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Armenian Development Agency

Armenian Development Agency. 2007. Core Themes. Macroeconomic Situation FDI Trends Export Growth and Structure Business Environment and Benefits of Investing in Armenia Priority Sectors of the Armenian Economy The Role of the ADA in Investment Generation and Export Promotion.

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Armenian Development Agency

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  1. Armenian Development Agency 2007

  2. Core Themes • Macroeconomic Situation • FDI Trends • Export Growth and Structure • Business Environment and Benefits of Investing in Armenia • Priority Sectors of the Armenian Economy • The Role of the ADA in Investment Generation and Export Promotion Armenian Development Agency

  3. GDP Growth Rate (%) Armenian Development Agency

  4. GDP Structure in 2006 Armenian Development Agency

  5. Exchange Rate and Inflation Armenian Development Agency

  6. FDI Trends (USD mln): Key FDI Sectors Armenian Development Agency

  7. FDI Trends in Armenia by Countries

  8. FDI Trends (USD mln): Key FDI Sectors Telecommunication Mining Foods and Production Computer and Related Activities

  9. Growth of Armenian Exports (%) Annual Growth in Percents Armenian Development Agency

  10. Annual Export Growth though the years compared to 2001 Export Growth Rate Armenian Development Agency

  11. Main Export Products (%) Armenian Development Agency

  12. Main Export Countries (%) Armenian Development Agency

  13. ARMENIA - GREECE2001-2006 FOREIGN TRADE TURNOVER (THOUSANDS $US) Armenian Development Agency

  14. ARMENIA – GREECE 2006 FOREIGN TRADE TURNOVERBY KIND OF COMMODITIES (THOUSANDS $US) Armenian Development Agency

  15. Market Gateway • Tariff Free Access to CIS: Market of 250 Million Consumers • Cultural and Commercial Partnership with Russia • Access to Middle East Market Armenian Development Agency

  16. WWW.HERITAGE.ORG/INDEX Index of Economic Freedom Armenian Development Agency

  17. Investment Incentives • Well Located for Access to CIS and Middle East Markets • Cost Effective and Qualified Work Force • Tax Incentives for Investors • Free Repatriation of Profit • No Limitations on Wire Transfers • Favorable Investment Legislation • Liberal Trade Policy • No Restrictions on Foreign Investor Ownership • Armenia is a Member of WTO Armenian Development Agency

  18. Labor Force of Armenia • The majority of people in Armenia are between the ages of 17 and 59 • More than 60 universities with more than 77,000 students • 8 foreign universities operate in Armenia including: • American University of Armenia; • French University; • European University. • More than 96 R&D institutes and research units • Literacy rate is 99% Armenian Development Agency

  19. Labor Force of Armenia Armenian Development Agency

  20. Taxation in Armenia • Profit Tax Rate is 20 % • Value Added Tax is 20 % • Top Income Tax Rate is also 20% Armenian Development Agency

  21. Customs Regulations of Armenia • All exports from Armenia are duty free • The import tariff rates are 0 or 10 percent. The ten percent tariff is levied mainly on consumer and luxury goods. • Armenia is a member of World Trade Organization • Armenia uses the Harmonized Code System for tariff classification. • Import of some products for production is exempt from import duties. Armenian Development Agency

  22. Investment Protection • Foreign investments are protected by Law • Grand-fathering Clause for 5 Years • Foreign investments in Armenia cannot be nationalized or confiscated • No limitations on wire transfers • MIGA offers an additional political risk insurance program Armenian Development Agency

  23. Priority Sectors • Information Technology • Precision Engineering • Electronics • Fine Chemicals • Pharmaceutical and Biotechnology • Jewelry / Precious and Semi-Precious Stones Processing • Tourism • Food Processing • Textile, Clothing Armenian Development Agency

  24. IT Industry in Armenia Software sector share in GDP

  25. Chemicals and Pharmaceuticals • Labor force of 5,000 experienced graduates • 400 graduates per annum with specialized chemistry qualifications • Free access to CIS market • More than 30 R&D Institutes Armenian Development Agency

  26. ARMENIA: Economy Overview www.finechemicalsmarket.com

  27. Electronics Sector

  28. Agri-Food Business / Key Benefits • Crops and Fruits Flourish under Natural • Conditions • Clean Ecological Environment • - Premium Quality Products • World Class Companies already Capitalizing • on Investment Opportunities • More than 80% Exported to CIS Countries Armenian Development Agency

  29. Main Agro Product Exports From Armenia 2005 (%) Armenian Development Agency

  30. Jewelry and Diamond Processing Sector • Long Tradition of Innovation and Creativity • Approximately 15% of Armenian Exports are Cut • Diamonds • Cost Effective Qualified Jewelers • Jewelry sector is exempt from export/import duties Armenian Development Agency

  31. Construction Materials • Very Wide Range of Natural Stones • Cost-Effective Price of Natural Stones • Experienced Stone Processing Workforce • Construction Sector constituted 16% of GDP in 2003 Armenian Development Agency

  32. Benefits of Investing in Textile/Clothing Industry of Armenia • Tariff Free Access to CIS • Availability of Experienced and Cost - Effective Work Force • Good Supporting Infrastructure • Availability of Free Space • Average Wage Rate US$ 70 Armenian Development Agency

  33. Energy Sector -5 generation major stations and more than 20 small generation companies -Transmission company (220kv network) -Distributing company (0.4-6/10-35-110 kv network) -Dispatching center (operator of power system) -Settlement center -Construction, installation, repairing companies -Scientific-research and design institutes

  34. Tourism Sector of Armenia

  35. Full Service Investment Promotion Agency • Providing Quality Information and Servicing Needs of Foreign Investors - preparation of an information according unique needs and distinctive business of foreign investor - preparation of a site selection matrix within Armenia • Site Visit Organization for Foreign Investors - Planning the Site Visit - Managing the Site Visit Brokering Business Partnerships - finding a right partner/partners in Armenia - Acting as a representative of your company in Armenia, etc. All Services of ADA are Free of Charge

  36. Full Service Investment Promotion Agency • Providing Follow up and aftercare - Managing the post–visit, - preparation of additional information and required documentation, etc. • Investment Project Implementation - Assisting in the company registration - helping in staff selection (arranging the job announcements, applicators interviews, etc) - providing an office space for start up, etc. • Representing Investors Views to the Government and Ministries - Working closely with investment made companies - finding out what they find non appropriate for smooth profitable business, - preparing an official letter on that issue and representing it to the Government of Armenia All Services of ADA are Free of Charge

  37. THANK YOU Contact Information Investment Promotion Directorate Armenian Development Agency Address: 17 Charentsi, Yerevan, 375025 Armenia. Tel: +3741 0 570410 Fax: +3741 0 570710 E-mail:info@ada.am

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