Saturday, 17 March 2012
Industrial Council Holds First Meeting
Chaired by Prime Minister Tigran Sargsyan, the Industrial Council by the Prime Minister held its first meeting with participation of heads of government agencies, private sector representatives and members of Parliament.
Reporting progress in export-oriented strategy activities, Economy Minister Tigran Davtyan said three line panels had been set up under his agency based on the public-private sector principle to discuss development outlook and recommendations.
The Minister said that in accordance with the industrial strategy exports will be up twice by 2015 to USD 2.1bn and tripled by 2020 up to USD 2.8-3.3bn.
Industry grew by 14.1% in 2011 thanks to both traditional and new industries. The total volume of industrial output neared the mark of AMD 1 trillion, making some 992 billion drams, which is the highest figure since independence.
While the share of industry in GDP was only 12-13 percent a couple of years ago, it is expected to touch the mark of 20 per cent over the next few years.
Tigran Davtyan noted that a comprehensive legal framework is up for the launch of free economic zones. The first free economic zone is due start operations as early as this September.
The government was said successful in assisting the private sector. In particular, the government has approved over two dozen investment programs which will be granted a VAT holiday.
As a result, several investment programs will be implemented to a total cost of AMD 85bn. A lending program is underway with the use of public funds. “SME Investments” UCO has provided 53 loan facilities to 39 entities to a total amount of 3.6 billion drams.
The council went on to reaffirm the priority areas stipulated in the strategy. The following sectors were deemed as priority areas: precision engineering, pharmaceuticals, wine-making, diamond processing inclusive of jewelry and watch-making as well as light industry with the production of footwear and textiles.
Tigran Sargsyan said development programs are out for the first three sectors. “This will be the case with the other sectors as well. I mean those areas ready to join us on this platform to implement the program.”
The meeting next discussed those areas in which the state is ready to provide technical and financial assistance to the private sector. In particular, it was noted that the State will help bring to Armenia world-famous international companies, identify foreign sales outlets for local companies, further international cooperation, promote participation in international fairs and training programs, expand the network of trade missions abroad and so on.
The council has also looked at the possibility of subsidizing interest on the loans available from public funds for export-oriented development programs.
All the tools proposed by the council will be based on the principle of co-financing.
