Travel Guide - SAARC » Bhutan Economy

Bhutan Woos Investors from Bangladesh

Tour Guide — Tue, 02 Sep 2008 03:42:18 +0000

A team of Bhutanese delegates from the chamber of commerce is in Dhaka to encourage foreign investment in Bhutan.Bangladesh and bhutan has been engaged in commerce for centuries but the volume has so far been conservative. Bhutan’s main exports to Bangladesh are Vinegar, Vegetables, tobacco,wool and some processed foods while Importing Garments, pharmaceuticals,and electronic equipment from them. The delegation aims to diversify imports from bangladesh and invited investors to visit Bhutan to do field work for possible investments. Bhutan has always stressed the need for development of industries while conserving its extensive virgin forests and preserving complex ecosystems in the ranges and depths of this mountainous kingdom.
Bhutan and Bangladesh both members of SAARC are expected to take advantage of the various trade agreements that are being set up in the SAARC. These trade agreements encourage cross border investment and reduce barriers to trade within the block.This visit from the 16 member delegation could also possibly open talks on Bhutan using the Mongla Port in Bangladesh which is closer and less congested than the Indian Port of Kolkata. Bhutan being a landlocked country needs access to vital sea ports via their neighbors.

Bhutan Economy

Guide — Wed, 02 Jul 2008 19:20:17 +0000

The economy, one of the world’s smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India’s through strong trade and monetary links and dependence on India’s financial assistance. The industrial sector is technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Model education, social, and environment programs are underway with support from multilateral development organizations. Each economic program takes into account the government’s desire to protect the country’s environment and cultural traditions.

For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Hydropower exports to India drove GDP growth to over 20% in 2007