Budapest, November 16 (MTI) – From Jan. 1, Hungary’s state investment-promotion system will be overhauled so that budget support for investments is funnelled to companies not only on the basis of how many jobs they create but also taking into account their technological standards and value-added, the foreign affairs and trade minister said on Wednesday.
Péter Szijjártó told a news conference that central funding would be available to companies that bring new types of technology to Hungary as well as those that maintain existing workforce levels.
Further, the support system for training will also be transformed so as to ensure that part-time workers also gain access, he said. Also, related red tape will be cut, Szijjártó added, speaking at the unveiling of a 6.4 billion forint (EUR 20.6m) investment in Nagykőrös, central Hungary, by Japan’s SIIX Corporation, which is creating 300 jobs.
The government will provide a 1.3 billion forint non-refundable grant for the project.
Szijjártó added that the government’s economic policy priorises harnessing the flow of capital from east to west in Hungary, which already receives the highest capital investment among central European countries from East Asia.
Fully 151 Japanese companies have operations in Hungary — including 46 with production capacities — employing around 30,000 people and using cutting-edge technologies. The government has signed seven strategic agreements with companies from Japan, Hungary’s second most important trading partner from East Asia. Bilateral trade increased by 8 percent in the first eight months of this year compared with the same period of last year, Szijjártó said.
Koji Yanase, executive officer of the company and the managing director for SIIX Europe GmbH said the plant should be operational by the third quarter of 2017.
SIIX Corporation established its Hungarian manufacturing subsidiary at the end of October. The company has a manufacturing base in Slovakia as its production center in Europe. The Hungarian base is being set up “to respond to the expanded business in Europe, where further economic recovery is expected in the future.”