India, Singapore And Thailand – Top 3 Asian Foreign Direct Investments In Bhutan

Email

The total number of FDI projects in Bhutan stands at 83 as of November this year.

(Source: Quora)

 

By Phub Dem | Kuensel

Bhutan continues to receive Foreign Direct Investments (FDIs), mostly from Asian countries. As of November 2019, Bhutan recorded a total of 12 FDI projects.

From 7 projects in 2017, FDI inflow in terms of numbers increased to 16 last year. The total number of FDI projects in the country stands at 83 as of November this year.

The service sector dominates FDI inflow with five projects each in the hotel and IT sectors, with Thimphu, the capital as the preferred destination for FDIs in the service sector – hotel and IT/ITES.

According to the annual FDI report, 64 percent of the FDI projects approved are located in the districts of Thimphu, Paro, and Phuentsholing. Of the total, 38 percent (the highest) of the projects are based in Thimphu.

 

Statistical Breakdown of Asian FDIs in Bhutan (2018)

Infographics: FDI Annual Report of Bhutan 2018

 

In 2019, from within Asia, more than half of the investors are from India (45 percent) followed by Singapore (19 percent) and Thailand (10 percent).

The report also pointed out that foreign investors in Bhutan are mostly from private companies.

Fifty percent of the projects were promoted by private companies while the other half were by individual investors.

The World Investment Report 2019 also highlighted that Bhutan attracted around Nu 5.7 billion worth of FDI investment in 2018 in capital-intensive projects, especially hotels.

 

 

Thimphu, the capital of Bhutan has attracted the most number of FDIs.

Source: Youtube/Fardin Travel Vlogs

 

The cash inflow in terms of Indian Rupee increased by 12 times and dollar by 3.4 times, the inflow increased from INR 22.2 million and USD 6.2m in 2017 to INR 267.5m and USD 20.8m last year.

Positive impact of FDIs in Bhutan

Concerning FDIs positive impact on employment, a total of 5,176 Bhutanese were directly employed by the operating FDI projects as of November 2019.

In addition, for every expat worker, 19 locals were employed. FDI companies employ a total of 240 foreign workers, which make up 5.4 percent of regular employees in the companies.

For instance, 7 FDI companies employed 63 percent of the total regular employees as of December last year.

The companies are: Mountain Hazelnut Ventures Private Limited, BoBL, BNBL, Bhutan Resorts Private Limited, Bhutan Eco Ventures Private Limited, Scan Cafe Private Limited and Bhutan Ventures Hospitality Private Limited.

FDI projects have also paid Nu 1.748 billion in taxes last year, an increase of 11.7 percent from Nu 1.56 billion in 2017.

Infographics: FDI Annual Report of Bhutan 2018

 

The total number of FDI projects in the country stands at 83 projects as of November this year.

The report also showed that the manufacturing sector has contributed significantly to Bhutan’s export basket.

Thus far, 11 FDI projects under the sector had exported goods worth Nu 4.2b, of which Nu 3.8b was exported to India and the remaining to other countries.

As per the annual Trade Statistics 2018, the share of FDI manufacturing companies to overall exports revealed that FDI exports to India constitute 17.6 percent of Bhutan’s total export.

In the World Bank’s Report on Ease of Doing Business 2019, for a landlocked country like Bhutan, it is ranked 81 out of 190 countries.

 

This article first appeared in Kuensel and has been edited for Daily Bhutan.

 

 


Related Posts

Apollo Bhutan institute of Nursing – First Foreign Direct...

The Apollo Bhutan institute of Nursing has an excellent infrastructure, on par with international standards.

Aug 08, 2019 11:38

A Peek Into The Proposed Draft Of Bhutan’s Foreign Direct...

The process of FDI approval and clearances will be fast-tracked.

Jul 03, 2019 23:58

Bhutan To Revise 3rd Foreign Direct Investment Policy To...

Most of the FDI companies are in the hotel sector today, therefore it is important for us to diversify.

Mar 29, 2019 18:32

Bhutan’s Foreign Direct Investment Saw 10 Fold Increase From...

The jump in figure is due to the large number of capital-intensive projects (such as hotels) being approved in 2018.

Feb 24, 2019 13:51

Bhutan – A Hidden Gem For Foreign Direct Investments

Of the total FDIs, 65 percent of the investors are from Asia, 25 percent from Europe, nine percent from America and the...

May 24, 2018 16:58

According To The World Bank, Bhutan Ranked 81st In Ease Of Doing...

The rankings were determined by sorting the aggregate scores on 10 parameters, each consisting of several indicators.

Nov 05, 2018 15:45

Latest

News

USD 25.3m Green Climate Fund To Address Climate Change Adaption In Bhutan

The project can help address climate change adaptation challenges facing Bhutan, particularly in the agriculture sector.

Jan 15, 2020 16:28

Bhutan’s Target To Become A 100% Organic Nation By 2020 Delayed – Pushed To 2035

Efforts to translate Bhutan’s organic vision into reality has met with various challenges thus far.

Jan 04, 2020 23:28

Features

Bhutan’s Government Ramped Up Support For More To Drive Electric Vehicles, Help Reduce Harmful Emissions

The dealers and the manager have given the taxi drivers their guarantee on battery and the important parts of the EV.

Jan 16, 2020 23:28

Pangri Zampa Lhakhang - The College of Astrology

Locals visit the monastery every year to learn about their yearly predictions about their luck, money, health, career and many more....

Jan 15, 2020 09:46

Sports

Karma – Female Archer From Bhutan Qualified For Tokyo 2020 Olympic Quota

Karma has been specialising in Olympics-style archery since 2009.

Nov 30, 2019 13:18

Bhutan’s Pelden Wangchuk Wins 10th Edition Of Tour 0f Dragon Mountain Bike Race

This year, the race also saw the highest number of female participants compared to past years.

Sep 10, 2019 01:08

Business

Economic Roadmap Needed To Steer Bhutan Towards Higher GDP Growth

The Lyonchhen said that the economic figures will improve in 2020 as 70 percent of the capital investments still lie unused.

Jan 17, 2020 23:38

Celebrating Bhutan’s entrepreneurs: Tashi Wangdi of iHub

This story is part of an exclusive feature by Yeewong Magazine in Dec 2018 on celebrating entrepreneurship in Bhutan.

Jan 12, 2020 23:38

Travel

Forging the Unbeaten Trail Towards Wangdue Nye

When you dedicate year 2020 to hike on unbeaten trails in Bhutan.

Jan 21, 2020 10:58

Make Your Own Personalised Stamps And Discover Bhutan’s Postal History At The Postal Museum

The Bhutan Postal Museum in Thimphu is also a major tourist attraction.

Jan 18, 2020 21:08

Lifestyle

Relish Your Taste Buds With 8 Delectable Bhutanese Staple Food

One of the best places to try authentic Bhutanese cuisine is through a homestay, where you will get to sample what most locals eat at home.

Jan 19, 2020 21:08

Here’s What it is like inside Hotel River Valley, Punakha in Bhutan

River Valley Hotel offers professional and customer oriented services and thereby has become the leading hotel in the region ’. Experience...

Jan 05, 2020 10:48

Subscribe to our newsletter

Never miss out on new happenings and news stories!

Download Daily Bhutan Mobile App

Connecting with us just got easier!