In 2025, Bhutan witnessed a significant boost in foreign direct investment (FDI) with 14 new projects approved, totaling Nu 73.76 billion. The additions brought the total number of FDI projects in the country to 135 by the end of December 2025.
While the projects span multiple sectors, most are concentrated in Thimphu, Paro, and Chukha dzongkhags, in line with the government’s Industrial Development Roadmap. Officials from the Ministry of Industry, Commerce, and Employment (MoICE) explained that the distribution considers connectivity, infrastructure, and convenience for setting up and operating projects.
MoICE Minister Namgay Dorji emphasized that focusing on the west and south does not mean neglecting other regions. “We must contextualize project locations while ensuring balanced regional development. The government is exploring opportunities in other parts of the country as well,” he said.
The Bhutan Chamber of Commerce and Industry highlighted that market accessibility and transport convenience are crucial factors for investors.
Among the 135 FDI projects, 64 are operational, while 71 are under various stages of construction. Additionally, 18 FDI projects worth Nu 201.91 billion received FDI Registration Certificates in 2025, including two hydropower projects: Dorjilung Hydropower and Wangchhu Hydroelectric Power Limited.
Meanwhile, Asia remains the largest source of foreign investment, accounting for 63% (85 projects). Within Asia, India is the leading investor with 47 projects, followed by Singapore with 13, Thailand with 8, and Vietnam and Bangladesh with 4 each. Europe contributes 20.7% (28 projects), while America represents 11.1% (15 projects).
The hotel and resort sector leads in terms of FDI share with 41 projects (30.4%), followed by IT/ITES with 36 projects (26.7%), dairy and agro industries (10 projects, 8%), power-intensive manufacturing (12 projects, 9%), and financial services (7 projects, 5%).
FDI projects continue to generate significant employment and capital inflows. As of December 2025, FDI companies employed 6,167 workers, including 5,213 Bhutanese (2,875 regular males and 2,338 regular females) and 284 casual Bhutanese workers. Compared to the previous year, Bhutanese employment increased by 19%, maintaining a 1:12 ratio of expatriates to locals.
FDI contributions to the economy are substantial. In 2024, projects attracted US$ 5.99 million and INR 223.33 million, while reported FDI companies paid Nu 2,373.85 million in taxes, a 14.2% increase over the previous year.
While most FDI continues to cluster in the west and south, the sector’s growth has been transformative, generating jobs, infrastructure development, and capital inflows. As Bhutan looks to diversify and expand investment opportunities across the country, careful planning and regional balance will be essential to sustain this trajectory.
Sangay Rabten
From Thimphu
