25
FOOD INDUSTRY IN HUNGARY
FOODINDUSTRY
IN HUNGARY
HUNGARYSMART. AMBITIOUS. COMPETITIVE.
4
6
14
26
32
42
ABOUT HUNGARY
FOOD INDUSTRY IN HUNGARY
LABOUR FORCE
LOCATION
HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)
Published by the Hungarian Investment Promotion Agency, HIPA
All rights reserved © HIPA, 2018www.hipa.hu
CONTENTFOOD INDUSTRY
Food Industry in Hungary 5
HUNGARY
(Source: HCSO = Hungarian Central Statistical Office)
AREA
93,023 m2
FORM OF GOVERNMENT
PARLIAMENTARY REPUBLIC
TIME ZONEGMT + 1 HOUR
CURRENCYFORINT
(HUF)
GDP (PPS)EUR 192,855
MILLION (2016, HCSO)
GDP GROWTH 4.0%
(2017, HCSO)
MEMBERSHIP IN INTERNATIONAL ORGANISATIONS
EU, UN, OECD, WTO, NATO, IMF, ECEU member since 2004
CLIMATETEMPERATE
(similar to the rest of the continental zone)
RISK OF NATURALDISASTERSVERY LOW
OTHER MAJOR CITIESPOPULATION
Debrecen (201,981)Szeged (161,137)Miskolc (157,177)Pécs (144,675)Győr (129,301)
CAPITALBUDAPEST
POPULATION1,752,704
(2017, HCSO)
POPULATION
9,797,561(2017, HCSO)
INFLATION2.4%
(2017, HCSO)
Food Industry in Hungary 7
ABOUT HUNGARYMAIN FIGURES
YOU CAN COUNT ON THE GOVERNMENT’S COMMITMENT TO FURTHER IMPROVE THE BUSINESS CLIMATE
YOU CAN COUNT ON THE GOVERNMENT’S COMMITMENT TO FURTHER IMPROVE THE BUSINESS CLIMATE
YOU CAN
Hungary is an open economy where particu-lar emphasis is placed on encouraging foreign direct investment (FDI). Partnership with
potential investors is a national priority; special atten-tion is paid to the needs of companies already settled in Hungary, and to the further improvement of the business climate.
ABOUT HUNGARYFDI IN FOCUS
Inward FDI stock amounted to 66% of the GDP (2016) the highest ratio in the region.
Source: wiiw FDI DatabaseHUNGARY
66%
CZECHREPUBLIC
62%
SLOVAKIA
51%
POLAND
40%
SLOVENIA
32%
Food Industry in Hungary 9
ABOUT HUNGARYBUSINESS ENVIRONMENT
IN ORDER TO IMPROVE THE BUSINESS CLIMATE
THE HUNGARIAN GOVERNMENT...
INV
ESTM
ENTS
IN F
OCU
S
...is helping companies to function reliably by providing a
clear agenda on economic development and FDI
strategy.
...has modified its taxation and incentive system related to R&D
activities to make Hungary the innovation
hub of CEE.
…is committed to further reduce taxes
on employment.
...has introduced a new incentive scheme
supporting technology intensive
investments.
...offers companies a strategic partnership,
and provides them with fast access to the
Government.
...has created the most competitive
CIT in the EU with 9% flat rate.
...further improved the practice-based
dual education system built on industry
needs.
...has introduced itsunique economic
development planbased on Industry 4.0
requirements.
Food Industry in Hungary 11
10th
HUNGARIANPARLIAMENT
BUILDING ranked
in world's top 10landmarks for 2018
by TripAdvisor
GASTRO STORYThe dining scene in Budapest is livelier than ever, practically you can find the cuisines of every culture in the capital, from high-end Michelin-star restaurants to no-frill eateries, small bistros and must-try food trucks.
EXPATS LIKE HUNGARYBudapest is a city full of surprises and wonders, with its lively centre, pretty parks, majestic river, tall church spires, and lavish spas. One of the most exciting cities in the world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option.
INTERNATIONAL SCHOOLSExpatriates looking to stick with the curricula of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre-schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too.
EXPLORE THE COUNTRYSIDEHungary’s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 4,000 kilometres ofcycle paths; 14 golf courses; 10 national parks; and many protected nature reserves for those in love with fresh air. The protected Puszta-region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort.
Did you know that……the kindergarten and the elementary school division of the International School of Debrecen will start to operate in September 2019 and its upper school education starts running from September 2020?
