…sole-proprietorship constitutes 95 percent of industries
Thukten Zangpo
Industries of all sizes—cottage, small, medium, and large—contributed 49.96 percent, or Nu 124.69 billion, to Bhutan’s gross domestic product last year, according to the Industry Census of Bhutan 2024 launched yesterday.
Among the industries, 46 percent or Nu 114.81 billion, was contributed by the medium and large industries, and Nu 9.88 billion or 3.96 percent was contributed by the cottage and small industries.
Service industry dominated the sector in terms of scale with 11,032 units, followed by production and manufacturing with 1, 355 units and contracts with 621 units.
By ownership, the sole proprietorship dominated the sector with 12, 477 establishments or 95.91 percent of the total industries, followed by private limited companies by 1.83 percent or 239, and partnerships with 148 establishments, making 1.13 percent of industries.
Last year, the industrial sector employed 76,768 people. Of these, 91 percent were Bhutanese nationals. The remaining workers were non-Bhutanese: 2,280 were employed casually (representing 33.13 percent of the total), while 1,755 were on contract (making up 25.5 percent). Additionally, 133 workers were individuals with disabilities.
During the launch, director general of the Department of Industry, Chhime Tshering, said that the census was initiated with the intention to fill the data gaps, validate the existing information, and gain deeper insights of the current state of the industrial landscape.
He noted that the report would be valuable for making informed decisions, preparations, and plans. It will aid in formulating policies, strategies, and interventions to enhance the industrial ecosystem. This, in turn, is expected to boost revenue, generate employment, and contribute to the overall growth and development of the country.
The Minister of Industry, Commerce, and Employment, Namgyal Dorji, said that the Census was an essential tool for identifying development priorities in industrial growth.
He added that private sector development has not met expectations due to fundamental errors in the system. He highlighted that industries are facing systemic issues such as difficulties in accessing finance, market access, and a shortage of skilled workers.
The census revealed that 42 percent of industries struggle with market access, 33.5 percent face challenges in obtaining finance, and 17.3 percent deal with shortages of skilled labour.
Lyonpo said that the industry sector created 76, 768 jobs and it was the government’s responsibility to increase it by two-fold in the next five years.
He added that 95.91 percent of industries are currently sole proprietorships. To foster economic and industrial development and enhance regional competitiveness, Lyonpo said that there is a significant opportunity for these ventures to transition from sole proprietorships to more diverse and broader-based companies.
“We have to come up with high-value industries in terms of financial value, innovation, job creation,” he said, adding that the small industry should be supported, including the tax breaks.
The census also identified policy interventions as the top concern, with 41.32 percent of industries emphasising its importance. This was followed by access to finance at low interest rates, cited by 11.04 percent of industries, and general accessibility to finance, mentioned by 10.85 percent.
The census covered 13,260 out of the 15,112 operational industries. A total of 23,241 industries were registered and filed business income tax.