Trade in Hungary

LEVC appoints first dealer in Hungary – PHOTOS

LEVC tx_shuttle__1

Gablini Automotive Group serves Budapest as LEVC expands into new market. Dealer site will provide full sales and after sales support for LEVC’s TX taxi, TX Shuttle, and new VN5 van. LEVC’s EU-wide network will cover 21 markets by the end of 2020

LEVC (London Electric Vehicle Company) today announces its entrance into the Hungarian market with the appointment of its first dealer, Gablini Automotive Group. Located in the capital city of Budapest, the dealer group will provide full sales and after sales support for LEVC’s TX taxi and TX Shuttle and, from Spring 2021, the brand’s new electric van, VN5.​

Joerg Hofmann, LEVC CEO, commented: ​

“Hungary has a clear e-mobility vision, with a number of incentives schemes in place to encourage operators to make the switch to zero emissions vehicles. In partnership with the Gablini Automotive Group, I look forward to establishing our brand and products in this progressive market.​​”​

LEVC’s unique eCity technology offers numerous benefits for electric vehicle drivers in Hungary. The ‘green license plate’ in the country allows owners of EVs to save money with car tax exemption or rebates, reduction of VAT, personal income tax relief as well as subsidised loans. Electric vehicles can park for free in the Budapest region, and in other major cities.

LEVC GAMBLINI
Photo: LEVC

Gábor Gablini, owner of Gablini Automotive Group, said:

“Gablini Automotive Group is excited to represent LEVC in Hungary. LEVC is known for its premium quality electric vehicles, while innovation and caring for a sustainable future is one of the cornerstones of Gablini Automotive Group. We are the first company in Hungary to start selling modern electric vehicles. We think that there is a demand for range extender LCV and taxi vehicles in Hungary, where the premium quality of the interior is a decisive factor. That is why we think that LEVC’s new, innovative products fit perfectly into our portfolio.”

LEVC, based in Coventry, UK has been manufacturing the official London black cab for more than 100 years and reinvented the iconic taxi as an electric zero emissions capable TX in 2018.Since launch, more than 4,500 units have sold worldwide, and its green credentials have prevented more than 36,000 tonnes of CO2 from entering the atmosphere and saved 21 million litres of fuel from use.

LEVC tx_shuttle
Photo: LEVC

TX shuttle shares the same DNA as the TX electric taxi and is powered by the same eCity technology, a zero emissions capable taxi with a flexible range of over 316 miles (510 km) and a pure EV range of 63 miles (101 km). All TX Shuttles are purpose-built to keep all occupants safe and protected. Features include up to six passenger seats, wheelchair accessibility, a secure partition screen that separates the driver and passenger compartment, contactless payment in the rear, easy to clean surfaces and an intercom system that allows driver and passenger to always communicate clearly.

LEVC’s new electric van, VN5, is already on sale in the UK and will be launched in Europe from Spring 2021.

levc_vn5_1
Photo: LEVC

Operating in the one-tonne sector, VN5 shares the same bold, distinctive design and lightweight aluminium construction as TX, as well as its innovative eCity electric technology. VN5 can achieve a pure EV range of over 60 miles (98 km) and a total flexible range of over 300 miles (489 km) and, with up to 5.5m capacity, VN5 cargo capacity easily accommodates two Euro sized pallets with a gross payload of 830kg.

levc_vn5_4
Photo: LEVC

LEVC’s global network will cover 21 markets by the end of 2021 and across Continental Europe, more than 30 sales and service partners will be in place by the end of this year.

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Government’s dangerous plan against international food chains

aldi

It could have severe consequences if the government decided to strengthen the country’s network of food stores according to János Lázár’s plans. Consumers, producers and processors of the agricultural sector can get harmed.

The retail trade of grocery items has to be dominated by Hungarian businesses, and the power of foreign chains needs to be broken – said Lázár on an agricultural conference organised by Portfolio. The government commissioner imagines doing this by creating a new business group or by giving extra capital to already existing ones. According to him, chains of foreign retail trade need to be pushed out of the country in favour of independency, national autonomy and the reorganization of agriculture. He plans to do that by, among other means, taking advantage of additional taxes and levies. During the first wave of the coronavirus, the government already took some steps. It charged additional taxes to boost its plan protecting the economy of the country. 

