Upload
bartholomew-benson
View
216
Download
1
Tags:
Embed Size (px)
Citation preview
Hungary –
the added value
Budapest, 6 June 2006
Presentation by Ildikó KUKUCSKASenior ConsultantITD Hungary
1. About ITD Hungary, what can we offer?1. About ITD Hungary, what can we offer?
2. Hungarian Economy, Foreign Direct 2. Hungarian Economy, Foreign Direct Investments in HungaryInvestments in Hungary
33. . Is Hungary still competitive?Is Hungary still competitive?
4. Which sectors are perspective?4. Which sectors are perspective?
5. New Economic Policy in Hungary5. New Economic Policy in Hungary
AgendaAgenda
• Central Office in Budapest
• 6 Regional Offices
• 54 Foreign Trade Offices
• 8 Representative Offices in the border regions of neighbouring
countries
Network:Network:
The Hungarian Investment and Trade Development Agency is the agency of the Hungarian Government for foreign investment promotion and trade
development.
ITD Hungary
1. 1. Investment promotionInvestment promotion
2. 2. Trade developmentTrade development
3. 3. EU integration-oriented SME EU integration-oriented SME developmentdevelopment
4. Hungarian capital export promotion4. Hungarian capital export promotion
Main Tasks of Main Tasks of ITDHITDH
In the preparatory phase: General and detailed information Tailor-made site proposals Organizing detailed program for the investors’ visits in Hungary
– site visits– meetings– reference visits– introducing potential Hungarian suppliers
In the realization phase of the project: Accelerating permitting procedures Assistance in incentive applications Organizing press conferences, ground breaking ceremonies
Follow-up services
Complimentary services for foreign investors:
Heavy reliance on FDI as a driving force in the economy
High integration with the EU in terms of trade
Gross output per worker grew 2.4 times since 1989
Hungarian financial system is one of the most developed ones in Central Europe
Legal framework conforms to international standards
Well-prepared and motivated labour force provides a strong base for foreign business operations
Source: WIIW
Some important features of Hungarian economy
20012001 20022002 20032003 20042004 20020055
Gross domestic product (%) 3.83.8 3.53.5 3.43.4 4.64.6 4.14.1
Industrial production (%) 3.63.6 2.82.8 6.46.4 7.47.4 7.37.3
Exports (% - volume) 7.77.7 5.95.9 9.19.1 18.418.4 10.810.8
Imports (% - volume) 4.04.0 5.15.1 10.110.1 15.215.2 5.35.3
Consumer prices (%) 9.29.2 5.35.3 4.74.7 6.86.8 3.63.6
Balance of foreign trade* -2.5-2.5 -3.4-3.4 -4.2-4.2 --33..99 -2.8-2.8
Current account balance* -2.0-2.0 -5.0-5.0 -6.4-6.4 --77..11 -5.1-5.1
Unemployment rate 5.75.7 5.95.9 5.85.8 6.6.11 7.27.2
* in billion Euro Source: Hungarian Central Statistical Office
Dynamic Macroeconomic Growth
Commodity pattern of external trade
export import
Agricultural products 6,1 % 4,0 %
Raw materials 2,1 % 1,7 %
Energy 2,7 % 10,3 %
Manufactured goods 28,0 % 33,4 %
Machinery, equipment 61,1 % 50,6 %
Foreign trade turnover by trading Foreign trade turnover by trading partnerspartners
9,2%
11,5%
62,5%
14,5%
2,2%
EU-15New EU-MembersExtra-EU (Europe)AsiaAmericaOthers
3,6%
0,7%
8,7%
11,9%
70,8%
4,4%
EU-15New EU-MembersExtra-EU (Europe)AsiaAmericaOthers
Exports
Imports
Cumulated FDI* in Hungary
1990-2005, in million euros
