To address the pressing constraints currently hindering the growth of the business ecosystem in the country, the Department of Industry under the ministry of industry, commerce and employment (MoICE) has developed a series of strategies and plans aimed at strengthening the business ecosystem.
An official from the department of industry shared some of the current challenges such as limited access to markets, financial resources, human capital development, and the integration of modern technology. Officials shared that with better resource availability, the overall business environment could see significant improvement.
As part of the skills development initiatives, the department will offer various capacity building trainings focused on areas critical to industry growth, such as production technique, packaging, labeling, business management, and food processing for the licensed Cottage and Small Industries (CSIs).
Additionally, to further support these initiatives, the department will launches a small grant for technology adoption up to Nu 300,000 especially targeted to those informal CSIs in the production and manufacturing sector. The official shared that previously, the support were limited to licensed businesses; “However, starting this year, we will extend support to unlicensed businesses, allowing industries CSI to avail the budget up to Nu 300,000 intended to use for procurement of machinery equipment. However, unlicensed CSI must register for license within one year.”
The official also shared the availability of the common facility centers at Changzamtog in Thimphu and Chachey in Tsirang industrial estates , which include services such as dyeing, packaging, designing, labeling, and printing. “These centers offer businesses the opportunity to produce their own products with affordable packaging solutions.”
Regarding market access, the official stated that there are currently designated CSIs markets in Thimphu and Paro, but they do not cover all products produced within the country. “We are planning to have CSI market in all 20 districts to broaden market access for local products.”
On the international front, the department has currently established CSI market in USA and Australia and is exploring opportunities to open additional markets in other countries.
The official also shared that to address the critical issue of import licensing, as many raw materials must be imported from other countries like India and China, the department will assist businesses with import licensing. “The Department of Revenue and Custom is the main organization to look after, but the department will also help producer in agriculture, trade, and market access.”
The official also reveals fiscal incentives aimed at promoting business growth, including tax holiday of approximately 25%. “The producers can enjoy a tax exemption of approximately 25% for the first five to ten years. However, an individual can contact us to obtain tax exemption.”
Further, the department will also facilitate business guest visa exemption. The official said, “The business guests can be exempt from royal taxes if they visit the country for meetings, feasibility studies, or signing contracts and Memoranda of Understanding.”
The address the issue faced by entrepreneur in securing spaces for their business venture, the official shared the availability of lease space across six industrial parks or estate: Dhamdum Industrial park, Norbugang Industrial park, Motanga Industrial park, Pasakha Industrial park, Bjemina Industrial park, Chachey CSI Park. “However, some of these spaces are still unoccupied, with availability of spaces mainly in the Chachey CSI Park located in Tsirang,” the official said.
Nidup Lhamo from Thimphu