After the law entered into force in May, according to calculations of 24.hu, considering one year, Tesco could pay around 13 billion forints; Spar could pay 11 billion and Lidl 9 billion, increasing the pre-calculated revenues from 36 to 47 billion forints coming from the ten biggest food chains.

Nepszava.hu writes that it is a big question whether there is or there will be a big Hungarian company or group of enterprises to take over the market share of these multinationals producing almost 2000 billion forints of commerce a year. It will only be possible if they can weaken these large chains and make them sell their Hungarian stores. Still, it can only be done by governmental help and regulations such as the additional taxes and the closing of grocery stores on Sundays. Experts, however, say that there are few chances for this to happen as all previous attempts to do so had failed, since these international chains think in regions and not in countries. Economist Dávid Ferenc says that there is only one chain in Hungary whose commerce could possibly compete with these big networks. Still, it is questionable if this company has sufficient resources to make a transaction of this size.

Defining the market value of dozens of hypermarkets is tricky since it is complicated to find a new use for their establishments of several thousands of square metres. Furthermore, maintaining them is costly, and there is probably no Hungarian business that can make use of several of these properties. Since the number of those interested in purchasing these establishments is limited, the buyer would be in a favourable position. This fact also talks against foreign businesses leaving the country as they are not very keen on getting rid of their properties with a deficit. This will be less important since online commerce is developing unstoppably and fits easier into the lifestyle of cities with its smaller shops of 500-1000m2. These properties can have several functions. Their value is higher if they are situated in a popular or useful area. Moreover, big properties that also have a green space can attract a large scale of buyers, increasing the power of the seller.

All these, however, are simple speculations until we know the details and the intentions of these multinational companies who have invested hundreds of billions of firings in the past decades to build up and develop their shops, technologies and logistics. It is safe to say that they will not give it over to anyone for free.

It would cost taxpayers a lot to nationalise these foreign chains.

The consequence of carrying out this plan would mean the abolition of competition that would result in an increase of prices, especially because Hungarian chains have a lower level of efficiency, logistical system, technology and a smaller circle of suppliers that results in higher product prices. Also, some Hungarian producers are not able to present the same quality or quantity of products than their foreign competitors. 

If multinational chains had to leave the country, they would not only take their know-how, but their international circle of suppliers as well, and it is not sure if they would continue buying Hungarian products as they do now. Currently, the proportion of Hungarian products at these companies is around 70-80%, from which they ship to their network outside of the country as well. Moreover, they could take hundreds of thousands of employees with them to other countries where they would earn wages much higher than in Hungary.

Dávid says that Lázár’s plan is a terrible message to all investors and can make all the 80 strategic partners of the government question their policies. 

Multinational companies influenced by the plan are awaiting details to comment on the issue.

Finance-minister-Mihály-Varga-Hungary
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Apollo Tyres to invest EUR 12.4m at Hungary plant

India's Apollo Tyres is investing 4.4 billion forints (EUR 12.4m) at its plant in Gyongyoshalasz, in northern Hungary

India’s Apollo Tyres is investing 4.4 billion forints (EUR 12.4m) at its plant in Gyöngyöshalász, in northern Hungary, Péter Szijjártó, the foreign affairs and trade minister, said on Monday.

The tyre maker is upgrading its production lines and expanding its product range, Szijjártó said. The Hungarian government is supporting the investment with a 1.4 billion forint non-refundable grant, he said, adding that the project will help keep 1,000 people employed.

Szijjártó said

the Indian company was a key player in the “success story” that was the government’s policy of opening up to the East.

Hungary’s trade turnover with the East has increased by 25 percent since it introduced the policy ten years ago, and

last year, for the first time, Hungary received more investments from the East than from the West, the minister said.

Some 60 percent of Hungary’s foreign investments last year were made by Eastern companies, accounting for 40 percent of the new jobs created, he said.

