The country approved over 120 Foreign Direct Investment or FDI projects, amounting to over Nu 60bn till last year. This is according to the latest FDI annual report released by the Ministry of Industry, Commerce and Employment. According to the report, 17 projects were approved last year, which is the highest number of projects in the last decade.
Sector-wise, the service sector saw the highest number of FDI projects, accounting for 65.2 per cent of total investments, though this was a slight decline from 2023.
The hotel sector attracted the largest FDI share with 42 projects, making up 34.7 per cent of total FDI. However, the share of hotel sectors slightly decreased from 34.9 per cent in 2023 to 34.7 per cent last year.
Meanwhile, the information technology or IT sector recorded the second-largest FDI share at 23.14 per cent, comprising 28 projects.
This is an increase of close to two per cent compared to 21.7 per cent in 2023.
According to the report, tax contributions from FDI companies increased by 37.38 per cent in 2023 compared to the previous year. From about Nu 1.5bn in 2022, tax contributions increased to a little over Nu 2bn in 2023.
Additionally, capital inflows in the country also increased from about Nu 5.8bn in 2022 to about Nu 6.4bn in 2023.
According to the report, Asia, America, and Europe were the major sources of investment in FDI projects in the country.
In the Asia region, India remains the top investor, contributing 55 per cent, followed by Singapore at 15 per cent and Thailand at 11 per cent.
In terms of employment, as of December last year, FDI projects directly employed 4,366 Bhutanese. The hotel sector employed the most number of people, accounting for 34.6 per cent of total FDI-generated jobs.
Other sectors such as agro-dairy, power-intensive manufacturing, financial services, building materials, and pharmaceuticals, also attracted investments, though in smaller proportions.
Singye Dema
Edited by Phub Gyem
