Hungary Your Partner in the European Union

Transcription

1 Eindhoven, 15. April 2010 Hungary Your Partner in the European Union Mrs. Agnes Henter Director Investment Projects

2 ITD Hungary: Non-profit agency founded by the Hungarian government aiming at: Integrated global network HQ in Budapest 15 offices in Hungary 56 offices worldwide Attracting and facilitating foreign direct investments Developing international relations and trade Promoting outward capital investments

3 AGENDA THE HUNGARIAN MACRO ENVIRONMENT COMPETITVENESS IN KEY SITE SELECTION FACTORS HUNGARIAN BOOMING SECTORS HUNGARIAN INVESTMENT PROJECTS SERVICES of ITD Hungary

4 THE HUNGARIAN MACRO ENVIRONMENT

5 A market of 250 million people within 1000 km Hungary 1000 km Land: 93,030 km² Population: 10,1 million GDP/capita, at PPP: EUR 16,000/ USD 18,810 (2009) (wiiw, EIU)

6 Recovery in Market growth GDP per head (USD at PPP) GDP (%) -1% 2.8% 3.9% 3.7% Stability Inflation (%) 3.8% 2.8% 2.4% 2.0% Budget balance (% of GDP) Current account balance (mill. USD) -3.9% % -2.6% Exchange rate (USD) Competitiveness Average wages (monthly, USD) FDI inflow (billion USD) Source: Economist Intelligence Unit, December 2009

7 FDI stock by country of origin (volume of investment) Stock of FDI amounts to more than EURO 60 billion in 2009 Major investors: Germany, the Netherlands, Austria (Europe: 82%) 23% 25% Germany Netherlands Austria United Kingdom France 2% 1% 2% 1% 6% 14% United States Luxemburg Norway Belgium Switzerland 5% 5% 3% 13% Italy Other Source: National Bank of Hungary, 2009

8 Major Dutch Companies in Hungary Cca. EUR 9 billion investment value / 200+ companies/ employees / 2nd largest investor Philips Akzo Nobel-Organon DAF Paccar Unilever Friesland Heineken Sara Lee / Douwe Egberts Royal Dutch Shell Primagaz ING Aegon Getronics OCÉ

9 COMPETITVENESS IN KEY SITE SELECTION FACTORS

10 Strengths of the Hungarian labour force Competent senior managers Finance skills Availibility of skilled labour Working hours ('000) Labour regulations Knowledge transfer between companies and universities Availibility of qualified engineers Hungary Slovak Republic Czech Republic Poland Source: IMD Competitiveness Yearbook, 2009

11 Strong scientific capacity The World Economic Forum ranks Hungary 23rd of 131 countries for the quality of scientific research institutions Country Ranking Switzerland 1 USA 2 Germany 5 Czech R. 19 Austria 21 Hungary 23 Slovenia 26 China 35 Spain 44 Poland 48 Greece 77 Slovakia 86 Source: Global Competitiveness Report, World Economic Forum, 2009/2010

12 Excellent access to key markets At the cross roads of 4 main European transportation corridors Extensive road and railway transportation network Highly developed logistics and telecommunications infrastructure

13 Hungary 3rd in European Distribution Report Cushman&Wakefield evaluated the European logistics sector: Hungary ranks 3rd in the key cost-benefit factors CEE is a much sought after logistics and distribution location Hungary offers a plentiful supply of land and available properties Source: Cushman&Wakefield; European Distribution Report, 2008

14 Expats like Hungary International schools in Budapest British, American, German, French, Chinese, Japanese, Austrian etc. Private medical services Well-known across Europe Entertainment facilities Thermal baths, wellness, recreations centres throughout the country Public golf courses Rich cultural life Excellent food and wine

15 Tailor-made incentive system 1. Cash subsidy for strategic investments Non-refundable Coordinated by ITD Hungary 2. Corporate tax allowance 80% of corporate tax may be deducted for up to 10 years Minimum EUR 10 m investment with 150 new jobs in developed regions and EUR 3.3 m with 75 new jobs in high unemployment regions 3. Job creation subsidy Non-refundable Available in less and least developed micro-regions and settlements 4. Training subsidy Independent of intensity ratio From 50% to 90% of total training costs, depending on the type of training and location of the investment

16 Intensity map Maximum subsidy intensity ratios defined by the EU Komárom- Győr-Moson- Esztergom Sopron Nógrád Budapest Heves Borsod- Abaúj- Zemplén Hajdú-Bihar Szabolcs- Szatmár- Bereg Vas Veszprém Fejér Pest Jász- Nagykun- Szolnok Zala Somogy Tolna Bács-Kiskun Csongrád Békés Investment band as percentage of the intensity ratio Up to EUR 50 million 100 % For the part between EUR million 50 % Baranya For the part over EUR 100 million 34 % *after 2011: 10% 25%* 30% 40% 50% less developed regions + 10 % for medium enterprises + 20 % for small enterprises

17 Hungarian BOOMING SECTORS

18 ICT & software development Several major well known software developers are present, including IBM, HP, Siemens, CISCO, SAP, Oracle and TATA Several IT companies, such as BT, EDS-HP and Getronics operate technology service centres in Hungary Strong cooperation between business and academia in R&D (IBM, CISCO, Oracle and SAP)

19 Automotive Original manufacturers: Suzuki, Audi Suzuki: 282,000 pcs (2008) Audi Motor: 60,000+ TT coupés and roadsters, A3 cabriolet Engine manufacturing (2008): Audi Hungary: 1.9 million engines GM Opel: 400 thousand engines Automotive electronics prod.+r&d: Bosch, ThyssenKrupp, Knorr Bremse, etc. TIER 1s:14 of the world s top 20 present in Hungary World s 2nd largest powertrain plant in Hungary by Audi!

