The government has secured over Nu 16bn toward its Foreign Direct Investment (FDI) target of Nu 500bn by 2029. The finance minister during the Meet the Press session yesterday said the hydropower sector continues to be a major driver of foreign investments. The government is now working on regulatory reforms to simplify procedures and attract more investments.
Last year alone, the government approved 17 new FDI projects valued at around Nu 16bn.
The hydropower projects such as Dorjilung, Khorlochhu, Bunakha, Wangchhu, and Nyera Amachhu are drawing the majority of foreign investments.
The 1,125 MW Dorjilung Hydropower Project, estimated to cost USD 1.4bn has already, the project has already attracted significant private investment, with USD 6 M allocated for preliminary studies.
Industry, Commerce and Employment Minister Namgyal Dorji said, “Given the current momentum, hydropower projects are attracting significant FDIs, and with the additional investments expected for the Gelephu Mindfulness City, we are confident that we will reach our target of 500 billion ngultrum in FDI by 2029.”
Beyond hydropower, the government plans to diversify the investment focus such as technology, manufacturing, digital services, and agribusiness.
The government, through the Economic Development Board, is currently reviewing FDI rules and regulations and also focusing on deregulation to eliminate redundant rules and procedures that hinder investments.
The minister said that, 100 out of 221 identified business policy and regulatory challenges have been addressed so far.
Other key reforms include extending land lease periods for foreign investors from 30 to 60 years.
Finance Minister Lekey Dorji said,“Attracting foreign investment requires easing processes for investors. To achieve this, we have introduced tools like bill discounting to streamline financial transactions and make investments more efficient. Furthermore, we are exploring alternative forms of the environmental bond to offer more flexibility for investors while still prioritizing environmental sustainability.”
The government is expanding its FDI outreach to ASEAN countries such as Singapore, Vietnam, and Malaysia, following successful investment promotions in Thailand, India, and Australia.
Karma Samten Wangda
Edited by Sangay Chezom