Source: National Bank of Hungary, Ministry of Economy and Transport * Including reinvested earnings from 1995
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
51525
Source: National Bank of Hungary
Annual FDI inflow to Hungary, in million euros
-500
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
reinvested earnings total FDI inflow
FDI Stock in Hungary by Sectors
Source: National Bank of Hungary
Other3%
Services49%, out of
which:
Energy, water supply
4%
Manufacturing, 44%, out of
which: Food: 5.2%
Chemical: 5.7%
Electronics: 8.8%
Automotive: 10.9%
Trade: 10.1%
Transport, telecom: 9.9%
Finance: 10.5%
Business services: 16.8%
FDI stock in Hungary
FDI stock
0
50
100
150
200
1998 1999 2000 2001 2002 2003 2004 2005
year
mil
lio
n e
uro
Denmark
Major Danish investors in HungaryMajor Danish investors in Hungary
• Velux – sky-lights• Grundfos – electric engines• Coloplast – plastic health care products• Nordisk-Wavin – rubber and plastic products• SOS/Falck – ambulance service• Inreco – road construction• Rockwool – insulation material• Danaeg Products – pasteurised liquid eggs• Novo-Nordisk – pharmaceutical products
Central Hungary Wins Award for Second Best Location in Europe
• Economic potentialEconomic potentialGDPLevel of inward investment
• Cost effectivenessOffice & Industrial rentSalariesManual labour availability
• Human resourcesUniversitiesPercentage of the population with a degree
• Telecommunications and IT infrastructureTelecommunication chargesTelephone and broadband internet usage
• Quality of life for expatriatesNatural & cultural heritageEntertainment & Leisure FacilitiesEducational, healthcare & accommodations services for expatriates
• Transport• Security• Best FDI promotion strategy
Promotion strategyFDI deals Infrastructure and urban planning projects Source: fDi Magazine
CATEGORIES & CRITERIA:
58 (57)
56 (53)
45 (52)
43 (45)
41 (37)
39 (40)
36 (38)
35 (30)
31 (36)
13 (17)
10 (6)
1 (1)
0 20 40 60 80 100
USA
Finland
Austria
Czech Republic
France
Spain
Slovakia
Hungary
Portugal
Slovenia
Italy
Poland
Source: IMD
Overall Competitiveness, 2006
(2005 rankings are in brackets)
14 (6)
12 (14)
11 (19)
3 (2)
1 (1)
0 0,5 1 1,5 2 2,5
China
United States
Hungary
Czech Republic
France
Source: AT Kearney
FDI Confidence Index, 2005
(2004 rankings are in brackets)
Ease of Doing Business
4.52
6.00
6.08
6.14
0 1 2 3 4 5 6 7
Hungary
Austria
Slovakia
Czech Republic
Source: IMD
Business legislation evaluated by 4,000 senior executives in 60 countries and regional economies worldwide
Major Electronics Parts Manufacturers
Source: Hungarian Central Statistical Office, 2005
Serbia & MontenegroSerbia & Montenegro
Nearly 500 foreign electronic and optical equipment producers are present in
Hungary, employing more than 100,000 people.
Cca. 42% of total Hungarian export in 2005Production value: 18.8 billion EUR (28% of the total)
Major Automotive Manufacturers in Hungary
Le Bélier
BPW-RábaDelphi-Packard
EyblLuK Savaria
GM Opel
Autoliv
SAPU/Schefenacker
BentelerHammerstein
MichelsSEWS
Vogel&Noot
Bakony Rt.Continental
TevesValeo
Autoelectric
AlcoaDenso
LorangerVideotonVisteon
OrtechSEWS
Diamond Elec.Suzuki
Delphi-Calsonic
Mitsuba, Salgglass
Vogel-Sitze
Pemü,Johnson Controls
Daewoo Ballbearing
s
Schwarzmüller
EMTLear
Zollner
BoschFirth Rixton
LeoniZF Hung.