India's Apollo Tyres is investing 4.4 billion forints (EUR 12.4m) at its plant in Gyongyoshalasz, in northern Hungary
Read alsoApollo Tyres to invest EUR 12.4m at Hungary plant

Mercedes invests EUR 141m to make fully-EV cars in Hungary

Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary

German car maker Mercedes-Benz will invest 50 billion forints (EUR 141m) at its plant in Kecskemét, in central Hungary, to add fully electric vehicles to the production palette, Péter Szijjártó, the minister of foreign affairs and trade, said on Monday.

The government is supporting the investment, which will “cement the future of more than 4,400 jobs”, with a 15 billion forint grant, Szijjártó told an online press conference at the plant.

The minister called the investment “a milestone” for the Kecskemét plant, as well as for the Hungarian economy and car industry.

“One of the world’s largest car makers with cutting-edge technologies has decided to bring such a significant high-tech investment to Hungary at a time when the global car industry is not exatly about new investments,” Szijjártó said.

This new project has further strengthened Hungarian-German economic cooperation, he added.

Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary, said that

the production of Mercedes’s EQB brand fully electric vehicles could start in Kecskemét from Q4 in 2021.

The model will have its world premiere next spring, he added.

A new pressing plant, announced in March 2020, will start operation in 2022.

The plant in Kecskemét turned out about 190,000 compact vehicles last year.

As we wrote on July, important announcements were made at the Mercedes-Benz plant in Kecskemét: after the global pandemic, production will resume to normal in August, and for the first time in Hungary, Mercedes has started the production of plug-in hybrid cars. Details HERE.

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Brexit won’t have big impact on Hungary

united kingdom flag uk britain

If Brexit goes ahead without a trade agreement, the economic impact on Hungary will be negligible, business daily Világgazdaság said on Tuesday.

Hungary-UK cooperation is expected to be extensive in the future, especially in the areas of energy, car making, decarbonisation, AI and green mobility, the UK ambassador to Budapest, Paul Fox, told the paper.

Raiffeisen Bank analyst Zoltán Török said research from 2016 indicates that Hungary’s economic growth may shrink by 0.2-0.3 percentage points in the year after Brexit if there is an agreement.

Hungary’s ties with the UK are closer than those of other countries in the region, with a correspondingly greater impact, though in light of the effects of the coronavirus crisis, the effect could be barely noticeable, he added.

Whereas on the macroeconomic scale Brexit’s impact may be negligible, companies directly affected by Brexit may feel its impact more keenly, he said.

Hungary is the UK’s third largest export partner in the region, with trade in goods and services worth 5.7 billion pounds sterling over the past four quarters,

the ambassador noted. Businesses range from telecommunications equipment, electrical machinery, pharmaceuticals to manufacturing products. The UK is the sixth largest investor in Hungary.

Tourism is also a large component:

417,000 Britons visited Hungary last year.

The surplus of service exports will take a big hit this year, with the corona crisis mainly affecting Budapest, the primary destination for British tourists.

But as the epidemic wanes, Budapest could once again be a popular destination, Duncan Roberts, commercial director of the British Airways, said.

Next year British tourist guest nights in Budapest could reach 60-70 percent of the 2019 level if the borders are open and the virus subsides.

Prince Charles, Royal Family, England
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Foreign retail chains to vanish from the Hungarian food industry?!

store

The government commissioner, János Lázár, announced a protectionist policy in order to save and revive the Hungarian food industry. Besides supporting the Hungarian-owned manufacturing industry, the government’s plans include the displacement of multinational retail companies.

Within the framework of the online event of the Agricultural Sector Conference 2020 organised by the Portfolio Group, the government commissioner, János Lázár pointed out that

time has come to redesign the Hungarian countryside and agriculture.

Read also: Orbán: Agriculture crucial for national self-esteem

According to the politician, as a result of the pandemic, the whole world has learned a lesson about the importance of independence. If borders have to be closed and goods and people cannot move freely, the significance and the ability of self-sufficiency increase. He also highlighted that

the government’s plans also include the displacement of foreign retail chains,

which requires an openly protectionist policy and an offensive approach, because the establishment of the Hungarian national retail is essential. “An important question in the current situation is whether EU funds can be blocked for political reasons. And the answer is no. These are not benefits, but allowances.” – said the politician, adding that he was not making his point for a Hungary outside the European Union.

