Columbia FDI Profiles

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1 Columbi FDI Profiles Country profiles of inwrd nd outwrd foreign direct investment issued by the Vle Columbi Center on Sustinble Interntionl Investment June 24, 2010 Editor-in-Chief: Krl P. Suvnt Editor: Thoms Jost Mnging Editors: Zehr Guly Kvme, Delphine Ppud nd An-Mri Poved-Grces Outwrd FDI from Hungry nd its policy context by Mgdoln Sss nd Klmn Kloty Outwrd foreign direct investment (OFDI) from Hungry hs wethered the current crisis reltively well, lthough its volume is still moderte for country clssified s high income but not necessrily if compred with other new Europen Union (EU) members. The Hungrin OFDI stock is highly concentrted in five big compnies. Government policy hs so fr focused more on vigorous promotion of inwrd FDI thn on helping outwrd investors. However, it sometimes protects strtegic Hungrin OFDI firms from hostile tkeovers. The min question for the future of Hungrin OFDI is how its sustinbility cn be ssured, especilly by wy of brodening the compny bse of cpitl exporters. Trends nd developments In terms of the volume of its OFDI stock, Hungry is the second lrgest source of outbound investment mong the new EU member countries, not fr behind Polnd, whose popultion is four times lrger (nnex tble 1). Hungry ws mong the countries tht, during the erly stge of trnsition, bsed their strtegy of development nd reinsertion into the world economy on inwrd FDI. 1 Nevertheless, s erly s 1997, hndful of Hungrin firms hd overcome the difficulties of trnsition, hd mnged to keep their mngement in locl hnds (lthough some of them hve ccumulted lrge mounts of foreign portfolio investment in their shreholding) nd hd strted expnding brod, especilly in neighboring countries. 2 Hungrin ffilites of foreign multintionl enterprises (MNEs) lso invested brod. However, up till tody, inwrd FDI flows nd stocks hve exceeded OFDI flows nd stocks. Mgdoln Sss (sss@econ.core.hu) is Senior Reserch Fellow t the Institute of Economics of the Hungrin Acdemy of Sciences, Budpest, Hungry. Klmn Kloty (klotyk@gmil.com) is Economic Affirs Officer t the United Ntions Conference on Trde nd Development, Genev, Switzerlnd. The uthors wish to thnk Gábor Huny nd Eric Rugrff for their helpful comments. The views expressed by the individul uthors in this rticle do not necessrily reflect those of Columbi University, the uthors respective institutions, or their prtners nd supporters. Columbi FDI Profiles is peerreviewed series. 1 Mgdoln Sss, The effectiveness of host country policy mesures in ttrcting FDI: the cse of Hungry, in Americo Bevigli Zmpetti nd Torbjörn Fredriksson, eds., The Development Dimension of FDI: Policy nd Rule-Mking Perspectives (New York nd Genev: United Ntions, 2003), pp UNCTAD, World Investment Report 1997: Trnsntionl Corportions, Mrket Structure nd Competition Policy (New York nd Genev: United Ntions, 1997), pp

