PowerPoint bemutat

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Hungary
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Hungary in the EU New opportunities for
foreign partners
By Ágnes Király-Végi PhD
The Hungarian Investment and Trade Development
Agency (ITDH) Los Angeles Representative
Office 11766 Wilshire Blvd. Ste 410 Los Angeles,
CA 90025 Tel [phone], Fax (310)
479-5119 itdlosangeles_at_hungariantrade.org,
www.itdh.hu
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Land 93,030 km² ( State of Indiana) Population
10.152 M GDP in 2002 USD 65,814 million
in May 2004
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Economic Achievements

• high integration with the EU in terms of trade
• heavy reliance on FDI as a driving force in the
  economy
• gross output per employee grew 2.4 times since
  1989
• the Hungarian financial system is one of the
  most developed in Central Europe
• the legal framework conforms to the international
  / EU standards
• the labour force provides a strong base for
  foreign business operations

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Economic Outlook Rankings, 2003
Source Euromoney
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U.S. Investments in Hungary
The amount of American investments in Hungary is
around USD 8 billion, which is app. 30 percent of
the total foreign direct investments flown to our
country.

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Major U.S. Investors in Hungary
8. Gödöllo - Lear Corp. 9. Ózd - GE
Hungary 10. Kisvárda - GE Hungary 11. Vác - GE
Hungary 12. Hajdúböszörmény - GE Hungary 13.
Orosháza - Guardian Glass 14. Tiszaújváros -
AES 15. Budapest - GE Hungary, PepsiCo Inc., IBM,
Sara Lee, GE Capital, Hotel Marriott, Philip
Morris, etc. 16. Balassagyarmat - Delphi -
Calsonic
1. Szentgotthárd - General Motor 2. Gyor - GE
Hungary 3. Zalaegerszeg - GE Hungary 4.
Nagykanizsa - GE Hungary 5. Székesfehérvár -
Alcoa, Ford Motor Co. 6. Dunaharaszti -
Coca-Cola 7. Veresegyház - GE Hungary
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Companies Involved in RD Activities in Hungary
Automotive Industry

• Audi
• Continental Teves
• Michelin
• Ikarus
• RÁBA
• Valeo Auto-Electric
• Knorr Bremse
• Luk Savaria
• Bakony Autóalkatrész Gyártó
• Visteon
• Magna Steyr
• Zeuna Starker
• General Motors
• ZF Hungária

Electronics
Pharmaceutical Industry

• Novartis/Sandoz Seeds
• Glaxo-Wellcome
• AstraZeneca

• GE Hungary
• Flextronics
• Ericsson
• Nokia
• Continental Temic
• Philips
• Elcoteq

Other

• Pannonplast
• Dunaferr
• BoschDraxImaier (Sokoró)
• AFT
• Zenon
• Electrolux

IT

• IBM
• Sysdata (Siemens)

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Hungarys Attractiveness as an Investment Site

• Productivity and qualifications of the workforce
• longest history of working with foreign
  investors
• management skills, teamwork
• high technical skills
• education system, training system
• Infrastructure, logistics
• Incentives
• Stability of the economy

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Trans European Corridors and Logistic Centers in
Hungary
V.Corridor
VII.Corridor
IV. CORRIDOR
Helsinki Corridors Public Road
V. Corridor
Railway
Water Way
V/B. Corridor
IV. Corridor
X/B. Corridor
Railway
Prospective
VII. Corridor
Public
Road
Logistic Centers ?
V/C. Corridor
Railway
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Incentives Provided by the Hungarian Government
Incentives in Hungary have been EU compatible
since January 2003.

• Tax type benefits
• Untaxed development reserve
• Gradual reduction of the itemised health care
  contribution
• Development tax benefit
• Tax allowance for RD activity, innovation and
  adult training
• The rate of corporate tax is the second lowest
  in the OECD
• Direct subsidies
• Support for European regional enterprise
  centres
• Subsidy for competitive investments
• Local tax allowance
• Special treatment

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Planned Changes in Taxes and Contributions from
2004

