Tweet
ARMENIA- AN EMERGING OPPORTUNITY
October 30, 2014
https://www.linkedin.com/today/post/article/20141030182238-80084115-armenia-an-emerging-opportunity?_mSplash=1
For a British businessman living and currently working in Yerevan,
Armenia, it has become a prelude to an interesting conversation.
"Where is Armenia actually?" Sadly one of those who actually asked
that question was in fact a British International Sales Director. What
this determines, besides a certain ignorance of Armenia by the British
business community and general British public, is Armenia's lack of
marketing towards the UK (and other countries), whether it being for
business, tourism or general awareness of Armenia's Christian history,
culture and heritage. To put it politely - what a shame, to be more
specific it is, to say the least, a missed opportunity that seems
sadly to be continuing. The land that Noah discovered has indelibly
become the Shadow lands.
I believe that the climate and time is now right for business and
economic opportunity in Armenia. There is potential for closer ties to
UK businesses that could bring positive benefits to both the economy
here and the development of overall products and services in the UK.
Armenia has previously been held back partly due to its recent
communistic history but also to its political and oligarchy regime
monopolizing its major industries and limiting economic options.
However there is now a genuine and committed campaign to affect a
positive change that is gaining momentum and moving forward by the new
generation of entrepreneurs, leading creatives, community builders,
investors, policymakers, developers, young leaders and many others -
all collaborating toward a more successful Armenia.
You can now taste the appetite for a change that had seen huge
amounts of charitable initiatives from Armenia's historic diaspora
(11 Million Armenian expats live in other countries, USA, Russia,
France, Syria Australia to name a few) to a move towards sustainable
investment whereby the mission is to support and ultimately sustain
Armenia's long term future. To cut to the chase what Armenia lacks in
natural resources it more than makes up with its intellectual ability-
its highly educated and innovative population is its greatest asset
bringing together a mixture of skills, perspectives and resources with
the result an opportunity for innovation and entrepreneurship to the
benefit of joint venture partnerships with potential overseas companies
and Investors. In Yerevan salaries are very low, not far behind China,
commercial office and residential rents are also comparatively low
as is understandably the cost of living. The average salary here
is £280 per month. The opportunity for cost savings on salaries
and general expenses of Key Executive staff are huge for potential
overseas companies willing to engage here.
Key Reasons To Consider Armenia
Armenia has a history of a high educated population. It is strong in
professionals trained in Information Technology, medical, engineering
(architecture, construction) and education. Allied to that the IT
and Telecom Industry is the most productive industry in the Armenian
economy. The Government has declared the IT sector as a priority and
is supporting it through various support institutions, such as IT
Development and Support Council chaired by PM, Enterprise Incubator
Foundation backed by the World Bank funding. The industry already
attracted global brands such as Synopsis, which located considerable
part of its development functions in Armenia. Most of the foreign
owned companies are involved in offshore programming, serving foreign
headquarters. A number of different business models, business plan
competitions mark the dynamism of the industry. A major boost to the
sector is expected to come from a $24 million World Bank funded project
on e-society development and innovation support through "Computers for
all" program, digital ID cards, venture fund creation and matching
funds. Armenia for many years has been the economy with the fastest
GDP rate in the Caucasus region (beside oil rich countries).
The European Union is Armenia's main trading partner, accounting
for around 30% of Armenia's total trade. EU imports from Armenia
chiefly consist of manufactured goods, crude materials, miscellaneous
manufactured articles, machinery and transport equipment.
EU exports to Armenia are dominated by machinery and transport
equipment, miscellaneous manufactured articles, chemicals, and
foodstuffs.
The current Partnership and Cooperation Agreement does not include
tariff preferences, but prohibits quantitative trade restrictions
and also envisages progressive regulatory approximation of Armenia's
legislation and procedures to the most important EU and international
trade related laws and standards, which in turn aims at facilitating
the access of Armenian products to the EU market.
Under the EU Generalised Scheme of Preferences, Armenia has been
benefiting from the special incentive arrangement for sustainable
development and good governance, the so-called Generalised Scheme
of Preferences Plus (GSP+), since July 2005. This arrangement offers
Armenian exports advantageous access to the EU market since it provides
for a zero duty rate for about 6400 tariff lines.
The total value of preferential Generalised Scheme of Preferences
(GSP) imports from Armenia into the EU is steadily increasing, from
EURO 61 million in 2009 to EURO 109 million in 2011. Armenia's GSP
utilisation rate is high: around 90%.
