Armenia resolved to be among top 20 countries most attractive for business

PanARMENIAN.Net - About 3700 companies with foreign capital are operating in the republic. At that, the amount of direct foreign investments increased by 4% in the first half of 2010 while the volume of total investments decreased by 8%.

Direct foreign investments amounted to $732.1mln in 2009 against $1.1bln in 2008. Russia ($384.8mln), France ($197.4mln) and Argentina ($48.2mln) are among the largest foreign investors in the country in 2009.

Leading economists agree that the process of attraction of investments should be more dynamic. Armenia should be among top 20 countries most attractive for business, they believe.

Armenia is 48th in the list of 183 countries in Doing Business 2011 World Bank’s report, falling 4 places as compared to the last year’s index.

To attract investments, the country should first of all raise competitiveness, pursue correct business policy and regulate tax collection.

With the ongoing blockade as the worst barrier for development, Armenia still experiences problems with modernization of internal resources. Experts insist Armenia should develop its own branding, as Singapore did. Renewable energy and light industry are named among best fields for the purpose.

Besides, the country should ensure macroeconomic stability, combat corruption and bureaucratic procedures. Improvement of the investment environment, provision of tax and financial privileges to foreign investors are also mentioned as priority steps.