Thukten Zangpo
The government launched the Invest Bhutan Web Portal in Thimphu on August 16 as it gears towards attracting Nu 500 billion in foreign direct investment (FDI) by 2029.
This interactive portal, available in more than hundred languages, aims to enhance the investment experience by providing comprehensive information on opportunities and regulations on foreign direct investments in Bhutan.
As of last year, Bhutan’s FDI stood at Nu 48.61 billion, with the hotel sector leading at 34.9 percent, followed by information technology or IT-enabled services at 21.7 percent in 2023.
During the launch, the Director General of the Department of Industry, Chhime Tshering, said that the web portal is designed to provide the ultimate user experience while addressing current investor challenges.
“It is an effort towards attracting FDI in the country through enhanced ease of doing business. We remain hopeful that our modest effort will yield results in terms of foreign capital inflow in the country.”
Minister of Industry, Commerce, and Employment, Namgyal Dorji, said that capital is important for industry development because of limited capital in the country.
He added that to achieve the ambitious Nu 500 billion FDI by 2029, the government is working to create a conducive environment backed by policies, plans, and projects. “We are confident that our aspirations will be fulfilled.”
The Department of Industry, as Investment Promotion Agency, is mandated to promote Bhutan as an investment destination for FDI and is required to provide key information on FDI, including areas of business opportunities where foreign investors can invest.
According to the Department of Industry, while the FDI policy 2019 has a list of priority sectors identified, there is a lack of industry information related to the sectors based on which investment decisions can be taken up.
“The investors are also faced with issues such as accessing complete information of FDI policies, processes and incentives and connecting local partners with foreign partners and vice-versa,” it added.
The portal, developed with support from the Asian Development Bank, showcases investment opportunities across various sectors in agriculture, IT and IT-enabled services, construction, livestock, wood and furniture, and education and skilling with joint-venture of 74 percent.
In the wood-based panel production, a total of Nu 300 million investment is allowed in identified locations in Paro, Sarpang, and Thimphu.
In construction material manufacturing plants, the investment cap is Nu 50 million with identified locations in Paro, Sarpang, and Thimphu.
A foreign investment of up to Nu 50 million is required to set-up a software development company. The incentives include skilled workforce from local universities, tax holiday, and subsidised office space in IT parks.
For setting up a smart learning and training centre, the investment threshold is Nu 100 million with identified locations in Paro, Punakha, and Thimphu. Incentives for this include subsidised digital infrastructure, access to government educational programmes, and tax holiday.
Under agriculture, there is an opportunity to start a fertiliser production plant with an investment of Nu 50 million in identified locations in Paro, Sarpang, and Thimphu.
There are also investment opportunities to set up a rainbow trout farm at an investment of Nu 40 million in Haa, Paro, and Punakha. Incentives for this business include subsidy on fingerlings and feed, access to market, and tax holiday.