trade

Hungarian embassy’s new consular section inaugurated in Hanoi

hungary vietnam cooperation

Foreign Minister Péter Szijjártó on Friday inaugurated the Hungarian embassy’s new expanded consular section in Hanoi.

In his speech at the ceremony, the minister said it was “more than just symbolic” that Hungary was inaugurating the new section of the embassy during a pandemic.

Szijjártó said the inauguration was an expression on the part of the state that it had to balance its protective measures and ensuring that the country continues to function. This requires that foreign relations and diplomacy also continue to function, he said, arguing that otherwise Hungary risked wasting the efforts it had put into building these relations and falling behind in global competition.

The minister said the coronavirus pandemic was set to bring about a new global economic order “in which Hungary wants to be among the winners”. This requires the country to develop its ties and cooperation with international partners, he added.

Szijjártó said the Hungarian government’s policy of opening to the East would play a key role in making sure that Hungary was among the winners of the new global economic order. “It was clear to all of us as early as ten years ago when the government introduced this policy that the role of the East would grow,” he said.

The minister noted that last year 58 percent of worldwide investments were financed by capital from Eastern countries. Over the last ten years, Hungary’s exports to that part of the world have increased by 22 percent and its trade turnover by 25 percent, Szijjártó said. He noted that in 2019, for the first time, the majority of foreign investments into Hungary had come from a Far Eastern country.

Concerning economic ties between Hungary and Vietnam, Szijjártó said Hungarian firms were mainly carrying out water management and pharmaceutical investments, building hospitals and developing the food industry in the Southeast Asian country.

Szijjártó said a 440 million dollar tied aid programme Hungary had launched for Vietnam which he discussed with his Vietnamese counterpart, Pham Binh Minh, on Friday would further advance bilateral ties.

“Another aspect demonstrated by this occasion is that we attach deep significance to Hungarian-Vietnamese cooperation,” he said.

“Our economic cooperation has intensified to the extent that bilateral trade turnover increased by 60 percent during the first eight months of the year, when all economic indicators were down.”

Szijjártó highlighted the friendship between the two countries, noting that Hungary offers scholarships to 200 Vietnamese university students each year.

He noted that Vietnam provided Hungary with 85,000 face masks and other protective gear in the spring.

Szijjártó is scheduled to meet Vietnam’s Planning and Investment Minister Nguyen Chi Dung later in the day.

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Read alsoHungary supports Vietnam with tied aid

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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Read alsoIt is cheaper to live in a downtown hotel than to rent an apartment in Budapest

Hungarian companies to rehabilitate lake in Philippines

szijjátó lake in philippines

Hungarian companies will undertake a 30-billion dollar project aimed at rehabilitating Lake Laguna, the largest lake in the Philippines, including water purification and monitoring water quality, Foreign Minister Péter Szijjártó said after talks in Manila on Thursday.

Hungary will also deliver water purification equipment to all regions of the Philippines contributing to that country’s drinking water supplies, the minister said following his talks with Teodoro Locsin, his Philippine counterpart, and Ramon Loopze, the minister of trade and industry.

Szijjártó noted that 400-sqkm Lake Laguna was heavily polluted, and could not be used for tourism or any other purposes. The rehabilitation project, financed from the Hungarian tied-aid programme, is expected to change that situation.

The minister said that the Hungarian government was ready to assist Hungarian companies in other countries, in view of an increasing competition for foreign market positions.

He added that Southeast Asia’s environmental challenges called for Hungarian technologies such as those employed in water management. “There is a huge demand for Hungarian water management solutions in the Philippines,” he said.

Szijjártó said he also promoted Hungarian food products in Manila. “We have a good chance that once the swine and bird flu epidemics are over, Hungarian poultry and pork products can return to the Philippine’s dynamically expanding market,” he said.

Szijjártó also urged that the European Union should resume free trade talks with the Philippines “lightning fast” and insisted that “the freer it is to export to the Philippines, the better for Hungarian companies”. He insisted that Hungary was interested in “making the global economy more open, free and fair”.

Hungary and the Philippines are in close cooperation in international organisations aimed at providing protection to persecuted Christian communities worldwide, Szijjártó said.

“We now have to make it clear that Christianity has become the most persecuted religion. As a country with a strong Christian culture we consider it as an obligation to fight for those Christian communities,” Szijjártó said.