The country has recently signed an agreement to join the newly formed
Eurasian Economic Union (Market size 171 Million people) including
Russia, Kazakhstan and Belarus. This faced stiff resistance from
the opposition parties and younger entrepreunerial commentators
and business owners, however strong the relationship has been and
will continue with Russia there is still good economic relations
with America who also have a strong influence here in Armenia where
there is a willingness to continue to develop business relationships
that have been ongoing over the last few years through the various
aid groups. Also in addition those gained by European Commission
representation in the country and the policing of their aid to improve
the various infrastructure, legal, health, agriculture and women's
rights projects that will continue. Even with the signing of closer
ties to Russia, Armenia can offer an additional route into Russia's
and other ex CIS economies that many Foreign companies may want
to explore given the current climate of sanctions that the western
governments have ordered.
Research and DevelopmentOpportunities
Given this current climate and associated detailed advantages in
Armenia consideration could be given to the benefits of relocating
and resourcing certain company functions. None more so than R and D
centres, comparative advantages would be:
Availability of highly qualified, technical and innovative workforce.
Multi language skilled personnel in Armenian, English, Russian
and French.
Low cost of living and therefore low salary base. Average salary £280
per month (UK £2051) Good work/life balance.
3.1Milion Country population Yerevan 1.1Million.
Low office, residential, utility, transport and operational costs.
Emergence of excellent projects and Investment in Education.
Government priority, IT Incubator, international technical assistance
programmes.
Ongoing International company presence and onward future development
in Armenia of other prespective International blue chip companies in
the technology industry.
Potential for developing business in the newly formed EEA Markets.
This is a brief document describing the potential advantages of
outsourcing Research and Development centres to Armenia, more detailed
information can be gained by contacting the below mentioned who will
be happy to engage in communicating more specific information governing
the economy and the legal process of setting up business here.
Jason White
22 October, 2014.
According to the Doing Business Report 2014, released by the World Bank
and the International Financial Corporation, Armenia climbed 3 points
this year, ranked 37 on the list of 189 countries. Armenia appears
between Belgium (36) and France (38), but ahead of such countries
as Cyprus (39), Poland (45), Spain (52), Luxemburg (60) and Italy
(128). Armenia is also well ahead of its immediate neighbors Turkey,
Azerbaijan and Iran that are ranked 69, 70 and 152 (Georgia is
ranked 8).
From: Emil Lazarian | Ararat NewsPress
October 30, 2014
https://www.linkedin.com/today/post/article/20141030182238-80084115-armenia-an-emerging-opportunity?_mSplash=1
For a British businessman living and currently working in Yerevan,
Armenia, it has become a prelude to an interesting conversation.
"Where is Armenia actually?" Sadly one of those who actually asked
that question was in fact a British International Sales Director. What
this determines, besides a certain ignorance of Armenia by the British
business community and general British public, is Armenia's lack of
marketing towards the UK (and other countries), whether it being for
business, tourism or general awareness of Armenia's Christian history,
culture and heritage. To put it politely - what a shame, to be more
specific it is, to say the least, a missed opportunity that seems
sadly to be continuing. The land that Noah discovered has indelibly
become the Shadow lands.
I believe that the climate and time is now right for business and
economic opportunity in Armenia. There is potential for closer ties to
UK businesses that could bring positive benefits to both the economy
here and the development of overall products and services in the UK.
Armenia has previously been held back partly due to its recent
communistic history but also to its political and oligarchy regime
monopolizing its major industries and limiting economic options.
However there is now a genuine and committed campaign to affect a
positive change that is gaining momentum and moving forward by the new
generation of entrepreneurs, leading creatives, community builders,
investors, policymakers, developers, young leaders and many others -
all collaborating toward a more successful Armenia.
You can now taste the appetite for a change that had seen huge
amounts of charitable initiatives from Armenia's historic diaspora
(11 Million Armenian expats live in other countries, USA, Russia,
France, Syria Australia to name a few) to a move towards sustainable
investment whereby the mission is to support and ultimately sustain
Armenia's long term future. To cut to the chase what Armenia lacks in
natural resources it more than makes up with its intellectual ability-
its highly educated and innovative population is its greatest asset
bringing together a mixture of skills, perspectives and resources with
the result an opportunity for innovation and entrepreneurship to the
benefit of joint venture partnerships with potential overseas companies
and Investors. In Yerevan salaries are very low, not far behind China,
commercial office and residential rents are also comparatively low
as is understandably the cost of living. The average salary here
is £280 per month. The opportunity for cost savings on salaries
and general expenses of Key Executive staff are huge for potential
overseas companies willing to engage here.
