Download UNNExT workshop on Paperless trade facilitation for Small and Medium-sized Enterprises

UNNExT workshop on
Paperless trade facilitation for
Small and Medium-sized Enterprises
2-4 February 2015
United Nations Conference Center (UNCC)
Bangkok, Thailand
Paperless Trade Facilitation for SMEs in Bhutan
Presented by:
Mr. Prem P. ADHIKARI
Deputy Chief Industries Officer
Department of Cottage & Small Industries
Ministry of Economic Affairs
Capital :
Thimphu
Population (NSB, 2014):
7,45,153
Area:
38394 (sq. km)
Forest cover:
70%
Cultivated area:
3%
Arable land:
7 % (FAO, 2013)
GDP Per capita (2013):
$ 2,361
GDP Real Growth (2013):
2.1 %
Unemployment rate (LFS 2012): 2.1%
Currency:
Ngultrum (Nu.)
Exchange rate $ (26/1/2015: Nu. 60.55
Political System :
Constitutional
Monarchy(2008)
SMEs in Bhutan
Trade
Industry
Micro:
Retail:
<1 m (turnover p.a)
Small (1-5m)
Medium (5-10m)
------------------------------------
Cottage (<1m)
Small (1-10m)
Medium (10-100m)
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Total no. of licensed trading entities
(NSB, 2014):
22,331
Employment:
25,918
Total industries (2014):
Employment:
15,426
50,000
SMEs comprise of more than 95% of the total enterprises in Bhutan employing
approximately 14 % of the total population.
SMEs contribution to the GDP is approx. 7 %
3 Main sectors of SMEs’ concentration: Trading, Service (restaurant/hotels, tourism),
and construction.
Agencies supporting Trade Promotion for SMEs
Department of Revenue & Customs; Department of Trade;
Department of Cottage & Small Industries; Department of
Agricultural Marketing & Co-operatives; Bhutan Standards
Bureau; Royal Monetary Authority of Bhutan; Bhutan
Agriculture & Food regulatory Authority; and Bhutan Chamber
of Commerce & Industry are the main government agencies
involved in trade facilitation.
Key Issues in Trade Facilitation:
– Lack of basic infrastructure – Road, dry port, warehousing.
– Lack of modern and effective customs administrations and
management systems
– Absence of a National Single Window (NSW) System
– High cost of inland transport and handling (logistics unfriendly)
– Inadequate client service centers at major customs border posts
Existing Programs and Policies to facilitate trade for SMEs
1. High-level Better Business Council established on 21 July 2014 with PM as
the Chairman to improve ease of doing business in Bhutan.
2. National Trade Facilitation Committee (NTFC) established
3. The Government-to-Citizen (G2C) Project initiated.
4. The citizen services' portal "Zhung Ley Meseer Zhabtog" has been launched.
5. E-Government Interoperability Framework (E–GIF) launched.
6. Internet- the international bandwidth speed of 5.2 Gbps is being upgraded
(proposed to be doubled to improve online services).
7. Bhutan’s road transport vision includes construction of dry ports, construction
of Asian Highway from Phuentsholing to Thimphu (AH 48) and construction
of Southern East-West Highway to connect economic hubs in southern part of
the country, thus improving inland transportation system to facilitate crossborder trade.
8. Export Information System development in the plan.
The End