Transcript PowerPoint bemutató

Hungary – the right
place for your
investment
14th November 2013
Introduction of HITA
Who we are
• Governmental agency for investment promotion and trade development
• Main activities: consultancy, mediation, providing information, around 500
programs yearly
• Headquarters in Budapest
• 150 employees
• Supervising body: Prime Minister’s Office
Our services
Investment
Promotion
One-stop services
for foreign
investors
Trade
Promotion
Export
development
programs for
Hungarian SMEs
Supplier
Services
Enhancing
business between
foreign OEMs and
Hungarian
suppliers
Offices in Hungary and abroad
Domestic network
 Central office: Budapest
 15 regional offices outside Budapest
covering the whole country
Foreign network
 61 foreign offices in 47 countries all over
the world
 74 trade and investment counsellors
Investment promotion
Pre-decision
 Tailored information
packages on the
economy, industrial
sectors, incentives,
business
environment, supplier
network
 Assistance in location
search and
evaluation
 Organisation of site
visits and partner
meetings
Implementation
 Supplier search
 Providing
information on
permitting
procedures
 Assistance in
identifying incentives
 Intermediate Body
for VIP cash
incentive
(preliminary
information,
application)
Operations
 Expansion
assistance
 After care services
 Intermediary body
between the
government and the
companies
 Supplier search
Business environment
Hungary
Location: EU - a common market of more than 500 million people
Ukraine, Russia and the Balkans - market of 210 million consumers
Land: 93,030 km²
Population: ~10 million
GDP/capita,
at PPP (2012):
EUR 16,800/
USD 22,924
Source: Eurostat, OECD
Macroeconomic overview
EU
GDP
• EU-member since 2004
• GDP growth (2012): -1.8%
• Forecast (2013): +0.7%
External trade
and industry
• Export growth (2012): +2.0%
• Industrial production (2012): -1.7%
Employment
and wages
• Average gross wage (2012)*: €770.5
• Unemployment rate (2012): 10.9%
Inflation
Budget balance
• Inflation rate (2012): 5.7%
• Forecast (2013): 3.1%
• Government balance (2012): -1.9%
• Forecast (2013) : -2.7% (% of GDP)
Source: National Bank of Hungary, HCSO, Convergence Programme of Hungary 2013-2016
* Exchange rate: 1 EUR = 289,42 HUF
Most important aims of Hungarian economic policy
• Financial and fiscal stability
• Reducing public debt
• To raise the growth potential of the Hungarian economy
• To increase the level of labour market participation and
employment
• Enhancing competitiveness
Recent governmental measures for
competitiveness
• New labour code (effective from 1 July 2012 ) in favour of
employers
• New act on vocational training in favour of business needs
• Strategic agreements between the government and top
investors
• Job Protection Action Plan – cutting contribution payable by
employers for 5 prioritised employee groups
Competitive tax system
• Low corporate income tax:
• rate for the first HUF 500 million
(~ USD 2.3 million) of the tax
base is 10%;
• beyond HUF 500 million, it is
19%
• Flat personal income tax: 16%
European countries Corporate income tax
France
33.33%
Spain
30.00%
Germany
29.55%
UK
24.00%
Greece
26.00%
Czech Republic
19.00%
Slovakia
23.00%
Poland
19.00%
Hungary
10-19%
FDI in Hungary
Inward FDI stock
Percentage of GDP (2012)
90
80.30
80
67.70
70
57.40
60
45.80
50
42.40
34.10
40
30
20
10
0
Hungary
Czech
Republic
Slovak
Republic
Source: Eurostat, Hungarian National Bank, OECD
Poland
Romania
Slovenia
Inflow of foreign direct investment (2012)
(million USD)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Hungary
Source: UNCTAD
Czech
Republic
Poland
Slovakia
Romania
Bulgaria
Main investment decisions in 2013
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Coloplast, medical devices manufacturing
OPEL, engine manufacturing
ZF Lenksysteme, electric steering systems
Hankook, tyre manufacturing
Hewlett-Packard, IT
Sauflon, contact lens manufacturing
Procter & Gamble, personal care products manufacturing
General Electric, establishment of an oil & gas branch
Greif, shared service center
Bridgestone, tyre manufacturing
Jabil, electronics manufacturing
Thai President Foods, instant noodle manufacturing
Systemax, shared service centre
Bosch, R&D facility
1055 BUDAPEST, HONVÉD UTCA 20. TELEFON: (+36) 1 872 6699 FAX: (+36) 1 872 6699
WWW.HITA.HU
Chinese investments in Hungary: the success
story of Huawei
• 2004 - the Hungarian office established
• Employs ca. 200 people
• 2011 - production of telecommunication devices for the
EMEA Region (in contract manufacturing with Flextronics
and Foxconn - employing indirectly ca. 900 people)
• 2012 - European logistics centre operated by DHL (supplying
Europe, North Africa, the Middle East and Russia)
• 2013 - Strategic partnership agreement signed with the
Hungarian government
Chinese investments in Hungary: the success
story of ZTE
• 2005 – Hungarian office established
• Employs ca. 60 people
• Main activity: maintenance of telecommunication equipment
• 2010 - LTE technology infrastructure development for Telenor
• 2012 - network operation centre set up in Budapest to monitor
telecommunication networks in the South-East European region
• 2013 – signing of MOU with government, establishment of
European Mobile Phone Repair Centre
Focus sectors in investment promotion
Shared Service Centres
Automotive industry
• Booming sector with around 80
SSCs already operating in the
country
• One of Hungary's core industries,
accounts for 20 per cent of total
export
• More than 30,000 employees
involved
• Over 600 companies are present
employing 100 000 people
Life sciences
• History of over 100 years in
pharmaceutical manufacturing
• Approximately 250 research and
educational institutes related to
biotech
Focus sectors in investment promotion (cont.)
Electronics
ICT
• Hungary is the largest electronics
producer in Central and Eastern
Europe
• Outstanding cooperation
between educational institutions
and companies
• Significant footprint of prestigious
electronics firms
• Growing number of data centers
Logistics
• Strategic position in the heart of
the continent
• Highly developed transport
infrastructure
Benefit from a good balance of
quality and cost of labour
High quality education
Well trained, creative and flexible human capital
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World-renowned academic and
university background with
cutting-edge competence
International experience
Extended cooperation with
business sector
Source: Statistical Yearbook of Education, 2011/2012
Competitive average wages
Gross wages, industry (€)
2012 December
1600
1451
1400
1200
1000
1077 1072
945
800
600
400
200
0
Source: wiiw, Eurostat, national statistics
930
928
907
899
748
655
547
532
423
389
Take advantage of high-quality
infrastructure
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
Expanding motorway network
Warsaw, 10 hrs
Vienna, 1 hr
Rotterdam, 12 hrs
Prague, 5 hrs
Munich, 6 hrs
Hamburg, 8hrs
Kyiv 12 hrs
Bucharest, 10 hrs
Constanza, 12 hrs
Zagreb, 1 hr
Trieste, 6 hrs
Koper, 6 hrs
Road density
km/km2
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Source: IMD, World Competitiveness Yearbook, 2012
Ready-made industrial sites
More than 210 industrial parks are available for
manufacturing activity
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Green- and brownfield investments
Good access to highways
Excellent infrastructure services
Turnkey solutions
New technology and logistical parks
Warehousing
Customs arrangements
Forwarding
Administration (authority permits)
Financial services
Legal consulting
Extra services
Nyíregyháza, IP
Tatabánya, IP
Available incentives
Available incentives
* Preferred
local governments are located in Northern Hungary, Great Hungarian Plain (North and South) and South Transdanubia.
** According to preferred and most preferred micro regions.
*** Employment of min. 50 new students.
Free Enterprise Zones
903 communities provide several tax allowances for investors