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Read alsoHungarian woman hospitalised in Philippines tests negative for coronavirus – UPDATE

Good Singapore-Hungary ties to benefit companies, says Minister Szijjártó – UPDATE

singapore Szijjártó

Hungary has managed to develop political cooperation with Singapore based on mutual respect and friendship in recent years, and this is expected to benefit Hungarian cutting-edge industries, Foreign Minister Péter Szijjártó said on Wednesday, after talks in Singapore with government representatives and business leaders.

Szijjártó met his counterpart Vivian Balakrishnan, Minister of Trade and Industry Chan Chun Sing, Office for Space Technology and Industry head David Tan, chairman at Singapore Space and Technology Limited Jonathan Hung, and heads of the company groups STE and Patec.

“Hungary and Singapore support each other in international organisations, and what’s even more important, as open economies, both support free trade agreements and fair global trading,” he said. He added that this also served the interests of the Hungarian economy, noting that Singapore is considered to be the third most open economy in the world, while Hungary is seen as the 12th most open.

Szijjártó said

the two countries shared a common position on the issue of migration and both refused to approve the United Nations Global Compact for Migration, arguing that the matter was a national competence.

Szijjártó said Hungarian companies involved in space satellites are expected to receive significant roles in developing satellite programmes in Singapore. Also, Hungarian companies specialised in artificial intelligence, data management and IT solutions are present in the Singapore market and may participate in future developments, he added. Singapore, as a world-leading finance hub, only accepts the highest level of IT and AI solutions and Hungarian companies have been able to meet this demand, he said.

Hungarian companies have also met Singapore’s food industry expectations and demands, he said, citing the fact that all goose liver imports in Singapore originate from Hungary.

An earlier ban on poultry caused by the bird flu has been lifted and Hungarian pork imports have also been approved, he added.

poultry-farm-chicken
Read alsoResumption of poultry exports to Thailand and Japan from all parts of Hungary possible

UPDATE

In a message posted on his Facebook page later on Wednesday, Szijjártó said that Patec, a Singaporean automotive supplier company, will invest 1.7 billion forints (EUR 4.7m) in a capacity expansion at its windshield wiper part plant in Miskolc, in north-east Hungary. The government will support the investment, which will create 71 jobs, with a 500 million-forint grant, he added.

Another Singaporean listed group ST Enginnering’s defence subsidiary is in advanced talks with Hungarian automotive industry supplier Raba on delivering axles for Patec’s combat vehicles, he said. Rába and STE could also establish a Hungarian joint venture to make complete combat vehicles, the minister added.

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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Read alsoSuperfast trains to connect Budapest with Warsaw and Cluj Napoca?

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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Read alsoHungarian honey to become more expensive due to low production-rate

Orbán: V4 slated to be ‘influential’ in European politics if they grow as a bloc

visegrád four discussion

The Visegrád Four countries must try to grow together as a bloc and if they succeed in that they are slated to become “a player” in global economy and politics, as they will also become influential in European politics, Prime Minister Viktor Orbán said, opening a Budapest office of a Polish PR firm on Thursday.

Economic and trade relations between Germany and the Visegrad countries of Hungary, Poland, the Czech Republic and Slovakia are expanding at a faster pace than between Germany and China, he said at the R4S public relations and public affairs firm’s event.

This means that “here is the dynamics and the future, and here is the prospect of growth” and “this is the moment the V4 must seize”, Orbán said.

He praised Hungarian-Polish cooperation in politics and culture, adding that bilateral economic relations were not sufficient mainly due to a language barrier.

“Hungarians don’t learn Polish, whereas learning Hungarian is a quite hopeless attempt, we don’t want to speak Russian, they [the Poles] don’t want to speak in German, so the only option is using English,” Orbán said.

The prime minister hailed the opening of R4S’s office in Budapest, expressing hope that it would help promote business cooperation.

He highlighted the importance of personal business relations between Hungarians and Poles, saying that “there is a lot at stake right now”.

Orbán argued that either central Europeans would organise the region “between the Russian and German world” or “someone else will and there are always takers for it”.

Concerning key differences between western and central Europe, Orbán said that when asked how they wanted to make a living “western Europeans always say loans while central Europeans say work”.

“If the V4 make this their standard reply then come whatever economic crisis in Europe, the grouping will be successful,” he said.

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Read alsoVisegrád Group students’ alliance to be formed

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?

second hand store thrift store turi

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.

Read alsoShopping in Budapest 101

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Read alsoCan a Brexit rabbit be pulled out of the hat as deadline looms?

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Read alsoBritish Ambassador about Brexit: “No one supported us as much as Hungary did”

Hungary’s industrial output drops by 2.1 pc in August

Daily News Hungary economy

Output of Hungary’s industrial sector fell by an annnual 2.1 percent in August, after a 8.1 percent drop in July, the Central Statistical Office (KSH) said on Tuesday.

