Hungary in the Belt and

Road

Hong Kong Institution of Engineers

August 20, 2018

• Population: 10 million

• Area: 93,030 km2

• Member of European

Union since 2004

Stable Government

• Government form: Parliamentary Republic since 1990

• Government in power since 2010, has won third consecutive term this April

• Hungary is a stable and safe location

Chinese relations

• Chinese-Hungarian relations traditionally strong: Hungary was the first

country in the world to recognize the People’s Republic of China

• Next year the 70th anniversary celebrations of the establishment of

diplomatic relations

„Opening to the East”

• Since 2010 an emphasis on further strengthening relations wits Asian countries

• 2 new consulates in China: Chongqing (2010) and Hong Kong (2013)

• Total of 5 offices in Greater China: Beijing, Shanghai, Chongqing, Hong Kong,

Taipei

China at Home in Hungary

• The biggest Chinese community in Central-Eastern Europe

• Bilingual Chinese / Hungarian School in Budapest opened in 2004

• CIPA & MOFCOM set up its European Office in Budapest in 2010

16+1 Cooperation

• A framework of cooperation between China and 16 Central-Eastern European

coutries

• 16+1 Summit hosted by Budapest in November 2017

Hong Kong and Hungary

• Hungary-Hong Kong relations in a strong momentum

• Several high ranking visits both ways in recent years

• Working Holiday agreement coming into force September 1

Foreign Policy

• Foreign Trade Focused Foreign Policy

• Foreign Trade merged into Foreign Ministry in 2014

• Supporting institutions under Foreign Ministry’s supervision

Economic Data

• GDP: 192,855 million EUR

• GDP/capita: 19,651 EUR

• GDP growth: 4% (2017)

• Inflation: 2.4%

• Government bonds: Investmeng Grade, Positive Outlook

Developed Infrastructure

• At the crossroads of 4 main European transportation corridors

• The highest motorway density in the region

• Extensive railway transportation network

„Opening to the East”

• Small country with an open economy

• Hungary’s number one foreign trade partner is the European Union

• Asia has become our most important non-EU trade partner

• Hungary is Hong Kong’s biggest trading partner in Central-Eastern Europe

Hub for Chinese Business

• Bank of China in Budapest since 2003 & Opened 1st RMB clearing center in

CEE in 2015

• CIPA & MOFCOM set up its European Office in Budapest in 2010

• 16+1 Development Bank Cooperation Center in Budapest

Belt and Road

• Hungary was first to sign a MoA on the „One Belt - One Road”

initiative (2015)

• Flagship Project: Budapest-Belgrade high speed railway

Promoting Investment

• Tax Regime

• Subsidies

• Legal Environment

Attractive Tax Regime

• Average Labour Cost: 1163 EUR

• Reduced Social Contribution Tax

• 9% Flat Corporate Tax Since 2017

• 15% Flat Personal Income Tax

Subsidies

Maximum Aid Intensity Map

Subsidies

• VIP Cash Subsidies for Job Creation and Asset Investment

Subsidies

• VIP Cash Subsidies for Technology Intensive Investments and R&D

Projects

Success Stories

Success Stories

Industry Highlights

RENEWABLE ENERGY

• Huge Potential in Solar and Geothermal Energy

• Renewable Energy Support Scheme

Industry Highlights

AUTOMOTIVE

• Hungary is already an automotive industry hub

• Proving ground for self-driving and connected vehicles in development

• E-mobility plan

Project Examples

PLATIO

• Aesthetic, space-saving offgrid renewable energy system

• Integrates high performance solar cells into attractive sidewalk paving

elements made of recycled plastic

Project Examples

HOTEL/OFFICE BUILDING

• Historical building in downtown Budapest

• Concepts for 4- or 5-star hotel, with 178 rooms including 152 double rooms, 12

penthouses and 14 duplex apartments

Thank You for Your Attention!