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PRODUCTION OF ARMENIA'S GEM AND JEWELRY SECTOR DECLINES BY 20% IN 2006
YEREVAN, JANUARY 31, NOYAN TAPAN. In 2006, the Armenian gem and
jewelry sector's production made 88 bln drams or about 211.5 mln USD,
which is less by 20% than the 2005 index. Gagik Mkrtchian, Head of the
Gem and Jewelry Unit of the RA Ministry of Trade and Economic
Development, presented this data on January 31. According to him, the
production decline started in 2005 and can be explained not only by a
fall in international prices but also by some domestic factors.
It was noted that under conditions of the continuous appreciation of
the Armenian dram against the US dollar, the availability of cheap
qualified workforce in this sector of the Armenian economy is being
neutralized, which results in a decline of the investment
activity. G. Mkrtchian said that there is also the problem of
instilling management culture in Armenian gem and jewelry companies.
Besides, G. Mkrtchian explained the production decline in the gem and
jewelry sector by the fact that Russia stopped raw diamomd supply
under intergovernmental agreements. In his words, the issue of this
supply by Russia and the opportunities of cooperation of companies on
market bases have become the suject of discussion by high-ranking
Armenian and Russian officials, including the presidents of the two
countries.
He considered it possible that Russian companies engaged in trade of
Russian diamonds and jewelry will make investments in Armenia. The
ministry official also attached impostance to the use of the Diasporan
resource, which can be promoted by the big international exhibition
that the Union of Armenian Jewellers plans to organize in Yerevan in
mid October 2007. The union will try to ensure the participation of
non-Armenian investors in this exhibition. He considered it important
that organizers of famous international exhibitions held every year in
the Italian city of Vicenza expressed their willingness to assist with
organization of this exhibition.
G. Mkrtchian expressed the opinion that the creation of the gem and
jewelry production development agency will promote the sector's
development and facilitate legislative reforms.
YEREVAN, JANUARY 31, NOYAN TAPAN. In 2006, the Armenian gem and
jewelry sector's production made 88 bln drams or about 211.5 mln USD,
which is less by 20% than the 2005 index. Gagik Mkrtchian, Head of the
Gem and Jewelry Unit of the RA Ministry of Trade and Economic
Development, presented this data on January 31. According to him, the
production decline started in 2005 and can be explained not only by a
fall in international prices but also by some domestic factors.
It was noted that under conditions of the continuous appreciation of
the Armenian dram against the US dollar, the availability of cheap
qualified workforce in this sector of the Armenian economy is being
neutralized, which results in a decline of the investment
activity. G. Mkrtchian said that there is also the problem of
instilling management culture in Armenian gem and jewelry companies.
Besides, G. Mkrtchian explained the production decline in the gem and
jewelry sector by the fact that Russia stopped raw diamomd supply
under intergovernmental agreements. In his words, the issue of this
supply by Russia and the opportunities of cooperation of companies on
market bases have become the suject of discussion by high-ranking
Armenian and Russian officials, including the presidents of the two
countries.
He considered it possible that Russian companies engaged in trade of
Russian diamonds and jewelry will make investments in Armenia. The
ministry official also attached impostance to the use of the Diasporan
resource, which can be promoted by the big international exhibition
that the Union of Armenian Jewellers plans to organize in Yerevan in
mid October 2007. The union will try to ensure the participation of
non-Armenian investors in this exhibition. He considered it important
that organizers of famous international exhibitions held every year in
the Italian city of Vicenza expressed their willingness to assist with
organization of this exhibition.
G. Mkrtchian expressed the opinion that the creation of the gem and
jewelry production development agency will promote the sector's
development and facilitate legislative reforms.