YK Poudel

Leaders from across Bhutan and around the globe are eyeing strategic partnerships following the Bhutan Innovation Forum in Paro earlier this month, with a focus on driving economic growth through a revitalised Technical and Vocational Education and Training (TVET) sector.

Wendy Perry, managing director of Workforce BluePrint and an Australian expert in TVET and strategic workforce planning, spotlighted the pivotal role of vocational training in Bhutan’s economic future.

During her participation in the Bhutan Innovation Forum (BIF), she engaged with officials from various sectors, drawing attention to the need for better financial infrastructure, including a Venture Capital framework.

Despite praising Bhutan’s efforts under “Brand Bhutan”, she emphasised that access to capital remains a bottleneck for scaling businesses. Her conversations outlined critical areas for development, including renewable energy, waste management, and food production, with a particular focus on improving TVET systems.

Wendy Perry said that Bhutan could greatly benefit from collaboration with Australia, particularly South Australia, in building a solar energy workforce and exploring synergies in hydrogen development. She discussed these opportunities with officials from various ministries and organisations during her participation in the Bhutan Innovation Forum.

“Bhutan’s tourism sector holds immense potential, as does the Gelephu Mindfulness City (GMC) as a learning city,” Wendy Perry remarked, highlighting the country’s rich cultural heritage, arts, crafts, culinary traditions, and wellness experiences as key assets for growth.

However, she noted that workforce development, especially in building and construction, requires urgent attention to implement the outcomes of the forum, particularly with new materials, technology, and tools.

“TVET is crucial to the country’s growth. Without a skilled workforce, initiatives like the GMC may face challenges in integrating Bhutanese youth and businesses into the supply chain,” she said.

Wendy Perry’s observations struck a chord with many thought leaders at the forum, who recognised the urgent need for a transformative approach to TVET.

While fostering skills and expertise among Bhutanese entrepreneurs remains critical, significant barriers to growth persist.

Wendy Perry highlighted the absence of a “unicorn” company in Bhutan, particularly one with a successful founder, which could serve as a model for taking risks and attracting investment.

For sustained growth, Perry suggested the government streamline processes to make Bhutan more attractive to foreign investors, thereby supporting the scaling of local businesses.

“There is promising work underway on the FDI Policy and through Invest Bhutan, which is encouraging. With the momentum and interest generated at the BIF, now is the time to act and make it easier for investors to include Bhutanese businesses in their portfolios,” she said.

Clear government policies, with defined responsibilities and actionable steps, could be the key to drawing in foreign investment and fostering the growth of Bhutanese enterprises, she added.

Dorji Wangdi, president of the Druk Phuensum Tshogpa, stressed the indispensable role of a skilled workforce in economic development, particularly in attracting foreign investments for the GMC. He said that aligning workforce skills with the right occupations was essential for fostering investor confidence.

He also highlighted the pressing need for significant investments in workforce training, especially for youth. “We must make major investments in skilling, particularly through Gyalsung, which is the perfect platform for this. Enhancing both the capability and productivity of our labor force is essential.”

Further to that, he pointed out the cost associated with this effort, noting, “Skilling is at least three times more expensive than general education, but it is what we need to do for progress.”

Experts at the forum called for a holistic approach to TVET, stressing that its benefits extend beyond traditional institutions to all sectors of society. Despite being recognised globally as a key driver of economic growth and a solution to unemployment, TVET in Bhutan is still undervalued, particularly by those guiding Bhutanese youth in their career choices.

The discussion underscored the need to shift public perception to fully embrace TVET as a cornerstone of the country’s development strategy.

Dorji Wangdi said that Bhutan’s labour market challenges crossed beyond the issue of skilled versus unskilled workers, pointing to wages as a significant factor. “There are limited high-paying skilled jobs in Bhutan, making it difficult for employees to sustain a living.”

To address the skills-job market mismatch, he suggested reforms in wages, starting from the basic education levels such as high school and graduates.

He also stressed the impact of inconsistent policies on workforce development and economic progress. “Our major problem has been the lack of clarity and consistency in economic policies. Economic policy and human resource development are inseparable—like two blades of a pair of scissors,” he said.

According to him, Bhutan needs a clear economic vision that prioritises sectors and aligns workforce planning and skills development accordingly. Without this alignment, progress in both skilling and economic growth will remain fragmented, he warned.

Dorji Wangdi urged the government to develop a clear and actionable economic roadmap.

“The last comprehensive Economic Development Policy (EDP) was formulated in 2010, and although a revised version was launched in February 2017, it remains unimplemented,” he said.

He further explained that relying solely on the Five Year Plans (FYP) for economic policy is insufficient. “FYPs are broad plans covering social, economic, spiritual, cultural, and environmental objectives. What we need is a dedicated EDP that focuses solely on economic goals, tailored to Bhutan’s evolving priorities and aligned with regional and global trends.”

Wendy Perry echoed his concerns, stressing that equipping Bhutanese youth with relevant skills is crucial for Bhutan’s goal of becoming a high-income economy by 2030.

“There is an urgent need for a future-focused strategic workforce plan, a transformative capability framework, and a curriculum that starts in early childhood and continues through all educational levels,” she said.

Wendy Perry emphasised that educational curricula should be job-specific, grounded in global best practices, and focus on 21st-century skills. Practical, hands-on learning should be a priority to ensure Bhutan’s workforce is prepared to meet the demands of a changing economic landscape.

Dorji Wangdi described Bhutan’s 13th Plan as an ambitious initiative primarily focused on bridging gaps in basic infrastructure and stressed that Bhutan should aim to establish itself as an international hub for cultural, spiritual, and biodiversity tourism, traditional medicine, health and wellness, mindfulness and happiness education, organic agriculture, and agro-products.

He also highlighted the potential for Bhutan to excel in high-tech and artificial intelligence sectors by developing specialised excellence centres.

“With favourable policies and investments in TVET through a well-crafted and clearly articulated EDP, Bhutan could position itself as a regional leader, unlocking numerous opportunities for growth,” Dorji Wangdi said.

As Bhutan moves towards sustainable development, Dorji Wangdi emphasised that skilling and a solid economic framework are crucial for achieving the country’s vision of becoming a vibrant, high-income economy.

“By integrating diverse voices and ideas, Bhutan can pave the way for inclusive growth that benefits all sectors of society,” he said.

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