Foreign direct investment (FDI) in Bhutan is governed by the FDI Policy, which selectively permits foreign investment in approved sectors. Bhutan maintains a cautious approach, balancing economic development with sovereignty and cultural preservation.
Overview
Bhutan takes a cautious, selective approach to foreign direct investment (FDI), governed by the FDI Policy. Unlike many developing nations that actively court foreign capital, Bhutan's approach reflects GNH[3] principles — prioritizing sovereignty, cultural preservation, and environmental sustainability alongside economic growth.
Approved Sectors
FDI is permitted in select sectors[4] including tourism, IT, manufacturing, and some services. Hydropower development is structured as bilateral government-to-government projects with India rather than private FDI.
Notable Investments
Mountain Hazelnuts, established as Bhutan's first full foreign direct investment company, operates large-scale hazelnut plantations. Bitcoin mining by the state-owned Druk Holding and Investments represents a different model — sovereign wealth investment rather than inward FDI.
References
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