Practical Tips for doing business in Armenia

• Business dress is similar to that of the US.

• It is customary for Armenian hosts to introduce guests first.

• Normally, a name is given formally in 3 parts - title, surname and given name, in that order.

• Establishing personal relationships is important.

• Be punctual for meetings.

• Avoid personal matters and religion in conversations.

• Generally, Armenians are very friendly.

• Do not be direct.

• Gifts are expected, wrapping is preferable. Office type gifts are best choices, e.g., pen sets and paper weights.

• If given a gift, do not open it in public.

• Expect many toasts at meals, etc.

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Brief History

Armenia has had a long history of being ruled by many empires e.g., Romans, Persians, Arabs, Mongols, Ottoman, Russian, etc.  They declared their independence from the old Soviet Union in 1990 and became officially independent in 1991.

Note: Arsacid Armenia was the first sovereign nation to accept Christianity as a state as a state religion in 301. 

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Location

Southwestern Asia between Turkey in the west and Azerbaijan.

Note: Armenia views itself as part of Europe; geopolitically, it can be classified as falling within Europe, the Middle East or both.

 

General Information

• Government: Parliamentary democracy

• A US Generalized System of Preferences (GPS) country

• Capitol City - Yerevan

• Literacy Rate: 99.79%

• Size: Slightly smaller than Maryland

• Population: 3M (2022 est.)

• Population Growth Rate: -0.38% (2022 est.)

• Population Distribution: Most of the population is in the north. Yerevan has 5 times the population of the second largest city – Gyumri.    

Economy

Armenia is attempting to diversify its economy but is dependent on food and beverage products and mining. 

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Unemployment Rate: 20.90% (2021) 

Currency Exchange Rate: 1 US Dollar = 402.94 Armenian Dram (10/14/22)

GDP: $13.7B (2019 est.)

Labor Force: 1.2M (2021 est.)

Labor Force Breakdown: Agriculture - 36.3%, Industry - 17%, Services - 46.7% (2013 est.)​

Major Industries: Agriculture, mining, tourism, textiles and apparel, IT, jewelry, chemical, banking

 

International Trade

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Total Product Exports (2020)

$3.07B 

 

Major Product Exports (2020)

Copper - $739M

Gold - $464M

Rolled Tobacco - $241M

Hard Liquor - $202M

Ferroalloys - $149M

 

Major Product Export Partners (2020)

Russia - $671M

Switzerland - $594M

China - $323M

Iraq - $164M

Bulgaria - $151M 

 

Total Product Imports (2020) 

$4.47B

 

Major Product Imports (2020)

Petroleum Gas - $392M

Refined Petroleum - $223M

Broadcasting Equipment - $114M

Packaged Medicines - $102M

Diamonds - $82.4M

 

Major Import Partners (2020)

Russia - $1.48B

China - $550M

Iran - $295M

Germany - $229M

Turkey - $225M

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English Language Online News Sites

Aravot - general news - www.aravot-en.am

 

Sampling of Companies

Ararat Cement - building materials & fixtures - www.araratcement.am - Ararat

Avshar Wine Factory – wine - www.avshar-wine.am - Avshar

CJSC MIKA - cement - www.mika-cement.am - Hrazdan

Jermuk- mineral water - www.jermukgroup.am - Jermuk

Kotayk Brewery- beer - www.multigroup.am - Abovyan

Multi Group Store - mineral mining & processing - www.stone.am - Ararat

Rusal Armenia - aluminum foil - www.rusal.com - Yerevan

     Note: Owned by Rusal (Russia)

Yerevan Ararat Wine Factory - brandy and whiskey - www.brandy.am - Yerevan

Yerevan Computer Research and Development Institute - IT and software - www.mergelyan.com - Yerevan

Zangezur Copper and Molybdenum Combine – mining - copper & molybdenum - www.zcmc.am - Kapan

eWorks LLC- software - www.e-works.am - Yerevan

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National Holidays - 2022

• January 1 - New Year's Day

• January 2-4 - New Year's

• January 5-6 - Armenian Christmas Eve

• January 28 - Army Day

• March 8 - International Women`s Day

• April 17 - Easter Sunday

• April 18 - Easter Monday

• May 1 - Labor Day

• May 9 - Victory and Peace Day

• May 28 - Republic Day

• July 5 - Constitution Day

• September 21 - Independence Day

• December 31 - New Year’s Eve

 

By Paul Mastilak

InterMark3, Inc.

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