The Fidesz politician stated that the countryside and agriculture are the two areas that did not win during the change of regime nor during the accession to the EU – reported by 24.hu. According to János Lázár, today Hungary is a vehicle country, because 50% of GDP comes from the automotive industry.

“Despite the change of regime and the two cycles of EU agricultural financing, Hungarian agriculture is lagging behind. We are a country exporting raw materials and importing finished products.” Therefore, to improve the situation in agriculture, it is necessary to consolidate into cooperatives, following the Polish pattern, or “strengthen the Hungarian processing industry so that Hungarian raw materials are processed by Hungarian companies, packaged by Hungarian companies and sold in Hungarian shops.”

János Lázár emphasised that the next ten years are the last chance to establish a strong, self-sufficient agriculture, modern processing industry and food production in Hungary. Accordingly,

within ten years, the government aims to see 80% of the food produced and processed in Hungary on the shelves of the shops.

Previously, we could see a similar process when Hungarian companies took over the outgoing foreign chains. Dozens of grocery stores fell into national hands in 2012, when the French Delhaize Group withdrew the Match and Profi stores from the Hungarian-owned CBA and Coop – reported by Magyar Nemzet.

Hungarian companies support the newly introduced plans

because they consider it timely to strengthen the domestic products and supply chain industries against import vulnerability – reported by the news portal.

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Investment volume falls by 12 pc in Q3

Daily News Hungary economy

Investment volume in Hungary fell by an annual 12.0 percent in the third quarter of 2020, the Central Statistical Office (KSH) said on Thursday.

In a quarter-on-quarter comparison, investment volume fell by a seasonally-adjusted 2.1 percent.

Investment volume fell in most economic sectors but jumped by 98.4 percent in health care due to pandemic-related spending, KSH said.

The decline in investment volume was most apparent at companies with high headcounts, especially at foreign-owned and state-owned companies.

In Q1-Q3, investment volume fell by an annual 8.6 percent, albeit from a high base.

Trade investments rose by 6.3 percent and investments in information technology by 3.4 percent, while investments in public administration edged up by 2.1 percent.

Investment volume in the manufacturing sector was down by 18.2 percent.

In absolute terms, investments came to 2,504.3 billion forints (EUR 6.9bn) in Q3, including 607.1 billionn in the manufacturing sector, 437.4 billion in real estate and 381.9 billion in the logistics sector.

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Will there be any chaos in Hungarian stores again after the restrictions?

budapest_shopping_mall_duna_pláza

The latest restrictions in Hungary also affect the opening hours of the stores.

Although the exact rules are not yet known regarding the restrictions. The shops, inlcuding grocery stores, will certainly have to close at 7 pm on Wednesday. The main secretary of the National Trade Association, György Vámos, made a statement to napi.hu. He said the companies have already started preparing. He also said that the store chains have a large stock of goods, so there is no need to worry about a shortage.

In order to curb the epidemic, prime minister Viktor Orbán announced further restrictive measures on Monday. The operational staff has already made proposals for action. According to the prime minister, shops (including hairdressers and craft service providers) should close at 7 pm. This also applies to the stores of chain stores with the most extensive network. As the tightening will take place from midnight on Tuesday, the shops will have to close at 7 pm on Wednesday.  The more precise rules are expected later.

György Vámos, the main secretary of the National Trade Association, – representing among others Aldi, Auchan, Mol, Obi, Lidl, Media Markt, Spar, Tesco, Rossman, Spar, Praktiker and Penny Market- said on Monday:

“Although the specific legislation has not yet been published, chain stores will follow all the rules and have already started preparing after the announcement. The transition will be smooth. Besides, the companies are prepared for the next period, they have abundant goods, product base and supply.”

György Vámos highlighted the appropriate product range because in the first wave, the turnover of store chains increased explosively before the epidemic appeared in Hungary, at the end of February and during the spring curfew, and mainly due to logistical reasons, some products ran out of the store. Gabriella Heiszler, CEO of Spar, said apropos of the situation seen in the first wave back this summer: The onset of the pandemic posed a significant challenge for Spar as demand jumped abruptly and explosively, making it difficult to deal with the usual levels of goods. At the same time, according to her, not only Spar but all store chains and traders have proved that they are able to supply the Hungarian population with food even in difficult times.