5HUNGARY
ranked among the
TOP COUNTRIESin the BOCUSE D'OR
competition in 2017
Food Industry in Hungary 13
ABOUT HUNGARYQUALITY OF LIFE
Keeping Hungarian agriculture GMO-free is a matter of extremely high strategic importance.
The total abolition of the utilization of GMO in the country’s agriculture represents an ever-increasing
competitive advantage for Hungary.
The ban on GMO is laid down in the country’s Constitution and in the corresponding legislation.
All parliamentary parties have worked together to for-mulate Hungary’s GMO-free strategy and the process
of implementation aimed at its realisation in complete agreement.
Johann MarihartCEO, AGRANA
"AGRANA has substantial and successful affiliated companies in Hungary, since 1990 at Hungrana, since 1991 at the sugar factory Magyar Cukor in Kaposvar, and since 2002 at four apple juice concentrate plants. All of our investments are characterized by considerable growth over the years. Due to the strategic importance of this region AGRANA stood and stands clear to its investments in Hungary and does not intend to change that.”
100%GMO-FREE
INGREDIENTS
FOOD INDUSTRYIN HUNGARY
Food Industry in Hungary 15
FOOD INDUSTRYIN HUNGARY
HUNGARYis a major producer of numerous agricultural products in Europe – especially compared to the country’s size.
Among the TOP3 crop producers
of the CEE region
QUALITY INGREDIENTSARE AVAILABLE ON A LARGE SCALE
10,000
5000
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3000
2000
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CRO
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SLO
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WHEAT AND SPELT (total production, thousand tons)
GRAIN MAIZE AND CORN-COB-MIX (total production, thousand tons)
SUNFLOWER SEED (total production, thousand tons)
AU
STR
IA
SLO
VAK
IA
CZEC
HR
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5 237
HU
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11,5689785
5801 4649
1831 1443 679
6 757
Food Industry in Hungary 17
850
1441
778 755
1601 1626
YOU CAN COUNT ON HIGH QUALITY RAW MATERIALS
51177463720
19616
49774484024
18520
2015 2016
2015 2016
1040
1514
FOOD INDUSTRYIN HUNGARY
1500
1000
500
2000
1500
1000
500
2013
2013
2014
2014
Sour
ce: H
CSO
Sour
ce: H
CSO
FRUIT PRODUCTION (thousand tons) ALL GATHERED FRUITS (thousand tons)
ALL GATHERED VEGETABLES (thousand tons)VEGETABLE PRODUCTION (thousand tons)
AppleSour cherry
Plum and greengagePeach
ApricotWatermelon*
Honeydew melon*
PotatoTomato
Sweet pepperGreen peas
CarrotOnion
White cabbageSugarbeet**
4781367768676067
991
5671538488846260
1067
452200
11695786065911
429173137111916253
1121
59270484421
19022
2013
2013
78092453923
21912
2014
2014
The natural characteristics of the CARPATHIAN BASIN – climatic con-ditions and soil – establish the large
scale production of high quality raw materials for the food industry.
2015 2016
2015 2016
*Not
e th
at w
ater
mel
on a
nd h
oney
dew
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on a
re li
sted
as
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tabl
es in
the
stat
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able
s of
HC
SO
. The
refo
re th
ey a
re
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ount
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the
„All
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ts” d
iagr
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ll ga
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eget
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**N
ote
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et is
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and
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O th
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ther
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or in
the
„All
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etab
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dia
gram
.
Food Industry in Hungary 19
17261890 18681826
2015 20162013 2014
The geographical fragmentation and wide range of climatic conditions within the country constitute a source of diversity of production
and establish a rich choice for processing.
FOOD INDUSTRYIN HUNGARY
2000
1500
1000
50,000
30,000
15,000
40,185
Sour
ce: H
CSO
Sour
ce: H
CSO
POULTRY STOCK (thousand pieces)
RAW COW MILK PRODUCTION (million liter)
2016
37,900 38,599 40,334
2013 2014 2015
Food Industry in Hungary 21
YOU CAN COUNT ON THE HUNGARIAN FOOD INDUSTRY'S EXPERIENCE
FOOD INDUSTRYIN HUNGARY
22% Switzerland
18%USA
17%Austria
9%Germany
8%France
7% Netherlands
7% Italy
3%Czech Republic*
3%Belgium
2%UK* 3%
Other countries
Sou
rce:
HC
SO
FA
TS
Stat
istic
s, M
anuf
actu
re o
f foo
d pr
oduc
ts a
nd b
ever
ages
20
15
* Ple
ase
note
that
due
to la
ck o
f ava
ilabl
e da
ta o
n be
vera
ges
sect
or in
the
UK
and
the
Cze
ch R
epub
lic, t
he g
raph
inco
rpor
ates
onl
y th
e fo
od s
egm
ent f
or th
is tw
o co
untr
ies.
