Challenges and Opportunities for Business Environment Reforms in Bhutan
In a bid to create a more business-friendly environment and boost the economy, Bhutan is looking to implement significant reforms in its laws, policies, and regulations. This move comes as stakeholders in the business sector express concerns over the numerous laws and government regulations that are hindering growth rather than facilitating it.
During the National Day celebrations on December 17, His Majesty the King highlighted the importance of having a strong legal system that promotes order, security, prosperity, and social harmony. His Majesty emphasized the need for swift enactment and amendment of laws, especially those affecting the economy, to create a legal system that fosters progress.
The President of the Bhutan Chamber of Commerce and Industry (BCCI), Tandy Wangchuk, echoed the sentiment, pointing out the need to reduce the number of regulatory policies in the country. Wangchuk expressed optimism about the revision of Foreign Direct Investment (FDI) policies and stressed the importance of understanding how the private sector operates to frame appropriate rules and regulations.
Entrepreneurs and representatives from startups and small businesses also voiced their concerns, citing challenges such as high loan interest rates, limited access to finance, and unclear policies. They called for practical rules and regulations to encourage private sector participation in various sectors, including bulk rice cultivation and hydropower projects.
Despite the challenges, some foreign investors noted that Bhutan has favorable laws and policies in place. The CEO of Mountain Hazelnuts, Sean Watson, praised Bhutan for offering a stable investment climate with clear regulations around capital repatriation, making it an attractive destination for sustainable and ethical investments.
Overall, the push for legal reforms and a more business-friendly environment in Bhutan reflects a commitment to fostering economic growth and attracting investments while addressing the concerns of stakeholders in the business sector.
