HOVNANYAN: ARMENIA - A COUNTRY OF NEW FOREIGN INVESTMENT OPPORTUNITIES

/ARKA/
June 29, 2011
YEREVAN

YEREVAN, June 29. /ARKA/. Armenia is a country of new foreign
investment opportunities, said the large American entrepreneur
of Armenian origin, the head of "Hovnanian International" Vahagn
Hovnanian in the press-conference on Wednesday.

"Armenia is a young country and people need new products and businesses
which creates large opportunities for the investors.

Armenia, as human beings, becomes better and better for years",
he said. Armenia is a wonderful place for business development but
people should work honestly and correctly as "every business has
its etiquette".

"I have been always worked honestly and didn't ask anything from
anybody. I even don't know the names of the majority of the ministers
and there is no need for me to know them. A businessman relying upon
any of state officials is doomed to failure", said Hovnanian.

He named the main factors hindering the business environment in
Armenia and involvement of new foreign investors.

"First is inflexibility of legislation, second is small market. But
I think that the worse thing is monopolization of the market", he said.

Hovnanian considers that for demonopolization of the market in Armenia
it is necessary to develop small business.

Member of Parliament from the ruling Republican Party Manvel Badeyan
added that the hindering factors of the development of business
environment in Armenia is also unfavorable geographic location of
Armenia, political conflicts with neighbor countries, corruption and
management problems.

"As for monopoly, I should mention that the worse thing is that any
monopoly will take out own capital from the country and seek other
markets", said Badeyan.

Vahagn Hovnanian, Armenian by origin, was born in Iraq and lived his
life in USA. He graduated from St. Joseph University in Philadelphia
and received the degree of Bachelor of Physics.

In 1959, Hovnanian and his brothers established "Hovnanian Brothers
Corporation" where he occupied the post of the vice-president. During
the next ten years, Hovnanian brothers developed many projects and
built thousands of houses in New Jersey. In 1969 Hovnanian founded
his own construction company "Hovbilt Inc.".

After the declaration of independence in Armenia, Hovnanian put his
capital into different projects in the country. Particularly, he built
one of the most elite cottage settlements of Armenia - the district
"Vahakni"in the neglected outskirt of Yerevan.