Transcript Document

Republic of Armenia
The country
Location: Southern Caucasus
Area: 29,800 sq.km.
Population: 3.2 million (urban/rural – 64%/36%)
Growth rate: 0.5%
Age
% of population
Up to 25
40%
25-44
30%
45-64
20%
Capital: Yerevan (1 mil.)
Literacy: 99%
HDI: 83 (out of 177)
Socially unsecure pop.:
20% (7.2% extremely poor)
Armenia
Republic of Armenia
The economy and social situation
Armenia
GDP 2008: $11.8 /€9 billion
GDP per capita: $3,689/ €2,824
GDP growth: 7% in 2008 (12% average growth in 2003-2007)
Others
Inflation: 5.2% (2008)
Industry 10%
13%
State budget: tripled since 2003
Services
34%
Unemployment: 6.3%
Agriculture
External debt/GDP: 16.4%
16%
(45% in 2000)
External trade: €4.1 billion
(23.5% increase over 2006)
Constr.
27%
Export
($ million)
700
2003
742
2004
987
1,046
1,224
2005
2006
2007
Republic of Armenia
Investments in the country
1337
FDI
$mln
Armenia
605
230
Comp.s with
foreign
capital
FDI by
sectors
2003
2449
2006
3347
2007
3700
Tourism
Food
Mining
Telecom
Rankings
Index of economic freedom – 28 (44 in 2004)
Ease of doing business - 39
Republic of Armenia
Why to invest
o
o
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Armenia
MFN regime with 150 countries (WTO full membership)
FTA regime with CIS (tariff free access to 250 m. market)
GSP regime with EU, USA, Canada, Japan
Cost Effective and Qualified Work Force
No Restrictions on Foreign Investor Ownership
All Exports from Armenia are Duty Free
The Import Tariff Rates - 0/10 %
Where to invest
 Agriculture/business  Pharmaceutical
 Tourism
 Information Technology
Republic of Armenia
Agriculture and food processing
Armenia
 Fast growing sector with large export potential
- Average annual growth of output (2005-2007) – 13%
- Total output for 2008 – €1.3 billion (anim./plant 33%/67%)
- Export volume doubled during 2004-2007 ($400mln)
 High potential for producing ecologically safe products
 Emerging “Armenian brand” of agricultural products
 Largely available skillful labor force
 Competitive advantage of certain products in outside markets
 Fragmented and small farms (340,000 farms /100 enterprises)
 Lack of “long” money
Republic of Armenia
Agriculture and food processing
Armenia
Main products
Major players
 Fresh vegs/fruits
 Ashtarak-Kat dairy
 Dried/packed vegs/fruits
 Biokat dairy
 Canned vegs/fruits
 Marianna dairy
 Cheese
 Lousakert poultry
 Eggs
 Arzni poultry
 Wine
 Meghri cannery
 Fish
 Artfood
 Ijevan wine
Republic of Armenia
Agriculture and food processing
Concrete opportunities for investments
Company
Specialization
Investments needed
Armenia
Profitability (IRR)
Meghry
cannery
Jam, preserves,
syrup, bever.
€150,000 for
modernization
19%
5 years
KHAQ ltd
Full range of
milk products
€60,000 for increasing
production volumes
21%
5 years
Golden goat ltd. Cheese (8 types) €65,000 for new facil.
and equipment
20%
5 years
CHIR ltd.
Dried
vegs./fruits
€150,000 for new facil.
packaging equipment
20%
5 years
Ishkhan ltd.
Jam and
preserves
€280,000 for new
workshop
23%
5 years
Project by GoA – free economic zone in Zvartnots airport with full
logistic center for export of agricultural products.
Investment - $50 mln. Duration – 15 years. IRR – 22%
Republic of Armenia
Tourism
- 4.7% of GDP of the country
- $285 mln. of investments
- 4,200 hotel rooms
- Competitiveness rank – 89th (of130)
# of tourists (ths.)
510
263
2004
318
2005
559
382
2006
2007
2008
Niches with highest potential: Eco-tourism, agro-tourism
Armenia
Republic of Armenia
Tourism
Concrete opportunities for investments
Company
Specialization
Investments
needed
Armenia
Profitability (IRR)
Lussi. Ma. Ltd
Spa hotel in Arzni
€1mln for
reconstruction
22%
6 years
TANMAR Ltd
Resort center in
Sevan (start up)
€2.8mln for const
of the center
19%
7 years
A special project by CARD
Black OX ltd
Training and
agro-tourism
center
€30,000 for B&B
and training
center
N/A
Republic of Armenia
CONTACTS
Armenia
UNDP ARMENIA
UN House, 14 P. Adamyan Street, Yerevan, 0010, RA
Tel: (37410) 547268 Mob: (37491) 240104
Fax: (37410) 543811
e-mail: [email protected]
URL: www.undp.am;
Armenian Development Agency
Address: 17 Charentsi, Yerevan, 375025 Armenia.
Tel: (+374 10) 570410
Fax: (+374 10) 570710
E-mail: [email protected]
Website: www.ada.am