Armenia's business culture should be improved in order to boost exports - Head of Mantashyants Entrepreneurs Union (exclusive)

YEREVAN, November 15. /ARKA/. In order to boost Armenian exports, first, the business culture in the country should be improved and conditions created for local business community to set for itself more ambitious goals, the head of the Mantashyants Entrepreneurs Union Vahram Mirakyan said in an exclusive interview with ARKA news agency. 

ARKA- Mr. Mirakyan, the weakening of the US dollar against the Armenian dram has brought about a situation that is not quite favorable for export-oriented companies. What steps should be taken to offset the negative impact of currency fluctuations on Armenian exporters? 

V. Mirakyan - Armenia has a set of banking instruments, which have become more accessible due to legislative changes introduced recently. Application of these instruments is one of the options for solving this problem. Another option is currency diversification. We should try also to concentrate on commodities with big margins so that these fluctuations do not affect the process much. You also have to try to have as flexible contracts as possible with the recipients of product deliveries. 

ARKA - What are the prospects for the development of Armenian exports, and what obstacles do you see in the current geopolitical situation? 

V. Mirakyan- Generally speaking, the situation with exports is bad. This is conditioned, for example, by the fact that grapes are bought from farmers at a low price. From the exporters' point of view, investments were harmed, and many projects were halted. If in the past the cost of a project, for example, was estimated at $3 million, now it has risen by 20%. Investors refuse to invest under these conditions. That is, the investment attractiveness of Armenia has declined. Likewise, the tourist attraction has dropped l because of the rise in prices. The situation is similarly difficult in the IT sector. 

ARKA - What are the most promising local products in terms of exports today? Which Armenian goods can be competitive in the world market? 

V. Mirakyan- Everything depends on the market. Everything that Armenia exports is in demand in the Russian market, because there is a vacuum there after the withdrawal of many international suppliers. This is why our exporters working in the Russian market are doing well. 

ARKA - Then there is a need to increase exports to Russia? 

V. Mirakyan - We always need to increase exports, especially for us, when our trade balance outweighs imports. The question is how to do it. In particular, in the Mantashyants Union we are working on a project to promote exports, which we are going to submit to the Ministry of Economy in the near future. 

ARKA - Is there a need to enter new markets? Which markets are promising for Armenia, but little is being done to win them? 

V. Mirakyan - The problem in Armenia is a little different. The question is whether we are able to offer the requested volumes. In principle, we can enter the American market, but do we have so many goods? That is the main problem. It's not always a problem of finding new markets, there needs to be enough goods to sell to them. Our small businesses should consolidate, but they can't. Should increase production volumes, but it is not happening. And I do not blame the government alone. Entrepreneurs themselves do not develop, do not study, and do not pay attention to branding and marketing. The government may be the main culprit, since it does not train them, but still many business people do not develop themselves.

ARKA - In the end, we have arrived from the problem of export development to the problem of education. So, in order to develop exports, you need to improve the business culture in the country? 

V. Mirakyan- Yes, this is the first condition. The second is the creation of more favorable conditions for business to become more ambitious and seek to enter foreign markets. -0-