2 Country-level developments The growth of Hungry s OFDI ccelerted fter 2000, mking Hungry reltively importnt outwrd investor mong the new EU members, both in terms of volume nd of reltive importnce of OFDI for the country s economy. Compred to GDP, Hungry is clerly hed of the Czech Republic nd Polnd in its OFDI stock, lthough the difference hs diminished since Between 2000 nd 2005, Hungry s OFDI stock incresed more thn sixfold, nd doubled gin between 2005 nd 2007 (nnex tble 1). Therefore, the rtio of outwrd to inwrd FDI, which reched historicl low s result of mssive FDI inflows in 1995 (2.5%), rose stedily, reching 18% in 2007 nd 22% in 2008 (nnex tble 1). However, this rtio is higher both in certin smll new EU member countries (Estoni, Sloveni) nd in the Russin Federtion (with the exception of the crisis yer 2009). Russi follows different development strtegy bsed on outwrd FDI, while Estoni is used s pltform for OFDI by Scndinvin firms for investing in other Bltic countries nd the Commonwelth of Independent Sttes, nd Sloveni is cpitlizing on its inherited connections with former Yugoslv republics. Hungry s position is similr when mking regionl comprison of OFDI flows: for exmple, in nd in 2009, it ws in third position, behind the Russin Federtion nd Polnd, lthough in 2008 both Polnd nd Hungry were surpssed exceptionlly by the Czech Republic (nnex tble 2). The sectorl composition of Hungry s OFDI chnged mrkedly in the 2000s. In 2000, services (including finncil services nd trde) represented lmost four-fifths of the totl OFDI stock (nnex tble 3). Mnufcturing grdully gined importnce, ccounting for lmost 40% of the totl OFDI stock in There ws lso mrked increse in the shre of mining nd qurrying, reching lmost 7% in Other industries plying n importnt role in Hungrin OFDI include coke nd refined petroleum, finncil intermedition, chemicls (including phrmceuticls), electricl nd opticl equipment, nd business services. The geogrphicl distribution of Hungry s OFDI follows on the one hnd - the sme ptterns s the OFDI of other emerging mrkets: 3 Hungrin MNEs trget minly neighboring countries t similr or lower level of development (nnex tble 4). Eleven geogrphiclly close countries, including Slovki (20%), Croti (8%) nd Bulgri (6%), host lmost 55% of the totl Hungrin OFDI stock. 4 On the other hnd, specultive investments, sometimes imed t tx optimiztion, explin the reltively importnt shres of Cyprus, Luxembourg, the Netherlnds, nd Switzerlnd. One-off lrge trnsctions result in (temporry) surges of shres for certin countries. Such is the cse for the Republic of Kore in 2006 or, more recently, for Centrl Americ (one del in the Netherlnds Antilles). The corporte plyers One of the most importnt fetures of Hungrin OFDI is its concentrted nture in terms of investing compnies. Altogether, the estimted number of Hungrin MNEs is 7,000, including mny smll nd medium-sized enterprises (SMEs). However, ccording to our estimtes, the country s five lrgest MNEs (MOL, OTP Bnk, Mgyr Telekom, MKB Bnk, Gedeon Richter) ccounted for t lest 65% of the totl OFDI stock in 2008 (nnex tble 5). 3 Dilek Aykut nd Andre Goldstein, Developing country multintionls: south-south investment comes of ge, OECD Development Centre Working Pper No. 257 (Pris: OECD, 2006), mimeo. 4 This is in line with the findings of grvity models on bilterl FDI in the region. See, for exmple, Christin Borrmnn, Rolf Jungnickel nd Dietmr Keller, Wht grvity models cn tell us bout the position of Germn FDI in Centrl nd Estern Europe, HWWA Discussion Pper No. 328 (Hmburg: Hmburg Institute of Interntionl Economics, 2005), mimeo. 2

