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Armenian Development Agency
INVESTMENT CLIMATE& OPPORTUNITIES
2014
Political Stability
All Political Parties act together toward Economic Development
Public-Private Active Cooperation
Democratic approach to all Challenges in the Country
Government Priority of Private Sector Development
Macroeconomic Stability
GDPby years (percent of growth)
2011 2012
7.2%
4.7%
2.2%
2010
Macroeconomic Stability
INFLATION RATEby years (percent)
2011 2012
2.6%7.7%
8.2%
2010
Macroeconomic Stability
TOTAL FDIs 2012
657 mln USD
• Precious and Semi-Precious Stones
• Foodstuffs• Non-Precious
Metal• Mining
Exports Structure
1428.1 mln USD
Foreign Trade Turnover 2012
Imports Structure4266.8 mln USD
• Precious and Semi-Precious Stones
• Mining • Foodstuffs • Vehicles • Machinery and
Equipment
Exports and Imports Structure of Armenia
• Russia (20%)• EU (39.2%) - Germany - Belgium - Holland
• Bulgaria (9%)• USA (6%)• Iran (8%)
• Georgia (6%)• Canada (6%)
• Switzerland (5%)
Foreign Trade Partners 2012
Main Export Partners Main Import Partners
• Russia (25%)• EU (26.4%)
- Germany - Bulgaria
- Italy - France • China (10%)
• Iran (5%)• Turkey (5%)
• Communication• Power and Gas Supply• Mining Industry• Agro-sector• Beverages • Construction
FDIs Structure of Armenia
FDIs Receiving Major Sectors
Major Investing Countries
• France• Russia• Argentina• Switzerland • Germany
38th Rank INDEX OF ECONOMIC FREEDOM 2013
Rating “Ba2”
Rating “BB-”
Country Ratings According toInternational Assessments
32nd Rank DOING BUSINESS 2013
Country Ratings According toInternational Assessments
In 2012 due to efforts of Armenian government almost in one year our country ranking in ease of doing business was changed from 50th to 32nd
position for 2013.
Armenia is ahead of Belgium, France, Spain, Cyprus, Hungary and Poland.
TRADE MARKETS GATEWAY• MFN regime with 150 countries
(WTO full membership)
• FTA regime with CIS countries (tariff free access to 250 million
consumers’ market)
• GSP regime with USA, Canada, Japan, Norway and Switzerland
• GSP+ with the EU
Rates
VAT– 20 %PROFIT TAX – 20%
No export duty
import tariffs0% Or 10%Simplified taxation
for Small and Medium Entreprises
INCOME TAX – max.26%
TAXATION
High-tech oriented FEZ – on the base of the plant “Mars” and YCRDI
FEZ ORIENTATION• Electronics & Precision Engineering• Alternative Energy• Pharmaceutical industry & Biotechnology• IT & Telecommunication• Industrial Design
The operators of free zones will be granted exemptions from:
• Profit tax• Corporate income tax• Value added tax • Property tax• Customs duty
0%
FREE ECONOMIC ZONES
FEZ for Jewelry Sector Development
FEZ ORIENTATION• Jewelry and watches production• Diamond processing and cutting• Other jewelry goods and accessories production
The operators of free zones will be granted exemptions from:
• Profit tax• Corporate income tax• Value added tax • Property tax• Customs duty
0%
FREE ECONOMIC ZONES
Why Invest In Armenia
NONo Restriction on Foreign Ownership in Companies
NO No Restriction on Capital Movement
NONo Restriction on Foreign Exchange Operations
No No Restriction on Repatriation of Profit
No No Restriction on Foreign Employment
Why Invest In Armenia Well-educated, Cost-efficient
Skilled Labor Workforce
Sustainable Banking System
Possible Customs Union and Free Access to CIS 250
mln Consumers market
WTO Full Member Since 2003
Investment Protection Treaties with 40 Countries & Double
Taxation Treaties with 43 Countries
Simplified Export and Import Regulations
Free Economic Zones
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Why Invest In Armenia
Where Invest in Armenia Jewelry and Diamond Processing
IT and Software Development
Pharmacy Production
Wine and Brandy Production
Tourism and Hotel Construction
Renewable Energy
IT and Software Development
400 Software graduates per annum 2,000 IT related students
65% of students speak English
6,000 IT specialists 15-20% sector annual growth rate
360 companies , including 107 foreign
Renewable Energy
Support from local authorities
Highly trained and skilled workforce
Resource capacity availability
International cooperation in initiatives targeting the field of energy
15 years of obligatory purchasing of RE-based electricity by the state
Feed-in tariffs
Pharmacy Production
Decades - long traditions and rich experience in fine chemical industry
Highly educated workforce
State-of-the-art testing and up-to-date laboratory facilities
Open and collaborative clusters
Strong willingness and readiness of companies to adopt international
standards and to cooperate internationally
High market growth in CIS(Russia's dependence on imports of
pharmaceutical products is 70%)
- Old heritage in Jewelry Industry
- Solid capacity and tradition of processing and growing synthetics diamond
- Huge pool of qualified and experienced cost efficient jewelers and diamond processors - Huge network of Diaspora in the sector
- Government strong willingness to assist the sector development
- No VAT on imports and sale of gold and precious stones
- No import or export tariff on jewelry
Jewelry and Diamond Processing
AGRICULTURE
No Export Duty
Free Access to CIS and strong demand from the Middle East
Cost-efficient labor workforce
Appropriate climate, clean water and 333 sunny days per year
Tourism & Hotel Construction
Safe destination
Growing demand in hotel construction
More then 5000 historical monuments
E-visa scheme or getting visa at the border
Annual average growth of the number
of incoming tourists is 15-20%
SUCCESS STORIES
• Providing Quality Information - preparation of a tailored information packages corresponding to the needs of foreign investors • Organizing Site Visits- Planning the Site Visit - planning and preparation of visit of foreign investors, arranging necessary appointments with private and public organizations, - Managing the Site Visit, starting from meeting at the airport, translator provision, assisting in site selection, etc. • Brokering Business Partnerships – finding
the appropriate partners in Armenia• Follow Up Support – managing post-visit
support, preparation of additionalinformation and documentation.• Investment Project Implementation –
assisting with company registrationand staff recruitment (job announcements & holding interviews)• Liaising with Government institutions
(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
ARMENIAN DEVELOPMENTAGENCY
WELCOME TO ARMENIA
Armenian Development Agency+374 10 57 01 [email protected] www.ada.am