Upload
red
View
28
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Hungary: Back on Track - your partner for business and investment in Central Europe Zoltan Mester State Secretary for Competitiveness 19 th November 2009, Triest. Land: 93,030 km² Population: 10,1 million people GDP/capita, at PPP ( 200 8 estimate ) : EUR 15, 8 00. Hungary at a Glance. - PowerPoint PPT Presentation
Citation preview
Hungary: Back on Track - your partner for business and investment in Central Europe
Zoltan MesterState Secretary for Competitiveness
19th November 2009, Triest
• Land: 93,030 km²
• Population: 10,1 million people
• GDP/capita, at PPP (2008 estimate): EUR 15,800
Hungary at a Hungary at a GlanceGlance
SERBIA
SERBIA
Hungarian economyHungarian economy
FDI per capita
-30369
12151821242730
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
%
Production
Export sales
• FDI per capita second largest in region
• Open economy - Industrial production is driven by export sales
4 711
7 849
5 6836 253
3 004
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
Po
lan
d
Slo
ven
ia
Slo
vaki
a
Cze
chR
epu
bli
c
Hu
ng
ary
EU
R
*For Hungary, Poland and the Czech Republic end-2008 data, for Slovakia 30 Sept. data and for Slovenia end-2007 data
Structural problemsStructural problems
• High rate of redistribution – 50% of GDP*
• High foreign indebtness – 72,9% of GDP*
• Low rate of employment – 57%*
Imbalance + Global Crisis
*in 2008
Slow growth▪ Economic output▪ Employment
Lack of confidence▪ Communication▪ Implementation
Restoring equilibrium
Stimulating economic growth
Restoring confidence
Global economic
crisis
Tackling the impacts of the global economic crisis
Imbalance▪ State
household deficit
▪ Current account deficit
Tackling the Tackling the impactsimpacts of the global economic of the global economic crisiscrisis
• Stabilization of the financial system
• Facilitating the financing of SMEs
• Retaining jobs and helping those who loose their jobs
• Speeding up the use of EU funds
Restoring equilibriumRestoring equilibrium
• More efficient public sector
• Strengthening the sustainability of the pension system
• Developing a more targeted social system
• Cutting subsidies
SStimulattimulatinging eeconomconomic growthic growth
• Strengthening market acquisition
• Strategies for selected sectors
• Simplification of administration – 25% reduction of red tape
• Structural tax reform
Tax reformTax reform
Introduction of general real property tax,
elimination of current taxes
Reducing the burdens on labour
Fighting tax evasion
Securing funding and taxes on consumption
20092009 20102010
• Cutting employer contributions by 5% up to 2× the amount of the minimum wage Raising lower PIT band to 7116 Euro
• Cutting employer contributions after the entire income from 32% to 27%• Total grossing-up: Tax base is the gross wage plus social contributions• Rates will reduce: to 17% and to 32%• Lower band limit: 18 727 Euro (grossed up)
• Extending taxes to income and wealth kept in tax havens• Adjusting the contribution base to the real value of the activity
• Increasing VAT to 25%,• Preferred rate: 18% milk, dairy products, bread, bakery pr., district heating• Increase of excise tax by 5-6% on average
Simplification
• Unified corporate income taxation, elimination of surtax• Limitation of tax allowances and tax exemptions• Simplification of duties etc.
48,1
51,6
43,0
51,054,0
60,6 61,2 61,0 60,8 60,6
59,8 60,6 60,5 60,4
39,8
44,7 45,7
56,858,8 58,9 58,9 59,0
35
40
45
50
55
60
65
2009 2009. II. félév 2010
Change of tax wedge
average wage
half
Cushman&Wakefield has Cushman&Wakefield has published a study on published a study on
the european industrial the european industrial and logistic property and logistic property
marketmarket::
According to this classification Hungary ranks at the 3th place
CEE is a much sought after logistics and distribution location
Hungary offers high quality industrial locations and plentiful land supply at a competitive price
Source: Cushman&Wakefield; European Distribution Report, 2008
Hungary Hungary - The - The NaturalNatural Regional Logistic CentreRegional Logistic Centre
• Central location in Europe• Border with 7 countries:• 4 EU, 3 non-EU member states • Three international major road corridors and the
Danube cross Hungary.• Innovation-logistic ring around Budapest• Záhony the Reloading centre between European
standard and broad gauge railway system along the corridor Nr. V.
• Easy access to the Balkans and Europe• The 11 logistic districts and the 13 logistic centres
are located in the focal points of the international movement of goods.