During the spring shopping fever, Minister of Agriculture, István Nagy spoke about the fact that Hungarian agriculture and the food industry produce many times more than the country can consume. 

The National Chamber of Agriculture also announced in the spring that Hungarian agriculture and the food industry could continuously provide the quantity needed for demand.

Gabriella Heiszler also said in her summer statement that Spar is increasingly preparing for the fall and has a list of a few hundred essential items from which they made extra. According to market information and the words of György Vámos, the competitors also did so and are prepared for the rest of the year. The CEO of Spar also said earlier that she hopes customers are now aware that there is a steady supply of food and that retailers can provide sufficient supplies and therefore will not arrive in huge waves.

Many customers agree with this; this is already evident from the representative opinion poll conducted by Pulzus kutató in October. According to the survey, 50 per cent of Hungarians believe that there will be no buying bout because people learned from the situation in the spring when there was a temporary shortage of some products in several stores. Respondents say people are buying more soberly these weeks. It is true, however, that a third of those surveyed — 29 per cent — can imagine panic purchases if exit restriction came into effect again.

EC economic forecast: Hungary economy to contract 6.5 pc in 2020

mask poduction factory

The European Commission published its autumn economic forecast on Thursday, projecting Hungarian GDP would fall by 6.5 percent this year.

The projection is an improvement from a 7.0 percent decline in a forecast published in July.

The forecast expects Hungarian GDP to grow by 4 percent in 2021, a scale-back from the 6 percent estimated in July.

The economy is likely to expand further in 2021 and 2022, with a 4 and 4.5 percent projected GDP growth, respectively, the EC said.

Inflation is expected to be at 3.4 percent in 2020, 3.3 percent in 2021 and 3 percent in 2022, the forecast said.

The EC said economic activity in Hungary “rebounded vigorously” after a spring lockdown ended and global supply chains were restored, but added that the recovery was “set to pause” in the last quarter as the country would experience a strong second wave of the coronavirus pandemic.

Similar trends are expected in employment figures, the forecast said, noting that Hungary’s unemployment rate nearly reached last year’s level by August, with a mere 0.4 percent annual decline. However, the second wave is likely to bring new layoffs, they warned.

Hungary’s budget deficit will go up to 8.5 percent of GDP in 2020, but contract to 5.5 percent of GDP by 2021 due to a growing labour market, consumption and increased excise duties on tobacco products, the forecast said.

State debt is likely to grow this year to 78 percent of GDP from 65.4 percent in 2019, it said.

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New regular air service to start between China, Hungary

china hungary flag

A new air service is operating between Zhengzhou and Budapest three times a week to help relaunch fast and unhindered trade between China and central Europe, an official of the ministry of innovation and technology said on Wednesday.

The first flight operated by Universal Translink Airline (UTA) has already landed in Liszt Ferenc International in Budapest, State Secretary Tamás Schanda said in a statement. The service will help the acquisition of products from China for protection against the novel coronavirus and also provide access for Hungarian companies to the Chinese markets, he added.

The flights will start from Zhengzhou and the return services from Budapest will enable the transport of Hungarian goods to the Far East, he added.

There will be three weekly flights between October 2020 and the end of 2021 and an additional fourth service will operate between early November and late January.

During the entire period, a total of 170 flights will be in service between China and Hungary.

As we wrote yesterday, Chinese telecommunications giant Huawei is setting up a research and development centre in Budapest, details here. 

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The United States is the biggest non-European investor in Hungary

Hungary USA investment business

The United States is the biggest non-European investor in Hungary and also its biggest non-European export partner, Finance Minister Mihály Varga said after attending a business forum of the American Chamber of Commerce in Hungary on Monday.


About 1,700 US companies employ around 106,000 people in the country and 14 of the Hungarian government’s strategic partners are US-owned, the minister said. Bilateral trade grew by 2.3 percent to 5.8 billion dollars in 2019, he added.

Early this month, the US-Hungary Business Council was informed about ongoing talks on

investment projects that US companies are planning to implement in Hungary,

Varga noted.

Figures from the National Bank of Hungary (NBH) show the total value of US investments came to 11.6 billion euros.