3 This concentrtion explins the voltility of nnul OFDI flows, s well s the sectorl nd geogrphicl distribution of OFDI. This is the reson, for exmple, for the high shre of mining nd qurrying (MOL), coke nd refined petroleum (MOL), finncil intermedition (minly OTP nd MKB Bnk), nd phrmceuticls nd chemicls (Richter Gedeon, BorsodChem nd TVK) in Hungrin OFDI. The mnufcturing of electricl nd opticl equipment is the second most importnt industry within mnufcturing, which my be connected to the foreign ctivities of Smsung 5 nd Videoton. The lrgest cross-border cquisitions re lso crried out by these few dominting firms, minly in neighboring or geogrphiclly close countries, nd often relted to privtiztion dels (nnex tble 6), in which Hungrin MNEs benefit from first mover dvntges. By the time privtiztion hd strted in neighboring countries, some Hungrin firms such s MOL nd OTP hd lredy become privte firms, redy to invest brod. The sme lrge Hungrin MNEs, s well s the rel estte firm TriGránit, re lso the most ctive ones in key foreign greenfield projects (nnex tble 7). Hungrin compnies invest brod predominntly with mrket-seeking motive. There re few efficiency-seeking MNEs, such s the electronics firm Videoton, which hs cquired compny in Bulgri with the im of trnsferring there its most lbor intensive ctivities. At the other extreme, there re lso SMEs investing brod, some of them in frwy plces (they could be clled born globls ). 6 They estblish offices on more developed mrkets (for exmple in Western Europe or in the United Sttes) in order to be closer to their min customers nd competitors. In Hungry, such compnies operte minly in high-technology industries, such s informtion technology, softwre or medicl instruments. For exmple, the 3DHistech compny, medicl instruments producer, set up smll ffilites in Germny nd in the United Sttes. Thles Nnotechnologies, biotechnology firm, estblished offices in the United Kingdom nd in the United Sttes. However, this type of OFDI represents only minor shre of the totl. 7 Similrly to MNEs from other new EU member countries, Hungrin MNEs cn be ctegorized into four min groups: genuine, foreign-controlled, virtully foreigncontrolled, nd formlly hedqurtered elsewhere : Genuine MNEs ownership is mostly locl nd their mngement is Hungrin. Exmples include Jászplsztik, first tier supplier of Smsung nd Electrolux, which estblished n ffilite in Glnt, Slovki, following Smsung s investment there. Foreign-controlled MNEs 8 re foreign ffilites locted in Hungry tht, for vrious resons, hve invested brod from their Hungrin bse. Exmples include Mgyr Telekom (mjority-owned by Deutsche Telekom) or the Dunpck pper mill (controlled by Austri s Mosburger). The FDI crried out by these firms cn be clled indirect investment. 9 5 Smsung (Republic of Kore) relized its Slovkin investment prtly through its Hungrin ffilite. 6 Tge Koed Mdsen nd Per Servis, The interntionliztion of born globls: n evolutionry process?, Interntionl Business Review, vol. 6, no. 6 (1997), pp Ktlin Antlóczy nd Andre Éltető, Outwrd foreign direct investment from Hungry: trends, motivtions nd effects, in Mrjn Svetlicic nd Mtij Rojec, eds., Fcilitting Trnsition by Internliztion: Outwrd Direct Investment from Centrl Europen Economics in Trnsition (Aldershot: Ashgte, 2003), pp Eric Rugrff, Strengths nd weknesses of the outwrd FDI pths of the centrl Europen countries, Post-Communist Economies, vol. 22, no.1 (2010), pp Wilfried Altzinger, Christin Bellk, Andre Jklic, nd Mtij Rojec, Direct versus indirect foreign investment from trnsition economies: Is there difference in prent compny/home country impct?, in Svetlicic nd Rojec, op cit., pp ; Wldimir Andreff, The new multintionl corportions from trnsition countries, Economic Systems, vol. 26, no. 4 (2002), pp

