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Official News

Wednesday, 31 October 2012

Government’s Industrial Policy May Take Sector Output Over AMD 1 Trillion

On visit to Tosp Ltd, Prime Minister Tigran Sargsyan met with the representatives of local manufacturers.

Welcoming the participants, the Prime Minister said “Meetings like this provide an opportunity to discuss issues of concern to producers and the problems faced by industry, as well as to identify such measures as may be conducive to full realization of our country’s industrial potential."

Armenian Manufacturers Union President Vazgen Safaryan thanked the Prime Minister for thoughtfulness and attention to the issues of topical concern. He said that most of the issues raised during the previous meetings have been given positive solutions.

The government’s export-oriented industrial policy concept is an important achievement of our joint efforts. We are pleased that the policy is already taking effect,” Mr. Safaryan said. He stated that industrial output rose to AMD700bn over the first eight months of 2012, up 13% as compared with the same period of 2011. Mr. Safaryan expressed confidence that it may exceed the mark of AMD1.1 trillion by yearend. “This is the outcome of consistent implementation of government-developed industrial policy,” Mr. Safaryan noticed.

Safaryan said industry also recorded a significant growth of exports, the volume of which over the nine months of this year amounted to 40 billion. Growth was recorded in the areas of drug production and exports, respectively, 1.4 and 3.6 percent.

The areas highlighted for further development of their products, visit the huge Chinese market. Safarian said that Council members visited China to discuss Armenian brandy Chinese export market, as well as the establishment of joint ventures in the field of pharmaceutical issues.

Then he briefed the Prime Minister on a number of programs aimed at developing small and medium enterprises in Armenia. In particular, it was proposed to extend the 3-year VAT holiday applicable to investment program-associated imports worth over 300 million drams on all similar programs regardless of the volume of imported goods: It is supposed to help promote equipment imports, as well as develop local production.

It was also recommended to set up a fund using the 300 million drams envisaged in the 2013 State budget for industry development. The fund would concentrate their resources on domestic goods producers, which will serve as a state-private partnership development functions.

It was also suggested to 58.350 million in annual turnover of SMEs in order to make the work easier and more efficient or simplified turnover tax, 3-3,5% of the way by Safarian, kdzerbazati on reasoning problems and unnecessary red tape costs.

In response, Tigran Sargsyan said that all the proposals remain high on the agenda of the executive. Studies are currently being conducted to that end. The Prime Minister added that the government is mindful of SME development and stressed that the expansion of similar economic regimes may promote small and medium-size enterprise in the country.

The Prime Minister was briefed on the activities of TOSP Ltd which is engaged in light industry. Being the successor of the former SU Myasnikyan clothing factory, the company produces a wide range of knitted goods - men’s, women’s and children’s clothes of different types (T-shirts, nightwear, underwear and dresses).

Part of the output is exported toward Europe, the USA and CIS countries. Currently 20% of the products are exported toward the Russian Federation and Slovenia. Exports grew 17% to USD 39.1 million in January-September, 2012, as compared to the same period of 2011.

Strong with its 155 operating staff, the company stepped up activities during the months of August-September producing AMD27.7 and 43.2 million-worth of goods respectively, posting a dramatic rise in output levels up to 54 and 56 percent over the same period of 2011.

For years-long impeccable work and valuable contribution to industry, Hamlet Hairapetyan and Jora Avetisyan were awarded the Premier’s commemorative medals.

July 2024