As an initiative to increase foreign direct investment or FDI, the government will conduct a roadshow in a few cities in India next month. According to the Ministry of Industry, Commerce and Employment secretary, there are currently 116 FDIs in Bhutan registered so far. This year alone saw 11 new registrations. By the end of the 13th Five-Year Plan, the government targets to attract FDIs worth Nu 100bn, excluding hydropower projects.
During the Meet The Press session on 25th October, the industry, commerce and employment secretary said that attracting more FDIs into the country is a priority of the government.
Currently, there are four key areas to attract foreign investors, which include IT and IT-enabled services, wellness tourism, agro-based and forest-based industries.
“The Economic Development Board focuses on attracting Foreign Direct Investment into the country, and we have also reviewed our FDI Policy 2019, in which we have relaxed many provisions that will attract foreign direct investors into the country, and this policy is at an advanced stage to be endorsed very soon,” said Tashi Wangmo, Secretary, MoICE.
She also added that the government is also focusing on strengthening the domestic industry. There are more than 600 registered Cottage and Small Industries in the country.
‘‘There are two main challenges, as you all are aware, where the private sector, for that matter, industries keep on sharing as challenges. One is on access to finance, and the second is on marketing. So, on the access to finance, that is why the priority under the Economic Stimulus Plan is also to support this lower interest rate credit line. On the marketing, the ministry is working very hard in terms of capacity building of those promoters and business promoters.’’
According to the prime minister, the sectors with the greatest potential for FDI are hydropower and solar energy.
“The most significant opportunities for FDI lie in hydropower and solar power. There is potential to attract FDI exceeding 100 and even 1000 billion, which would be highly beneficial. By the end of the 13th Five-Year Plan, our goal is to secure FDI worth 500 billion. Achieving this is feasible through investments in hydro and solar power sectors. While this is crucial, FDI is even more essential for advancing industries, businesses, and production. We must work together with dedication towards it.”
Bhutan’s Foreign Direct Investment policy is designed to promote sustainable economic growth while protecting the country’s unique culture and environment.
Sonam Yuden
Edited by Kipchu
