcing activities due to expensive traveling costs and busy client schedules. Therefore, trade associations, embassies and trade publications are some of the best available options to refer potential suppliers to foreign buyers and establish reliable connections without having to visit the country beforehand.

Finding verified suppliers on Global Sources:

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Trade associations

Trade associations represent almost all types of industries. In turn, these associations have hundreds of members and tend to group the majority of manufacturers of export products.

Associations in key export-oriented industries sometimes offer services that can prove helpful to buyers. Many are prepared to attend to trade and investment inquiries. They can link up prospective buyers with local manufacturers and arrange buyer-seller meetings. They also conduct market surveys and organize overseas trade missions. Many associations have publications that can be useful to both manufacturers and overseas buyers.

Trade & Export Promotion Center (TEPC)

The TEPC was established in 2006 by the Government of Nepal with the objective of promoting foreign and export trade. Today, some of its functions include:

• Advising the government on policies for the development and expansion of trade and export
• Assisting to diversify trade by identifying potential markets for exportable products
• Collecting, disseminating and publishing useful trade information
• Implementing programs to attract investment at the national and international level

Federation of Nepalese Chambers of Commerce and Industry (FNCCI)

The FNCCI was first established in 1965 with the goal of promoting business and industry while protecting the rights and interests of business and industrial communities. Today, the FNCCI has 96 district-level chambers in 75 different districts of Nepal. Some of its objectives are as follows:

• Create awareness and support for issues affecting business such as quality, social responsibility, corporate governance, HIV/AIDS, child labor, environment, etc.
• Foster cooperation between national and foreign organizations
• Play a catalytic role in business and industrial development, and establish sound industrial relations in the country
• Provide advisory services to the government and lobby when required for business and industry related policies, acts and programs

Federation of Handicraft Associations of Nepal (FHAN)

Established in 1972, the FHAN aims to enhance and promote handicraft trade and industry. Its services include:

• Documenting and disseminating information regarding the handicraft trade and industry
• Encouraging participation in international trade fairs and exhibitions for its members
• Organizing seminars, symposiums and conferences

Federation of Nepal Cottage and Small Industries (FNCSI)

The FNCSI is a nonprofit, nonpolitical, nongovernment Business Member Organization (BMO). Currently, the FNCSI has 75 district chapters. Its services include:

• Building district associations to provide management training, office management and other training
• Lobbying and advocacy
• Market promotion, exhibitions and trade fairs

Export Council of Nepal (ECON)

Established in 1999, ECON is a nonprofit association for the promotion of export trade in overseas countries. Its services include:

• Conducting trainings, workshops and seminars on a regular basis
• Encouraging participation in national and international trade fairs and exhibitions
• Organizing export business promotion meetings

Hiring an agent

Some foreign buyers choose to hire an agent in Nepal to handle the purchasing in their behalf. Getting an agent might be the best option if you do not want to spend a lot of time with the details of sourcing in Nepal or with follow-up work. Agents can locate products and suppliers, and can also perform other groundwork. They can follow up orders that have been placed.

Choosing an agent who is familiar with all facets of trading can ensure that the goods are delivered on time. You will need to check the agent's experience. A reliable agent knows how to deal with the problems inherent in the exporting system, and can suggest various alternatives in case your supplier fails to deliver your order promptly or correctly.

Nepal embassies

Embassies can be a great source of information and can even assist buyers with finding the right suppliers. The staff can direct you to contacts in Nepal, including government agencies that assist foreign buyers and trade associations.

Nepal sourcing reports

Learn more about specific industries in Nepal, view sample products and find reliable suppliers to source from in our available sourcing reports below.