Foreign Direct Investment:<\/p>\n
In view of\u00a0 an increasing emphasis placed on the promotion of private sector development as the engine of economic growth, Bhutan\u2019s first FDI policy came into effect in 2005. In a nutshell, Bhutan\u2019s investment regime is being guided by two overarching policy documents, namely, Vision 2020 and the Economic Development Policy 2016. Ever since its inception in 2002, in an effort to adapt to the changing forces of the investment climate and to position itself as an investor-friendly haven, Bhutan\u2019s FDI policy was revisited several rounds, with the last revision undertaken in 2019.\u00a0<\/span><\/p>\n Up till date, Bhutan has been able to receive 83 FDI projects. In terms of the overall FDI distribution, the service sector\u2014comprising hotel, IT and IT-enabled services\u2014dominated Bhutan\u2019s FDI inflows, followed by manufacturing, dairy and agro projects. Moreover, the Asian market constitutes a substantial portion of Bhutan\u2019s FDI inflows (45%). Under the FDI Policy 2019, the government provides foreign investors the maximum equity shareholding of 49% and the minimum project cost of Nu. 5 million in the small-scale production and manufacturing sector. An FDI Division under the Ministry of Economic Affairs was also established in 2019 with a mandate to serve as an investment promotion body and to provide single-window services to investors.\u00a0<\/span><\/p>\n Furthermore, Bhutan is blessed with the following unique selling points which are catalytic in attracting FDI inflows:<\/span><\/p>\n *FDI Policy 2019:<\/span>\n
\nhttps:\/\/www.moea.gov.bt\/wp-content\/uploads\/2017\/07\/FDI-Policy-2019.pdf<\/span><\/a><\/p>\n