Regina KuzminaManaging DirectorUnilever Hungary Ltd.
“The country’s superb geographical location, skilled workforce and qualified professionals all contribute to the prosperous operation of the Budapest HQ and the three factories creating 1,550 workplaces. Our company considers Hungary to be one of its strategic production centres, and throughout the past 27 years, we carried out significant investments in the country.”
MOST RELEVANT SEGMENTS OF THE HUNGARIAN FOOD INDUSTRY
meat processing
and preserving
1sweets, snacks,
convenience and other foods
5pet food and feed
production
3milk
processing, dairy
products
4mineral water,
soft drinks, alcoholic and
other beverages
2
DISTRIBUTION OF THE PRODUCTION VALUE OF FOREIGN AFFILIATES IN THE HUNGARIAN FOOD SECTOR BY CONTROLLING COUNTRY, 2015
fruit and vegetable
processing and preserving
6
Food Industry in Hungary 23
SzikszóHELL ENERGY
MátészalkaFRIESLAND
CAMPINA
VásárosnaményAGRANA
KisvárdaMASTER GOOD
BékéscsabaBONDUELLE
DebrecenTRANZIT-FOOD
ALFÖLDI TEJ POPZ
NyírszőlősBONDUELLE
Albertirsa MIRELITE MIRSA
SzerencsNESTLÉ
MiskolcNESTLÉ
MartfűBUNGE
CsongrádMARS
KarcagCARGILL
AGROSPRINT
DombóvárPARTNER IN
PET FOOD
SiófokSIÓ-ECKES
VeszprémHARIBO
UNILEVER
JánossomorjaHAAS
DR. OETKERSopron
HEINEKEN
BükNESTLÉ
BőcsMOLSONCOORS
NyírlugosAGROSPRINT
HajdúsámsonAGRANA
KaposvárAGRANAKOMÉTACARGILL Pécs
BAT
SátoraljaújhelyCONTINENTAL
KecskemétUNIVER
GALLFOODFORNETTI
NyírmadaRAUCH
GyálEISBERG
MakóGIVAUDAN
TiszafüredLACTALIS
EgerEGERTEJ
HESIDETKI
DunakesziSCITEC
NUTRITION
MarcaliSOLE-MIZO
CsornaSOLE-MIZO
KőröstetétlenKŐRÖSTEJ
NagykőrösBONDUELLESzékesfehérvár
ALFÖLDI TEJMONDELEZ Szarvas
GALLICOOP
SzentesHUNGERIT
SzegedPICK
SOLE-MIZO
KiskunfélegyházaPINI GROUP
KUNSAGI EDEN
CsávolyMOGYI
BajaPICK
BicskeSPAR
GyőrHAAS
INTERSNACKMONDELEZ
SzekszárdTOLNATEJ
DunaharasztiCOCA-COLASzalkszent-
mártonAGROFEED
Szabad-egyházaAGRANA
ZalaszentgrótCOCA-COLA
BácsbokodSOLE-MIZO
FoktőGLENCORE
RöszkeUNILEVER
ÉrsekvadkertAGRANA
PilisvörösvárSZAMOS
BudapestDREHERRAUCHZWACK
Meat processing
Beverages
Pet food and feed
Milk processing
Sweets, snacks and convenience food
Fruit, vegetable and grain processing
Tobacco
MAJOR FOOD INDUSTRY COMPANIES
BY LOCATIONIN THE MOST IMPORTANT BRANCHES
AlsómocsoládPICK
MohácsMCS
PápaPÁPAI HÚS
SárvárSÁGA FOODS
KiskunhalasHUNENT
Food Industry in Hungary 25
YOU CAN RELY ON GLOBALLY ACKNOWLEDGED HUMAN CAPITAL AT A COMPETITIVE COST
LABOUR FORCEPRODUCTIVITY
AVERAGE GROSS EARNINGSIN 2016
(EUR/MONTH/PERSON*)
Minas AgelidisGeneral ManagerCoca-Cola HBC Hungary
“Excellent people in an excellent business destination - this is what Hungary means to our company. We are committed to Hungary since 1968 having invested more than HUF 120 billion only in the last two decades in our production capabilities. The production, transportation and sales of our drinks – including our employees– provide jobs for nearly 13,000 people and two-thirds of the raw materials used for the production of beverages are provided by local suppliers. We export products to 25 countries so Hungary has become a major regional hub in the Coca-Cola Hellenic group. And we are determined to go even further…"
1944Manufacturing
and mining manager
842Food industry
technician
594Butcher
594Baker,
confectioner
717Food and beverage
productsmachine operator
674Packaging, bottling,
and labelling machine operator
1175Food industry
engineer
1352Chemical engineer
1381Chemist
Source: National Labour Office - HUF/EUR=309.9
*The wages are dependent on the region, on the skills and on the experience of the employees.
