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Sectors in focus

Hungary's central location and it's excellent transport, logistics and telecommunications infrastructure between East and West, North and South makes it a favourite destination for foreign investors who intend to expand their operations in Central and Eastern Europe. Another of Hungary's strengths is it's well-qualified labour force: due to the high standards of the education system, skilled workforce with foreign language skills is available at relatively low wage costs. These benefits have attracted large amounts of exports and foreign investments in recent years, and have been enjoyed by many Danish companies as well. Hungary's total FDI volume was EUR 76,4 billion by 2014, which, as a ratio of GDP was the highest in the region.

 

Leading Danish companies in Hungary with export, service or manufacturing activities are Balyfa, Coloplast, Carlsberg, Danfoss, Grundfos, Hartmann, Ib Andersen, ISS, Jysk, Lego, Mærsk, Novo Nordisk, Nilfisk, Rokwool, Velux, Vestfrost etc. However they are only the flagship names, more large export companies and SME- s are active. Additionally, a good number of Danish production companies have Hungarian supplier or assembling partner. As a result, the total direct employment of Danish subsidiaries in Hungary is close to 15,000 people, which is an obvious proof of the appreciated local business environment.

Main industries and a few characteristics (Source: Investing Guide Hungary 2014, PricewaterhouseCoopers)

  • The automotive sector generates 18% of total exports. Both original equipment manufacturers – Mercedes-Benz, Audi, Opel, Suzuki – and tier suppliers – Bosch Group, Continental, Michelin, Hankook, Lear. LUK, Valeo – are present.
  • Also machinery, metalworking, automation and agro machinery sectors are of high significance for foreign in terms of providing technological know-how and components for the sector.
  • The electronics manufacturing is accounting for 22% of manufacturing production of Hungary and 25% of that in the CEE region with major manufacturers such as Bosch, Siemens, Jabil, Flextronics, Zollner, GE, National Instruments, and IBM.
  • The pharmaceuticals and medical industry has renowned R&D and notable exports – Richter Gedeon, EGIS (Servier), TEVA, Sanofi, and GlaxoSmithKline runs pharmaceutical manufacturing base, while medical technology companies are also present with production, such as Coloplast, GE Healthcare, Hoya, Sauflon and Merck.
  • The agriculture and the food industry are traditionally strong sectors, where the share of foreign capital is 47%. Meat processing, vegetable oil processing, processing and preserving fruits and vegetables are the most important subsectors. Major foreign actors include Bonduelle, Bunge, Givaudan, Globus, Mars, Nestlé, POPZ, and Unilever.
  • Regarding the ICT sector IBM, Ericcson, Oracle, HP, and Microsoft are all present covering telecommunications, IT outsourcing, software and hardware production. Skilled and flexible Hungarian labour force – especially software developers – in the IT sector is very much appreciated by international companies.
  • About 80 shared service centres are operating with more than 30 000 workers employed by ExxonMobile, Vodafone, Morgan Stanley, Citibank, and British Telekom. In 2015 further investments are planned by GE and UNESCO.
  • The furniture and interior design segments are becoming more and more interesting for Danish exporters.

For more detailed information, please see the links below!