4 In virtully foreign-controlled Hungrin MNEs, foreign portfolio investors hold the mjority of shres, but do not hve controlling stke. As result, the mngement is Hungrin, nd ll decisions re tken in Hungry. This group of MNEs deserves prticulr ttention becuse, in the literture, it is ssumed to be prt of the foreigncontrolled group, while, in substnce, it is closer to genuine MNEs. We cll FDI relized brod by these firms virtul indirect investment, s opposed to the rel indirect investment of firms such s Mgyr Telekom. Out of the list of the most importnt investor compnies, MOL, OTP nd Richter (nnex tble 5), s well s Synergon (not in the tble), belong to this ctegory. The dispersion of ownership is result of the fct tht these firms were privtized through the Budpest Stock Exchnge. As one exmple, the mjority (more thn 65%) of OTP Bnk s shres were owned by foreigners in 2009, lthough none of them lone controlled more thn 10%, nd only three of them (Artio Globl Mngement of United Sttes, 9%; three Russin privte persons, 8%; nd Groupm, Frnce, 8%) exceeded 5%. Domestic investors owned together 22%, the Government 0.5%, nd the mngement 11%. 10 Decisions of strtegic importnce, including those bout foreign cquisitions, re tken by the Hungrin mngement. The most slient exmple of Hungrin MNEs whose forml hedqurters re locted elsewhere but whose mngement is mostly Hungrin, nd whose decisions re tken in the Hungrin bse, is the rel estte firm TriGránit (registered officilly in Budpest but mjority-owned by Cyprus-bsed prent compny owned by Hungrin privte person). For nlyticl purposes, these compnies hve to be considered Hungrin MNEs, lthough it is nerly impossible to include them in the sttistics, given methodologicl difficulties such s the ccounting of domestic versus foreign ctivities. Effects of the current globl crisis The globl crisis ffected Hungrin OFDI reltively quickly, given the structurl weknesses of the Hungrin economy. In 2008, OFDI flows declined by 56%, followed by modest recovery (5%) in 2009 (nnex tble 2). The drop in 2008 ws relted to hlt in lrge cross-border M&A dels tht yer. In most other countries of the region (except Estoni), the decline in FDI outflows did not strt before However, the decline in Hungrin OFDI ws not exceptionl by globl stndrds. In 2008, the decline in outflows ws lrger thn the world verge (-13%), but its recovery in 2009 ws going ginst globl decline of bout 39%. As for OFDI stock, it grew till 2008 (nnex tble 1), nd declined by 3% in 2009 s Hungrin ssets brod devlued. This deprecition of the OFDI stock ws reltively mild in interntionl comprison (nnex tble 1). The reltive resilience of OFDI is surprising given the shrp drop in Hungrin GDP (-6.3% in 2009, cused mostly by 17.7% drop in mnufcturing production) 11 nd the contrction in the mrket vlue of Hungrin firms. In 2008, the index of the Budpest Stock Exchnge (BUX), where most of the lrge Hungrin compnies re quoted, contrcted by 53%, lthough it recovered to 82% of the Jnury 2008 vlue in The decrese in homecountry revenues reduced the scope of equity nd other investments by Hungrin MNEs, while lower host-country revenues were trnslted into smller reinvested ernings According to dt from the Centrl Sttisticl Office ( 12 According to dt from the Budpest Stock Exchnges ( 4

5 Anecdotl evidence shows tht certin Hungrin MNEs hd to postpone or reduce projects due to difficulties of finncing, s ws the cse with TriGránit in Zgreb, Croti. The crisis nd the drying-up of finncil resources lso reveled the vulnerbility of Hungrin MNEs to tkeovers or tke-over ttempts by MNEs from other countries. To dte, the most importnt ttempt hs been undertken by Russi s oil firm Surgutneftegz, which cquired 26% of the shres of MOL from Austri s OMV in Mrch So fr, MOL hs prevented tke-over by invoking compny rule ccording to which no shreholder cn hve more thn 10% voting rights, irrespective of the mount of shres it owns, nd dministrtive difficulties in properly registering the new Russin shreholder for the compny s generl ssembly. 13 However, the cse is still beynce t the moment of writing this nlysis. The policy scene Being EU member, Hungry s policies re frmed by the Lisbon Trety nd the treties concluded by the EU, s well s by the bilterl investment treties (BITs) signed by the Hungrin government (57 in force in 2009). 14 These cover ll mjor trget economies of Hungrin OFDI. There re lso government gencies nd institutes offering ssistnce to OFDI. The institutionl frmework hs undergone chnges over time; however, the three min res of support (subsidized informtion nd consultncy services; investment finnce nd insurnce; lobbying brod) hve remined the sme. Informtion nd consultncy services re provided (nd business meetings re orgnized) by the Hungrin Investment nd Trde Development Agency ITDH (n integrted gency, promoting inwrd nd OFDI, exports nd SMEs), nd some chmbers of commerce (ntionl, regionl, bilterl). Finnce nd insurnce is provided by the stte-owned Corvinus Group nd by the Hungrin Development Bnk. Both of these gencies support mostly OFDI by Hungrin SMEs. Corvinus lso mintins n informtion system on investment opportunities in Hungry nd brod, in nd outside the EU. In ddition, Hungrin MNEs nd government gencies crry out some lobbying brod, especilly relted to privtiztion dels, lthough no forml institution exists in tht re. According to compny interviews, the first two services, nmely subsidized informtion nd consultncy services nd investment finnce nd insurnce, re minly used by SME foreign investors, while lrge investors re more likely to rely on lobbying. The ltter consider tht the lobbying ctivity of the Hungrin Government nd its foreign representtives is weker thn tht of countries with longer history of OFDI. This is especilly problemtic in the cse of lrge privtiztion dels, which re prticulrly importnt s mode of entry for lrge Hungrin investors brod. 15 Conclusions nd looking to the future So fr, Hungry s strtegy of interntionl competitiveness hs been bsed on inwrd rther thn on outwrd FDI. However, over time, the ltter hs gined in importnce, despite the finncil crisis tht hs hit Hungry hrd. The future of Hungrin OFDI is difficult to predict s the er of uncertinty is fr from being over t the time of writing this Profile (June 2010). In ddition, with chnge in government (nd potentilly government policies) in Hungry, 13 Klmn Kloty, The politicl spect of foreign direct investment: The cse of the Hungrin oil firm MOL, The Journl of World Investment & Trde, vol. 11, no. 1 (2010), pp See www1.pm.gov.hu/web/home.nsf/portlrticles/16e5406f25e730f2c1256e1a004373a4?opendocument. 15 ICEG Europen Centre, Bckground studies for the updte of Hungrin Externl Economic Strtegy (2007) ( 5