BoschSaia-
Burgess
Delco-Remy, ExirZeuna Starker
Eagle OttawaIsringhausen
Le Bélier
Knorr-BremseThyssenKrupp
Prec-Cast
EismannHübnerMichelinPhoenix
Vibroacustic
Hokushin
Akzo-Nobel Coating
Saia-Burgess
Mezőgép-Linamar
Clarion
Eybl
Emika
Eybl
Lear,Stanley Electric
Musashi
Ibiden
Bombardier
FAG
Asahi GlassBridgestoneEuro Exedy
Souftec
Bosch
AudiErbslöh
Magna SteyrPhilips APM
Rába
Borg WarnerWescast
Eckerle
Semperform
Alu-Öntő Kft.Autokut
AvvcBeroha
Excel CsepelFémalk
GEIkarusPerionTauril
Temic TelefunkenUBP Csepel
Webasto
Hungary has a solid record of attracting and conducting international clinical trials, with over 250 clinical trials performed each year – an outstanding number compared to Hungary’s population.Reasons for conducting clinical trials in Hungary:
• Rapid and reliable recruitment of study population• Investigators are motivated and qualified• High Quality of Data• Reasonable price advantage• Qualification of local study monitors is above international average
Hungary is an ideal site for conducting
clinical research
Clinical Research CEE Center of AstraZeneca Hungary co-ordinating the work of 160 well-trained AstraZeneca experts located in seven countries of the region.
AstraZeneca spends approx. € 6 million on clinical research in Hungary alone,
which also covers the work of 1,000-1,200 colleagues.
Hungary an ideal location for biopharmaceutical manufacturing
Sanofi-Aventis
The Hungarian research unit is currently involved,
in 45 Sanofi-Aventis development projects,
Including initial research and clinical testing,
The company employs 2,300 people in Hungary,
invested more than €400 million in its Hungarian subsidiary since 1991.
Teva Hungary, a subsidiary of number two generic company Teva Pharmaceuticals,
is to build a €75 million factory for the production of active pharmaceutical ingredients
(APIs) in Sajobabony, Hungary,
60-100 people will be employed at the facility,
and its production will be mostly exported,
Teva started manufacturing in Hungary in 1995 and now employs 2,300 people there.
• Astra-Zeneca• GE Medicor• Novartis-Sandoz• Sanofi-Aventis
(Chinoin)• Servier (Egis)• Teva-Biogal
• Audi• Continental
Teves• Denso• Draxlmaier • EDAG• General Motors• Knorr – Bremse• Magna Steyr • Michelin • Remy
Automotive• Temic-
Telefunken• ThyssenKrupp• Valeo Auto-
Electric• Visteon• W.E.T.• Zeuna Stärker• ZF Hungária
• Elcoteq• Electrolux• Flextronics• GE Lighting • Philips• Samsung• Solectron
Automotive
ICT
Electronics Life science
Machinery
• AFT • Bosch Power Tool• Zenon
• Cisco• Ericsson• IBM• Nokia• SAP • Siemens/
Sysdata• TATA-Consulting• T-Systems
Multinational Companiesconducting R&D in
Hungary
I. Direct Subsidies for Investments
1. Tender applications in the framework of the
Economic Competitiveness Operative Program (ECOP)
2. Special incentive package for strategic investors
3. Subsidy for employment creation and training
(in the responsibility of the Ministry of Employment and Labour)
II. Tax-related Incentives
(in the responsibility of the Ministry of Finance)
III. Supplier Development Program
Investment Incentive System I.
Special Incentive Package for Strategic Investments
If the investment volume reaches
• EUR 10 millions of projects of the manufacturing industry, logistics and
in case of establishing regional corporate service centers
The Hungarian Government may decide on granting a customized incentive package and VIP treatment
Within the customized incentive package more favourable and significant subsidy is available than through ECOP tender applications.
Important condition: in the field of LOGISTICS at least 10 persons should be employed
Investment Incentive System II.
PROGRAM of the NEW GOVERNMENT
Investment Promotion Remains one of the Main Goals of the Economic Policy
- Infrastructure Development - Labour Force Development Meeting Requirements of
Companies - Incentives, concentrating on priority sectors
New Government in June 2006
● Electronics● Automotive industry● Pharmaceautical industry● Biotechnology● Bioenergy● ICT● Finacial and Logistical Services● Tourism
Priority Sectors
There are 13 points for the cleaner and healthier environment in the new Program . Among others:
● Increase of share of renewable energy sources● Development of
- drinking water’s quality in different regions- Sewage water treatment- Solid waste treatment - safety from floods and inland waters
● Elimination of remains of old pollutions etc.
Environmental protection in the Program of the New Government
Contact:
ITD Hungary
1061 Budapest, Andrássy út 12.
Mrs. Ildikó KUKUCSKA
Senior Consultant
Phone: 473-82-14
E-mail: [email protected]