Government textile industry fund to be established in Armenia 

ArmInfo.  The Ministry of Economy of Armenia proposes to create a Textile Industry Operator Fund, which will be entrusted with the functions of the industry operator. The relevant initiative is posted on the unified portal of legal acts.

As stated in the explanatory note to the document, the textile  industry is one of the priority and key sectors of the economy  defined by the RA government, which provides thousands of jobs, especially for women.

Many factories and workshops operate outside Yerevan, in the regions, where this is of great importance in the context of high  unemployment. Textile products from Armenia are exported mainly to the Russian Federation, the EU countries and the USA.

The expansion of export volumes contributes to the inflow of foreign currency and the improvement of Armenia's balance of payments. The development of the textile industry also stimulates local production of raw materials (for example, cotton, woolen products) and related industries: transportation, packaging and marketing. Despite the growth of the sector in recent years, a number of problems remain unresolved, including: limited availability of raw materials, technological obsolescence of production bases, lack of human  capital, small size of the domestic market, difficulties in  organizing exports, branding and recognition issues, and limited financing options.

The Ministry of Economy is convinced that the creation of the  operator will contribute to the balanced development of the industry,  in particular: coordinated and targeted development of the sector.  The operator can coordinate private and public initiatives in the  textile industry, promoting the targeted use of resources and  eliminating repetitive work. This will help identify and promote  potential. The operator can conduct large-scale mapping of the  sector.

A single operator will become a link between the public and private  sectors. It can become an intermediary between the public sector,  private producers, educational institutions, investors, designers and  other fashion professionals, local and international partners.

The creation of the Fund will also lead to increased competitiveness  and export stimulation. The operator can support the implementation  of quality standards, support certification processes, promote sales  on electronic platforms, ensure the participation of Armenian  companies in international exhibitions, promote branding and  international recognition of Armenian products, organize portfolio  presentations of Armenian products.

The issue of human capital development will be resolved. The operator  can support the continuous development of the professional  capabilities of specialists in this field through training and  attracting new, more highly qualified specialists.

The initiative will contribute to job creation and social impact. The  textile sector can have a significant impact, especially in the  regions, in terms of employment, specialization and economic  activity. The operator can contribute to the implementation of this  social policy by promoting social equality.

, the document says.

The legal act was developed in accordance with the Decree of the  Government of the Republic of Armenia dated February 2, 2023 . The document contains  3 key areas for 2023-2026:  development of human capital and  capabilities; increasing production capabilities and stimulating  exports.  As a result of the strategy implementation, production  volumes are expected to grow by 1.8 times, and export volumes will  reach $500 million.

According to the RA Statistical Committee, the volume of textile  production in Armenia in 2024 decreased by 2.8% to 5.1 billion. At  the same time, clothing production decreased by 3.3% over the year,  amounting to 40.4 billion drams.