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Hungary - Gateway to Europe

Sándor HolbokPresidentHungarian-Mongolian Committee of the HCCI

Business Forum – Ulaanbaatar

5 September 2014

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Hungary in the heart of Europe

Land: 93,030 km2

Population: 9,962 million people

Land: 93,030 km2

Population: 9,962 million people

Hungarian economy at a glance

• Presence of the most important global companies (GE, IBM, GM, TATA Consulting, ALCOA, Suzuki, Nokia, Ericsson, Flextronics, Mercedes-Benz, GEA, EDF, Exxon, Vodafone, Deutsche Telekom etc.)

• Companies with regional impact (MOL, OTP, TriGránit, Fornetti etc.)

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Hungarian economy at a glance II.

• SMEs provide 60 % of employment, contribute to GDP by 40 %

• Strong focus on exports

• Reliance on imported energy sources

• Excellent geographical location and transportation routes despite being landlocked

GDP growth

Source: Eurostat

Inflation

6

Source: Eurostat

Industrial Production (billion HUF)

7Source: HCSO

Million EUR New methodology from 2008

Source: National Bank of Hungary, 2014

Repurchase of MOL shares ;

Devaluation of HUF

Stock of Foreign Direct Investments in Hungary

9

Foreign Direct Investment Stock of Hungary (M Euros)

Source: kormany.hu

FDI by investor countries

Source: kormany.hu

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Mongolian-Hungarian economic relations

• Bilateral trade volume is very low

• Currently no Mongolian investments in Hungary

• Hungarian Export to Mongolia: 12 000 000 USD

• Mongolian Export to Hungary: 24 530 USD

• Hungarian export growth was 20,4% in 2013

• Hungarian-Mogolian Joint Committee

• Pharmaceuticals: 2,3

• Office and data processing machines: 0,5

• Electrical machines, appliances, instruments: 0,35

• Food: 0,32

Most important goods exported from Hungary to Mongolia in 2013 (Million USD)

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Cooperation and business opportunities

• Agriculture: food safety, plant protection, butchery

• Water- and environment-related solutions

• Construction: infrastructure, urbanization, restoration of buildings, industrial parks

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Hungarian-Mongolian Committee

• Established in 2013

• Goals:- transfer information on business opportunities in Mongolia- strengthening the economic relations between the two countries

• Take part in business events related to Mongolia such as business meetings, forums, conferences and delegations to Mongolia

• Secretariat provided by the Hungarian Chamber of Coomerce and Industry

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The Hungarian Chamber of Commerce and Industry

• The chamber system is governed by the Act on Chambers (Public law chamber)

• National Chamber coordinates the activities of 23 regional chambers

• The chamber represents the whole Hungarian economy: micro, handicraft, small, medium, big and also multinational companies

• Largest entrepreneurial association – assurres the legitimacy of the special position and the weight of the observations on legislation

• Registration of trade and industry companies (excluding agriculture) from 1 January 2012 (more than 500.000 registered companies)

• Public tasks in vocational training

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The Hungarian Chamber system

• Leaders are active CEOs and company owners

• More than 600 employees and 90 regional offices covering the whole country

• Chambers have an important role in the regulatory bodies of the regional economic life

• Increased support, increasing importance of Chamber-managed public tasks (Vocational training, master of crafts, register of construction companies and grant consultants, management of newspapers etc.)

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Services offered by the HCCI

• Transfer of business information and business offers

• Issue and certification of trade documentation (Certificate of origin, ATA Carnet etc.)

• Organization of information sessions, trainings, seminars

• Development of bilateral economic relations

• Counselling on applications for EU funds and grants

• Internet portal and newsletters

• Széchenyi Card System - financial support for SMEs

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International relations of the Hungarian chambers

• Brussels Office, bilateral chambers in 5 neighbour countries

• HCCI is a regular member of Eurochambres, the association of the European Chambers of Commerce and Industry

• 5 European Enterprise Network offices in 5 regional Chambers of Commerce

• Establishment of 10 bilateral committees in priority relations (China, Arab countries, Croatia, Kazakhstan, Romania, Slovakia, Slovenia, Russia, Turkey, Western-Balkans)

A core activity by each of the Chambers is the facilitation of market entry and the establishment of business relations for its members

Organization of seminars, conferences and B2B meetings

Participation in international projects and initiatives

Partnership and agreements with foreign chambers in 70 countries

Regular contact and events with embassies, trade commissioners and trade promotion organizations

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Thank you for your kind attention!