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The ghost of Soviet-era brands in Armenia
21:18 * 06.02.14
The president of the Union of Local Manufacturers highlights the
importance of resuming the Soviet-era industries in Armenia before the
country becomes a member of the Russian-led Customs Union.
Speaking to Tert.am, Vazgan Safaryan said he expects the one-time
Soviet-Armenian footwear, machine-tool and machine building industries
to have a big demand on the Eurasian Customs area.
Shoe fabrics (Masis, Luxe), machine-tool industries
Safaryan said he doesn't think the scenario is a myth against the
background of the "Armenian molybdenum" and apricot. "I say what
really happened. People from Paris would purchase and bring knitted
fabric manufactured in Spitak [Lori region]. Armenia's industries
accounted for 66%-67% of our GDP. Today however, they near 20%," he
noted.
As for the machine-tool engineering, Safaryan said its share in the
GDP used to be 20%. "In what you call a closed country, the plant
Armenmotor, which was formerly called Electric Engine Plant, sent its
engines to 90 countries. Those engines were exported to Japan. People
would form queues in Moscow for our shoes," he added.
But the economic management model Armenia has today is completely
different, with the Government realizing the importance of cooperation
with the private sector, Khachatryan said.
"That we didn't have; it's a new function. [The Government] spent 801
million Drams [approx. $2,000] from the budget last year to boost the
export with 3% subsidies. We now offer loans with an 8% interest rate
to those who export [products]," he said, stressing the importance of
raising the competitiveness of local goods.
Safaryan said the higher interest rates to be imposed on the Customs
Union member states for third country imports are based on the
Soviet-time ideology of encouraging the local manufacturing.
Asked whether it implies a return to the former USSR model, Safaryan
ruled out such a possibility. "We do not speak of the former USSR
model; we speak of new integration ties."
On local manufacturing and distinctive features of Armenian products
Safaryan stressed the importance of eliminating the negative balance
in foreign trade (which he said is $2.9 million).
"We have set a task not to bring goods that can be produced here. The
promotion of local goods is one of the best factors of our CU
integration. We will not bring the products which we can manufacture
locally; sugar, for instance," he said.
Turners welders and carpenters will be trained in Armenia
The Customs Union has submitted a bid to the Armenian Government,
expressing its willingness to assist in the training of the
manufacturing workforce (turners, welders and carpenters).
Armenian News - Tert.am
21:18 * 06.02.14
The president of the Union of Local Manufacturers highlights the
importance of resuming the Soviet-era industries in Armenia before the
country becomes a member of the Russian-led Customs Union.
Speaking to Tert.am, Vazgan Safaryan said he expects the one-time
Soviet-Armenian footwear, machine-tool and machine building industries
to have a big demand on the Eurasian Customs area.
Shoe fabrics (Masis, Luxe), machine-tool industries
Safaryan said he doesn't think the scenario is a myth against the
background of the "Armenian molybdenum" and apricot. "I say what
really happened. People from Paris would purchase and bring knitted
fabric manufactured in Spitak [Lori region]. Armenia's industries
accounted for 66%-67% of our GDP. Today however, they near 20%," he
noted.
As for the machine-tool engineering, Safaryan said its share in the
GDP used to be 20%. "In what you call a closed country, the plant
Armenmotor, which was formerly called Electric Engine Plant, sent its
engines to 90 countries. Those engines were exported to Japan. People
would form queues in Moscow for our shoes," he added.
But the economic management model Armenia has today is completely
different, with the Government realizing the importance of cooperation
with the private sector, Khachatryan said.
"That we didn't have; it's a new function. [The Government] spent 801
million Drams [approx. $2,000] from the budget last year to boost the
export with 3% subsidies. We now offer loans with an 8% interest rate
to those who export [products]," he said, stressing the importance of
raising the competitiveness of local goods.
Safaryan said the higher interest rates to be imposed on the Customs
Union member states for third country imports are based on the
Soviet-time ideology of encouraging the local manufacturing.
Asked whether it implies a return to the former USSR model, Safaryan
ruled out such a possibility. "We do not speak of the former USSR
model; we speak of new integration ties."
On local manufacturing and distinctive features of Armenian products
Safaryan stressed the importance of eliminating the negative balance
in foreign trade (which he said is $2.9 million).
"We have set a task not to bring goods that can be produced here. The
promotion of local goods is one of the best factors of our CU
integration. We will not bring the products which we can manufacture
locally; sugar, for instance," he said.
Turners welders and carpenters will be trained in Armenia
The Customs Union has submitted a bid to the Armenian Government,
expressing its willingness to assist in the training of the
manufacturing workforce (turners, welders and carpenters).
Armenian News - Tert.am