Hungary: junction of main European transport Hungary: junction of main European transport corridorscorridors
ZáhonyZáhony
Changes in freight transportation in Hungary by modality (1980-2007Changes in freight transportation in Hungary by modality (1980-2007))))
Source: KSH 2008
public road**the method was changed in 2002
railway
pipeline
inland navigation
in bn. tkm
Expanding motorway and highway networkExpanding motorway and highway network
Budapest Airport: air cargo traffic centreBudapest Airport: air cargo traffic centre
• Direct cargo flight connections to the Far-East
• Excellent Road Feeder Service (RFS) into all European countries
• The fist phase of the new cargo terminal will be began in 2009, next to Terminal 2
Continuous modernization Continuous modernization of the railway systemof the railway system
Záhony
Regular scheduled block train connections from/to Regular scheduled block train connections from/to Northern and Adriatic Sea PortsNorthern and Adriatic Sea Ports
Source: BILK Kombiterminal Zrt.
Logistics Centres andLogistics Centres and Logistics Logistics Development Areas in HungaryDevelopment Areas in Hungary
Railway connection
Airport with public, international, commercial, permanent border crossing Airport with public, international, commercial, temporary border crossing Airport development opportunities
Logistics centres
3x
Western Europe, ARA –
Ports, Hamburg,
Bremerhaven
Koper, Triest
Ukraine, CIS
Constanza
Ports
Container terminal
Constanza
MEZŐKÖVESD
TASZÁR
Slovakia, Czech
Republic
Slovakia, Poland
Existing motorway
Motorway to be completed until the end of 2015
Motorway to be completed until the end of 2007
CROATIA SERBIA
ROMANIA
UKRAINESLOVAKIA
AUSTRIA
SLOVENIA
Záhony
Logistic parks – WarehousingLogistic parks – Warehousing• More than 1,51 million sqm of modern
warehousing facilities in Budapest and surroundings
• Average quoting rents between 3,0–4,5 EUR/sqm/month (in Budapest and surroundings)
• Growing interest on developments further away from the capital; (ProLogis Park Hegyeshalom, Szeged Logistics Center, Kühne&Nagel-Polgár, etc.)
Greenfield investmentsGreenfield investments• Well developed industrial parks for greenfield
investments countrywide• Installed infrastructure of public utilities • Support of the park owners for building new
facilities
Modern warehouse facilities and industrial parksModern warehouse facilities and industrial parks
• Productive Hungarian labour force rates highly for innovation and efficiency in international comparisons
• Logistics faculties in tertiary education countrywide - specialised knowledge and foreign language skills
• Universities cooperate with several companies to establish teaching curricula and provide hands-on experience to students
• Competitive wages in the service sector
Cost-efficient and highly qualified labour poolCost-efficient and highly qualified labour pool
Hungary Slovakia Czech RepublicCarrier, Forwarder 792 790 1026Driver 550 640 743Forklift Truck Operator 510 590 684General Labourer 482 570 617Logistics Manager 1425 1310 1623Lorry Driver 762 890 873Purchasing Officer 572 620 778Warehouse Manager 874 820 967Warehouseman 548 570 680
Source: Merces Professional Salary Monitor; 2009. 1 EUR = 268.14 HUF
• 17th June 2009. Government approves Logistics action plan, which contains:
• Mid-term road charging strategy
• Development of customs services
• Transport infrastructure development programmes
• Logistics subsidies
• Education-training programme
• SME logistics programme
• Logistic country-marketing
• Logistic relations-development
Logistic action planLogistic action plan
1.) Direct Cash Subsidy
• option 1: Cash subsidy based on the decision of the
Hungarian Government
• option 2: EU co-financed cash grants
2.) Development tax allowance
3.) Tender supporting job creation
4.) Training subsidy
TThe Hungarian Government he Hungarian Government isis ready to ready to provideprovide
the following incentives for logistic investment the following incentives for logistic investment projectsprojects
Záhony and its regionZáhony and its regionlogistics center with growing potentiallogistics center with growing potential
Location:
at Eastern border of the EU
V. Pan-European road and rail transport corridor: Trieste- Koper -Budapest- Kiev- Moscow line
Linking of the European standard and the Eastern broad gauge railway along the corridor Nr. V. at the North-Eastern border of Hungary to Ukraine
close to the Hungarian – Slovakian border
Thank you for your Thank you for your attention!attention!
Zoltan Mester
Ministry for National Development and Economy
State Secretary for Competitiveness
Phone: +36 1 374-2820
E-mail: [email protected]