YANGCHEN LHAMO
Thimphu
Bhutan is embarking on a transformative journey to enhance its agrifood sector through innovative financing and improved trade facilitation according to Kinley Yangzom, Chief Trade Officer under the Export Promotion Division, Department of Trade under the Ministry of Industry, Commerce and Employment.
At the recently concluded Bhutan Trade and Agrifood Investment Forum 2024, she stated that the challenges faced by Bhutan’s trade sector and proposes a comprehensive plan to overcome them and stimulate growth.
Bhutan faces significant hurdles in its trade landscape, largely due to its geographical constraints and limited export diversification. Being landlocked poses inherent difficulties in accessing international markets.
Further, the economy’s heavy reliance on a narrow range of exports, particularly hydroelectricity, and minerals, made it vulnerable to global market fluctuations, while underdeveloped infrastructure in transportation and logistics hampers efficient movement of goods.
To address these challenges, Yangzom outlined a multi-faceted strategy designed to transform Bhutan’s trade dynamics. Central to this strategy is the promotion and branding of Bhutanese products. The ‘‘Brand Bhutan Initiative’’ seeks to highlight the unique qualities of Bhutanese goods, particularly their organic and high-value attributes. These initiatives aim to position Bhutanese products as premium offerings in international markets.
Aligning with global sustainability trends, Bhutan is promoting sustainable practices in its production processes. This not only enhances the appeal of Bhutanese products to eco-conscious consumers but also ensures long-term environmental sustainability.
The development of dry ports, export processing zones, and cold storage facilities will significantly enhance Bhutan’s logistics capabilities, ensuring that products reach markets in optimal condition and reduce trade costs.
Embracing digital platforms and e-commerce will streamline processes and expand market reach.
She also strengthened the Bhutanese government is implementation of several initiatives to support the strategies. Like infrastructure development, investment in dry ports, export processing zones, and cold storage facilities are underway to improve trade logistics. These facilities will enable better handling and storage of agricultural products, ensuring they reach markets in optimal condition.
Entrepreneurial training programs and farmer support initiatives are designed to empower local producers and improve their competitiveness. By providing training on best practices, modern farming techniques, and value addition, these programs aim to enhance the productivity and quality in the agri-food sector.
Revising trade regulations, such as the revision of trade rules and regulations, Foreign Direct Investment(FDI) policy reforms, and issuing licenses through the Bhutan Trade Facilitation Network (BTFN) will simplify trade processes.
The BTFN is pivotal in this digital transformation, offering online assurance of licenses and certificates of origin (COO), thereby simplifying administrative procedures and promoting ease of doing business.
Bhutan’s government is demonstrating commendable foresight in revolutionizing its trade sector, particularly in agrifood. By tackling existing challenges with innovative strategies, leveraging digital platforms, enhancing infrastructure, and building local capacity, Bhutan is on a path to sustainable growth.
The implementation of innovative financing, robust trade facilitation, and strategic market diversification will position Bhutan competitively on the global stage. Through collaborative efforts and continuous improvements, Bhutan is poised to establish a vibrant, resilient, and sustainable trade ecosystem, ensuring significant benefits for all stakeholders involved.
The Ministry of Agriculture and Livestock in collaboration with the Ministry of Industry, Commerce and Employment, the Ministry of Foreign Affairs and External Trade, the Bhutan Chamber of Commerce and Industry, Food Agriculture Organization and the European Union, organized the Forum from May 15 to 19 in Thimphu.
