Textile Industry Operator Fund to be formed in Armenia

ArmInfo. A Textile Industry Operator Fund will be established in Armenia, which will be entrusted with the functions of the industry operator. The relevant initiative of the country's Ministry of Economy was approved by the Cabinet of Ministers on July 24 at a regular meeting.

As stated in the explanatory note to the document, the textile  industry is one of the priority and key sectors of the economy  defined by the RA government, which provides thousands of jobs,  especially for women.  Many factories and workshops operate outside  Yerevan, in the regions, where this is of great importance in the  context of high unemployment. Textile products from Armenia are  exported mainly to the Russian Federation, the EU countries and the  United States.

The expansion of export volumes contributes to the inflow of foreign  currency and the improvement of Armenia's balance of payments. The  development of the textile industry also stimulates local production  of raw materials (for example, cotton, woolen products) and related  industries: transportation, packaging and marketing. Despite the  growth of the sector in recent years, a number of problems remain  unresolved, in particular: limited availability of raw materials,  technological obsolescence of production bases, lack of human  capital, small size of the domestic market, difficulties in  organizing exports, branding and recognition issues, and limited  financing opportunities.

The Ministry of Economy is convinced that the creation of an operator  will contribute to the balanced development of the industry, in  particular: coordinated and targeted development of the sector. The  operator can coordinate private and public initiatives in the textile  industry, promoting the targeted use of resources and the elimination  of repetitive work. This will help identify and promote potential.  The operator can conduct large-scale mapping of the sector.

A single operator will become a link between the public and private  sectors. It can become an intermediary between the public sector,  private manufacturers, educational institutions, investors, designers  and other fashion professionals, local and international partners.

It is expected that the establishment of the Fund will also lead to  increased competitiveness and export stimulation. The operator can  support the implementation of quality standards, support  certification processes, promote sales on electronic platforms,  ensure the participation of Armenian companies in international  exhibitions, promote branding and international recognition of  Armenian products, organize portfolio presentations of Armenian  products.

The issue of human capital development will be resolved. The operator  can support the continuous development of professional capabilities  of specialists in this field through training and attracting new,  more highly qualified specialists.

The initiative will contribute to job creation and social impact. The  textile industry sector can have a significant impact, especially in  the regions, in terms of employment, specialization and economic  activity.  The operator can contribute to the implementation of this  social policy by promoting social equality.

"The operator's fund will act as an institutional support for the  development of the sector, which will be entrusted with the function  of implementing policies, implementing programs and attracting  partners. The creation of the fund will contribute to the systemic  development of the textile industry by solving structural, personnel  and technological problems in the industry. It will become a platform  for cooperation between the public, private and educational sectors,  ensuring the modernization of production, export promotion and  strengthening of human potential. The fund will contribute to  regional development, job creation and international recognition of  Armenian textiles," the document says.

The legal act was developed in accordance with the Decree of the  Government of the Republic of Armenia dated February 2, 2023 . The document contains  3 key areas for 2023-2026:  development of human capital and  capabilities; increasing production capabilities and export  promotion. As a result of the strategy implementation, production  volumes are expected to increase by 1.8 times, and export volumes  will reach $500 million. It should be noted that according to the RA  Statistical Committee, the volume of textile production in Armenia in  2024 decreased by 2.8% to 5.1 billion. At the same time, clothing  production decreased by 3.3% over the year, amounting to 40.4 billion  drams.