Government seeks to boost textile industry to promote Made in Armenia products in international markets

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 09:54,

YEREVAN, FEBRUARY 16, ARMENPRESS. The Armenian government plans to increase the output and exports of textile industry in three years and make the Armenian products more competitive in the international market.

Deputy Minister of Economy Rafayel Gevorgyan told ARMENPRESS that the government has seen a significant potential for growth in the sector. In the past decade, textile industry grew around 40% annually.

The Armenia 2023-2026 Textile Industry Development Program and Action Plan includes projects aimed at boosting productivity.

“We expect output to grow 1,8 times as a result of implementing the program,” Gevorgyan said. “We believe that as a result of the output growth our products will become more competitive in the international market, and exports will grow. Now we have a bit over €200 million in exports, and we believe that in 2027, after completing the program, we will have over €500 million in exports,” he added.

Major projects in the action plan include the government support for capacity development in the educational sector and assistance for entrepreneurs in this direction, increasing the efficiency and modernization of business processes for companies and technological re-equipment, and also export-oriented actions such as promotion of participation in expos and promotion of sales in target markets.

The program includes government subsidy of 20-70% of salary for employees with respective qualification: i.e. a degree from one of the top 400 universities of the world.  The move is aimed at attracting qualified specialists in companies.

There are over 30 medium and major textile industry companies in Armenia, with over 200 small enterprises. The government wants the small companies to benefit from the program and enhance their size.

The program is aimed at making the Armenian products more competitive in international markets in terms of quality and value.

Clothing of several European brands is already being made in Armenia, such as Moncler and MaxMara. “You’ll find many jackets in European stores with “Made in Armenia” written on them. This trend continues. Our producers are now negotiating with different countries, including with Canadian companies, in order to render more services.”

The Russian market is also now rather attractive for the Armenian textile production and many opportunities are available, the deputy minister said.

The official said products made in Armenia must also be promoted in the domestic market, in order to shape a certain attitude among consumers. Gevorgyan said they want Made in Armenia to be a “high quality standard and also pride” for Armenian consumers.

Speaking about the rating of Armenian products in international markets, the deputy minister said that in the traditional markets, such as the post-Soviet states, the Armenian products have a certain legacy. “In post-Soviet countries people associate Armenian footwear with high quality. This legacy is still in place. We see many Russian consumers who come to Armenia and buy footwear,” Gevorgyan said.

Gevorgyan mentioned the promotion campaign last year when Armenian designers presented their collections at the Milan Fashion Week.

The ministry will focus on the Italian, German and French markets. “Russia is also a target market. We have some ideas concerning the Arab market too. The Emirates is the center of many trade events,” the deputy minister added.

Interview by Anna Grigoryan

Photos by Hayk Badalyan