Diamond-processing and jewellery appears to be a very attractive field for investment in Armenia based on the existence of expert diamond cutters with competitive pay rates, modern equipment and tax privileges (no taxes on the import of raw materials and on the export of finished products) in Armenia. Moreover, the country is rich with semiprecious and ornamental stones, such as agate, amethyst, turquoise, jasper, and different types of marble onyx.
With joining of the RA to the Kimberley Process Certification Scheme (in 2002), Armenia has declared the readiness to carry out rough diamond trade only with the countries which are the Members of Kimberley process. The purpose of this is the prevention of an illegal turnover of conflict diamonds.
Electronics, IT and telecommunication in Armenia are developing from a long industrial tradition. Armenia was the most technologically developed republic of the former Soviet Union with a special emphasis on the development of IT and software. With annual growth of more than 20 % since 1999, software and IT companies now account for approximately 2 % of Armenia’s GDP — a proportion comparable to that of India, the world’s leading offshore IT destination.
Today, majority of Armenian manufacturers utilize only 10 to 15 % of their production capacity and are open to take additional orders from abroad. Some of the products with the highest production turnover are digital instruments and spare parts, computer control systems, equipment connected with automation facilities, components for laser systems, electric measuring instruments, and devices to automate, control, and regulate technological operations.
Food processing and agriculture in Armenia contribute to the country’s GDP by up to 50 %. The industry was the first priority in the process of structural reform after the collapse of the Soviet Union. This resulted in better management and production standards leading to greater international competitiveness as it is today. Even though Armenia is not rich in land resources, most of the available 46.6 % of operational land is effectively utilized. The warm climate, fruitful soil and workers with competitive wage rates are the main opportunities for the industry.
Agricultural production is mainly driven by private firms that grow grains, potatoes, vegetables and fruits (grapes, melons). Further on, this is set off for production of canned fruits and vegetables, flour and bread, wine and brandy, soft drinks and mineral water together with dairy products and meats.
Engineering and metalworking in Armenia are still recovering from the earthquake in 1988 that destroyed a number of main production plants. Even though much of the infrastructure is still in the recovery phase, the highly skilled labour in combination with foreign direct investments is rising the standards of the industry with elevated speed. Even today, part of the industry is idle or operating at a fraction of its capacity that is awaiting to be employed by new orders, outsourcing projects or mergers.
Main export products are metal-cutting machine tools, forging-pressing machines, trucks, electric motors, tires, electronics and instruments.
