“Following a record year last year, the number of foreign investments in Hungary made with the support of the Hungarian Investment Promotion Agency (HIPA) has again increased significantly during the first half of this year; the total value of these new investments exceeds 1.33 billion euros”, the Ministry of Foreign Affairs and Trade’s Minister of State for Economic Diplomacy Levente Magyar said at a press conference in Budapest on Friday.

“Thanks to the increasing number of foreign investment projects we now need to find a solution to the problem of labour shortages, whereas prior to 2010 our main problem was mass unemployment”, he declared.

President of the HIPA Róbert Ésik highlighted: “38 positive investment decisions were made during the first half of the year, 27 percent more than during the same period last year, leading to the creation of 8529 new workplaces”.

“Six new investors have chosen Hungary, while 32 decisions involved re-investment. This means that the vast majority of foreign businesses regard Hungary as a favourable destination”, he pointed out.

“The United States was the source of the highest number of new investment projects, eight; this was the first year in which Germany came in second, with 7 projects” Mr. Ésik told reporters. The automobile industry continues to be the dominant sector with 15 out of the 38 investment projects, as well as being in first place with regard to the level of invested capital and the number of jobs created.

The HIPA President said the fact that the food industry had earned second place with regard to the level of investment was an important strategic turn. “It is important that we achieve the highest possible level of processing in our exported products”, he highlighted. “Prospects are also excellent with regard to the second half of the year; we are in negotiation with 169 foreign enterprises, whose investments could result in the injection of some 5 billion euros of working capital into Hungary”, he continued.

In reply to a question, Mr. Ésik said that the HIPA was a body responsible for managing a funding system based on individual government decisions and operated with an annual investment target of 10-13 billion forints (EUR 32-41M). “25 out of the 38 new projects negotiated during the first half of the year received special government funding; the average level of funding was 16 percent”, he told the press.

The HIPA President also mentioned the Agency’s other task, which is to increase the number of Hungarian small and medium-sized enterprises (SMEs) working as suppliers to foreign investors. The Agency recommended 1408 Hungarian SME’s to 31 large foreign corporations during the first half of the year, he said. 7 Hungarian enterprises found foreign financial and professional investors during the first six months of the year with the help of the HIPA. The total value of these deals was 234 million euros, significantly more than last year’s figure of 120 million euros, he added.

(Ministry of Foreign Affairs and Trade)