The August figures indicated a move closer to a recovery after falling by around 8 percent in the previous two months. The scale of those declines was an improvement from double-digit drops in April and May because of a pandemic lockdown.

Working day-adjusted data show industrial output edged down by 0.2 percent in August.

KSH said

the output of most branches of manufacturing fell in August but the biggest, such as vehicle manufacturing and, “to a lesser degree”, computer, electronics and optical equipment, increased.

In a month-on-month comparison, industrial output rose by 6.8 percent, based on seasonally and working day-adjusted data.

For the period January-August, industrial output fell by an annual 11 percent.

Analysts told MTI the August industrial output figure was promising from the point of view of the recovery from the crisis.

Péter Virovácz of ING Bank said that unless the second wave of the pandemic has a major impact on the Hungarian economy,

industrial output could return to the levels of previous years in the autumn.

Gergely Suppán of Takarékbank said the contraction in output may shrink to 4-5 percent in the third quarter from around 25 percent in the second, significantly helping a rebound in economic output.

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Read alsoBudapest will run out of properties with reduced VAT rates by 2021

Orbán marks German Unity Day

orbán merkel meeting

Hungarian Prime Minister Viktor Orbán sent a letter of congratulations to German Chancellor Angela Merkel on Saturday, marking German Unity Day, the country’s national holiday, the PM’s press chief told MTI.

Orbán said Germany’s reunification after the fall of communism in 1990 was “a great celebration, especially to us Hungarians. From the crack created when we knocked the first brick from the Berlin Wall, Germany’s desire for freedom fashioned a gateway to German and European unity,” Bertalan Havasi cited Orbán as saying.

Thirty years ago, Hungary supported Germany’s independence “because we knew our own freedom and independence would remain a futile dream without it,” Orban said.

Orbán pledged Hungary’s support to Germany in “protecting and strengthening a united, sovereign, safe and competitive Europe,” Havasi said.

At an event marking the German national day in Budapest, a state secretary of the Defence Ministry said the events around the fall of communism had “brought European nations closer to each other”. The fall of the Berlin Wall was the “glorious peak” of the regime changes in eastern Europe and Europe’s reunification, he said.

István Szabó noted that Hungary and Germany had since found many areas of cooperation. Hungarian and German troops have been fighting side by side in Afghanistan for 11 years, he said. He thanked the German Armed Forces for mentoring the central European International Command, which had been created at Hungary’s initiative.

Johannes Haindl, Germany’s Ambassador to Hungary, said Germany was and will always be grateful to Hungary. Germany’s reunification would not have been possible without Hungary opening its borders to Austria in 1989, he said.

Germany and Hungary are closely linked, Haindl said, adding that nation states in themselves were no longer able to rise to global challenges, but needed the EU’s stability more than ever.

The commemoration was held at a memorial set up in Budapest in 1990, under trees planted by Defence Ministers Lajos Fur of Hungary, Rainer Eppelmann of the German Democratic Republic and Gerhard Stoltenberg of the Federal Republic of Germany, to symbolise German unity.

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Read alsoGermany one step closer to launching Covid-19 vaccine

Can a Brexit rabbit be pulled out of the hat as deadline looms?

von der leyen eu brexit

With week-long Brexit negotiations between Britain and the European Union (EU) ending Friday without a significant breakthrough, the big question was what happens next.

The focus will switch to a planned video conference call Saturday between British Prime Minister Boris Johnson and the President of the European Commission Ursula von der Leyen.

It has left Brexit watchers and political commentators in London wondering Friday night whether the two political heavyweights can find a way through a deadlock.

Johnson said in a media interview Friday it was now up to the EU to avoid a no-deal scenario over post-Brexit trade.

Noting that a deal with Brussels was “all there”, Johnson said Brussels had to be commonsensical to get an agreement across the line, with both sides setting an October deadline to settle their differences.

On the BBC, Johnson said: “I hope that we get a deal, it’s up to our friends (in Brussels).”
He added that the EU had done a deal with Canada of a kind that Britain wanted, adding: “why shouldn’t they do it with us? We’re so near, we’ve been members for 45 years. It’s all there, it’s just up to them.”

This week’s ninth-round of negotiations was billed as the final shot at resolving differences ahead of a critical meeting mid-October of leaders of the 27 EU member states.

The Daily Telegraph in London posed the question Friday “what will come from Johnson and von der Leyen’s powwow?”

