U.S. Commercial Service& American – HungarianBusiness Relations

Zsolt Makai, Commercial SpecialistJanuary 21, 2010Budapest, Hungary

Our Worldwide Network

U.S. Department of Commerce

Export Assistant Centers 107 offices in the U.S.

USCS Worldwide 145 int’l offices i.e. Budapest

Goal: Increase U.S. EXPORTS worldwide!

exports

San JuanSan Juan

PortlandPortlandMontpelierMontpelier

PortsmouthPortsmouthNORTHEAST NORTHEAST

(Boston)(Boston)

ProvidenceProvidenceMiddletownMiddletown

Long IslandLong IslandWestchesterWestchester

HarlemHarlemNew YorkNew York

NewarkNewark

MIDATLANTIC MIDATLANTIC (Philadelphia)(Philadelphia)

BaltimoreBaltimore

BuffaloBuffalo

HarrisburgHarrisburg

PittsburghPittsburgh

NorthernNorthernVirginiaVirginia

RichmondRichmond

WheelingWheeling

CharlestonCharleston

RaleighRaleigh

CharlotteCharlotte

GreenvilleGreenville ColumbiaColumbia

CharlestonCharleston

SavannahSavannah

SOUTHERN SOUTHERN (Atlanta) (Atlanta)

KnoxvilleKnoxville

Miami

OrlandoOrlando

ClearwaterClearwater

TallahasseeTallahassee

Great Lakes Great Lakes (Cleveland)(Cleveland)

Grand Grand RapidsRapids

YpsilantiYpsilanti

ToledoToledoMidwest Midwest (Chicago)(Chicago)PeoriaPeoria

MilwaukeeMilwaukee

RockfordRockford

IndianapolisIndianapolisCincinnatiCincinnati

LouisvilleLouisville

ColumbusColumbus

Nashville`1Nashville`1

MemphisMemphis

BirminghamBirmingham

JacksonJackson

New OrleansNew Orleans

Little RockLittle Rock

ShreveportShreveport

St. LouisSt. Louis

MinneapolisMinneapolis

Des MoinesDes MoinesOmahaOmaha

Kansas Kansas CityCity

WichitaWichita

TulsaTulsa

Oklahoma Oklahoma CityCity

N. Texas/ArlingtonN. Texas/Arlington

AustinAustin

San San AntonioAntonio

HoustonHouston

Sioux FallsSioux Falls

Salt Salt Lake Lake CityCity

SOUTHWESTSOUTHWEST(Denver)(Denver)

Santa Santa FeFe

PhoenixPhoenix

MissoulaMissoulaSpokaneSpokane

BoiseBoise

SeattleSeattle

PortlandPortland

SacramentoSacramento

RenoReno

North North Bay/NovatoBay/Novato

OaklandOakland

PACIFIC NORTH PACIFIC NORTH (San Jose/PNW)(San Jose/PNW)

MontereyMonterey

Ventura CountyVentura CountyOntario (Inland Empire)Ontario (Inland Empire)

West L.AWest L.A.

PACIFIC SOUTHPACIFIC SOUTH

(So. California)(So. California)San San DiegoDiego

AnchorageAnchorage

(Reports to Pacific North Network)

HonoluluHonolulu

(Reports to Pacific South Network)

TucsonTucson

Downtown LADowntown LA

San San FranciscoFrancisco

DetroitDetroit

TacomaTacoma

Las Las VegasVegas

Indio(Cabazon)Indio(Cabazon)

GreensboroGreensboro

LexingtonLexington

RochesterRochester

AkronAkron

USEAC NETWORK ORGANIZATION05/30/2009

ODO NETWORKSNORTHEASTMID-ATLANTICSOUTHERNGREAT LAKESMIDWESTSOUTHWEST PACIFIC NORTHPACIFIC SOUTH

Bakersfield

McAllen

San Jose

Newport Beach

Jacksonville

Ft. Lauderdale

Trenton

Libertyville

Pontiac

Midland

Ft. Worth

FresnoFresno

FargoFargo

El Paso

USCS Budapest

2 American Officers – 5 Commercial Specialists

196 Export Successes and 14 Commercial Diplomacy Successes (2008-2009)

Averaging 21 inquires from U.S. firms per month (FY’09)

A monthly average of 18,000 visits on our websites (8,100 on Hungarian site and 10400 On English site)

www.buyusa.gov/hungary

Our Services

1. For American companies

– Gold Key Services (GKS)

– Int’l Partner Search (IPS)

– Int’l Company Profile (ICP)

– Market Research (MR)

– Country Commercial Guide

– Advocacy

2. For Hungarian companies– Int’l Buyers Program (IBP)– Business Service Providers

Directory (BSP)– Reverse Gold Key (RGK)– Directory of U.S. Companies

(coming soon)

– Trade Leads– Customized Import Assistance– Commercial News Magazine

$

$

US Business Presence in Hungary

U.S. FDI to Hungary ≈ USD 9 billion (since 1990)

Over 2000 companies with partial U.S. ownership

128 wholly U.S. owned companies

Very active American Chamber of Commerce

ITD Hungary

Continued interest in Central Europe by US SMEs

Largest US Investment in HungaryCompany Industry Investment Investment Type

General Electric Light Bulbs; Power, Med., Elect. Equip.

