The recent UN World Investment Report has put Bhutan at the 134th position amongst the list of countries that attracted least foreign investment in 2010. Bhutan’s foreign direct investment flow was only USD 100M (Nu 4.3B) in 2010 according to the report.
Despite revising the foreign direct investment policy with extensive investment liberalization measures, Bhutan is not able to attract foreign investment, the report asserted.
The report which studies global FDI inflows has clubbed Bhutan with Nepal, Afghanistan and the Democratic People’s Republic of Korea.
A survey carried out by the World Bank earlier this year titled ‘The Investment Climate Assessment’ also rated Bhutan as not very ‘investment friendly’ and that its access to finance was one major constraint.
The World Bank survey pointed out lack of infrastructure as a major reason for poor performance in the investment sector despite doing well in terms of political stability.
The UN World Investment Report called for prudent measures to attract investment like capitalizing on external economic conditions, economic reforms, infrastructure and private sector development.
A major constraint for Bhutan, which is categorized as a landlocked country is its small market, poor infrastructure and transport bottlenecks, the report noted.