ARMENIA FACES MAJOR OBSTACLES IN TERMS OF ATTRACTING INVESTMENTS - BUSINESSMAN

Tert.am
29.06.11

Armenia is not an attractive country for foreign investments and new
businesses, a Diaspora-Armenian businessman finds.

Vahagn Hovnanyan told reporters on Wednesday that the country is facing
numerous obstacles in terms of enlivening its business environment.

"There are a lot of problems that affect Armenia's economy, businesses
and attractiveness of investments. You don't have a big market and
there are very few people, so they cannot bring many products, attract
investments or set up new businesses. Monopolies here create lots of
difficulties," he said. "You face big pressures if you want to import a
new product. It is a big problem here for us, as that prevents small
business owners from coming here and making investments."

MP Manvel Badeyan, also attending the news conference, disagreed with
the businessman. He pointed out to other factors creating difficulties.

"No country can be said to be attractive for investments now,
as the entire world is facing a crisis situation. But apart from
such significant factor, Armenia faces other restrictions, such as
political and geographic factors, and the small market," he said,
stressing the importance of skilled governance.

"While we cannot increase our market capacities or change our
geographical location, we do have the chance and are obliged
to exercise proper governance, eliminating subjective factors,"
Badeyan said, pointing out to such major obstacles as corruption and
monopolization of the market.