Advantage Austria conducted a survey scrutinising Hungary as an investment site. The International Agency of the Austrian Chamber of Commerce conducted a public opinion poll among Austrian branch offices in Hungary for the first time. In total 166 Austrian businesses settled in Hungary took part in the survey. Final conclusion: the businesses concerned are fundamentally optimistic as regards processes in Hungary. Eighty-one per cent of businesses believe that there is an unchanged or improving development in Hungary’s economic situation this year.

This trend is also confirmed by the presence for 30 years and ongoing expansion of Leier Hungária Kft. in Hungary. The Austrian company which has become a market leader in the production of construction industry elements announced an investment worth more than HUF 7 billion concerning 6 out of its 9 branch offices in Hungary, which was implemented in cooperation with the Hungarian Investment Promotion Agency (HIPA), at the end of July 2017.

Forty-three per cent of the Austrian companies taking part in the survey are manufacturing businesses, 20 per cent are trade representations and 37 per cent are service providers, and they therefore faithfully reflect the perception of Austrian businesses present in Hungary regarding the situation.

The public opinion poll demonstrates that the majority of the managing directors of the companies settled in Hungary are reckoning with an increase in the sales and orders of their businesses. Almost 90 per cent indicated that their planned revenues will stagnate or increase in the future, 89 per cent believe that their order portfolios will either remain unchanged or will increase, and some 90 per cent reckon with a minimum unchanged or increasing capacity usage rate, while as regards the next few months, they are mostly planning with unchanged employment numbers. More than one half of the businesses interviewed (52%) expect to see unchanged employment figures in the next 12 months.

Almost one third (31%) of the investors interviewed indicated that their investments in Hungary will increase this year.

According to Austrian businesses, the greatest obstacle to successful market expansion continues to remain the limited availability of qualified work force or the lack of the qualifications of the work force.

The labour market situation has by now become the key issue of all investment negotiations. The Hungarian Government is seeking to create a favourable investment environment through the promotion of the cooperation of higher education institutions and industrial centres, the extension of dual training and the encouragement of work force mobility.

“Austria is Hungary’s second most important trade partner, and with its 16.7% share of total investments, it is the third largest foreign investor”, Jürgen Schreder, Commercial Counsellor of the Austrian Embassy, the Budapest head of Advantage Austria said, who sees the findings of the research as positive feedback.

Another survey is being planned for the autumn of 2017 which will also be conducted by Advantage Austria.

(Ministry of Foreign Affairs and Trade)