Activity report 2023 of the Ministry of High-tech Industry presented to the Prime Minister

Prime Minister Nikol Pashinyan visited the Ministry of High-Tech Industry to participate in the discussion of the activity report 2023 of the Ministry. Deputy Prime Ministers Mher Grigoryan and Tigran Khachatryan, Chief of Staff of the Prime Minister Arayik Harutyunyan, Head of State Supervision Service Romanos Petrosyan and other officials participated in the discussion.

Minister of High-tech Industry Robert Khachatryan and the deputy ministers made reports.

It was reported that according to the data of the first 10 months of this year, the number of companies operating in the field of information technologies in Armenia has doubled compared to 2022. The number of employees in the sector increased by 30 percent. During the previous year, 82 percent of the products of the companies were exported, and this year this number reached 92 percent.

The ongoing works under the investment plan “Base and Mobile Radio Monitoring System” 2022-2024 in the territory of Armenia was presented. According to the plan, in 2023 the basic technical means required for 5 stationary and 5 mobile stations of the system were completely imported. Currently, the stationary stations have been built and put into operation, the assembly of mobile stations is in the final stage, which will be completed in the 1st quarter of 2024. It was emphasized that after the introduction of the system, as a result of the monitoring, the Ministry of High-tech Industry will respond to all types of broadcasting disruptions.

Referring to the introduction of broadband Internet connection in the country, the officials noted that by 2026 access to broadband Internet connection will be ensured in 80 percent of settlements.

The Prime Minister was presented with the works aimed at the development of the space sector. According to the plan, in 2023, the satellite management center was established in Armenia, the operators of the center took trainings abroad. The equipment of the receiving station was imported to Armenia and preparatory works for installation were carried out. Reference was also made to the launch program of the 2nd satellite of Armenia, which is an integral part of the strategy of the space activities of Armenia. The draft strategy will be submitted to the Government for approval after being rivised.

The activities aimed at the development of the capacities of the ecosystem of the High-tech Industry, the steps taken in the direction of the development of startups, the results of the grant programs provided by the state were presented.

In particular, reference was made to the “From idea to business” program, which provides funding and resources to start-up technology companies and research teams to commercialize their ideas. In 2023, 9 companies were recognized as winners of the “Idea Phase” component of the program, each of which received up to 5 million AMD, and 17 companies received up to 10 million AMD in the “Market Access” component.

Another startup support program for Diaspora companies called “Neruzh” supports the professional repatriation of our diaspora compatriots, creating conditions for investing their scientific and professional potential in various sectors of Armenia’s economy.

With the support of the Ministry, the Armenian companies operating in the sector participated in 4 international exhibitions held abroad and 2 in Armenia in order to increase the recognition and reputation of Armenian high-tech potential and products.

According to the new report “Global Startup Ecosystem Index”, Armenia in 2023 improved its position by 3 ranks, taking the 57th place in the world, remaining the leader in the region.

Referring to the state support programs provided to the sector, the law “On State Support of the IT Sector” was presented, which provides tax relief to start-ups. Only in 2023, 1,633 companies and individual entrepreneurs received a certificate of privilege. In total, 4,133 companies and individual entrepreneurs benefited from the privilege since the law came into force.
Reference was also made to the program for the return of 50 percent of the salary income tax to the companies attracting new employees, which included those commercial organizations and individual entrepreneurs operating in the field of technologies, which starting from March 1, 2022 have engaged at least 10 new employees. State support in the amount of 7.8 billion AMD was paid to 47 beneficiary companies of the program.

7.4 billion AMD of support was provided to 330 business entities recognized as beneficiaries of one-time targeted state support by the relevant decision of the Government to compensate the losses incurred by technological companies as a result of the appreciation of AMD.

In connection with the work done in the field of digitization, it was noted that institutionalization of digitization processes and role distributions took place, clarifying the role of the Ministry High-tech Industry of Armenia as a policy maker, the role of the Information Systems Council of Armenia as a coordinator, and the role of the Information Systems Agency of Armenia as a supporting body. The standards of digital services have already been developed, implementation works are being carried out.

The Ministry’s expert group created the “Services Digitization Standards” and “Digitization Guide” platforms, developed the prototype of the “I am” unified national identification platform, and signed a memorandum on Electronic Signature Systems. In 2024, it is planned to carry out the “Implementation of the Digital Transformation Process” program, which is aimed at the formation of a unified digital environment, and the “Modernization of the Artificial Intelligence Center” program, within the framework of which the creation of infrastructure and the acquisition of a supercomputer are planned. It is also planned to create an artificial intelligence center.

It was informed that as a result of the first stage of the Ministry’s program “University-Private Sector Cooperation for the Training of Specialists” in 2023, 25 of the participants have already signed a job contract, 31 have made progress in their work. In the 2nd phase of the project, it is planned to carry out courses for another 850 participants, as a result of which they will have the opportunity to find a job in sectorial companies or to progress in their career at their workplace.

The companies conducting the training courses are obliged to provide the participants of the courses with employment contracts, the term of which is at least 6 months. In 2020-2022, 8912 specialists were trained within the framework of the program.

Within the framework of the “Engineering City” project, the construction of the building of the Engineering Business Accelerator started on July 10, 2023. Currently, 14 organizations have received resident status in the Engineering City. Companies that have received resident status will have the opportunity to receive 250 square meters or 500 square meters of land for building an office through donation and ownership. They will also have shared access to modern engineering laboratory equipment and production machines.

A plot of land has been allocated in the Engineering City for the construction of the building of the National Supercomputer Center of Armenia. The works have started.

Next, the activities of “HayPost” CJSC, the works carried out in the direction of improving the services provided to citizens were presented. It was noted that acording to the index of postal development of the Universal Postal Union, Armenia improved its ranking from 48th to 40th position in 2023. “HayPost” has become a leader in the region with the new ratings of 192 countries that are members of the Universal Postal Union. “Home delivery” service of parcels was launched in 16 settlements of Armenia. Shipping times have been reduced. The HayPost+ mobile application has been updated. 8 post offices have been modernized. It was noted that “HayPost” recorded a profit of 873 million AMD as a result of this year’s activities. Last year, the company had a loss of 730 million AMD.

Nikol Pashinyan emphasized that the high-tech sector is a key and growing branch of the economy. In this context, the Prime Minister emphasized the implementation of steps and programs aimed at ensuring the continuous development and growth of the IT sector. The Prime Minister drew the attention of the Ministry’s staff to a number of key topics.

In particular, the Head of the Government referred to the process of installing the supercomputer in the Engineering City, digitization, provision of broadband Internet connection in the republic and other programs, and gave relevant instructions to the officials in charge. The Prime Minister particularly emphasized the need to expand the implementation of IT sector programs among young people and expand the measures aimed at bringing to life the existing good ideas.