PEMA TSHOMO
Thimphu
The Bhutan Chamber of Commerce and Industry (BCCI) has reiterated the critical role of the private sector in achieving the ambitious targets outlined in the13th Five-Year Plan (FYP).
During the inaugural Private Sector Press Conference held on 27 December, the chamber highlighted its plans to foster stronger collaboration with the government and enhance private sector engagement across seven priority areas.
The areas include agriculture, mining and quarrying, manufacturing, electricity, hydro-industries, construction, and digital technologies, which collectively aim to contribute to a projected GDP growth of Nu 328.49 billion by 2029.
BCCI President, Tandy Wangchuk emphasized the chamber’s optimism about achieving these goals through concerted efforts from both the government and private sector.
“We believe that the private sector can play a transformative role in Bhutan’s economic landscape. To do so, a better business ecosystem is essential. We urge the government to focus on improving the ease of doing business, streamlining regulations, and fostering investment opportunities,” he said.
He also pointed out that the inclusion of private sector participation in hydropower projects marks a positive step forward.
The chamber detailed its multifaceted approach to meeting the 13th Plan’s goals. BCCI Secretary General Chandra B. Chhetri outlined measures to prioritize capacity building, investment facilitation, and policy advocacy.
“Our role is to ensure that economic policies are favorable for the private sector while also driving partnerships and facilitating training programs. Dedicated committees will be formed to address the specific needs of each priority sector,” Chhetri said.
He shared that the chamber is committed to raising awareness of opportunities within these sectors and providing networking platforms for businesses to collaborate effectively.
Key challenges in the business environment, particularly those related to regulatory processes, were also discussed. The chamber revealed that 235 issues affecting the private sector were identified during a review conducted in partnership with the Ministry of Industry, Commerce, and Employment (MoICE) under the Voice for Green Change Partnership (V4GCP) Project. These issues included bottlenecks in licensing, labor regulations, market access, taxation, and service delivery.
According to BCCI, while the government resolved 11 percent of these issues, it is imperative to address the remaining challenges promptly to unlock the sector’s full potential.
Chandra B. Chhetri stressed the importance of the government’s support in resolving these challenges. “We need comprehensive and pragmatic solutions to create a conducive environment for businesses.
The establishment of the Economic Development Board (EDB), which includes four private sector representatives, is a promising step. It reflects the government’s commitment to fostering private sector development,” he shared.
The press conference also shed light on the government’s Economic Stimulus Program (ESP), a Nu 15 billion initiative aimed at economic recovery post-pandemic.
As of December 26, 2024 Nu 198.36 million had been disbursed under Window 1, benefiting 262 applicants, while 13 projects were approved under Window 2, with 66 others under assessment. Chandra B. Chhetri also highlighted the significance of this program for the private sector.
“The ESP has played a crucial role in supporting businesses by providing concessional loans. It has not only eased financial burdens but also helped in creating jobs, enhancing productivity, and promoting sustainable growth,” he said.
He even acknowledged the role of Bhutan Development Bank Limited (BDBL) in streamlining loan disbursement, which has increased accessibility for small and medium enterprises in remote areas.
However, questions arose about the exclusion of the digital sector from the ESP. BCCI clarified that the program primarily focuses on short-term economic recovery for sectors most affected by the pandemic, such as manufacturing. “While the digital sector is less impacted, it remains a key area in the 13th Plan and will receive attention in the government’s long-term strategies,” Chhetri added.
Foreign Direct Investment (FDI) was another focal point of discussion. The BCCI outlined major changes in the new FDI policy, which aims to align Bhutan’s investment framework with international standards. Highlights of the policy include streamlined online application processes, flexible visa and permit regulations, and relaxed dividend repatriation rules.
“The new FDI policy is robust and investor-friendly. It simplifies business approvals, enhances transparency in land lease terms, and introduces attractive tax incentives,” said Thinley Namgay, a private sector representative.
Despite these advancements, private sector representatives voiced concerns over regulatory delays and the involvement of multiple agencies in the FDI approval process. Namgay underscored the importance of simplifying these processes.
“Invest Bhutan, an existing office under the Department of Industry, will play a central role in addressing FDI-related needs. The online platform for registration will make it easier for investors, ensuring faster establishment of businesses,” he said.
The BCCI also highlighted its advocacy efforts in the ongoing review of Bhutan’s business regulatory processes. The chamber expressed hope that its submissions, which address critical issues in licensing, labor, finance, and market access, would be considered by the government. “If our recommendations are implemented, they will automatically resolve many of the barriers faced by the private sector,” Namgay noted.
Looking ahead, the chamber remains committed to facilitating public-private dialogue to address challenges and ensure the successful implementation of the 13th Plan. “We will continue to track and report on the private sector’s contributions, monitor progress, and propose solutions to any emerging issues. Collaboration is key to achieving our shared goals,” said Chandra B. Chhetri.
The BCCI also urged media houses to play an active role in amplifying the voices of private sector stakeholders. “The media is a powerful tool for change. By highlighting the challenges and achievements of the private sector, we can collectively push for reforms that benefit the entire economy,” Tandy Wangchuk said.
