ArmInfo. Given the exit of a number of large Western companies from the Russian market, great opportunities are opening up for Armenian textiles. Rafael Gevorgyan, Deputy Economy Minister of Armenia, expressed a similar opinion in an interview with CivilNet. "There was an opportunity to expand production, to enter such trade networks in Russia, access to which previously seemed impossible. There is already a reaction from our manufacturers who are considering this and are negotiating," Gevorgyan said.
However, producers are concerned about currency risks. But, using the right tools, the state, in the opinion of the deputy head of the department, will be able to provide certain support to exporters.
In this regard, he pointed out the importance of joint work of exporters with the banking system to expand the range of financial instruments, in particular, forward transactions, swap transactions and others that will help hedge currency risks", the Deputy Minister noted.
Speaking about the potential of the domestic textile industry, Gevoryan said that today the enterprises, which employ about 9 thousand people, do not have a shortage of demand. However, there is a problem with a skilled labor force, despite the level of unemployment and poverty in the country. Referring to the statements of industry representatives, the deputy minister noted that companies are ready train people themselves and expand. He did not rule out that the lack of demand for vacancies in the textile industry may also be associated with low wages, which depend on the level of productivity.
It should be recalled that in January 2022, the Ministry of Economy, with the financing of the Good Governance Fund of the Government of the United Kingdom, with the support of the EBRD and the coordination of the Business Assistance Office, launched a program to assist the Armenian textile industry. The program is aimed at developing a sustainable and inclusive textile industry, which is the main strategic priority for the country's economy. According to the source, the program will develop proposals on opportunities to increase the value added in the textile industry to increase its competitiveness, taking into account the fact that this category of products is no longer covered by the EU trade preferences regime - GSP +. It should be noted that according to the Statistical Committee, the volume of production of the textile industry in Armenia in 2021 increased 2.1-fold, providing production volumes in the amount of 1.9 billion drams (over $3.7 million). A year earlier, the segment registered a rather serious decline of 31.6%.