Key Reasons To Consider Armenia
Armenia has a history of a high educated population. It is strong in
professionals trained in Information Technology, medical, engineering
(architecture, construction) and education. Allied to that the IT
and Telecom Industry is the most productive industry in the Armenian
economy. The Government has declared the IT sector as a priority and
is supporting it through various support institutions, such as IT
Development and Support Council chaired by PM, Enterprise Incubator
Foundation backed by the World Bank funding. The industry already
attracted global brands such as Synopsis, which located considerable
part of its development functions in Armenia. Most of the foreign
owned companies are involved in offshore programming, serving foreign
headquarters. A number of different business models, business plan
competitions mark the dynamism of the industry. A major boost to the
sector is expected to come from a $24 million World Bank funded project
on e-society development and innovation support through "Computers for
all" program, digital ID cards, venture fund creation and matching
funds. Armenia for many years has been the economy with the fastest
GDP rate in the Caucasus region (beside oil rich countries).
The European Union is Armenia's main trading partner, accounting
for around 30% of Armenia's total trade. EU imports from Armenia
chiefly consist of manufactured goods, crude materials, miscellaneous
manufactured articles, machinery and transport equipment.
EU exports to Armenia are dominated by machinery and transport
equipment, miscellaneous manufactured articles, chemicals, and
foodstuffs.
The current Partnership and Cooperation Agreement does not include
tariff preferences, but prohibits quantitative trade restrictions
and also envisages progressive regulatory approximation of Armenia's
legislation and procedures to the most important EU and international
trade related laws and standards, which in turn aims at facilitating
the access of Armenian products to the EU market.
Under the EU Generalised Scheme of Preferences, Armenia has been
benefiting from the special incentive arrangement for sustainable
development and good governance, the so-called Generalised Scheme
of Preferences Plus (GSP+), since July 2005. This arrangement offers
Armenian exports advantageous access to the EU market since it provides
for a zero duty rate for about 6400 tariff lines.
The total value of preferential Generalised Scheme of Preferences
(GSP) imports from Armenia into the EU is steadily increasing, from
EURO 61 million in 2009 to EURO 109 million in 2011. Armenia's GSP
utilisation rate is high: around 90%.
The country has recently signed an agreement to join the newly formed
Eurasian Economic Union (Market size 171 Million people) including
Russia, Kazakhstan and Belarus. This faced stiff resistance from
the opposition parties and younger entrepreunerial commentators
and business owners, however strong the relationship has been and
will continue with Russia there is still good economic relations
with America who also have a strong influence here in Armenia where
there is a willingness to continue to develop business relationships
that have been ongoing over the last few years through the various
aid groups. Also in addition those gained by European Commission
representation in the country and the policing of their aid to improve
the various infrastructure, legal, health, agriculture and women's
rights projects that will continue. Even with the signing of closer
ties to Russia, Armenia can offer an additional route into Russia's
and other ex CIS economies that many Foreign companies may want
to explore given the current climate of sanctions that the western
governments have ordered.
Research and DevelopmentOpportunities
Given this current climate and associated detailed advantages in
Armenia consideration could be given to the benefits of relocating
and resourcing certain company functions. None more so than R and D
centres, comparative advantages would be:
Availability of highly qualified, technical and innovative workforce.
Multi language skilled personnel in Armenian, English, Russian
and French.
Low cost of living and therefore low salary base. Average salary £280
per month (UK £2051) Good work/life balance.
3.1Milion Country population Yerevan 1.1Million.
Low office, residential, utility, transport and operational costs.
Emergence of excellent projects and Investment in Education.
Government priority, IT Incubator, international technical assistance
programmes.
Ongoing International company presence and onward future development
in Armenia of other prespective International blue chip companies in
the technology industry.
Potential for developing business in the newly formed EEA Markets.
This is a brief document describing the potential advantages of
outsourcing Research and Development centres to Armenia, more detailed
information can be gained by contacting the below mentioned who will
be happy to engage in communicating more specific information governing
the economy and the legal process of setting up business here.
Jason White
22 October, 2014.
According to the Doing Business Report 2014, released by the World Bank
and the International Financial Corporation, Armenia climbed 3 points
this year, ranked 37 on the list of 189 countries. Armenia appears
between Belgium (36) and France (38), but ahead of such countries
as Cyprus (39), Poland (45), Spain (52), Luxemburg (60) and Italy
(128). Armenia is also well ahead of its immediate neighbors Turkey,
Azerbaijan and Iran that are ranked 69, 70 and 152 (Georgia is
ranked 8).
From: Emil Lazarian | Ararat NewsPress