PRODUCTION OF LIGHT INDUSTRY DECLINES BY ABOUT 15% IN ARMENIA IN 2007 ON PREVIOUS YEAR

Noyan Tapan
April 30, 2008

YEREVAN, APRIL 30, NOYAN TAPAN. 32 companies of light industry, which
were subjected to monitoring by the RA ministry of economy in 2007,
manufactured production of 8.1 bln drams (over 3.2 mln USD) in 2007,
or by 15% less than in 2006 when their production amounted to 9.5 bln
drams. NT correspondent was informed by Armen Yeganian, head of the
ministry’s territorial economic development unit that the decline
was mainly conditioned by the fact that the branch mostly operates
by the customs mode "temporary import for processing" and production
volumes depend on foreign orders. In 2007, sales of these enterprises’
production made 8.2 bln drams (in 2006 – 9.3 bln drams), while their
exports made 5.9 bln drams (in 2006 – 7.3 bln drams).

According to A. Yeganian, normal operation of the light industry
is ensured thanks to Hayas Group garment factory, Arshaluys OJSC,
Luxe shoe factory and several other big enterprises. He said that
local production is mainly competitive in international market, with
export promotion being one of the directions of the ministry’s policy.

The ministry has developed a draft 3-year state program of assistance
to handmade carpet making. The draft in particular envisages such
measures as financial support to operating enterprises, assistance with
production export, and organization of exhibitions and advertising.

A. Yeganian underlined the necessity to maintain the development rates
of the handmade carpet making and to attract foreign investments to
this sector. In his words, about 10 handmade carpet making enterprises
currently operate in Armenia.