Contact: Bruce Brogan [email protected]
Ph: 248-549-4900
Date: 5/27/2003
As Hungary prepares to join the European Union in
May, 2004, the country continues to attract millions
of foreign investment dollars � including
significant new investments from American-based
companies.
That was the message conveyed by the Hungarian
Investment and Trade Development Agency ("ITD
Hungary") at a seminar, luncheon and news
conference held at the Renaissance Club in downtown
Detroit on Thursday, May 15th. The Detroit
visit was organized by the Michigan International
Trade Association and was part of the ITD Hungary�s
tour of five US cities that began in Boston and
wrapped up in Seattle.
The Detroit program was of special importance, as
it was the only stop on the five-city tour to feature
Hungary�s Ambassador to the United States, Dr.
Andr�s Simonyi. Ambassador Simonyi flew in to help
draw attention to the significant growth in automotive
manufacturing in Hungary in recent years. The
appearance also marked the Ambassador�s first trip
to Detroit since becoming his government�s chief
emissary to Washington, D.C., last fall. He had a full
schedule, giving the luncheon speech and holding a
news conference following the luncheon at the
Renaissance Club, then meeting with local business
leaders later in the afternoon.
�
The Ambassador spoke to invited guests from
industry during the luncheon, emphasizing the growing
importance of the automotive industry to Hungary�s
expanding manufacturing sector, while drawing
attention to Hungary�s promotion of hi-tech and
bio-medical investments as well. He used the occasion
to personally thank the U.S. automotive companies that
have already made investments in Hungary. Among the
Detroit area companies that have investments in
Hungary, Ambassador Simonyi met with representatives
from Delphi Corp., General Motors, Visteon and Lear
Corp., during his visit.
The Hungarian economic team�s seminar focused on
informing Michigan companies of the opportunities to
do business with Hungary�s trading partners in the
European Union, Central Europe and the former
Soviet-bloc countries by setting up operations in
Hungary. ITD Hungary opened a permanent Trade
Commission Office in Chicago in 2002, to provide
immediate service to the growing number of Midwest
companies interested in setting up operations in
Hungary.
American businesses, in particular, are being
encouraged by ITD Hungary to make new investments in
"hi-tech" activities in the automotive,
electronic and bio-medical sectors, areas in which
Hungary is quickly developing a highly visible role as
the regional center for Central and Eastern Europe (CEE).
ITD Hungary is spearheading efforts to publicize
Hungary�s attractive package of investment
incentives and its business-friendly economic
environment.
During the seminar, ITD Hungary representatives
explained how the implementation of intelligent
free-market initiatives by Hungary�s young
democratic government have led to strong economic
growth, a surge in foreign direct investment, and more
than 20 trade agreements with other countries,
including integration into the European Union next
year. Combined with its central geographic position,
these qualities make Hungary a truly desirable
location for investment in Europe. U.S. companies
recognize Hungary�s central location to more than
600 million European consumers. But Hungary also
offers a skilled and highly productive work force, low
corporate tax rates and transparent investment rules.
Based on the measurement of these and other economic
qualities, Hungary is ranked as the sixth-best country
in which to develop high-technology industries,
according to the OECD (Organization for Economic
Cooperation and Development), the multi-lateral
economic development agency.
One of the more promising areas of Hungary�s
high-technology growth is in research and development.
A number of automotive companies � including GM,
Delphi, Visteon and Jabil Circuit from the US � and
large electronics companies such as General Electric,
Nokia, Siemens, Flextronics and Ericsson, have shifted
some of their innovative development centers and
R&D activities to Hungary. Such investments tend
to have a multiplier effect on other high-tech
investments in the country.
Hungary was the first country in its region to
introduce an EU-conformed investment incentive system
in January of this year. "Smart Hungary" is
the theme for the country�s revitalized investment
promotion efforts � led by the Hungarian Investment
and Trade Development Agency. The program underscores
the transparency and open and fair competition that
characterizes Hungary�s investment climate. Among
the goals of the ITD Hungary this year is to encourage
established investors to increase foreign direct
investment and reinvestment, to promote Hungary as a
regional research and development center and to
promote development in new areas of the country.
For more information about investing in Hungary,
contact Mr. Tamas Deutsch, Trade Commissioner,
US-Midwest, ITDH-Chicago (phone: 312-377-7724; e-mail:
