Footwear Sectoral Analysis : Nepal
Nepal’s footwear industry is small but growing, and has been identified as a priority export sector by the government.Nepal’s footwear industry is a relatively small export industry, accounting for just 1.5 percent of the country’s total exports in...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/620231556736548769/Sectoral-Analysis-Nepal http://hdl.handle.net/10986/31612 |
| Summary: | Nepal’s footwear industry is small but
growing, and has been identified as a priority export sector
by the government.Nepal’s footwear industry is a relatively
small export industry, accounting for just 1.5 percent of
the country’s total exports in 2017. Similar to other light
manufacturing sectors, Nepal’s wage advantage in footwear is
offset by its low firm-level productivity. Most firms have
poor bookkeeping and a lack of accounting. Production
facilities are ill-suited for manufacturing and
distribution, and conditions in many factories are poor,
sometimes dangerous. Nepali footwear manufacturers need to
start by improving basic organizational and management
skills. There is a dearth of industry-ready education and
skills, and an unavailability of trained manpower that
impedes investment from both domestic and foreign companies
in these sectors. It is pertinent to focus on basic
requirements such as education and skills development to
increase the pool of skilled manpower in the country across
sectors. Developing capabilities in Nepal’s small and
medium-sized footwear manufacturers requires investment in
improving managerial skills, upgrading quality standards,
and modernizing production facilities to become safer and
more efficient. The government of Nepal can help the
domestic footwear industry by providing a vibrant trade
policy to allow for deeper integration into regional value
chains, opening up opportunities for foreign direct
investment (FDI), and substantially improving the investment climate. |
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