6 pproches towrd Hungrin MNEs my chnge. One of the lessons drwn from Hungrin OFDI strtegies is tht foreign cquisitions re n impertive to prevent hostile tkeovers by competitors. Thus, Hungrin MNEs will most probbly continue to increse their presence in geogrphiclly close countries, reping especilly the benefits from privtiztion. Moreover, some indigenous firms, those tht wethered the crisis well nd re incresingly sensitive to wge costs, re expected to trnsfer in the future their most lbor-intensive ctivities to nerby countries. These cn be minly SMEs in the lbor-cost sensitive metl, plstic nd mchinery industries. High-technology SMEs could lso be importnt sources for potentil OFDI, though the volume of their trnsctions is expected to remin smll. Additionl redings Antlóczy, Ktlin nd Andre Éltető, Outwrd foreign direct investment from Hungry: trends, motivtions nd effects, in Mrjn Svetlicic nd Mtij Rojec, eds., Fcilitting Trnsition by Internliztion. Outwrd Direct Investment from Centrl Europen Economics in Trnsition (Aldershot: Ashgte, 2003), pp Antlóczy, Ktlin nd Mgdoln Sss, Emerging multintionls: the cse of Hungry, Conference on emerging multintionls: Outwrd Foreign Direct Investment from Emerging nd Developing Economies, Copenhgen Business School, Copenhgen, Denmrk, October 9 10, 2008 (vilble t: Kloty, Klmn, The politicl spect of foreign direct investment: the cse of the Hungrin oil firm MOL, The Journl of World Investment & Trde, vol. 11, no. 1 (2010), pp Rugrff, Eric, Strengths nd weknesses of the outwrd FDI pths of the Centrl Europen countries, Post-Communist Economies, vol. 11, no. 1 (2010), pp Sss, Mgdoln, FDI in Hungry: the first mover s dvntge nd disdvntge, Europen Investment Bnk Ppers, vol. 9, no. 2 (2003), pp * * * * * Copyright Columbi University in the City of New York. The mteril in this Profile my be reprinted if ccompnied by the following cknowledgment: Mgdoln Sss nd Klmn Kloty, Hungry s outwrd FDI nd its policy context, Columbi FDI Profiles, June 24, Reprinted with permission from the Vle Columbi Center on Sustinble Interntionl Investment ( A copy should kindly be sent to the Vle Columbi Center t vcc@lw.columbi.edu. For further informtion plese contct: Vle Columbi Center on Sustinble Interntionl Investment, Zehr G. Kvme, (212) , Zkvm1@lw.columbi.edu. The Vle Columbi Center on Sustinble Interntionl Investment (VCC), led by Dr. Krl P. Suvnt, is joint center of Columbi Lw School nd The Erth Institute t Columbi University. It seeks to be leder on issues relted to foreign direct investment (FDI) in the globl economy. VCC focuses on the nlysis nd teching of the implictions of FDI for public policy nd interntionl investment lw. 6

7 Sttisticl nnex Annex tble 1. Hungry: outwrd FDI stock, selected yers Outwrd FDI stock (US$ million) Rtio of outwrd FDI stock to GDP (Percentge) Economy Hungry Memorndum: comprtor economies Czech Republic Estoni Polnd Russin Federtion Sloveni Source: Authors clcultion, bsed on UNCTAD s FDI/TNC dtbse (vilble t: http//stts.unctd.org/fdi/) nd ntionl sttistics. Annex tble 1. Hungry: inwrd nd outwrd FDI stock, selected yers Item Inwrd FDI stock (US$ million) Outwrd FDI stock (US$ million) Rtio of outwrd to inwrd FDI stock (%) Source: Authors clcultion, bsed on UNCTAD s FDI/TNC dtbse (vilble t: nd ntionl sttistics.

