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MAIN OBSTACLES TO DEVELOPMENT OF ARMENIA'S FINE ORGANIC CHEMISTRY ARE LOW LEVEL OF CUSTOMER SERVICING, IMPERFECT LEGISLATION ON SAMPLE EXPORT AND ABSENCE OF COMMERCIALIZATION INFRASTRUCTURES
Noyan Tapan
Jan 29, 2008
YEREVAN, JANUARY 29, NOYAN TAPAN. The main obstacles to development of
Armenia's fine organic chemistry is the low level of services provided
to foreign customers at the sector's companies and research institutes,
the imperfect legislation on export of production samples and the
absence of infrastructures for commercialization of developments,
the director for investment attraction of the Armenian Development
Agency (ADA) Natalia Artsruni told NT correspondent.
In her words, as far back as 2005, under the WB-financed program on
export promotion and investment attraction and with the participation
of foreign experts, the ADA developed a strategy of developing
Armenia's fine organic chemistry sector, during implementation of
which www.finechemicalsmarket.com website was created. The list of
5 thousand chemical substances, whose production may be organized by
Armenian institutes and companies, is available on this website.
The country's capacities regarding the sector are also presented at
exhibitions and business forums. However, according to N. Artsruni,
very often Armenian organizations do not respond on time to the
possible foreign partners' inquiries about the price and supply term
of a substance as Armenian organizations do not have price-lists
on supply of substances by their quantity and term, which should be
constantly updated. "Those making an inquiry from abroad expect an
answer to be received within 24 hours, which does not happen. Many
companies need training on customer servicing.
We have potential, in which the world takes interest, however, we
first of all need to do homework in order to realize this potential,"
the ADA's official pointed out, adding that "perhaps it would be
better to present 3 thousand instead of 5 thousand substances but with
confidence that we are always ready to supply the given substance at
the indicated price and in the indicated period".
She considered as an objective obstacle the situation when for
sending a 1 or 2-gram sample to the possible foreign partner for
testing, the local company has to undergo an expensive and long
procedure for certification and permission, which is also used for
a large consignment to be sold abroad. It was mentioned that the
certification price has no essential impact on the cost price of the
exported commodity in case of exporting large consignments abroad,
whereas in case of samples of chemical substances, the certification
considerably increases the cost price of their export, as a result
of which "we become absolutely noncompetitive". In the opinion of
N. Artsruni, a legislative solution is necessary to rectify this
situation. She expressed a hope that respective proposals will be
worked out by thanks to the research on Armenia's business environment,
which is being conducted by the Business Support Council (chaired by
the RA prime minister, the secretariat is headed by the ADA) and the
European Bank for Reconstruction and Development (EBRD).
N. Artsruni expressed an opinion that for efficient organization of
commercialization of the indicated sector's scientific developments
and for reduction of risks, it is necessary to set up a respective fund
which, in particular, will assist scientsists with commercialization of
their developments' patents. "It is often more beneficial for leading
foreign companies to purchase the patent of the given scientific
product than to spend maney on research," she explained. She said
that it may also contribute to Armenia's recognition abroad as a
country of fine organic chemistry and to attraction of investments
for production and research on this sphere.
According to the ADA's data, there are 4 institutes specialized in
research on fine organic chemistry in Armenia. 5 companies with a
total of about 200 employees operate in the production sphere.
From: Baghdasarian
Noyan Tapan
Jan 29, 2008
YEREVAN, JANUARY 29, NOYAN TAPAN. The main obstacles to development of
Armenia's fine organic chemistry is the low level of services provided
to foreign customers at the sector's companies and research institutes,
the imperfect legislation on export of production samples and the
absence of infrastructures for commercialization of developments,
the director for investment attraction of the Armenian Development
Agency (ADA) Natalia Artsruni told NT correspondent.
In her words, as far back as 2005, under the WB-financed program on
export promotion and investment attraction and with the participation
of foreign experts, the ADA developed a strategy of developing
Armenia's fine organic chemistry sector, during implementation of
which www.finechemicalsmarket.com website was created. The list of
5 thousand chemical substances, whose production may be organized by
Armenian institutes and companies, is available on this website.
The country's capacities regarding the sector are also presented at
exhibitions and business forums. However, according to N. Artsruni,
very often Armenian organizations do not respond on time to the
possible foreign partners' inquiries about the price and supply term
of a substance as Armenian organizations do not have price-lists
on supply of substances by their quantity and term, which should be
constantly updated. "Those making an inquiry from abroad expect an
answer to be received within 24 hours, which does not happen. Many
companies need training on customer servicing.
We have potential, in which the world takes interest, however, we
first of all need to do homework in order to realize this potential,"
the ADA's official pointed out, adding that "perhaps it would be
better to present 3 thousand instead of 5 thousand substances but with
confidence that we are always ready to supply the given substance at
the indicated price and in the indicated period".
She considered as an objective obstacle the situation when for
sending a 1 or 2-gram sample to the possible foreign partner for
testing, the local company has to undergo an expensive and long
procedure for certification and permission, which is also used for
a large consignment to be sold abroad. It was mentioned that the
certification price has no essential impact on the cost price of the
exported commodity in case of exporting large consignments abroad,
whereas in case of samples of chemical substances, the certification
considerably increases the cost price of their export, as a result
of which "we become absolutely noncompetitive". In the opinion of
N. Artsruni, a legislative solution is necessary to rectify this
situation. She expressed a hope that respective proposals will be
worked out by thanks to the research on Armenia's business environment,
which is being conducted by the Business Support Council (chaired by
the RA prime minister, the secretariat is headed by the ADA) and the
European Bank for Reconstruction and Development (EBRD).
N. Artsruni expressed an opinion that for efficient organization of
commercialization of the indicated sector's scientific developments
and for reduction of risks, it is necessary to set up a respective fund
which, in particular, will assist scientsists with commercialization of
their developments' patents. "It is often more beneficial for leading
foreign companies to purchase the patent of the given scientific
product than to spend maney on research," she explained. She said
that it may also contribute to Armenia's recognition abroad as a
country of fine organic chemistry and to attraction of investments
for production and research on this sphere.
According to the ADA's data, there are 4 institutes specialized in
research on fine organic chemistry in Armenia. 5 companies with a
total of about 200 employees operate in the production sphere.
From: Baghdasarian