Businesses in Phuentshogling and Samtse are urging the government to remove regulatory barriers that are slowing investment and business growth in Bhutan’s key economic gateways. A new report, Economic Gateways of Bhutan: Business Regulatory Process Review in Phuentshogling and Samtse, identified more than 54 challenges, most of them linked to administrative procedures.
According to the report, businesses in the two border towns face lengthy licensing and permit processes, labour shortages, barriers to cross-border trade, and weak digital infrastructure.
Officials said these issues reduce business competitiveness and weaken the country’s overall economic performance.
“Many of the challenges are administrative, especially delays in government procedures. These can be improved. Earlier, there was no clear report on the issues faced by the business community. Now that the report is ready, we can use it to engage the government,” said Khampa, a project management specialist with the Handicrafts Association of Bhutan.
“We carefully reviewed the issues and checked whether both towns face similar challenges. We also consulted relevant agencies and examined why these problems persist. Listing them clearly gives a better understanding of the current situation,” said Kelzang, Regional Secretary, BCCI Regional Office, Phuentshogling.
The report makes ten recommendations to the government, ministries, regulatory agencies and private sector organisations.
These include creating a single-window regulatory service centre, reforming the Goods and Services Tax framework, strengthening action against fronting, and introducing targeted measures to address business challenges.
Officials said these reforms would improve the ease of doing business, strengthen competitiveness and support economic growth.
“It is important to bring all government agencies together and improve coordination. The regional office of the BCCI will lead this effort. We will involve all relevant regional offices to address the issues. If we cannot resolve them at the regional level, we will escalate them to the government,” said Chorten Dorji, ED of the Handicrafts Association of Bhutan.
Officials said problems in Phuentshogling, the country’s main trade gateway, have nationwide consequences. They said disruptions to trade can affect the supply and prices of essential goods across Bhutan.
The Bhutan Chamber of Commerce and Industry, with the Voice for Green Change Partnership Project, prepared the report through consultations led by a multi-sectoral Technical Working Group. The group included representatives from key economic sectors in Phuentsholing and Samtse.
The European Union funded the report.
Kinley Dem
Edited by Sangay Chezom
