Today, Armenia offers great opportunities to investors in light industry (carpet, footwear, textiles and clothing) due to cost effective labor, long-established traditions and free access to the CIS market. The absence of tariffs and other related regulations is another strong argument in favor of investing in this sector of Armenia?s economy.
The main countries of export for light industry production are the USA, Russia, European Union and Canada. In 2001 the export break down by country was: USA - 65%, Russia ? 11%, the European Union - 9% and Canada - 7%.
One of the fast-developing sectors of light industry is carpet production. Armenian carpets are well known among those who appreciate beauty and comfort. Currently, carpets are exported to the US and Western European markets. The leading carpet makers are Haygorg (hand-made carpets), Idjevan Carpet (machine-made), and the affiliate of US-based Tufenkian Carpets.
Footwear production has traditionally been well developed in Armenia satisfying the needs of the domestic market and also exporting large volumes. Currently, Armenian companies are cooperating with European partners to enter Western markets. Nevertheless, the main market still remains the CIS.
Presently, the Armenian textile industry consists of three major sectors: clothing (15%); knitting (20%); and textile processing (65%). Comparing the average of the last three years production with production in 1991 there has been an increase of almost 250% in output over the period.
The knitting sector is one of the most successful in Armenia. Most of the companies operating in this sector export their production to Canada, USA, Europe, and CIS. Among them are Noubarashen Knitting Factory OJSC that specializes in knitted goods exporting more than 75%, TOSP OJSC, which also exports 75% of its products, and EDI-LOR Ltd. that exports ladies? underwear to the US and the British market.
The clothing sector also has great potential for rapid development. Companies operating in this field export up to 100% of their production. Among them are: ITAR LLC, which manufactures men?s shirts, Akhuryani clothing, which specializes in garments as well as knitted goods, and DAV GAR, which currently produces children?s cloths. One of the oldest companies in this sector - GARUN OJSC exports 95% of its goods to the USA and European Union.
Knitted and clothing products, made in Armenia, are successfully establishing themselves in niche markets throughout the world. A newly established Company producing unique ladies? handbags and leather accessories has successfully expanded in export markets and is developing brand recognition.
Key sectors:
IT, Electronics and Precision Eng., Mining, Energy, Fine chemicals and pharmaceutecal, Jewelry and diamonts, Textiles and Closing, Food and drinks, Tourism