LATEST NEWS
2017-11-17

Armenian-Chinese relations

On November 17, 2011, in Qingdao city of Shandong province, People’s Republic of China, Mr. Sergey Manaseryan, the Ambassador Extraordinary and Plenipotentiary of the Republic of Armenia to the People's Republic of China, Mr. Arthur Yegoryan,  Representative of the Chamber of Commerce and Industry of the Republic of Armenia and Mr Ruben Kopyan,  authorized person of the Union of Manufacturers and Businessmen of the Armenia  in China and the "Innovation Center for Belt and Road Collaboration" signed an agreement on  establishment and  support of the Armenian Office of Cooperation

2017-11-11

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NEWSLETTER

IT sector
 

Armenia is a landlocked, mountainous country in the South Caucasus. This fact has a major role in shaping Armenia’s economy development patterns.

Armenia industry sector was quite developed during the Soviet era. The country had chemicals, heavy machinery, rubber, food processing and electronics industries. Along with this during the Soviet era Armenia was a leading Soviet country in high tech research, development and manufacturing, seen as a silicon valley of the Soviet Union. Soviet Armenia has been a main hub of USSR’s scientific and R&D activities in a number of technology industry segments such as mainframe and industrial computing, electronics, semiconductors, software development, and others. However, with the collapse of Soviet Union, together with other industry sectors, IT industry has collapsed, with agriculture sector getting a foothold. During last decade the government of Armenia prioritized the IT sector development to regain the traction and capitalize on once highly developed capacity of high tech industry. Several measures were undertaken by the government to support the development of the sector. These included, but were not limited to creating favorable environment for foreign investments in the sector, provision of legislative and tax benefits for the businesses in the sector, developing the education system, as well as supporting foreign high tech companies to establish representations and R&D laboratories in Armenia.

The following table shows key indicators for opening and operating a business*.

 Indicator Armenia (2015)  Europe and Central Asia OECD countries
 Starting and registering a business: Time (days)  3.0   12.1   9.2 
 Starting a business: Cost (% of income per capita)  1  5.3  3.4
 Enforcing contracts: Time (days) 570  448.1  539.5 
 Enforcing contracts: Cost (% of claim)  14 25.2  21.4 
Total tax rate (% profit)  20.4  34.9  41.3 
 Labor tax and contributions (%)  0 21.4  23 

* ARMENIAN ICT SECTOR 2015. STATE OF THE INDUSTRY REPORT: INFORMATION AND TELECOMMUNICATION TECHNOLOGIES SECTOR IN ARMENIA. Report prepared by EIF

As a result the sector registered incredible growth during the last years. A major inflow of foreign investors was registered, who have located in Armenia to capitalize on the young and highly qualified workforce, highly competitive labor costs, low operational costs and solid Government support.

Basic Figures of IT Sector in 2015

  • The total number of operating companies in IT sector is 450
     
  • The total number of human resources in IT sector is 12685 person
  • The total turnover of IT industry is 559.1 million U.S. dollars

Armenia’s ICT sector development trends in figures

ICT share in GDP, ICT turnover

Technical workforce productivity

Number of ICT Companies