Bhutan’s Gross Domestic Product (GDP) was estimated at about Nu 255bn last year. According to the recent Industry Census of Bhutan, nearly 50 per cent of the country’s GDP comes from the industrial sector, including cottage, small, medium, and large-scale industries. Despite this significant contribution, industries face challenges such as limited access to markets and finance.
According to the industry census, Bhutan has over 23,341 registered industries, with 15,112 currently operational.
The industrial sector contributed Nu 124.6bn to the country’s GDP last year. Of this, medium and large-scale industries contributed Nu 114.8bn, while the remainder came from cottage and small industries.
The census also reveals that service industries dominate Bhutan’s industrial landscape, with 11,032 licences issued. These service industries include transportation, wholesale trade, and retail trade.
Production and manufacturing industries hold 1,355 licences, while 621 licences are issued for contract industries.
The industry census data shows that 76,768 people are employed in the sector, with Bhutanese nationals comprising 91 per cent of the workforce.
6,883 non-nationals are also employed in the industry sector.
Despite its significant economic contribution, Bhutanese industries face challenges such as market access and securing finance.
Additionally, the census highlights that a shortage of skilled labour complicates operations in many industries.
In response to these challenges, the Minister of Industry, Commerce, and Employment stated during the launch of the census report that for Bhutan to effectively compete in the Southeast Asian market, there needs to be a shift from sole proprietorships to more structured company formations.
Namgyal Dorji, Industry, Commerce and Employment Minister said “in ten to fifteen years, if we want our country to develop but continue to follow the same practice of having sole proprietorships in our industry sector, the industry will make no progress. However, if we can develop all areas of our industry sector equally, I see huge potential for growth.”
The census report also highlighted key recommendations to support and strengthen the industry sector, including the need for policy interventions, improved access to finance, better market accessibility, and addressing skilled labour shortages.
Karma Samten Wangda
Edited by Sherub Dorji