The commentary said the president of the commission had made clear that the game was not up yet, as the final scheduled round of UK-EU trade negotiations closed in Brussels.

“Is the Prime Minister limbering up to make some concessions?” asked the Telegraph, citing the fact that Johnson had previously done an about-turn on his insistence there would be no different post-Brexit customs rules between Northern Ireland and the rest of Britain.

The future of fishing in the waters around Britain as well as Brussels’ demand for a level playing field on state support by the British government for its industries remain high on the “to-do” list.

The Telegraph asked if Britain agreeing to stay roughly within the EU limits for state subsidies could be a deal-breaker.

Britain’s chief Brexit negotiator David Frost said familiar differences remained, adding that on fisheries the gap between the two sides was unfortunately very large.

Frost warned that without further realism and flexibility from the EU, there’s a risk of difference being impossible to bridge.

Downing Street confirmed Johnson would speak to the commission president on Saturday afternoon to take stock of negotiations and discuss next steps.

London and Brussels have agreed to continue in talks over the next two weeks ahead of the critical EU summit on Oct. 15.

The Guardian revealed earlier this week that Britain had offered a three-year transition period for European fishing fleets to allow them to prepare for the post-Brexit changes as part of an 11th-hour deal sweetener.

Britain ended its membership of the EU on Jan. 31 but is sticking to the bloc’s trade rules during a transition period which ends on Dec. 31.

With Britain insisting there will be no extension, it could mean trade between the UK and EU conducted under World Trade Organization (WTO) rules from Jan. 1 if no deal is struck by then.

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Read alsoEU, UK officials meet in emergency talks over controversial Brexit bill

Hungarian companies to begin construction on a vaccine plant in Mongolia

mongolia

Foreign Minister Péter Szijjártó discussed economic ties and bilateral cooperation in international organisations with his Mongolian counterpart, Nyamtseren Enkhtaivan, on Tuesday.

As we wrote in 2019, Hungary has signed a 57 million dollar tied-aid agreement to support the construction by Hungarian companies of a veterinary vaccine plant in Mongolia, details HERE.

In a Facebook entry detailing his talks, Szijjártó announced for the second time:

Hungarian companies will begin construction on a vaccine plant in Mongolia supported by the Hungarian government with a 57 million dollar tied-aid agreement next year.

“As a follow-up to this success, we agreed to launch a new tied-aid scheme in the near future with a view to boosting agricultural investments,” the minister said.

Both Hungary and Mongolia are committed to the global fight against terrorism, Szijjártó said, adding that both countries want to see the United Nations expand its budget to cover anti-terror operations.

Szijjártó also said that demand for Hungarian scholarships remained high, noting that

more than 750 Mongolian students have applied for 200 scholarships.

ORBÁN Viktor
Read alsoPM Orbán: coronavirus vaccine will be available in Hungary

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.

Read alsoNext-generation combat vehicles to be manufactured in Hungary − VIDEO

Mol to invest USD 13 m in building rubber bitumen plant in Tatarstan

Hungarian oil and gas company MOL is building a rubber bitumen plant in the Republic of Tatarstan with a 13 million US dollar investment, the minister of foreign affairs and trade announced in Budapest, after meeting Albert Karimov, Tatarstan’s deputy prime minister.
 
The project will be implemented in partnership with Tatneft, a local partner, Péter Szijjártó told a press conference.

    Preparations for the project is under way, he said, adding that the government is in talks with Mol on the size of a possible state grant for the project, he said.

    Tatarstan is one of Russia’s richest and fastest developing republics of Russia with 40 million tonnes of crude oil produced per year and 1.3 billion tonnes stored in reserves, Szijjártó said.

    He called bilateral relations “special”, noting that Hungary is the only EU member state to operate a diplomatic mission in Tatarstan. Szijjártó further noted direct flights operating between the two capital cities, Budapest and Kazan.

    Tatarstan is Hungary’s second most important trading partner in Russia after Moscow and its region, Szijjártó said, adding that bilateral trade last year exceeded half a billion dollars.

    Karimov praised bilateral relations, noting that two-way trade in goods had gone up by 15 percent last year on 2018.

    He welcomed that ties between Mol and Tatneft “are becoming even closer”.

    Karimov said the talks covered cooperation possibilities in car manufacturing and the production of gas powered cars, as well as investment opportunities for Hungarian companies in the region.

Hungarian finance minister augurs economic turnaround in first half of 2021

Hungarian-finance-minister-Varga

Finance Minister Mihály Varga projected the economy would turn around in the first half of next year as the recovery from the coronavirus crisis is slow across Europe, in an interview on public radio on Monday.

