Last year, most investments managed by HIPA are carried out by Indian companies in Hungary. According to Deputy Foreign Minister Laszlo Szabo, our main competitor is Mexico in the automotive industry. He said they did not care whether it is East or West – the only thing matters is business, Napi.hu says.
National economy results will be only in March, but GDP growth will be far above 3%, for which export greatly contributed – said Deputy Foreign and Foreign Economic Minister Laszlo Szabo in a discussion. A new foreign trade attaché team has established: 128 people work in 110 foreign representations, including 50 new specialists. The Head of Delegation – as a mini prime minister, CEO – manages the “company”, the foreign mission, i.e. they allocate tasks, said the deputy minister. He added: there were countries where the ambassador had not been on speaking terms with the diplomats, but now the embassies had understood the new tasks, Napi.hu says.
According to the experiences of the ministry, the investment climate of the foreigners is unbroken; there are 93 companies in the sight of the Investment Promotion Agency (HIPA). If these projects are implemented, 18 thousand new workplaces could be created. Last year, HIPA closed 60 projects: 10.7 thousand new jobs were created – after the 7-8 thousand in 2013 – through the investment of € 1.66 billion.
These investments make up the 1.6% of the projected GDP, 11.33% of the total investments. The highest investment value – close to half a billion euros – comes from Indian investors. Half of the sixty projects, nearly 30 linked to Government decision support (EKD), the largest automotive investments had around 10 per cent aid intensity. (The condition of EKD is a minimum of € 10 million investment value and at least 100 new jobs.) Napi.hu is waiting for the answer for their question about the total granted and exercised amount of aid. In the 2015 budget, HUF 10.4 billion was earmarked for EKD.
According to Napi.hu, vehicle industry is the first with more than 52 percent (EUR 868 million). It is followed by the renewable energy sector with € 199 million, and the chemical industry (€ 185 million) and service centers (SSC) followed with € 140 million. The latter created the most workplaces, 3,6 thousand, and there were 1,1 thousand new jobs in the electronics industry.
According to Szabo, Hungary is competing with Mexico in the automotive industry, there is half as much the labor cost as here, but here infrastructure and the qualification of the workers are better and the support system is better as well.
In the world, very high-quality consumer goods can be sold – one that you can take far on the basis of high added value. For example, canned goose liver, household chemical goods, industrial goods, furniture, and luxury products belong there.
A run-up can be experienced in the demand for confectionery products: in Mongolia, Hungarian products are market leaders and we also deliver marzipan and chocolate to Azerbaijan and Serbia. Goose liver and duck liver can be sold virtually any number in the world, as well as acacia honey – said the deputy minister. China’s buying a growing number of wine, three times more expensive than Western Europe.
But there are other projects too, such as water cleaning devices to Indonesia, Egypt and Qatar, and VET and higher education services.
Exim – since the introduction of the new structure in May 2012 – financed more than 500 customers. The 500th was Galvanplastik Ltd., which is a plastic car parts manufacturing family business. This year, 100-150 Hungarian SMEs would be drawn on the credit, but the deputy minister expects a much larger number, Napi.hu says.
Last year, Exim granted HUF 327 billion in loans, the total capital allocation is more than 600 billion – it has become one of the medium / large banks. Projects funded last year generated net export of HUF 252 billion, state tax revenues amounted to HUF 74 billion.
The Hungarian National Commercial House Co. Ltd.’s 25 planned bureaus are opened, covering the most important non-EU export markets in four continents. There are 410 transactions in progress in the worth of approximately $ 50 million. The number of offices would be doubled by the end of the year; new ones will also be opened in Mongolia and India so the network is largely ready. In some places, commercial houses must be closed, but instead of them new ones will be opened. Szabo expressed based on his international HR experience: 4% fluctuation is normal in an organization such a size, Napi.hu says.
In the middle of last year, 1200-1500 companies were – which were capable of exporting – in the trading house’s database, this number has increased to 2000-2300.
In connection with the office network, the aim is to become a self-sustaining system instead of the current 50 percent state funding in three years. Now, operating an office costs 10-15 thousand euros per month.
based on the article of Napi.hu
translated by BA