Hungary ready to subsidize business developers from China

BUDAPEST - Hungary is ready to subsidize business developers from China with the goal of accelerating local growth and creating jobs, said Robert Bodocs, vice president of the Hungarian Investment and Trade Agency responsible for business development and investment promotion, in a recent interview with Xinhua.

Bodocs said the value of Chinese business investments in Hungary was around $3 billion.

Among the Chinese firms based in Hungary are Shenzhen-based networking and telecom equipment and services company Huawei, Shenzhen-based telecom equipment manufacturer ZTE, the Bank of China and Yantai-based chemical manufacturer Wanhua.

Bodocs said Wanhua was one of largest foreign investments in Hungary that bought out Hungarian chemical manufacturer BorsodChem in 2011 and now provides 2,500 of the 5,000 jobs created overall in Hungary by Chinese firms.

Chinese workers involved in businesses in Hungary had been making special efforts to fit into the local community, he added.

The Bank of China, he said, would be opening a local service center and Hungary was ready to help grassroots level Chinese communities to develop within the country.

Asked about the economic areas in which Hungary most needed investment, Bodocs cited manufacturing but acknowledged that other sectors such as automotives and electronics would also be open to Chinese investors.

Hungary would be advantageous for Chinese investors because of its well-developed logistics networks, Bodocs said, pointing out that four of the 10 pan-European transport corridors ran through Hungary.

In terms of subsidies, Bodocs said any company investing over 25 million euros ($34 million) would receive the same sort of VIP treatment from Hungary granted to Mercedes and Audi, as well as to several Chinese companies that chose to remain anonymous.

This included actual financial assistance and an 80 percent exemption from corporate tax for the first 10 years of operation. Bodocs said Hungary was ready to assist all investors in a variety of ways including free personalized information, recommendations for sites, and coordination and preparatory work for state subsidies, done by Bodocs' own office.

While the European Union (EU) would remain Hungary's main export market, Bodocs said Hungary to increase trade with China and the Middle East.

The EU economies are rather flat at the moment, while there are other parts of the world which are growing, he said.

Local businesses in growth areas were increasingly ready to wade into international waters, he added, and Hungary is ready to receive them.

"Meanwhile, Hungarian exports to the east will boost business for our small and medium sized enterprises," he said.