Although Hungary is in a better position than other European countries, the pickup will still be drawn out, Varga said on Kossuth Radio.

Hungary enjoys “favourable circumstances”,

he said, pointing out that the scale of wage growth and retail sales turnover have not dropped in a year-on-year comparison, and the labour market is performing well in international comparison, too.

He acknowledged that

export opportunities are limited as foreign markets will remain weak until a Covid-19 vaccine becomes available.

Varga said investments are expected to make up for lost jobs, in part, adding that the economy’s engines of growth, that is, the food, pharmaceutical and automotive industries, should be the focus of developments.

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Read also1 million Hungarians are indebted currently

Tesla sues to block Trump administration’s tariffs on China imports

tesla, store, budapest, cars

U.S. electric automaker Tesla has filed a lawsuit with the U.S. Court of International Trade in New York, which aims to prevent the Trump administration from collecting tariffs on car parts it imports from China, according to a Bloomberg report on Wednesday.

The case seeks an order to declare the duties unlawful and a refund with interest on the amounts it has already paid, Bloomberg reported.

U.S. Trade Representative Robert Lighthizer is named as the defendant in the case. Tesla is challenging the actions he made, arguing that the increased cost of imports would hurt the financial state of the company, the report said.

The case is labeled as Tesla Inc. v. U.S., 20-03142, U.S. Court of International Trade in New York, according to the report.

The company aimed to avoid the 25 percent tariffs on the Chinese-made computer and central display screens used in its Model 3 sedan.

“Avoiding a trade war will benefit all countries,” Tesla CEO Elon Musk said in April 2018. Tesla has built a gigafactory in China’s Shanghai after the U.S.-China trade war raged on.

Read alsoTesla exhibition to open in Budapest

First Cargolux flight from Shenzhen arrives in Budapest

shenzen budapest

The first Cargolux freighter from Shenzhen Airport arrived in Budapest this afternoon; the Boeing 747-400F type aircraft was greeted with a water canon salute in front of the BUD Cargo City logistics center. The new aerial connection is an important milestone, as a significant proportion of the e-commerce goods originating from China arrive in Central and Eastern Europe from the catchment area of Shenzhen.

Cargolux, one of the largest cargo airlines in the world, has launched a direct cargo flight on the Shenzhen-Budapest route. The Boeing 747-400F type aircraft operating the first cargo flight from Shenzhen in Budapest Airport’s schedule was greeted today on the apron of the BUD Cargo City, the airport’s new logistics center handed over this January.

Going forward, the flight will now commute once a week. 

The launch of the new flight could help create new economic and business relations between the Central and Eastern European region and China. Shenzhen, the city of innovation, is the most important financial and logistics center in Southern China, home to more than 14 000 high-tech companies. It is one of the most important players in the electronic and IT sector, serving as the headquarters of large tech companies. A large part of the e-commerce products brought to Central and Eastern Europe from China come from the Pearl River Delta Metropolitan Region, where Shenzhen is located; this is an approximately 80 billion euro market per year. 

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Dr. Rolf Schnitzler, the CEO of Budapest Airport highlighted: “We are delighted about the launch of this new Cargolux Shenzhen-Budapest flight, as it is a direct aerial connection that not only provides a huge advantage for companies in Hungary and Central and Eastern Europe, but also an opportunity for Budapest Airport to play a leading role in the logistics supply of the region – in e-commerce as well, amongst other things. The launch of this new route clearly shows that BUD Cargo City is performing well in these challenging times, and our long-term strategic partner, Cargolux is contributing to that.” 

“As a cargo-friendly airport, it is our mission to provide excellent connections for our freight partners located within our catchment area to the rest of the world, especially direct connections to cities and regions which are of strategic importance such as Shenzhen. This new flight opens up exciting new opportunities for forwarders in the region who will utilize this in the future,” said Kam Jandu, chief commercial officer for Budapest Airport. 

Budapest Airport handed over its new, 32 600 square meter air cargo handling complex in January 2020.

The Cargo City has been in full swing since then, and as the cargo gateway to Central and Eastern Europe, it serves as an important strategic hub in the fight against the coronavirus. The airport operator looks on air cargo as a key area, which is one of the stable, long-term pillars of Budapest Airport’s plans. The work to develop cargo is continuing; currently, the digitization of the industry, the better handling of special goods, such as pharmaceutical products and live animals and the further optimization of the operating environment are ongoing, amongst other things.

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