Maximum 80% corporate tax relief for 10
years

Only HUF 100 million (EUR 0.33 million)*
investment is needed

0% in the first two years of employment
instead of 27%.

12.5% in the third year of employment
instead of 27%.
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0% in the first two years of employment
instead of 1.5%.
Development tax allowance
Social contribution allowance
Vocational training contribution allowance
Note: calculations are based on 300 HUF/EUR rate
HITA Investment sites in Free Enterprise Zones
Fényeslitke
Felsőzsolca
Szécsény
Tiszalök
Alsózsolca
Nyírbogdány
Bátonyterenye
Mezőcsát
Mátészalka
Fehérgyarmat
Nyírbátor
Csenger
Tiszafüred
Létavértes
Kunhegyes
Tiszaföldvár
Berettyóújfalu
Mezőtúr
Mezőberény
Tab
Kunszentmárton
Sarkad
Kistelek
Kaposmérő
Mórahalom
Industrial Park
Industrial Site
Industrial Hall
Maximum aid intensity
Eligible expenditure
Adjusted aid
ceiling
Up to EUR 50M
100 % of
regional ceiling
For part between
EUR 50-100M
50 % of regional
ceiling
For part exceeding
EUR 100M
34 % of regional
ceiling
Please note that the current incentive system is valid till end of 2013,
however it is expected to be effective till 30 June 2014!
Quality of life
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, recreation centres
throughout the country
Public golf courses
Rich cultural life
Excellent food and wine
Tibor Németh
Head of Trade Department
Embassy of Hungary
Phone: +359 2 963 1135
E-mail: [email protected]