The Bhutanese Leading the way.
The recent FDI Report 2023 reveals a total of 108 approved Foreign Direct Investment (FDI) projects in Bhutan, with 12 new projects sanctioned this year alone. Despite these positive numbers, the country still faces challenges with relatively low levels of FDI.
In response, the Ministry of Industry, Commerce and Employment (MoICE) is implementing several strategic measures aimed at enhancing the investment climate and facilitating easier business operations.
MoICE Secretary, Tashi Wangmo, highlighted the significance of FDI for the country’s economic growth. “We have welcomed 11 new FDIs within just one year, and our revised FDI policy is on track to be endorsed soon. This review relaxes many provisions to attract more investments,” she stated.
The government’s focus is on key sectors including information technology, wellness, agriculture, and forestry, though it remains open to diverse investments across other areas.
The government is launching a series of roadshows in India next month, inviting private sector participation on a cost-sharing basis. “We aim to enhance the production capacity of cottage and small industries (CSI) while tackling the dual challenges of access to finance and market reach,” the Secretary added. She emphasized the availability of low-interest loans and the establishment of four industrial parks as pivotal steps in this direction.
The government has outlined several key measures in its strategy to promote FDI aimed at enhancing the investment landscape. This includes a comprehensive review of the FDI Policy 2019, with revised rules expected to be adopted soon. To further streamline investment processes, the establishment of the Economic Development Board is a pivotal step.
Additionally, a dedicated web portal will be developed to provide comprehensive information on available FDI opportunities. The strategy also emphasizes the simplification of the registration and approval process for foreign investments, making it more accessible for investors.
Furthermore, Bhutan’s membership in the World Association of Investment Promotion Agencies will position the country prominently on the global investment map. To strengthen these efforts, targeted investment promotion will be conducted through strategic roadshows, with initial outreach focused on significant markets, such as India.
In addition to attracting foreign investments, the government is also focused on protecting and nurturing local industries. As part of the Economic Stimulus Plan (ESP), efforts are underway to enhance domestic production by facilitating access to funding for cottage, small, and medium enterprises.
