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.