Varga said the government agreed on 101 large investments with foreign and Hungarian companies in 2019, with a combined value of 1,705 billion forints (EUR 4.7bn), or 4 percent of the country’s GDP last year. The government supported these investments with grants worth 156 billion forints.

Hungary continues to have an excellent investment ratio,

at 27.6 percent in the second quarter of 2020, Varga said.

Never seen drastic increase in prices of tea in Hungarian stores

tea, Hungary, drink

The prices of filtered teas in Hungary has been changing rapidly in 2020. Regarding some products, no changings happened, but in several other cases, companies decided to make them more expensive. The increase is equal to a six or even seven years-long procedure. 

Pénzcentrum reported that the well-known Ceylon typed tea filters have become more expensive between 2015 and 2017 by 24%. After 2017, no changes happened, but this year the increase was so rapid and unexpected that statistics could close their eyes on them. One of the most well-known brands, Pickwick, increased the prices of their tea types instantly, and many costumers who were permanent consumers of the brand have decided to look for other brands. The average price of Pickwick tea was less than 1 EUR when the coronavirus epidemic started. 

Now, statistics have found that in leading Hungarian supermarkets, there are examples for offering Pickwick tea for 1.5 EUR, which is considered to be a major increase on the market. This means an increase of 33% but even 43% in a few months.

The reason for the increase is the coronavirus epidemic and the restrictions introduced, the poor condition of Hungarian Forint on the economic market and the hardship of getting the ingredients for the filters. Many stores, from Lidl, Spar, Tesco and Auchan, confidently reported that the inflation had reached the industry more dragging tea into the circulation.

According to statistics, more than 82% of Hungarian families buy tea regularly. The most common and popular ones are classic black and green teas, but fruit and ginger teas are also very common in Hungarian households. 

Hungarians got familiar with tea in the 18-19 century when it was first imported into the country from Germany through Vienna. It became prevalent in a short time, and one teahouse opened after another, especially in Budapest. Hungarians usually drink tea alone, especially during cold seasons and when they catch a cold or flu. Still, it is also frequently served when guests come over or at family occasions alongside coffee, cake or biscuits. 

kolbász-hungarian sausage
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Thinking about company formation in Europe? – Hungary can be the perfect place

Budapest, Chain Bridge, view

There is no doubt that Hungary is in the heart of Europe. Therefore, the country is not only a hub of international trade on the continent, but it is also located at the crossroads of civilizations and has a very favourable economic environment welcoming and supporting everybody thinking about starting a business.

If you are thinking about company formation in Europe you should consider your options before taking the first step. Starting a company in Great-Britain is easy, but because of the Brexit, it is getting more and more difficult to enter the market of the European Union with a British company. Furthermore, in Germany and Austria, you should take into consideration that not only the personal income tax but also the corporate income tax is quite high.

Much better opportunities are waiting for you in Hungary, where

the government has reduced the corporate income tax to only 9% lately,

which is the lowest among the EU member countries. Furthermore, the personal income tax is a single rate and only 15%, which is also very favourable in Europe says Melinda Győri Dr. legal consultant at BusinessImmigration.hu.

Besides, those who would like to acquire a second passport should also consider the option of company formation in Hungary. Because the Hungarian passport is now the world’s 10th most wanted travel document allowing to visit 182 countries without a visa. And to get a permanent residence permit, one needs to start a business in Hungary and have a business plan.

Those who would like to enjoy the benefits of an EU residence permit in Hungary

 can start a business or buy at least two real estates for the minimum of 200,000 €.

As in Hungary it is possible to get EU residency by company formation or obtain EU residency by real estate investment as well.

Some of the key benefits of company formation in Hungary are:

  1. Extremely low corporate income tax (9%)
  2. Low personal income tax (15%)
  3. VAT free business activity within the European Union
  4. Visa-free travel within the European Union
  5. Central location in the European Union

So if you are looking for a very favourable economic environment and want to make business in the European Union, Hungary is a great choice.

But don’t forget, in most cases you will need some help in the company registration, in business planning or in the accountancy.

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Polish-Hungarian business chamber established

A Polish-Hungarian business chamber, comprising 33 companies, was established in Warsaw on Tuesday.