20 Electronics Largest electronics producer and exporter in the CEE Major global manufacturers: Samsung, GE, Philips, Sanyo, Sony and Jabil, Flextronics Booming sectors: IT manufacturing telecommunications, consumer electronics Hungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial culture. Hannu Hanatala, Managing Director, Elcoteq

21 Renewable energy Hungary plans to reach 13% of RES in total energy production by 2020 Major areas of growth: biomass, biogas, wind power Compulsory feed-in tariff of between 5-13 cents depending on plant size EU provides EUR 600 million to support renewable energyrelated investments Emerging solar panel technology industry

22 Logistics The logistics sector gives 4,5-5 % of the Hungarian GDP Logistics activities are the most often outsourced Integrated Supply Chain 6 solutions and logistics services 4 provided by global contract 2 logistics players Dynamic growth of the logistics market e 2007e 2008f 2009f 2010f 2011f 2012f Turnover in billion USD

23 What happened in 2008/2009? DAF: established distribution centre in Zsámbék (2008) Pfizer: relocated its Central-Eastern-European Distribution Centre to Hungary, supplies 15 countries from here (2008) Porsche Parts: further expansion in Törökbálint (2008) Spar: opened new logistics centre in Üllő (2008) Rail Cargo Austria: acquired MÁV Cargo (2008)

24 Innovation in Hungary Large presence of multinationals investing into R&D activities Continuously expanding R&D investments in automotive manufacturing, software development and life sciences Latest developments: Life sciences AMRI (USA), Codexis, Richter EGIS-Servier Sanofi ICT Ericsson (Sweden) SAP Oracle Automotive Schefenacker, ZF, Knorr-Bremse, Valeo, Bosch

25 What happened in 2008/2009? Hungary location of superlaser project In 2009 the European Commission decided to grant the Extreme Light Infratsructure Project to the Czech Republic, Hungary and Romania The ELI will be the only European and International Centre for high-level research on ultrahigh intensity laser, laser-matter interaction and secondary sources With 300 researchers, the Szeged Attoscience centre will be one of the major laser science centres globally In 2008 the European Technology Institute opened its headquarters in Hungary In summer 2008 EU ministers chose Budapest to host the headquarters of the European Institute of Innovation and Technology The institute concentrates on energy, climate change and information technology

26 HUNGARIAN INVESTMENT PROJECTS

27 Hungarian Investment Projects (HIP) Competitive projects for financial and strategic investors : More than 40 outstanding innovative projects Biotechnology (15): 1,000,000-15,000,000 (ROI: 3-8 years) ICT (5): 200,000-1,000,000 (ROI: 1-5 years) Renewable Energy (10): 500, ,000,000 (ROI: 5-10 years) Tourism (10): 25,000, ,000,000 (ROI: 8-20 years)

28 StartUP Projects of Tóth Group Universal telescope: as portable sized observation equipment, monocular with astronomic capacity, microscope and/or camera objective at the same time. The project is after prototyping phase. Natural - preservation: used for canned products without added preservatives. We are looking for packaging (canning) firms. Impetus based engine: use electric or motion energy, can be applied for the effective development of environment friendly transportation. We are looking for a company dealing with mechanical R&D.

29 SERVICES of ITD Hungary

30 One-stop-shop services of ITD Hungary Investment Promotion Decision Sector-specific information on business climate Location offers aligned with business strategies Fact-finding-tours (introducing prospective sites, utility environment, talent, land and variable operating costs) Contacts to local governments, authorities, suppliers, vendors, service providers Implementation Faster project execution by coordinating: available cash and tax incentives permitting procedures, selection of vendors, construction and utility firms Aftercare Follow-up to support and generate reinvestments Recommendations to improve business climate

31 Investment Promotion Results I. Lead Generation Contact with 10,000 companies/year About 150 events in 2009 III. Implementation Administrative one-stop shop for investors implementation projects in 2009 II. One-Stop Shop 358 projects/year 27 realized investment in 2009 Euro 895 million investment in ,461 new jobs in 2009 IV. After Care 25 potential reinvestment in after care events with about 230 companies all over Hungary Generating new investments (manufacturing, R&D, service centre) Ongoing advocacy, and follow-up of the potential investment projects

32 ITD Hungary is the 14 th best IPA in the World in 2009 ITD Hungary s project management services are outstanding TOP National IPIs

33 Achievements of investment promotion 27 positive investment decisions by the assistance of ITD Hungary in 2009 Positive projects in the North-Eastern part of Hungary Patec Automotive sector Miskolc: 8 million EUR, 70 new workplaces Technica Ungheria Logistics Ltd. Light industry sector Nagykálló: 16 million EUR, 30 new workplaces VODAFONE Call Center SSC sector Miskolc: 2 million EUR, 300 new workplaces Renewable Energy sector Miskolc: 209 million EUR, 377 new workplaces Forrás: ITD Hungary

34 Thank you for your kind attention! Mrs Agnes Henter Director Investment Projects ITD Hungary - The Hungarian Investment and Trade Development Agency H-1061 Budapest 12 Andrássy street T: (direct) F: agnes.henter@itd.hu Internet: