The fact-finding mission for the United Nations Conference on Trade and Development (UNCTAD) is concluding the visit to Armenia today. At the invitation of Armenian President Armen Sarkissian, they arrived in Armenia on March 27 to conduct a research for the preparation of the investment policy review of Armenia.

UNCTAD has conducted similar activity in over 50 countries.

During the two-week visit the expert group, accompanied by Trade Representative of Armenia in Switzerland Hayk Hovhannisyan, had meetings with more than 50 entrepreneurs and representatives of business associations, international and donor companies, and local agencies.

Banks.am has talked with UNCTAD experts and Hayk Hovhannisyan about the preparation for the review and the expected report.

Massimo Meloni, UNCTAD, Economic affairs officer

The purpose of the investment policy review is to help countries improve their investment policies and to familiarize government and the international private sector with an individual country’s investment environment.

We meet with several stakeholders in the private, public sectors, as well as civil society to find out what the key gapes and obstacles are, as well as the potential in terms of the investment climate.

The concerns that have been expressed to us so far relate primarily not so much to the legislation itself and the regulatory framework, but more to the issues concerning business practices on the market: the competition, the enforcement of the contract, the obstacles related to the concentration in the market and the stability of the market.

Our review will provide the government with the concrete recommendations on how to attract investment flows from abroad, domestic investment and how to better benefit from investment for sustainable development.

We will prepare a draft report and present it in Armenia at the national stakeholders’ workshop.

When the final report is ready, we will present it in Geneva at our intergovernmental level.

Ariel Ivanier, UNCTAD, expert

The goals for us will be to provide the government a series of recommendations that will help the country upgrade in regional and global value change. Our recommendations will cover different sectors of the economy.

If Armenia chooses specific segments that will leverage the advantages the country has in terms of resources and skills, there is a chance that in those individual activities it could have an advantage and take benefit of that.

Promotion for business, formation of the national image, marketing, and targeting of investors are all important factors. The communication between the government and the business sector has to be quick, easy and efficient. All that and the institutional factor will the key to success.

In Armenia, IT and winemaking are booming sectors.

One of the considered possibilities is to make Armenia a hub for operations and exports in the region.

Hayk Hovhannisyan, Trade Representative of Armenia in Switzerland

The work of UNCTAD mission is not limited to one report. The experts return to follow up on the implementation of their recommendation and make a short report based on their findings.

A statistical research has showed that the countries that carefully followed UNCTAD recommendations registered an almost threefold increase of foreign investment (206%) in the next five years. In 2016-2017, when global cross-border investments were 23% down, these countries had a 29% increase of foreign investment.

It should also be noted that the UNCTAD mission does not represent the interests of either public or private sector and does not have any political affiliation.

Many large countries base their reports about economic and investment climate in other countries on UNCTAD reviews.

The investment policy review becomes an important business card in the hands of a trade diplomat, especially if it includes positive results following reforms.

Taguhi Hovhannisyan