Its foundation was supported by the Hungarian Chamber of Commerce and Industry (MKIK) and its partner organisation in Poland. The new chamber said in a statement that it would cooperate with Hungarian export promotion company CED and its Polish counterpart with assistance by the Polish embassy in Budapest and the Hungarian embassy in Warsaw.

Among the chamber’s founding members are Hungarian-owned property developer Cordia Polska, pharmaceutical company Gedeon Richter Polska and construction company TriGranit, as well as Polish-owned office furniture company NowyStyl Hungary.

The chamber will promote bilateral economic ties between the countries through publications, the organisation of business events and fostering a network of business contacts.

Orsolya Zsuzsanna Kovács, Hungary’s ambassador in Poland, expressed hope that the new chamber will help boost bilateral trade in the post-pandemic period and contribute to building a long-term partnership.

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Resumption of poultry exports to Thailand and Japan from all parts of Hungary possible

poultry-farm-chicken

Thailand and Japan are allowing imports of poultry produce from all parts of Hungary from October 7 and October 8, respectively, Hungary’s food safety authority (NÉBIH) said on Monday.

The authorities of the two countries are lifting the restrictions thanks to the eradication of bird flu, NÉBIH said on its website, adding the measure applied to live poultry, meat and meat products, as well as eggs and egg products.

Many major export markets, including Thailand and Japan, only impose restrictions on areas directly affected by the disease. On Sept. 8, Hungary was declared free of the disease. The last affected areas were Bács-Kiskun and Békés counties.

EU on alert for new bird flu outbreaks

The European Center for Disease Prevention and Control (ECDC) on end of September urged the member states of the European Union (EU) to step up their surveillance and bio-security measures against possible outbreaks of avian influenza (bird flu) this year.

The warning came after outbreaks of highly pathogenic avian influenza (HPAI) among wild and domestic birds in western Russia and Kazakhstan over the past few months, the ECDC said in a press release. The region is a known autumn migration route for wild water birds heading to Europe, it added.

Based on past bird migration data, northern and eastern Europe are considered to be the most vulnerable regions to new outbreaks. Moreover, the urgency of the warning increases if temperatures in the already affected areas were to suddenly drop, the ECDC said.

Assessing the risk of transmission of avian influenza viruses to the general public in Europe as “very low,” the report recommends that EU states immediately increase bio-security measures at poultry farms in particular, and advises warning veterinary and wildlife health authorities of the likely risk and urging them to promptly test dead or sick wild birds.

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Buda’s largest shopping centre Etele Plaza introduces all the Inditex brands with their new store design concepts

Etele_Plaza

With an occupancy rate over 75%, Etele Plaza has already attracted some of the major fashion tenants. Inditex Group will be present in Buda’s largest shopping and entertainment centre with all of its brands available in Hungary, including Zara fashion store featuring a brand new design concept. Hungary’s first smart plaza located in the immediate vicinity of Etele square is going to open its doors in the third quarter of 2021.

Amid the challenges raised by the pandemic, the development of Futureal’s EUR 300 million Etele Plaza is still in progress with full capacity and expected to open by autumn next year. Meanwhile, to date, more than three quarter of the rentable area has been leased to high-profile tenants including some of the largest fashion retailers.

Spanish fashion giant Inditex Group’s international brands available in Hungary including Zara, Zara Home, Stradivarius, Pull&Bear, Bershka, Oysho and Massimo Dutti have joined Etele Plaza as anchor tenants. They will bring their latest store design concepts on a total floor area of more than 6,300 sq m. On the Buda side of the Hungarian capital only Etele Plaza is going to have Inditex Group’s full portfolio in one place.

Etele_Plaza
Photo by Futureal

Zara will open its largest store in Buda with its brand new Soft concept, that has not yet taken over all the world’s metropolises, thus the shopping centre can boast that Zara store in Etele plaza is one of the first to introduce it alongside those in Dubai, Madrid, Istanbul and Croatia. As part of Zara’s commitment to improving the quality of service and shopping experience, the new store will be equipped with advanced RFID technology that helps to quickly and accurately track the location and movement of the clothing.

