Hungary: The Ideal for Biotechnology. Ábel Garamhegyi, Ph.D. Deputy State Secretary for Foreign Economic Affairs February 2006

Transcription

1 Hungary: The Ideal for Biotechnology Ábel Garamhegyi, Ph.D. Deputy State Secretary for Foreign Economic Affairs February 2006

2 H U N G A R Y Land: 36,000 sqr. miles Population: 10,080,000 people GDP (2005): USD 100 billion 2

3 1. Favorable Investment Environment 2. FDI Growth as the Main Focus of Government Policy 3. The U.S. Investments in Hungary 4. Investment Policy

4 1. Favorable Investment Environment Economy Location Infrastructure Productive, qualified, available workforce Capital attraction Dynamic macroeconomic growth, favorable real exchange rate Hungary: a bridge between East and West, 4 Pan-European Corridors Well developed telecommunication and highway infrastructure The highest labour productivity in the region, motivated and qualified workforce is available Highest FDI stock per capita in the region

5 1. Favorable Investment Environment Dynamic macroeconomic growth serves as the base for favorable investment conditions Q1-Q Gross Domestic Product (%) 3,5 2,9 4,2 4,1 Industrial production (%) 2,8 6,4 8,3 6,9 Exports (%-volume) 5,9 9,1 18,4 10,1 Imports (%-volume) 5,1 10,1 15,2 4,2 Consumer prices (%) 5,3 4,7 6,8 3,7 FDI* 3,2 1,9 3,7 2,8 Unemployment rate (%) 5,9 5,8 6,1 7,2 * Euro billion

6 SK SK A SLO SLO HR HR YU YU RO RO UA UA Parassapuszta Parassapuszta Vác Röszke szke Ilocska Ilocska Letenye Letenye Duna Dunaújv jváro ro s Eger Eger Veszpr Veszprém Gy Győr Tatab Tatabánya nya Kaposv Kaposvár Pécs cs Lelle Lelle Szeksz Szekszár d Sopron Sopron Moh Mohács cs Sz Székesfeh kesfehérv rvár Kecskem Kecskemé t Békéscsa scsa ba ba Ny Nyíregyh regyház a Miskolc Miskolc Kiskunf Kiskunfélegy legy háza za Debrecen Debrecen Füzesabony zesabony Em Emőd Baja Baja Polg Polgár V V/C IV X/A VIENNA VIENNA V V/A BRATISLAVA, BRATISLAVA, PRAHA PRAHA IV GRAZ GRAZ ZAGREB ZAGREB TIMISOARA, TIMISOARA, BUCAREST BUCAREST BELGRAD BELGRAD CLUJ CLUJ-NAPOCA, ARAD NAPOCA, ARAD LVOV, KIEV LVOV, KIEV KOSICE KOSICE Szolnok Szolnok IV V ARAD ARAD V Szeged Szeged Nagylak Nagylak Duna Duna Tisza Tisza BUDAPES BUDAPES T M30 M30 M3 M3 M3 M3 M35 M35 M4 M4 M8 M8 M4 M4 M0 M0 M2 M2 M8 M8 M15 M15 M1 M1 M81 M81 M86 M86 M9 M9 M70 M70 M7 M7 M6 M6 M9 M9 M56 M56 M5 M5 M43 M Szombathe Szombathe ly ly Zalaegerszeg Zalaegerszeg Nagykanizs Nagykanizs a M25 M25 Helsinki Corridors Highway Motorway Highway under construction Favorable Favorable Investment Environment Investment Environment Highways and motorways

7 1. Favorable Investment Environment Productive, qualified, available workforce 75 Labour productivity per person employed (GDP in Purchasing Power Standards per person employed relative to EU-25 ) EU-25 = Hungary Czech Republic Slovakia Poland * *Note: 2005 figures are Eurostat estimates Source: Eurostat

8 2. FDI Growth as the Main Focus of Government Policy EUR million EUR million Stock and inflow of Foreign Direct Investments Q1-Q Source: National Bank of Hungary

9 2. FDI Growth as the Main Focus of Government Policy FDI stock per capita in Central and Eastern European countries (the end of 2004) EUR Source: national banks Poland Slovakia Slovenia Czech Republic Hungary

10 2. FDI Growth as the Main Focus of Government Policy FDI stock* by industry (the end of 2004) Transport equipm ent Electrical and optical equipment Other m anufacturing Trade, repair of vehicles R eal estate and business activities Financial intermediatation Transport and comm unication Other Source: National Bank of Hungary *Excluding other capital

11 2. FDI Growth as the Main Focus of Government Policy Shared Service Centers in Hungary R&D centers Bosch, Zenon, Electrolux, IBM, Novartis, Astra Zeneca, Siemens, Nokia, Philips, Ericsson Regional call centers GE Hungary (European HQs), ING, Hewlett Packard, General Motors Financial centers Alcoa, BAT, Avis, Exxon Mobil, IBM, GE Electric, Diageo Outsourcing EDS, SYKES Logistic centers Renault Nissan, Porsche, Velder AG

12 3. The U.S. Investments in Hungary I. The ratio of U.S. investments is the highest in Hungary among the Central-Eastern-European countries U.S.A. 29% of total FDI in Hungary The U.S. is one of the leading foreign investors in Hungary Approx. USD 9 billion investment value About 1000 companies

13 3. The U.S. Investments in Hungary II. I Top U.S. investors in Hungary

14 4. Investment Policy I. Priority sectors of our investment policy Biotechnology ICT sector Automotive industry Shared service centers Logistics R&D Innovation High added value Knowledge based economy

15 4. Investment Policy II. I. Direct Subsidies for Investments 1. Tender applications in the framework of the Economic Competitiveness Operative Program (ECOP) 2. Special incentive package for strategic investors 3. Subsidy for employment creation and training II. Tax-related Incentives III. Supplier Development Program IV. One-stop Shop The Investment Incentive System

16 Contacts Ministry of Economy and Transport Ábel Garamhegyi, Ph.D. Deputy State Secretary for Foreign Economic Affairs H-1055 Budapest, Honvéd utca Phone: (36 1) Fax: (36 1) Internet: Hungarian Investment and Trade Development Agency (ITDH) György Rétfalvi, Chief Executive Officer H-1061 Budapest, Andrássy út 12. Phone: (36 1) Fax: (36 1) Internet:

17 Thank you for your kind attention!