AVERAGE GROSS EARNINGSIN 2016
(EUR/MONTH/PERSON*)
Food Industry in Hungary 27
SZEGEDUniversity of Szeged
PÉCSUniversity
of Pécs
KECSKEMÉTJohn von Neumann
University
GÖDÖLLŐSzent István University
BUDAPESTSemmelweis University
DEBRECENUniversity
of Debrecen
NYÍREGYHÁZAUniversity of Nyíregyháza
GYÖNGYÖSEszterházy Károly
University
KESZTHELYUniversity
of Pannonia
MOSONMAGYARÓVÁRSzéchenyi István
University
INSTITUTIONS OF HIGHER EDUCATION
are engaged in food industry related programs.Several additional universities provide agriculture,
biology, chemistry and health related BSc, MSc courses and higher-level vocational trainings as well.
LABOUR FORCEEDUCATION
EDUCATION
*As
of F
ebru
ary
2018
There is a traditionally strong institutional system for agricultural training, education and research.
Classical trades and crafts (such as butchers, bakers, machine operators, etc.) are taught in the framework of secondary vocational training, while the system of training technicians, managers, and other mid-level professionals can only be entered by students having completed secondary voca-tional or grammar schools.
Hungary has a strong and highly differentiated system to develop skills and competencies required by the food industry.
10
Food Industry in Hungary 29
SZEGEDCereal Research Non-Profit Ltd.
KAPOSVÁRFeed Crops Research Institute
(Kaposvár University)
MARTONVÁSÁRCentre for Agricultural
Research(Hungarian Academy of
Sciences)
GÖDÖLLŐNational Agricultural Research
and Innovation Centre(Vegetable Crop Research Department,
Food Science Research Institute,Research Institute for Animal Breeding,
Nutrition and Meat Science, Research Institute for Fisheries,
and Aquaculture)NYÍREGYHÁZA
Agricultural Research Institute and
Educational Farm (University of Debrecen)
KESZTHELYPotato Research CenterBioinnovation Research
and Service Center(University of Pannonia)
KARCAGAgricultural Research
Institute and Educational Farm
(University of Debrecen)
WesternTransdanubia
Central Transdanubia
SouthernTransdanubia
SouthernGreat Plan
CentralHungary
NorthernGreat Plan
NorthernHungary
LABOUR FORCEEDUCATION
RESEARCH
Hungarian basic research is internationally recognized, and applied research has produced a number of new products and
technologies. The main focus of agriculture related scientific studies is on developing climate-proof, yet GMO free crops (grains, soy and sorghum).
Similarly to education research activities, Hungary’s agriculture and food industry has a long history. Seed breeding has an important
status in agricultultural research and is an integral part of each organizations on the next page.
*As
of F
ebru
ary
2018
José MatthijsseGeneral ManagerHEINEKEN Hungária Sörgyárak Zrt.
"Innovation is of key importance in the Hungarian added value. Finding the Hungarian small and medium sized entrepreneurs who contribute to the innovation of our technologies and products has brought real benefits for our company. Together with the high quality Hungarian agricultural raw materials, this provides our products a sustainable business growth.”
Food Industry in Hungary 31
LOCATIONGEOGRAPHICAL CONDITIONS
EXCELLENT GEOGRAPHICAL
CONDITIONS
Approximately 47 percent of the country’s total area is covered by arable land. It is geographically significant that approxi-
mately two-thirds of Hungary’s territory is flat and lie lower than 200 metres above sea level.
