by Armen Vahradian

Vayots Dzor Province, situated in southern Armenia, is a region rich in agricultural lands, mineral springs, and ancient historical landmarks. The region boasts more than 46 medium- and large-sized enterprises in a variety of industries, including electronics plants of the defense industry, mineral water bottling facilities, and therapeutic spas. Enterprises in the region are hoping to attract U.S. investors to assist them in their development efforts.

The province was formed in 1995 from three former administrative regions, Yeghegnadzor, Vaik, and Jermuk, and has a population of more than 67,000. Vayots Dzor borders Azerbaijan on the east and west, Iran on the south, and lies along the Arpa and Arax rivers. The province's industrial sector specializes in machinery, apparel, wine production, mineral-water bottling, and stone mining. Like much of Armenian industry, the breakup of the Soviet Union deprived local enterprises of their former markets, and most currently operate at only 10-15 percent of capacity.

Yeghegnadzor, the capital of the province, has a population of 11,400 and has 12 medium- and large-sized enterprises. The Electronic Devices Plant and the Yeghegnadzor Relay Plant are the city's largest enterprises. The Electronic Devices Plant (EDP) was founded 20 years ago, and is now an open stock corporation. It produces mini-generators and chips for thermo-regulating amplifiers. EDP currently exports its products to other countries of the former Soviet Union. The Yeghegnadzor Relay Plant was founded in 1968 and will be privatized by the end of this year. It manufactures electronic relays for the defense industry. Relay Plant management hopes to convert its idle production space to the manufacture of consumer electronics, including televisions, radio receivers, and video recorders.

Vaik (formerly Azizbekiov), with 7,500 inhabitants, is the second largest city in Vayots Dzor Province. The city has 10 medium- and large-sized enterprises, including the Arpi Mineral Waters Plant. Recently privatized, the plant specializes in bottling mineral waters from springs near the city of Jermuk. Although the plant exported its products to the United States, Canada, and Vietnam during the 1980s, it currently exports only to other NIS countries. The plant's expansion plans include upgrading its production line and locating new markets throughout the CIS and Eastern Europe.

The city of Jermuk, home of a famous spa and resort, is considered to be the pearl of the Vayots Dzor province. Located at an altitude of 2,000 meters, Jermuk has sunny, mild weather much of the year. The local mineral springs have been compared to those of Karlovy Vary (Karlsbad) in the Czech Republic. Jermuk's Gladzor spa hopes to attract investment from a U.S. firm to build a new spa building, obtain medical equipment, and promote the new spa in the United States.

U.S. Government and non-profit organizations operating in the region, including the Peace Corps and Volunteers for Overseas Cooperative Assistance, counsel Armenian business people in Western business practices. Many enterprises in Vayots Dzor have expressed interest in forming long-term relationships with foreign partners. For more information on business opportunities in the province, contact Mr. Ashot Poghosyan, Director of the Alfa Information Center in Yeghegnadzor, at 011 (374-46) 2-45-91 (phone) or 011 (374-46) 2-53-20 (fax), or call the BISNIS Fax Retrieval System and request document #6335, or visit the Armenia country section of the BISNIS Online homepage.

Armen Vahradian represents BISNIS in Armenia.