Being a small country, Hungary may face difficulties in competing with bigger economies. Therefore, it has to lay more emphasis on efficiency, flexibility, smooth and quick action – said László Szabó, Minister of State for Foreign Affairs and Trade in an interview with Hungarian News Agency MTI.
Taking up his new position in June, Mr Szabó highlighted that the aim of the secretariat was to efficiently represent Hungarian economic interests abroad, and to contribute not only to the growth of the economy through job-creation, but also to the realisation of entrepreneurial success stories outside Hungary’s borders. He stressed that the new, integrated structure and networks of the Ministry will contribute to reaching these objectives.
Mr Szabó also talked about the importance of the Hungarian National Trading House, which is responsible for assisting the exportation of goods and services produced by Hungarian small and medium enterprises (SMEs). Currently, there are 1300 SMEs in its database, a number which is to be increased to 2000 by the end of this year. Another ambitious goal is to increase the number of its local trading houses abroad from the current 13 to 25. Mr Szabó also touched upon the role of the Hungarian Investment Promotion Agency (HIPA) and its task to make Hungary more attractive for foreign investors in order to ensure that they choose it as their investment destination.
According to Mr Szabó, the activity of new investors and the realisation of direct investments in Hungary are of outstanding importance, since these translate into new employment opportunities and contribute to the acceleration of economic growth. He also emphasised the significance of re-investments in Hungary by existing foreign companies, and the objective of enhancing their co-operation with Hungarian partners in order to increase Hungarian added value.
New investment and export opportunities have direct or indirect positive effects on Hungarian families, first and foremost through creating new jobs in Hungary, and thus encouraging young, talented people to pursue their careers in their native country.
Eximbank has an important role as well, in addition to providing traditional export financing for Hungarian companies, it may also offer financing for new, innovative projects.
Through all these means Hungary aims at strengthening an image of a flexible, modern and ambitious country. Since ours is a small economy, it is important to focus on high-quality products with high Hungarian added-value to make the most of our capacities. Start-ups can for example significantly strengthen our image of an innovative and dynamic country, he said. According to Mr Szabó, Hungarian companies can be successful on international markets particularly in sectors, such as energy, water and waste water management, automotive and food industry, information technology, health care, logistics and urban planning.
The increased emphasis on external economic relations in Hungary’s foreign policy is necessitated by international economic developments and reflects national policy objectives. The restructuring and renaming of the Ministry should not be considered as unique initiatives; ministries responsible for foreign affairs are also responsible for external economic relations for instance in Australia, Canada and New Zealand, while the new, integrated structure follows the examples of Sweden, France and Slovakia.
Currently, the proportion of Hungarian exports to the EU is 75 per cent, which shows a small decrease compared to past years. This should not be seen as a problem, since the objective is to diversify Hungary’s export markets in line with the policy of “Opening to the East”, while at the same time maintaining the country’s strong positions in Western markets. Since Asia, Africa and the post-Soviet region are expected to show higher than average sustained growth in the coming years, Hungary wishes to concentrate on these markets and benefit from increased demands.
The decision to send at least one trade attaché to each Hungarian Diplomatic Mission also reflects the increased importance attributed to external economic affairs in foreign policy. Moreover, when assessing the work of heads of missions, their contribution to the development of external economic relations will be considered with a particular weight. According to the Minister of State , diplomacy is not a goal in itself; it creates value in particular when it contributes to the realisation of Hungary’s national economic goals.
Before his appointment as Minister of State for Foreign Affairs and Trade, Mr Szabó has worked in the private sector. He practiced as a general physician in Debrecen and later joined the American pharmaceutical company Eli Lilly where he held managerial positions in seven countries on four continents. Since October 2010 until his appointment as State Secretary in June 2014, he worked in Hungary as TEVA’s Chief Executive Officer.
(Ministry of Foreign Affairs and Trade)