47%ARABLE LAND*
(Source: HCSO, 2017)
66%FLAT TERRITORY
Péter NoszekMarket HeadNestlé Hungária Ltd.
“Thanks to its three factories, market presence and significant innovation opportunities, Nestlé Hungária plays an important regional role in Nestlé’s global life. Having been present for 27 years in the country, Nestlé invested more than 100 billion HUF. In 2017, we completed a 20 billion HUF expansion in our Bük pet food factory. Nestlé continues to plan ahead for long term presence that brings stability and new opportunities to the almost 2000 domestic suppliers of our company.”
Food Industry in Hungary 33
M15
M1 M3
M0
M9
M5
M43M6
M60
M9
M9
M8
M86M0
M10
M2M25
M30
M3M49
M4 M4
M44
M8M9
M3
M35
M7
Budapest
Bra�slava
Vienna
Zagreb
SLOVAKIA
UKRAINE
ROMANIA
SERBIACROATIA
SLOVENIA
AUSTRIAVásárosnamény
Beregdaróc
Záhony
Euro
pean
Com
mis
sion
, REG
ULA
TIO
N (E
U) N
o 13
16/2
013
O.J
. L34
8 -
20/
12/2
013
TEN-T CORE CORRIDORS CROSSING HUNGARYMEDITERRANEAN • ORIENT / EAST - MED • RHINE - DANUBE
COMMERCIAL CORRIDORS & INFRASTRUCTURE
LEGEND
existing
planned
MOTORWAYS IN HUNGARY M1: Budapest – AUTM3: Budapest – RO/UKR/SK
M5: Budapest – SRBM6: Budapest – PécsM7: Budapest – SLO
EXTENSIVE ROAD & RAILWAY
TRANSPORTATION NETWORK
HIGHLY DEVELOPED LOGISTICS &
TELECOMMUNICATIONS INFRASTRUCTURE
AT THE CROSSROADSOF THREE
TEN-TCORRIDORS
3
EXCELLENT TRANSPORT NETWORK
Mihály KarkasHead of OperationsGivaudan Hungary Ltd.
“Hungary, and Makó was selected as the site for Givaudan’s biggest green field investment because of the rich heritage of food production in the region and new infrastructure which provides easy to access the fast growing markets of Central and Eastern Europe as well as Western Europe. The excellent food industry education at University of Szeged, ensures a pool of highly skilled local employees that has been driving the site to became the flagship of Flavour Division by the end of its first five years of operation in Makó.”
LOCATIONTRANSPORT NETWORK
Food Industry in Hungary 35
BudapestArad
Belgrade
Piraeus
Ploies�
Chortomlyk
Constanta
Moscow
ViennaLinz
Bremerhaven
Duisburg
Koper
Trieste
Ro�erdam
Salzburg
Munich
Rijeka
Hamburg
Scheduledblock trains
Planned train projects
Scheduledbarge service
Non-scheduled
RAILWAYS
Hungary has direct connection to all sig-nificant harbours and terminals in Europe. Several main train lines connect Hungary
with the main ports of Western Europe (e.g. Hamburg, Bremerhaven, Rotterdam), the Adriatic (Koper, Rijeka, Trieste), the Mediterranean (Piraeus) and the Black Sea (Constanta) with regular block train services.
LOCATIONTRANSPORT NETWORK
Food Industry in Hungary 37
km7,712kmHUNGARY
THE HUNGARIAN RAILWAY NETWORK
RFC lines in Hungary 2016
HIGHLY DEVELOPED NATIONAL RAILWAY
NETWORK
The railway network spans the entire country and is an integral part of the international railway network, thus providing easy access
by international express trains from the neighbour-ing regions and numerous other European coun-tries. The total length of the Hungarian railway system is 7,712 km, of which 1,224 km (15.9%) is double-track, whilst the electrified railway network has a total length of 3,083 km (40%).
*Source: Eurostat
HUNGARY ISRANKED
Nr. 6BY RAILWAY LINE DENSITY
IN EUROPE
LEGENDStations
RFC 11: Amber RFC main line
RFC 6: Mediterranean RFC diversionary line main line
RFC7: Orient/East-Med RFC diversionary line main line
LOCATIONTRANSPORT NETWORK
Food Industry in Hungary 39
LOCATIONINVESTMENT SITES
The Investment Sites Database lists more than 1150green- and brownfield sites, industrial parks and offices throughout Hungary. It simplifies the task of matching investors’ needs to potential locations. Searchable by size, location, available infrastructure and incentives, the database is an excellent starting point for any prospective investor.