“We proudly introduce Inditex Group’s well-known brands as Etele Plaza’s anchor tenants. Due to its excellent location as well as the unique digital, sustainability, health and safety features there is a huge demand among retailers for the unique business opportunity and experience Etele Plaza can offer to them. As a result we have already successfully leased most of the rentable space and we are in negotiation with many promising partners. We are also open to cooperate with potential tenants that can make our state-of-the-art shopping centre an even more exciting and attractive place for customers,”

said Tibor Tatár, CEO of Futureal.

With a rentable area of 55,000 sq m, realised in the meeting point of the Kelenföld railway station, underground line 4 and the approach section of M1-M7 motorways, Etele Plaza can be easily accessed from both downtown and suburbs.

Etele_Plaza
Photo by Futureal

The huge variety of shops and services, the smart digital solutions and the next generation of plaza design will all add to the uniqueness of the centre and bring a brand new shopping experience to Hungary.

The complex is being developed under Futureal’s Stay Safe initiative designed to respond to the changing market demand due to the epidemic.

Etele Plaza new shopping mall
Photo: www.facebook.com/EtelePlaza

Is Brexit going to kill Hungarian second-hand shops?

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The remaining EU states’ relationship will drastically change from 2021, as the UK leaves the Union, although not all the details about Brexit have been agreed upon yet. Experts have now revealed how the transitional period’s end will affect second-hand stores in terms of legal changes.

After the transitional period, the harmonised trademark rules of the EU will no longer apply to the United Kingdom, which will have a huge impact on retailers who import goods from the UK with the purpose of reselling them domestically, Taylor Wessing Budapest Law Firm explained, according to Napi.

A trademark grants an exclusive right to its proprietor, meaning one can only use the protected mark with the proprietor’s consent, which applies to the sale of goods as well, meaning that the proprietor of a brand can determine where and how someone can market their goods as they have control over the trade.

Within the European Economic Area (EEA), their control is limited as, if a trademark-protected product is marketed in any of the EU countries with the proprietor’s permission, the trademark will be considered “exhausted” and no longer applies to further resale of the goods. Therefore, the proprietor cannot oversee the trade and resale of the trademarked goods between EEA countries.

This is how a Hungarian retailer can stock up on branded products in another EU state where prices are lower and then resell those products at a lower price than other Hungarian retailers without having to ask the owner of the trademark for permission. This is called “parallel trade.”

This does not apply to products which were initially placed on the market outside of the EEA, meaning that as the transitional period comes to an end, the parallel trade of goods which were first placed on the market in the UK will no longer be possible. The permission of the trademark owner will be required for the reselling of those goods within the EEA.

Trademark rights and their exhaustion are the same for both new and second-hand products, and seeing as Hungary imports large amounts of second-hand clothes from the UK, they will be impacted by the change as well. They will only be able to sell second-hand clothing without the trademark proprietor’s consent if the product had previously been marketed in the EEA with the permission of the trademark owner.

The reselling of clothes in the EU, including Hungary, will require the explicit permission of the trademark proprietors after the transitional period comes to an end.

Although it may not be likely or realistic that major fashion brands will file infringement lawsuits against all the “English Used Clothes” second-hand stores in Hungary reselling their branded products without authorisation, Taylor Wessing Budapest experts point out that more prestigious brands may take action against secondary sales to protect their brand’s marketing position.

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Lenovo to build manufacturing plant in Hungary

Lenovo to build first European plant in Hungary

Chinese tech giant Lenovo Group will build a manufacturing facility in Hungary, the country’s Minister of Foreign Affairs and Trade Péter Szijjártó said here on Tuesday.

The 8.2-billion-Hungarian-forint (26.3 million U.S. dollars) plant will be built in Üllő on the outskirts of the capital, with a two-billion-forint government grant, according to Szijjártó.

“The investment will create 1,000 jobs and introduce advanced technological solutions. Production at the plant could start in early 2021,”

the minister said, adding that the investment would accelerate industrial production based on development, meaning it offers great opportunities for the Hungarian economy and Hungarian engineers.

Szijjártó stressed that

Lenovo’s decision confirmed that leading technology companies trusted Hungary and justified the country’s “Eastern Opening” policy, underlining that global competition for Chinese investment was fierce.

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