The minister, Ministry of Industry, Commerce and Employment (MoICE), Karma Dorji said that industrial parks in the country play a vital role in increasing the current Foreign Direct Investment (FDI) and that FDI industries in these parks would increase Bhutan’s FDI revenue from Nu 40bn to Nu 100bn.
“The industrial parks in the country plays a major role in order to increase the FDI investment from Nu 40bn to Nu 100bn,” the minister said, adding that in order to do so the government is exploring to establish more industrial sites in the country.
“Currently, our country prohibits some of the FDI companies as there are no stable rules and regulation, due to which international FDI companies lose their confidence,” the minister said.
However, the minister also said that with the country to soon join the World Trade Organization (WTO), there will be more opportunities for home industries in the country, while the formalities will become easier.
“After joining WTO, the corridor for the international FDI companies will be much easier since there will be stable general rules and regulation.”
The minister said that this is one of the reasons that the government is currently concentrating on export oriented ventures in the industrial parks of the country and provide full infrastructure services including proper location, electricity, water, road, amongst others so that stake holders will be able to concentrate on the development of their industries.
“The industry in the country is the biggest sector in terms of exports, and it is the sole reason that the country has different types of industries including green industry, agro-industry, and chemical industry, amongst others,” the minister said.
The minister shared that the segregation of the industrial parks in the country includes the industries in Pasakha, Dhamdum, Motanga, Jigmeling, Bondeyma, cottage and small industry (CSI) in Tsirang and Bjemina in Thimphu, amongst others, depending upon the purpose of the industries.
“With such segregation, the industries are able to export; such as boulders, minerals, other commodities and are able to produce organic commodities from CSI in Tsirang, amongst others,” the minister said.
In addition, the minister said that it is also important for domestic competitors to compete with the international market and to create opportunities beyond the home boundaries.
To create such opportunities, the minister said that the government has made it much easier to start FDI companies though some were not able to.
The minister shared that there will be more opportunities and market after joining WTO and that domestic industries will be able to compete with the international markets.
Meanwhile, the increase in the worth of FDI from Nu 40bn to Nu 100bn will have innovations, capital formation, technology advance, access to external markets and will bring spillover effects on other sectors.
Sherab Dorji from Thimphu