• Reduced corporate tax rate to 16
• More favourable conditions for the development
  tax benefit
• min. value of investment decreases to HUF 3
  billion (HUF 1 billion in less developed
  regions)
• job creation of 100 employees (50 in less
  developed regions)
• no limit for investment value in case of job
  creation of 300 employees (150 in less developed
  regions), out of which 20 are career starters
• granted for 10 years
• investment value of HUF 100 million suffices
  also in case of food hygienic investments
• 25 of pre-tax profit can be used as tax-free
  investment reserve
• Tax base benefit also for medium-sized
  enterprises
• Loss made from 2004 can be written off for an
  unlimited period
• 50 of fixed financial assets and exchange rate
  gain paid in the form of local tax is deductible
  from the tax base
  

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May 1, 2OO4
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Impacts of the EU Accession
Growth in trade and investment, improved business
climate

• Improved efficiency and transparency of business
• Inflow of EU funds
• Cheaper financing as a result of better risk
  ratings and increasing competition in the
  financial sector
• Benefit from pan-European distribution
  strategies, development of transportation routes

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The advantages of EU integrationfor companies
operating in Hungary

• Saves time and paperwork in customs
  administration
• Less customs duty because of extensive EU
  bilateral trade agreements
• No hold-up at border crossings
• Transparent and harmonised legal and tax system
• No exchange risk and conversion charges after
  Hungary joins the Euro zone presumably in 2008
• Increased competitiveness (regarding existing EU
  member states) especially in labour intensive
  sectors

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ITD Hungary

• Central office in Budapest
• Nation-wide network of domestic regional offices
• World-wide network of foreign trade offices

• Consultation and Advice
• Foreign Investment Promotion
• Export Promotion
• Business Matchmaking

• Information Services
• Publications
• Euro Info Center
• Conference Facilities

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For further information please contact our
office

• USA- Los Angeles
• Ágnes Király-Végi, PhD
• Deputy Director
• Hungarian Trade Commission,
• Consulate General of Hungary
• 11766 Wilshire Blvd., Suite 410
• Los Angeles, CA 90025
• T 310-479-7878
• F 310-479-5119
• E-mail itdlosangeles_at_hungariantrade.org

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• Thank you for your attention!

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Slides with additional useful information
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Planned Motorway Network for 2015
KASSAfelé
V
Tornyosnémeti
LVOV, KIJEVfelé
Tisza
POZSONY, PRÁGA felé
Miskolc
IV
Emod
Nyíregyháza
BÉCS felé
V
Polgár
Eger
Duna
Gyor
Füzesabony
Sopron
BUDAPEST
Debrecen
Tatabánya
Szombathely
Szolnok
Székesfehérvár
Veszprém
GRÁC felé
IV
Dunaújváros
ARAD, KOLOZSVÁRfelé
Rábafüzes
Kecskemét
Zalaegerszeg
LJUBJANA, TRIESZT felé
Bszgyörgy
Békéscsaba
Lelle
Kiskunfélegyháza
Nagykanizsa
V
ARAD felé
Szeged
Letenye
ZÁGRÁB felé
Szekszárd
Kaposvár
IV
V/A
Baja
Mohács
TEMESVÁR, BUKAREST felé
Nagylak
Röszke
Pécs
BELGRÁD felé
Ilocska
X/A
SZARAJEVÓ felé
V/C
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Extent of Government Support by Hungarian Regions
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Population with University / College Education,
2001
In percentage of the total population between the
ages 25-64 years
Source EU
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Universities and Colleges in Hungary
Number of students trained for IT in universities
and colleges
In 2001/2002

• Total number of students trained is 26,750.
• Students are trained at 3 universities and 7
  colleges.
• The time period of study is between 3-5 years.

Source Ministry of Education
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Impacts of the EU Accession
Growth in trade and investment, improved business
climate

• Reduced administration and time connected to the
  movement of goods
• Customs declaration need not be issued
• Less stringent regulations concerning the payment
  of VAT
• Customs clearance regarding exports to countries
  outside the EU will speed up due to modernisation
  
• No hold-up at borders within the extended
  European Union
• Lower transactional costs
• More ample choice for economic customs
  procedures operations, in some respects with
  more liberal regulations
• Simpler rules in the field of customs guarantees

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Foreign investors are expanding their sites in
Hungary in 2003
BOSCH --Holland co-- new electronic instruments
and automotive parts manufacturing site
(investment 150 M Euro) AUDI -- German co --
new automotive parts manufacturing site
(investment 250 M Euro) ING --Holland co--
European Regional Financial Administration
Center ELECTROLUX--Swedish co-- manufacturing
refrigerators (investment 65 M Euro) SYKES
--American co-- Call Center
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Impacts of the EU Accession
Benefits for U.S. Companies - I.

