“Position of businessmen is important for the inflow of foreign investors”
Interview with Suren Karayan, RA Minister of Economic Development and Investments.
Mr. Karayan, both the PM and you state that Armenia’s investment attractiveness should be introduced to foreign investors. In your opinion, what is that attractiveness?
Attractiveness is that today we are the only country in the region, which is an EEU member country, at the same time, we make use of GSP+ unilateral preferential trade regime with such countries and unions as the EU, the USA, Canada and etc. It’s the trade privilege, that Armenia, as a country, opens a big market for the potential investor.
However, after the membership to EEU investment volume in our country continues decreasing.
We will gradually increase those markets. However, if you paid attention and followed the numbers, both the field of industry and exports are growing in the Republic of Armenia.
However, there is increase in tendencies of economy growth and that index is approaching to 0.
If you make a field analysis, you’ll see in which fields those declines have been recorded. It’s construction and agriculture. However, presently more progressively are developing industry, services and export. We are creating those conditions little by little. Currently in our country the fields of mining, pharmacology, light industry, energy, cultivation of agricultural goods are interesting to investors.
You touched upon Armenia’s investment attractiveness at the New York Investment Forum. What results do we have, are there any reflections?
There are reflections and some investors have come to Armenia, we had meetings. Currently another team will visit. I don’t want to mention the companies, they are from Germany, they intend to invest in the field to healthcare, USA-Germany joint companies as well. We are waiting for reflections and we should realize one thing, that organization of a forum isn’t enough, after it we should be consistent so that they came to Armenia and made investments.
Recently the PM stated in Gyumri, that there are no monopolies in Armenia. What does this mean? How come monopolies have been instantly eliminated?
There are natural monopolies, which are a few fields and it’s provided to the companies upon legislation. Besides, there are no monopolies in Armenia, there are companies with leading positions. It’s peculiar to countries with small economy, and for that we have a special commission, which through its daily work and activities should control that there was no abuse of a dominant position.
Mr. Karayan if you’re introducing Armenia’s investment and business environment with such bright colors, do you think they’ll believe or they’ll more believe in their practice, experience of their partners, which isn’t so positive presently and there are more negative stories than success ones? There were numerous judicial acts on seizing business.
I may speak of the present. Firstly, yes, position of businessmen is very important for the inflow of foreign investments. That’s why we appreciate improvement of business and investment environment, so that not only new investors felt comfortable in working in Armenia, but the functioning ones as well. That’s why we have established platforms, we implement rather active cooperation for that, keep in daily touch with the businessmen. I assure, there was no any complaint linked to abuse by state bodies. If there are complaints, I always say, doors of our Ministry are open and we are meant to provide businessman-state liaison.
In that case, for instance, why do investors complain linked to “Nairit” and why doesn’t it proceed?
They didn’t apply to the government. We didn’t see any program submitted by them. After meeting with them I met plant employees, I also explained to them, there was no concrete proposal by them.
Mr. Karayan, Georgia is a very good example regarding investment attraction, and Armenia’s both opposition and authorities point at our neighbor country, lots of Armenian businesses have made investments in Georgia. If in our country the investment environment is good, why are Georgians passive regarding investing in Armenia? Why doesn’t Georgian business penetrate to Armenia, moreover, there is a good opportunity to use the market of 180 million of EEU, as our authorities state.
Firstly, there are Georgian investments in the Republic of Armenia. Secondly, we have thoroughly examined the Georgian investment and business environment. It should be our daily work, as any foreign investor takes into consideration competitive privileges of our country in the region, that’s why we have set primary targets and stated in the government’s action plan as well, that we should record progress at least by 4pp regarding the World Bank’s Doing Business analysis.
Formerly Armenia was improving its positions in rating markets. Do you think it’ll have a considerable impact on the flow of investors?
Yes, a few factors impact it, first, investment and business environment, which includes the integrity—equal competitive conditions, simple legislation, light tax burden and country’s risk.
By Gayane Khachatryan