8 Annex tble 2. Hungry: outwrd FDI flows, (US$ million) Economy Hungry Memorndum: comprtor economies Czech Republic Estoni Polnd Russin Federtion Sloveni Source: Authors clcultion, bsed on the UNCTAD FDI/TNC dtbse (vilble t: nd ntionl sttistics. Preliminry estimtes. 8

9 Annex tble 3. Hungry: sectorl distribution of outwrd FDI stock, 2000 nd 2008 (Percent of totl) Sector/industry Sector/industry Agriculture, forestry nd fishing Electricity, gs nd wter Mining nd qurrying Construction Mnufcturing Services Food, beverges nd tobcco Wholesle, retil nd repir Textile nd lether Hotels nd resturnts Wood, pulp, pper nd publishing Trnsport nd telecom Coke, refined petroleum nd nucler fuel Finncil intermedition Chemicls Rel estte Rubber nd plstic Computer services Other non-metllic minerls Business services Metls Other services Mchinery nd equipment n.e.c Acquisition of rel estte nd OFDI by Electricl nd opticl equipment households Trnsport equipment Not identified Furniture nd mnufcturing n.e.c Totl Source: Authors clcultion, bsed on dt from the Ntionl Bnk of Hungry. 9

10 Annex tble 4. Hungry: geogrphicl distribution of outwrd FDI stock, 2000 nd 2008 (Percent of totl) Region/economy Region/economy Totl Other Europe Europe Croti Europen Union Montenegro Austri Russin Federtion Bulgri Serbi Cyprus Switzerlnd Czech Republic TFYR of Mcedoni Denmrk Turkey Frnce Ukrine Germny North Americ Irelnd Cnd Itly United Sttes Luxemburg Centrl Americ Netherlnds Asi Polnd Republic of Kore Romni Chin Slovki Indi Sloveni Jpn Spin Afric United Kingdom Not identified Source: Authors clcultion, bsed on dt from the Ntionl Bnk of Hungry. 10

11 Annex tble 5. Hungry: the top 10 MNEs, rnked by foreign ssets, 2008 (US$ million) Rnk Compny Industry Host economies of OFDI Foreign ssets 1 MOL Oil nd gs Austri, Bosni-Herzegovin, Croti, Cyprus, Czech Republic, Germny, Itly, Jersey, Kzkhstn, Omn, Polnd, Romni, Russin Federtion, Serbi, Slovki, Sloveni, Syri, The Netherlnds, Ukrine, United Kingdom, Yemen OTP Bnk Bnking Austri, Bulgri, Croti, Cyprus, Luxemburg, Montenegro, Romni, Russin Federtion, Serbi, Slovki, The Netherlnds, Ukrine, United Kingdom 3 Mgyr Telekom (Deutsche Telekom Group) Telecom Bulgri, TFYR of Mcedoni, Montenegro, Romni, Ukrine MKB Bnk (Byern LB Group) Bnking Bulgri, Romni Gedeon Richter Phrmceuticls Armeni, Germny, Indi, Itly, Jpn, Republic of Moldov, Polnd, Romni, Russin Federtion, Ukrine Dnubius Hotels Hotels Czech Republic, Romni, Slovki BorsodChem Chemicls Czech Republic, Itly, Polnd Dunpck (Prinzhorn Holding) Pper Bulgri, Croti, Lithuni, Polnd, Romni, Slovki, Ukrine 75 9 Smsung Hungry Electronics Slovki Videoton Electronics Bulgri Source: Authors estimtes bsed on blnce sheets of the compnies nd vlues of individul M&A trnsctions. Estimted vlues. Note: TriGránit is not included. 11

