Business environment

Transcription

1 Business environment

2 A market of 500 million people within the EU Your gate to a market of 500 million customers Hungary Land: 93,030 km² Population: 10 million GDP/capita, at PPP: EUR 14,221/ USD 18,816 (2010) (wiiw, EIU)

3 Sound economic performance in 2010 EU GDP Output Employment and wages Inflation EU-member since 2004 GDP growth 2010: +1.2% Export growth 2010: +17% Industrial production: +8.9% Average wage: 735* Unemployment rate 2010: 11.2% Average inflation rate 2010: 4.9% *Exchange rate: 1 = HUF Source: Central Statistical Office, Hungary

4 Economic goals to establish growth over long run Creating 1 million new workplaces within 10 years Limiting national debt to 50% of GDP in the planned constitution Reducing budget deficit to 1.9% by 2014 (2011 target: 3%) Adjusting tertiary education to business needs

5 Measures to establish growth over long run Cutting corporate income tax from 19% to 10% for corporate tax base of up to EUR 1.8 million (July, 2010) Eliminating 12 smaller taxes (July, 2010) Introducing flat personal income tax (16%) and family taxation (2011) Cost cutting measures in public administration (July, 2010) Streamlining red-tape for investments: 1/3 of the 51 permissions eliminated (July, 2010)

6 Hungarian Presidency of the Council of the European Union January-June, 2011 Strategic priorities and programmes Growth and employment for preserving the European social model; Stronger Europe; Citizen friendly Union; Enlargement and neighborhood policy. The Danube Region Strategy Common financial policies Deepening the European Single Market Innovation, the competitive European Research Area New Industrial Policy New directions for European climate policy

7 Competitiveness

8 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

9 Alternative Transport Connection between Far-East and Europe WESTBOUND EASTBOUND days days Distance (km) RAIL km SEA km Transit Time (days) Rail 11, Sea 20,

10 Low Corporate Income Tax Country Corporate income tax France 33.33% Spain 30.00% Germany 29.44% UK 28.00% Greece 25.00% Czech Republic 19.00% Slovakia 19.00% Poland 19.00% Hungary 10/19% * Asian countries Corporate income tax Japan 40.69% Malaysia 25.00% China 25.00% South Korea 24.20% Singapore 17.00% Source: European Commission, 2010; France, Germany, Asia: KPMG, 2009

11 Strong scientific capacity The World Economic Forum ranks Hungary 18 of 131 countries in quality of scientific research institutions Country Ranking Israel 1 Switzerland 2 UK 3 Germany 6 The Netherlands 9 Ireland 16 Hungary 18 Austria 20 Czech R. 21 China 39 Spain 43 Poland 47 Greece 88 Slovakia 90 Source: Global Competitiveness Report, World Economic Forum, 2010/2011

12 Competitive average wages Gross monthly average wages in selected European countries, ,0 3500,0 3000,0 2500,0 2000,0 1500,0 1000,0 500,0 0,0 Source: Economist Intelligence Unit, 2011

13 Hungarian FDI policy

14 Hungarian FDI POLICY - Priorities Hungary harmonized its regulatory system with that of the EU Hungary is a member of the Multilateral Investment Guarantee Agency (MIGA) and Overseas Private Investment Corporation (OPIC) Hungary has also signed 60 bilateral investment protection agreements and 66 double taxation treaties among others with China FDI data Q Outwards stocks: 17.6 Bill Inwards stocks: 68.5 Bill Strengthen overall competitiveness and economic growth resulting in higher GNI Job creation- lifting up the level of employment Promoting innovation products and services with more value added in focus Promote infrastructure development Create co-operation with Hungarian SME sector Stable state budget and financing Improved allocation of available resources Reducing administrative burden

15 Health Industry, Tourism Food Industry Pharmaceuticals Biotechnology Automotive Industry Renewable Energies and Green Industry Logistics Shared Service Centers R&D Priority sectors

16 Within the chemical sector: Other announcements: Largest investments in 2010 Henkel, Germany, chemical industry, manufacturing Samsung Cheil Industries, South-Korea, plastics manufacturing Samyang, South-Korea, plastics manufacturing Ampito Group, Great Britain, regional IT service centre Aufwind Neue Energien, Germany, biogas production Ceva-Logisitics, US-Netherlands, regional distribution centre Csnorway, Norway, call-centre Epack, Israel, chemical industry, manufacturing ESAB, Sweden, SSC Fagen/Ethanol Europe, USA-Ireland, bioethanol production Flextronics 2, USA, electronics manufacturing Givaudan, Switzerland, food ingredients manufacturing Grundfos, Denmark, financial SSC Oriflame, Sweden, transportation, warehousing Osmotica Pharmaceutical, Argentina-USA, clinical research SMR, India, Automotive manufacturing

17 Latest news: Audi to expand its operations in Hungary Investment volume: EUR 930 million Direct employment: min. 1,800 Location: Győr, Hungary Capacity: 125 thousand A3 Cabriolet, A3 Sedan, TT Coupe and TT Roadster cars SOP: 2013

18 Latest news: Daimler established a new plant in Hungary Investment volume: EUR 800 million Direct employment: min. 2,500 Land size: 441 hectares Location: Kecskemét, Hungary Capacity: 100,000 vehichles of next-generation Mercedes A and B Class compact models SOP: 2012

19 Why Hungary? Qualified labour force, relatively low wage level Favourable geographical position Excellent infrastructure Investor-friendly tax environment Synergies from cooperation with local suppliers One-stop-shop service offered by HITA