Tasks and Objectives of the Hungarian

Investment Agency

Róbert BödőcsVice President

Introduction of HIPA

Recent birth of HIPA

• Investment Promotion

– Increase FDI inflow

– Assistance for companies already present in Hungary

• Export promotion → Hungarian National Trading House

Who we are

• Governmental agency for investment promotion

supervised by the Ministry of Foreign Affairs and

Trade

• Full scale services: one-stop shop for foreign

investors

• Our team: 80 employees in the HQ and a network

of colleagues abroad

TOP SECTORS

Automobile Industry

Electronics

SSC

Food Industry

Renewable Energy

Pharma, Biotechnology

Chemical Industry

INVESTMENT PROMOTION SERVICES

Pre-decision

Tailored information packages on the economy, industrial sectors, incentives, business environment, supplier network

Assistance in location search and evaluation

Organization of site visits and partner meetings

Implementation Operations

Expansion assistance

After care services

Intermediary body between the government and the companies

Supplier search

Supplier search Providing

information on permitting procedures

Assistance in identifying incentives

Intermediate Body for VIP cash incentive (preliminary information, application)

Available Incentives

Cash grants

EU co-financed tenders

OR

Cash subsidy based on the decision of the Hungarian Government

(EKD)

Development tax allowance

Training subsidy

Job Protection Action Plan

Conditions of cash subsidy based on the decision of the Hungarian Government

• Based on job creation• In case of asset investment

In Central Hungary where subsidy may be granted in case of asset investment the conditions are min. EUR 20 million investment volume and 100 new employees, based on job creation the conditions are min. EUR 10 million investment volume and 100 new employees. According to

the applicable legislation in Central Hungary subsidy may not be granted for capacity expanding investments of large companies.

In Central Hungary where subsidy may be granted in case of asset investment the conditions are min. EUR 20 million investment volume and 100 new employees, based on job creation the conditions are min. EUR 10 million investment volume and 100 new employees. According to

the applicable legislation in Central Hungary subsidy may not be granted for capacity expanding investments of large companies.

Supplier development activity of HIPA (I.)

• Emphasized sectors

o automotive

o electronics

o machine industry

• Supported sectors:

Indirect, productive activities that do not directly contribute to the

production of goods, such as packaging, logistics, engineering

services, etc.

Supplier development activity of HIPA (II.)

Our services for integrators

• Regular personal meetings with management for setting up and reviewing supply strategy and project plan

• Longlist business contacts about possible Hungarian suppliers

• Shortlist business contacts to maximize the chance of the successful cooperation

• Match-making between the OEM and the suppliers

• On request establishing business relationship and consultancy with other governmental organs

• Training services for the integrator’s suppliers according to the company’s needs and requirements

HIP database – A collection of approved private investment project offers.

• 33 projects - 1.4 billion EUR funding requirement

• Sectors:

Agriculture and Food Industry Capital Goods Manufacturing Renewable Energy Medical, Recreational and Wellness Tourism Innovation Real Estate

• Overall project budgets ranging from EUR 1.5 million to EUR 1000 million.

Hungarian Investment Projects (HIP)

HIPA Results in 2013

More than 20.000 jobs to

be created200 investments

projects

35 positive decisions

1.2 billion euro of FDI

7,000 new jobs

• Coloplast (40,8 m EUR; 701 jobs)• OPEL (60 m EUR)• ZF Lenksysteme (80 m EUR)• Hankook (303 m EUR; 950 jobs)• Hewlett-Packard (175 jobs)• Samsung (100 jobs)• Procter & Gamble (59,5 m EUR; 150 jobs)• Bridgestone (237 m EUR; 505 jobs)• Systemax (200 jobs)• Bosch (60 m EUR; 500 jobs)• Flextronics (200 jobs)• Takata (68.3 m EUR; 1000 jobs) • Greif ( 50 jobs)

Main decisions in 2013

Main positive decisions in 2014 so far

• Alumetal (30 m EUR; 150 jobs)• Samsonite (8 m EUR; 110 jobs)• Ecosolifer (23,5 m EUR; 100 jobs)• Pactera(11,50 m EUR; 230 jobs)• GE SSC ( 53,90 m EUR; 1300 jobs)• Snap-on (0,8 m EUR; 10 jobs)• Emirates (300 jobs)• Computacenter (220 jobs)

Budapest is the best FDI location in the region

Rank City Country

1 Budapest Hungary2 Wroclaw Poland

3 Katowice Poland4 Plzen Czech Republic5 Moscow Russia6 Brno Czech Republic7 Poznan Poland8 Ostrava Czech Republic9 Bratislava Slovakia

10 Prague Czech Republic

Budapest has been ranked the most attractive city in Eastern Europe in 2014-15.

Róbert BödőcsVice President

Hungarian Investment Promotion Agency

robert.bodocs@hipa.hu