12 Annex tble 6. Hungry: min M&A dels, by outwrd investing firm, Acquiring compny Trget compny Trget industry Trget economy Yer Trnsction vlue (US$ million) Shres cquired (%) MOL Itlin Energi e Servizi SpA Oil nd gs Itly OTP Bnk Riffeisenbnk Ukrine Bnking Ukrine MOL INA Industrij Nfte Oil nd gs Croti OTP Bnk Investsberbnk Bnking Russin Federtion OTP Bnk DSK Bnk Bnking Bulgri MOL Slovnft Oil nd gs Slovki Mgyr Telekom (Deutsche Telekom Group) Mcedonin Telecom (Mktel) Telecom TFYR of Mcedoni OTP Bnk Nov Bnk Bnking Croti MOL Slovnft Oil nd gs Slovki MOL Slovnft Oil nd gs Slovki OTP Bnk Kulsk Bnk Bnking Serbi Mgyr Telekom (Deutsche Telekom Group) Telecom Montenegro Telecom Montenegro Wizz Air Wizzir Ukrine Airlines Ukrine OTP Bnk Crnogorsk Komercijln Bnk Bnking Montenegro Dnubius Hotels Rmd Plz Regents Prk Hotel (London) Hotels United Kingdom MKB Bnk (Byern LB Group) Unionbnk Bnk Bulgri BorsodChem Morvské Chemické Závody Chemicls Czech Republic MOL Perl Petroleum Compny Ltd. Oil nd gs Irq OTP Bnk Bnc Comercil Robnk Bnking Romni Gedeon Richter Polf Grodzisk Phrmceuticls Polnd OTP Bnk Zepter Bnk Bnking Serbi OTP Bnk Donskoy Nrodny Bnk Bnking Russin Federtion Gedeon Richter Polf Grodzisk Phrmceuticls Polnd Mgyr Telekom (Deutsche Telekom Group) Telecom Montenegro Telecom Montenegro Wberer Somitco Trns Trnsport Romni Dnubius Hotels Helth Sp Piestny Hotels Slovki TVK (MOL Group) Hmburger Unterlnd Chemicls Austri OTP Bnk Nisk Bnk AD Bnking Serbi Dnubius Hotels Lécebné Lázne Márinské Lázne Sp Hotels Czech Republic OTP Bnk Investicni Rozvojov Bnk Bnking Slovki Source: Authors collection nd estimtion, bsed on compny reports nd Thomson ONE Bnker, Thomson Reuters. 12

13 Annex tble 7. Hungry: the top 10 greenfield projects, by outwrd investing firm, in (Announced trnsction vlues in US$ million) Yer Investing compny Trget industry Trget economy Investment 2009 TriGránit Rel estte Slovki MOL Oil nd gs Croti WIZZ Air Air trnsport Czech Republic Omninvest Biotechnology Uzbekistn WIZZ Air Air trnsport Switzerlnd Genesis Energy Befektetési Nyrt. Electronics / renewble energy Spin MOL Oil nd gs Pkistn CIG Centrl Europen Insurnce Finncil services Romni DKG Est Mchinery Qtr Domoinvest Phrmceuticls Serbi TriGránit Rel estte Romni TriGránit Rel estte Polnd MOL Oil nd gs Slovki TriGránit Rel estte Croti TriGránit Rel estte Russin Federtion TriGránit Rel estte Russin Federtion Brixxon Automotive Austri System Consulting Zrt. Renewble energy Russin Federtion WIZZ Air Air trnsport Romni TriGránit Rel estte Sloveni TriGránit Rel estte Russin Federtion Libri Bookshops Romni TriGránit Rel estte Romni TriGránit Rel estte Polnd TriGránit Entertinment Russin Federtion MOL Oil nd gs Serbi OTP Bnk Bnking Ukrine OTP Bnk Bnking Russin Federtion OTP Bnk Bnking Netherlnds Cerbon Food Romni 24 Source: Authors collection nd estimtion, bsed on informtion from the fdi Intelligence, service from the Finncil Times Ltd. ª Estimte mde by fdi Intelligence. 13