An examination of determinants of foreign direct investment in Armenia is undertaken to ascertain the potential for attracting foreign investment (FDI) into the horticultural sector of Armenia. The analysis is conducted using survey data collected during face-to-face interviews in August and December 2010. A logit analysis is used to identify the characteristics of firms with substantial current FDI that are operating in Armenia and are planning to undertake additional investment during the next few years. The findings suggest that economic stability and the ability to insure against business risks would encourage FDI. Also, past profitability was dependent on the firm’s satisfaction with the regional market around Armenia.