Title: Investment Promotion Policy of the
1Investment Promotion Policy of the Hungarian
Government Deputy Minister Dr. Ábel
Garamhegyi September 4, 2007
2 H U N G A R Y Land 93,030 km² Population
10,055,000 people GDP (2006) 84,3 million
3WHY Choose Hungary?
- Factors that make Hungary an ideal location
- central location a real business centre in the
heart of Europe - economic and political stability
- availability of talented, creative, flexible and
qualified labor pool - professional, technical and foreign language
skills - reasonable and competitive labor costs combined
with high efficiency outstanding business
infrastructure in terms of telecom, power supply
and office space - outstanding quality of life
a great place to live and work
4Economic Policy New Equilibrium Programme
- emphasis on consolidation
- immediately and significantly improving the
financial equilibrium and meet the Maastricht
criteria in order to introduce the euro by
2010-2011 (nominal convergence) - improving long-term competitiveness and creating
the conditions for a rapid and sustainable
catching up to the EU average (real convergence) - Measures of the Programme
- cutting public expenditures (immediately)
- increasing tax revenues by
- broadening the tax base and simplifying the tax
system at the same time - structural reforms (health care, education, state
administration)
5Factors of the Favourable Business Climate
- dynamic macroeconomic growth,
- favourable real exchange rate
- highest FDI stock per capita in the region
- Hungary a bridge between East and West, 4
pan-European corridors - well-developed telecommunications and highway
infrastructure - highest labor productivity in the region,
motivated and qualified workforce is available
Economy
Capital attraction
Location
Infrastructure
Productive, qualified, available workforce
6FDI Inflow to Hungary
62 100
Stock of FDI in Hungary
Source National Bank of Hungary
7 FDI Stock by Industry and Country of Origin
Source National Bank of Hungary
8Competitive Advantages of Hungary Labour
Productivity GDP per person employed relative to
EU-25 (in purchasing power standards)
Source calculations of the Ministry of Economy
and Transport
9- Competitive Advantages of Hungary
- Attracting FDI
- FDI stock per capital
10- Labour Cost of Production of One Unit of GDP
(2006)
approximate values source calculations of the
Ministry of Economy and Transport
11 12Presence of Korean Companies in Hungary
Samsung SDI Samsung Electronics Samsung
EM Hankook Tire KDB Bank Daewoo Mirae Industry
Hanwha MGM LG-csoport Daidong Hungaria Dongwoo Pr
ecision Young Star ELC Engineering
- close to USD 1.2 billion in investment value
(est.) - more than 7,000 worklplaces
- about 40 enterprises
13 Success Stories Examples
- Hankook Tire Ltd.
- USD 620 million in investment value
- 1.500 new workplaces
- Samsung SDI Ltd.
- USD 260 million in investment value
- 1.300 new workplaces
14Incentive System of the Government
- Individual, non-refundable grant
- Tax allowance
- Job-creation grant
- Training subsidy
15Possible Fields of Investment
Additional Opportunities
Based on the number of Korean investors in
Hungary
- RD
- ICT sector
- Biotechnology
Other 8,5
Electronics 32,6
Automotive 58,9
16Thank you for your kind attention!
Dr. Ábel Garamhegyi, Ph.D. Deputy Minister
H-1055 Budapest, Honvéd utca 13-15. Phone (36
1) 374-2746 Fax (36 1) 374-2726 E-mail
garamhegyi.abel_at_gkm.gov.hu Internet
www.gkm.gov.hu