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Insight To Hungary Finpro Pelkonen 311008
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Insight To Hungary Finpro Pelkonen 311008

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Short presentation on the Hungarian markets and their opportunities

Short presentation on the Hungarian markets and their opportunities

Published in: Business, Travel

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  • 1. O PPORTUNITIES W ORLDWIDE Hungary: Business opportunity for Finnish companies? Tommi Pelkonen Business Consultant Finpro Central & Southeast Europe Finpro/Insight to Hungary / © Finpro ry / 1
  • 2. FINPRO – Your Partner in International Success • Our services are based on recognized expertise. • The International Trade Center chose Finpro as the best of the best Trade Promotion Organizations in the world in 2007 • Excellent local market knowledge; • Over 50 Trade Centers in over 40 countries. Information and Consulting Networking Services • Best expertise in internationalization processes Services • Hundreds of success stories completed • Global industry teams • Great value for money Innovation • Cost-efficient pricing in multi-country projects • Strong drive for results and success Programs • Reliable partner in all stages of internationalization • Independent, positively Finnish, honest, professional and success-oriented organisation Finpro – opens opportunities worldwide! Finpro/Insight to Hungary / © Finpro ry / 2
  • 3. Finpro Central and Southeast European Region (CSE) Prague Vienna Budapest Bucharest Sofia Istanbul Finpro/Insight to Hungary / © Finpro ry / 3
  • 4. Hungary in the Heart of Europe Hungary UA SK A SL RO HR YU Land: 93,030 km² Population: 10,1 million GDP/capita, at PPP: EUR 16,040 Finpro/Insight to Hungary / © Finpro ry / 4
  • 5. Hungary – Historical Backgrounds At the beginning of the 20th century the level of development of the Hungarian economy equalled that of Austria, Italy, Spain after WW I. ⇒Disintegration after WW II. ⇒Treaty of Yalta with enforced inward-looking, protectionist, alien economic system, highly distorted economic structure, isolation from international trends In 1989 the GDP/capita of these countries were Hungary: ca.2 000 USD Austria: 16 000 ECU Italy:15 000 ECU Spain: 9,950 ECU In 2002 GDP/capita measured in PPP by World Bank Hungary: 13 070 USD Austria: 28 910 Italy: 26 170 Spain: 21 210 Finpro/Insight to Hungary / © Finpro ry / 5
  • 6. Price of Fast Transformation GDP dropped by Real wages decreased by 21% 11 - 17% Unemployment increased from 0,5% to 12% Hardest hit: pensioners, families with many children Finpro/Insight to Hungary / © Finpro ry / 6
  • 7. Growth and Development continues 2008 - b Economy • Sustainable macroeconomic growth, EU-member since 2004 • GDP growth of 1.5% is expected this year with a 3% GDP improvement of the business sector’s performance • Industrial production growth is estimated to keep Output its pace at over 4% • Export growth will be sustained above 10% Employment • Unemployment rate is expected at 7.4% and wages • Average wage: € 712 Inflation • Average inflation rate will be around 6% Finpro/Insight to Hungary / © Finpro ry / 7
  • 8. Another Financial crisis used as transformation agent? Finpro/Insight to Hungary / © Finpro ry / 8
  • 9. Well-Developed Infrastructure Highway Constructions Until 2015 Motorways Motorways under construction Motorways finished until 2007 Expressways under constructions Expressways finished until 2007 Source: Ministry of Economy and Transport Finpro/Insight to Hungary / © Finpro ry / 9
  • 10. Hungary Boasts Moderate level of corruption in the CEM region Source: Transparency International, 2008 Finpro/Insight to Hungary / © Finpro ry / 10
  • 11. Hungary ranks also relatively well among OECD countries in ease of doing business Finpro/Insight to Hungary / © Finpro ry / 11
  • 12. IT Competitiveness: Hungary ranks well Hungary globally #28 Finland # 13 Source: Economist Intelligence Unit, 2008. Finpro/Insight to Hungary / © Finpro ry / 12
  • 13. Budapest can expect a strong inform of companies in the next 5 years The number of companies expecting to locate in European cities NOTE ALSO: Budapest ranked among top20 favourable expatriate locations globally! Source: European Cities Monitor, Cushman and Wakefield, 2007; FDi Magazine, 2008 Finpro/Insight to Hungary / © Finpro ry / 13
  • 14. Debrecen – leading ”business-driven” community Cívis Housequot; Property Management Inc. Debrecen Heating Service Inc Debrecen Public Transport Inc Debrecen Medical Bath Ltd DV Info Informatics Ltd Debrecen City Television Ltd Debrecen Regional Innovation and Industrial Park Ltd Debrecen Municipal Publishing House AIRPORT-DEBRECE Friss Radio DEHIR Business-minded Mayor made the change! Yet, among total of ~3100 communities, Debrecen has become the model to follow Finpro/Insight to Hungary / © Finpro ry / 14
  • 15. Hungary is a Front-Runner as regards to FDI Potential and Performance Cumulated FDIs in Hungary & Finland in million euros ~68000 Sources: ITD Hungary 2008, , Invest in Finland, 2007 Finpro/Insight to Hungary / © Finpro ry / 15
  • 16. Finno-Hungarian trade balance Finpro/Insight to Hungary / © Finpro ry / 16
  • 17. Finnish Business Presence in Hungary 350 Exporters to Hungary Almost 200 companies with Finnish capital Appr. 20 manufacturing companies Finnish-Hungarian trade exceeds 1 bn. euro Total Finnish investments stock to Hungary exceeds 1000 million euros Finnish companies employ close to 20,000 persons in Hungary Finpro/Insight to Hungary / © Finpro ry / 17
  • 18. Finnish Business Presence in Hungary Productional Sales offices R&D / Planning Nokia Mobile Phones UPM Nokia R & D Elcoteq M-Real Elcoteq Sanoma Budapest Stora Enso 3C Hungary (CCC) Perlos Martela Agil Eight Savcor Rannila ICM Stora Enso Packaging Tikkurila Mecanova Kone Ruukki Construction Fiskars Ruukki Engineering Wärtsilä Scanfil Ensto Lindström Etc. Helkama Forste ~170 Finnish-originated companies Clairia ~20k employees in these Hansaprint Raflatac Huurre Finpro/Insight to Hungary / © Finpro ry / 18
  • 19. Some considerations for Finns • Competition in Hungary is many sectors is intense • Early FDIs brought multinationals to Hungary • E.g. retail far more competitive than in Finland • Financial crisis affecting Hungary – but can also lead to positive change • Finns are regarded in Hungary very positively (northern cousins) in all areas of business • YET – Hungarian business culture and habits differ from Finnish in many ways • Negotiations, agreements, language skills, business drive, personal relationships etc. Hungary is a very good stepping stone location for central European Regional operations! / © Finpro ry / 19 Finpro/Insight to Hungary
  • 20. We are happy to work with you in all your business challenges. Let’s get into international business! www.finpro.fi Tommi Pelkonen tommi.pelkonen@finpro.fi +36 20 250 10 77 http://www.netvibes.com/tommipelkonen Finpro/Insight to Hungary / © Finpro ry / 20

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