HIPA operates an internal database of indus-trial parks, investment sites, and indus-trial halls in Hungary. The Investment
Sites Database is one of the most comprehensive resources of its kind, the HIPA database is part of the information package for potential investors.
800GREEN- ANDBROWNFIELD
SITES
250OFFICES
120INDUSTRIAL
PARKS
MORE THAN
ARE WAITING FOR YOUR INVESTMENT
LOOKING FOR INVESTMENT SITE?HIPA WILL SUPPORT
YOU!
Zoltán Tárkány-Szűcs Deputy Factory DirectorNissin Foods Ltd.
“Nissin instant noodle factory based in Kecskemét is serving customer in all Europe from 2004. By deliv-ering our brands (CUP NOODLE, SOBA, SMACK) in great quality with engaged team we could grow our business year on year. To sustain this grow we made a greenfield investment by creating two times bigger capacity factory in 2017 with over EUR 30 million investment. Nissin is confident Hungary has all human and material resources and has a good geography location for our business. ”
Food Industry in Hungary 41
HOW DO WE SUPPORT YOUR
PROJECT?
BEFORE YOU MAKE A DECISION
WE OFFER YOU….
AFTER YOU HAVE CHOSEN
HUNGARY
PLEASE CONTACT USAddress: 1055 Budapest, Honvéd utca 20. Customer service: [email protected]
Telephone: +36 1 872 6520Web: www.hipa.hu
We support your further expansion
and plans.
….meetings with HR & real estate agencies,
law firms and other consultants
based on your needs.
….tailor-made incentive offers and information
packages on the business environment,
labour market, tax regulations, etc.
….reference visits at companies that are
already established in Hungary.
…. location search & evaluation
+site visits.
….assistance with your incentive
application.
….one-stop-shop management
consultancy services to address your business needs.
We are open to your feedback and offer mediation
between government and business based
on your inputs.
HIPAOUR SERVICES
FOOD INDUSTRY
HIPAOUR SERVICES
Food Industry in Hungary 43
SOUTHERNTRANSDANUBIA
CENTRALTRANSDANUBIA
WESTERNTRANS-
DANUBIA
SOUTHERNGREAT PLAIN
CENTRAL HUNGARY, Budapest
NORTHERNGREAT PLAIN
NORTHERNHUNGARY
Pécs
Szeged
Debrecen
Miskolc
Győr
Székesfehérvár
25%
35%
0 / 20 / 35%
50%
35%
The maximum available aid intensity decreases if the investment is a large investment (exceeding EUR 50 million): 50% of the maximum aid intensity determined in the regional aid map is available for investment between EUR 50 and EUR 100 million, with 34% of the maximum aid intensity for investment over EUR 100 million.For information on up-to-date and individual incentive packages please contact HIPA directly.
Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown on the regional aid intensity map. The map above illustrates that regional aid available for investment for a large enterprise may be up to 50% of the eligible costs of the investment, depending on the region. For investments not exceeding EUR 50 million, the maximum intensity ratio can be increased by 10 percent for medium-sized and by 20 percent for small enterprises.
VIP CASH SUBSIDY FOR AN EVEN WIDER RANGE
OF AGRICULTURAL PROCESSING ACTIVITIES
Different preferentialterms for eligibility
GOVERNMENT INCENTIVES
THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO
As a member of the European Union, Hungary’s regulations on incentive opportunities are in accordance with the EU rules. One of Hungary’s
competitive advantages over other countries in the region is the Government’s strong commitment to increase the competitiveness of SMEs and large enterprises in Hungary.Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers wide-ranging incentives to facilitate foreign direct investments and reinvestments by local enterprises. In addition to the "Made in Hungary" type investments, increasing emphasis is being put on "Invented in Hungary" type of projects with the aim of supporting the implementation of Industry 4.0 solutions and the strengthening of Hungary as an innovation hub of Europe.From the beginning of 2017, favorable changes have been introduced in the non-refundable VIP cash grant system supporting R&D projects and technology-intensive investments.
TRAINING SUBSIDIES
LOW-INTEREST LOANS
TAX INCENTIVESreduction of
corporate tax, social tax, or for
encouraging R&D activities…
CASH SUBSIDIESfor investments,
training, job creation
and R&D
HIPAINCENTIVES OVERVIEW
Food Industry in Hungary 45
