Transcript Slide 1
Armenia: Building Opportunity
Republic of Armenia
YEREVAN
The capital of Armenia
• • •
Area - Total 29.800 sq. km Population - 3,231,900 Currency – Armenian Dram BORDER COUNTRIES /
Border length in km.
1. Azerbaijan - 566 km, 2. Georgia - 164 km, 3. Iran - 35 km, 4. Turkey - 268 km
Armenia
COUNTRY LOCATION
Armenia: Building Opportunity
Building Bridges Armenia as a platform for international partnerships Closing Opportunity Gaps Untapped potential as a vehicle for growth
Armenia: Building Opportunity
Shared history Linguistic ties Cultural linkages Trading agreements Active diaspora
Building Bridges Armenia as a platform for international partnerships
Armenia: Building Opportunity
Highly trained human capital Unexploited resources A government ready for partnerships in:
Technology Education Life Sciences Tourism Energy
and beyond
Closing Opportunity Gaps Untapped potential as a vehicle for growth
MICROECONOMIC INDICATORS
INFLATION RATES by years (percent)
2.2%
2005 2006
4.8%
* IMF indicates lowest inflation in Armenia in CIS
2007*
2008
6.7%
5.2%
2009
6.5%
MICROECONOMIC INDICATORS
Foreign Direct Investments by years (mln. USD)
305
2006 2007
670 1132.4
2008
840.7
2009
Political Factors
Post- election stable situation Ambitious tax reforms Government Commitment to FDI Attraction Open international relations
Armenia
is a member of IMF,WTO, MIGA, Council of
Europe
and etc.
As a member of MIGA it is possible to get MIGA guarantees to insure investment against political risk. Armenia is a member of more than 40 international organizations.
The Wall Street Journal and The Heritage Foundation
index of economic freedom 2006 2008 2009 2010 27 28 31 38
The Index covers 10 freedoms – from property rights to entrepreneurship – in 183 countries .
Foreign investors incentives and protection
Well Located for Access to CIS and Middle East Markets Cost Effective and Qualified Work Force Free Repatriation of Profit MFA & National Treatment Favorable Investment Legislation Liberal Trade Policy No Restrictions on Foreign Investor Ownership WTO membership
Enabling Environment
Reach top 10% of Doing Business Index Reform governance Simplify tax filing Simplify customs Simplify licensing Increase corporate social responsibility Install E-governance in five years
Smart, Wired and Knowledge-Driven
Promote knowledge economy
Dozens of universities Active academy of science Intellectual excellence, chess championships
Build information society
Gyumri Technocity Yerevan Technopark Center for Creative Technologies
Liberalization telecom
New operators, new technologies, new infrastructure
Science and technology
•
More than
100 Research & Development Centers More than 60 Universities and Higher educational Institutes, 8 foreign universities:
•
5 Russian Universities
•
American University in
• •
Armenia French University European University. Approximately 80.000 students Science
Yerevan Physics Institute
Technology
Gyumri Technocity
FDI Inflows
United States 1.7 % Russia 71% France 8.3% Argentina 8.7 % Lebanon 1.1 % Germany 2.3%
FDI Inflows
FDI is mainly concentrated in these sectors • Telecommunication • Energy • Metallurgy sectors • Manufacture of food and beverages
Armenian exports
Russia
17.3%
Netherlands 13.4 % Israel 2.3% Germany 14.5% United States 4.5 % Legislative aspect No Export Duty
by Armenian customs legislation
Belgium 8.8% Iran 3.3 %
Armenian exports
Major export items for Armenia are:
• Software • Nonferrous metals, • Unwrought copper, • Diamonds, • Mineral products • Foodstuff.
Rapid export growth of Construction materials and Semi-Precious Stones
.
TAXATION
PROFIT TAX – 20% VALUE ADDED TAX – 20 % INCOME TAX – max.20%
benefits
Simplified taxation
for Small and Medium Entrepreneurship
NO export duty Favorable import tariffs
0% Or 10%
Ambitions for the Near Future
Armenia's competitive strengths in the software and IT services sector are based on a unique 50 year old tradition of multi-generational IT skills. The highly qualified workforce is based on a traditionally strong education system and leading research institutions. Armenia was the leading center of computing technologies and regarded as the Silicon Valley of the Former Soviet Union (FSU). The government of Armenia has an ambitious national vision for IT and supports the leading role of IT through its declaration of IT as a priority sector.
Ready for licensing out agreements
Projects on:
• Animal health • Agriculture • Medical device • Innovative drugs for treatment of oncology, cardiovascular, CNS diseases in different development phases
D uring the Soviet period, Armenia acquired the enviable reputation of being a successful, industrial republic with a diversified economy that specialized in technological research especially research related to the military industrial complex.
In particular Armenia’s tradition of scientific and technological excellence means we have great potential in sectors such as Precision Engineering and Electronics.
Key players
:
The energy sector is one of the most developed sectors of the Armenian economy Nuclear, thermal, hydro power production Renewable and alternative energy, including wind energy and biofuels
Unique business opportunity for investors. * Government according to the law buys green energy from suppliers for the period of 10 years, thus securing the market for the producers for that period.
Nuclear Power Plant II
A Soviet era Nuclear plant that supplies 40% of Armenia’s electricity It is reaching the end of its lifecycle The Government has decided to build a new 1,200 Megawatt 5 billion USD reactor It will generate surplus electricity for sale across borders A competitive contracting process is now being organized
J ewelry and diamond processing are considered a very attractive field for investment in Armenia based on the existence of skillful diamond cutters, modern equipment and tax privileges in Armenia. Diamond processing is a predominant part of this sector's activities. Nevertheless, jewelry, including gold accessories, golden wristwatches, jewelry articles and processing of semi-precious stones are also important and have a long tradition in Armenia.
Today,
27 companies
with
5000 employees
(2500 in diamond processing) are operating in this sector, excluding individual jewelers.
(ADA) was established by the Government of Armenia to facilitate foreign direct investment and promote exports. The Prime Minister of Armenia is the chairman of the board. The ADA acts as a
"one-stop shop"
agency for investors •
Organization of Site Visits
– planning and preparation of visits from foreign investors, arranging appointments with private and public organizations, accompanying investors to meetings, assisting in site • selection, providing translation support, identification of business service providers
Brokering Business Partnerships
– • finding the appropriate partners in Armenia
Follow Up Support
– managing post visit support, preparation of additional • information and documentation, explaining legislation
Investment Project Implementation
assisting with company registration and staff recruitment (job announcements & – • holding interviews)
Liaising with Government institutions
THANK YOU FOR YOUR ATTENTION
INVEST IN ARMENIA