• Higher level of stability, democracy, security
  and prosperity as part of the EU.
• Transparency and simplification with
  harmonization of capital market regulations and
  of taxation and business accounting rules.
• Access to an extended market of some 480 million
  consumers for U.S. companies settled in Hungary.
• Simplified procedure in business administration
  when exporting to EU member states.
• Easier access to EU financial institutions and
  funds within the enlarged European Union.
• Drop in tariff rates from the current average 8.9
  to the EU level, 3.5 .
• Pan-European distribution strategies
• Inflow of EU funds

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Impacts of the EU Accession
Benefits for U.S. Companies - II.

• Reduce other trade barriers
• No need to re-certify goods destined for
  accession countries.
• No need to adapt products for small markets. US
  exporters will benefit as their product
  manufacturing cost will decrease.
• Conform to a single standard and certification
  process for the entire region.
• Rigorous enforcement of competition policy and
  intellectual property rights
• Cost of doing business in an enlarged EU will
  fall as US exporters consolidate sales
  organizations and simplify corporate structures. 
• Less stringent regulations concerning VAT
  payments.
• Easier access to EU government public
  procurements for U.S. firms.
• Large public sector investments. 
• Elimination of exchange risk and conversion
  charges after Hungary joins the Euro zone,
  presumably in 2008.

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Useful addresses

• Department of Commerce
• Central and Eastern Europe Business Information
  Center
• website www.mac.doc.gov/ceebic/
• Contact Michael Rogers
• T 212-482-2645
• michael_rogers_at_ita.doc.
  gov
• American Embassy Budapest - U.S. Commercial
  Service
• website www.usatrade.gov
• Contact Scott Bozek
• T 36-1-475-4090
• budapest.office.box_at_ma
  il.doc.gov

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Useful addresses

• American Chamber of Commerce in Hungary
• website www.amcham.hu
• Contact Péter Fáth
• T 36-1-266-9880
• E-mail
  beatrix.kovacs_at_amcham.hu

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Additional Websites

• Central Office of Statistics in Hungary
• www.ksh.hu
• Economic Forecast/News
• www.econews.hu
• Customs
• www.vaminfo.hu
• Ministry of Foreign Affairs
• www.kum.hu
• Ministry of Economy and Transportation
• www.gm.hu
• Ministry of Finance
• www.p-m.hu
• Hungarian National Bank
• www.mnb.hu
• Budapest Business Journal
• www.bbj.hu

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Creativity

• Power of ideas
• Tradition of innovation

John von Neumann
Dennis Gabor
Albert Szentgyörgyi
Eugene Wigner
Erno Rubik
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They are All from Hungarian Families

• George Pataki governor of NY
• Dennis Gabor Nobel prize awarded in 1971 for
  his investigation and development of holography
• John von Neumann - brilliant inventor of the
  binary code
• John Kemeny co-inventor of BASIC programming
• Oszkár Asbóth - inventor of the helicopter
• Peter Goldmark inventor of color television and
  scanning system
• Robert Barany Nobel prize awarded in Physiology
  or Medicine 1914 for his work on the physiology
  and pathology of the vestibular apparatus
  (balancing organ)

• László Bíró inventor of the ball-point pen
• Leo Szilárd physicist,
• ideas of nuclear chain reaction
• Ottó Bláthy inventor of the transformer
• József Galamb designer of
• Model T and Model A Ford
• Andrew Grove co-founder and chairman of Intel
  Corporation
• Edward Teller physicist, H-Bomb Inventor
• Albert Szentgyorgyi Nobel Laureate, discovery
  of vitamin C

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They are All from Hungarian Families
Larry Csonka, Super Bowl Runningback, Miami
Dolphins, 1971,72,73
Mariska Hargitay, Actress
Adrien Brody, Actor-Oscar Awarded for The
Pianist
Jerry Seinfeild, Actor, Comedian
Paul Newman, Actor
William Fox (Vilmos Fred) Founder of Fox Studios
Tony Curtis, Actor
Adolph Zukor, Founder of the Paramount Pictures
Empire and Loews Theatres
Drew Barrymore, Actress
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Lets meet in Budapest