The attempt to attract Nu 500 billion in foreign direct investment (FDI) in the next five years (by 2029) is an ambitious target. If we can achieve even half of the target, it will be a huge achievement. How we go about achieving it is as big a question.

FDI is not a new concept; it has been around for years. As of last year, Bhutan’s FDI is around  Nu 48.61 billion, with the hotel sector driving FDI. The sector may have contributed 34.9 percent of GDP, but if we delve deeper, it is just a handful of hotels hidden in the lush forests towering our dzongs and lhakhangs without much trickle-down effect. Beyond this, FDI has not paved the way in other sectors. IT-enable services comes second, but that too is concentrated in a few hands, government or private.

The new target is banking on the Invest Bhutan Web Portal. The 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.

This might be one good way of enhancing the ease of doing business, but let us be serious. The portal could be a good bridge, but from experience, we know that to attract FDI, there should be many thing in place to make environment conducive. It is good to hear, even if not new,  that the government is working to create a conducive environment backed by policies, plans, and projects.

If we want the aspirations to be fulfilled, we have to translate the plans and policies into reality. It has to be quick because time is not on our side.  A foreign company learning about Bhutan, including areas of business opportunities where foreign investors can invest, will look beyond what we have. There is no denying that political stability, clean and safe environment could attract investors. But at the end of the day, returns from the investment matters. Investors could get carried away by our policies, but reality is what matters the most as they would want to profit from their investment.

What investors would look at beyond the peace and clean environment is the capital partners, labour force, technology, and market. Bhutan has improved in the  ease of doing business ranking, indicating that attempts are made to attract FDI. However, located in a region where most of our neighbours are trying for the same, attracting FDI, we need to make the most of our advantages.

The biggest hurdle, many say, is the road infrastructure. As a landlocked country, getting the best product grown or manufactured in Bhutan, for instance, becomes uncompetitive when it has to be transported in the backs of trucks, often struck at landslide or roadblocks.

The portal showcases investment opportunities in agriculture, IT and IT-enabled services, construction, livestock, wood and furniture, and education and skilling with joint-venture of 74 percent. If we can live up to the expectations, we need not look for markets beyond our own country.

The  planned Gelephu Mindfulness City, for instance, alone  would require the goods and services of the identified sectors if we can make them happen.