$ 1,150 million Tungsram Privatizat.Greenfield

Hungarian Telephone and Cable Telecommunications $ 889 million Privatization + Invitel Acqusition

Alcoa Aluminum $ 800 million Greenfield

General Motors Finished Auto Parts $ 510 million Greenfield (Opel Hungary)

Coca-Cola Soft Drinks $ 300 million Greenfield

AES Power Generation $ 260 million Greenfield

Visteon (former Ford Motors) Automotive Parts $ 180 million Privatization

IBM Storage products $ 166 million Greenfield

Pepsi-Cola Soft Drinks $ 160 million Concession

Philips Morris Consumer Goods $ 150 million Egri Dohánygyár

Bristol Myers Squibb Pharmaceuticals $ 120 million Pharmavit acquisition

Guardian Glass Auto Glass $ 110 million Greenfield

Flextronics Electronic Contract Manufacturing

$100 million Greenfield

Sara Lee Food Products/Coffee $ 100 million Greenfield

Pogo International Gas Production $ 100 million Greenfield

Delphi Calsonic Auto Parts $ 100 million Greenfield

GE Capital Corp. Financing $ 87 million Budapest Bank

Jabil Circuits Contract Manufact. $ 80 million Greenfield

Marriott Hotel $ 75 million Privatization

United States Export Statistics to Hungary Commodity: _Total, Top 10 Commodity Chapters 2009, January - October

DescriptionUnited States Dollars % Share % Change

2007 2008 2009 2007 2008 2009 2009/2008

All Commodity Chapters 1107327663 1295788454 1029265010 100 100 100 -20.57

Machinery; Reactors, Boilers 389005467 420596008 414518858 35.13 32.46 40.27 -1.44

Electrical Machinery, Etc. 232672797 245047770 186352740 21.01 18.91 18.11 -23.95

Optical, Medical Instruments 72391966 98898687 88984325 6.54 7.63 8.65 -10.02

Mineral Fuel, Oil 52962000 160502589 49664950 4.78 12.39 4.83 -69.06

Iron and Steel Products 40099927 48814668 36328652 3.62 3.77 3.53 -25.58

Vehicles, Not Railway 46301895 41643608 34309474 4.18 3.21 3.33 -17.61

Pharmaceutical Products 21054678 22033671 18606368 1.9 1.7 1.81 -15.55

Special Provisions, Nesoi 6002817 10627250 18096039 0.54 0.82 1.76 70.28

Glass and Glasswares 25844183 23955493 16542840 2.33 1.85 1.61 -30.94

Plastic 25087858 26298193 15237496 2.27 2.03 1.48 -42.06

United States Import Statistics from Hungary Commodity: _Total, All Commodity Chapters2009, January - October

DescriptionUnited States Dollars % Share % Change

2007 2008 2009 2007 2008 2009 2009/2008

All Commodity Chapters 1795295906 2160342665 1599569910 100 100 100 -25.96

Electrical Machinery, Etc. 499597005 802470474 578832761 27.83 37.15 36.19 -27.87

Machinery; Reactors, Boilers 677933179 765681041 549560950 37.76 35.44 34.36 -28.23

Vehicles, Not Railway 148624997 153793884 105683198 8.28 7.12 6.61 -31.28

Optical, Medical Instruments 106186567 59347435 96378105 5.91 2.75 6.03 62.4

Organic Chemicals 96631920 68316956 61592135 5.38 3.16 3.85 -9.84

Toys and Sports 10774678 11996328 18735654 0.6 0.56 1.17 56.18

Rubber 15619560 19302668 16127543 0.87 0.89 1.01 -16.45

Stone, Plaster, Cement 21225889 23966013 15444134 1.18 1.11 0.97 -35.56

Furniture and Bedding 22314812 21271700 15156027 1.24 0.98 0.95 -28.75

Mineral Fuel, Oil 22297555 57293893 13317258 1.24 2.65 0.83 -76.76

Best Prospects for US Businesses in Hungary

Computer Software & Hardware

Franchising

Logistics

Medical Equipment

Pollution Control

Renewable Energy

Safety and Security

Travel and Tourism Services

– Visa Waiver Program & ESTA

VIP Delegation at CES

International Buyer Program (IBP) The Delegation

– Major players of consumer electronics market in Hungary

– 10 people

– Extra services CES

– Largest show of the kind in the world

– About 110,000 + visitors

– 5000+ exhibitors

– Market seems to recover from global economic meltdown 35 IBP events in 2010

– Sponsored by the US Department of Commerce

– 6 escorted, 10 unescorted

THANK YOU!

www.buyusa.gov/hungary

U.S. Commercial Service – Connecting you to global markets.