H-1055 Budapest, Honvéd utca 20. • +36 1 872-6520 • www.hipa.hu
PRESS RELEASE
20 January 2015, Budapest
Domestic investment incentives are a success within the region
In 2014 HIPA brought new 60 investments worth altogether 1.66 billion EUR to Hungary
The Hungarian Investment Promotion Agency took part in the launching of 60 new
investment projects worth over 1.66 billion EUR, thus achieving an outstanding
performance among its peer organisations within the region, according to the
announcement made at the press conference held by HIPA today. Due to the activity of
the organisation established for the support of working capital investments, nearly 11
thousand new workplaces have been created, which is a 51% increase compared to 2013.
Among investment projects launched in 2014 the highest invested amount, around half a
billion Euros, comes from investors from India. Investments in automotive industry
continue to be on top of the list of all industrial branches, followed by the renewable
energy sector, chemical industry and services centres attracting a total foreign direct
investment worth 524 million EUR.
The Hungarian Investment Promotion Agency took part in the launching of 60 new
investment projects worth over 1.66 billion EUR, thus achieving an outstanding performance
among its peer organisations within the region, according to the announcement made at the
press conference held by HIPA today. Due to the activity of the organisation established for
the support of working capital investments, nearly 11 thousand new workplaces have been
created, which is a 51% increase compared to 2013. Among investment projects launched in
2014 the highest invested amount, around half a billion Euros, comes from investors from
India. Investments in automotive industry continue to be on top of the list of all industrial
branches, followed by the renewable energy sector, chemical industry and services centres
attracting a total foreign direct investment worth 524 million EUR.
The Hungarian Investment Promotion Agency (HIPA), established through a renewed
strategy framework and investment support structure in autumn 2014 took part in
60 investment projects finalised with a positive decision in 2014, the global value of which
exceeding 1.66 million Euros, was stated in the annual report of HIPA.
HIPA, which operates according to the principle of „one-stop shop” with the purpose of
searching for and supporting working capital investments, as well as promoting
reinvestment, reached a 35% higher investment volume than that of 2013. In addition, as a
result of investment decisions made in 2014, around 11 thousand new workplaces were
created, which is one
and a half times more than last
year.
On the basis of the data and preliminary estimations published today the 60 investments
realised with the help of HIPA represent 1,6% of the (projected) GDP[1], and 11.3% of
investments in domestic economy.
„Compared to other states within the region HIPA’s last-year results clearly demonstrate the
government’s efforts to make Hungary into a top destination for investor in Central Eastern
Europe, by increasing competitiveness and establishing an investor friendly institutional
H-1055 Budapest, Honvéd utca 20. • +36 1 872-6520 • www.hipa.hu
framework and infrastructure, as well as actively promoting investments – summarized
Róbert Ésik, president of HIPA. – 28 projects are financed by investors entering the
Hungarian market for the first time, whereas 32 investments are registered by enterprises
already established in Hungary, which is a clear sign of investors’ reinforcing confidence on
both sides.
Róbert Ésik pointed out that compared to investment promotion institutions working within
other countries of the Visegrád treaty, HIPA outperformed the Polish PAIiIZ and the
Slovakian SARIO in 2014 in terms of foreign direct investment flows per capita and also
regarding the number of positive investments decisions and that of newly created
workplaces.
HIPA took part in the launching of 60 new investment projects finalised with a positive
decision, worth over 1.662 billion EUR. The number of workplaces created as a result of
investment projects is 10 745, the value of FDI per capita reaching 168 Euros. As a
comparison, the equivalent data of the Polish investment agency: 54 closed projects, an
investment volume worth 1 817 million Euros, 8 788 new workplaces, and 47 Euros of FDI
per capita. In Slovakia 25 investment projects brought an investment flow of 170 million
Euros, creating 4 600 new workplaces, representing 31 Euros of FDI per capita in 2014.
In 2014 Budapest was also awarded the prize of “The best FDI city in Central Europe” by the
fDi Magazine, being the most attractive Central-European location for investors. Apart from
being the first in the region, it is also paramount that the Hungarian capital was the only
Central-European capital being ranked in the global evaluation called the „TOP 10 Major
European cities” by winning the ninth position after London, Barcelona, Berlin, Paris and
Brussels.
Strong presence in the automotive industry
The analysis of the investments realised with the help of HIPA clearly shows that this year
again, the automotive industry closed a very strong year, more than half of the investment
volume (52,2%) being generated in this sector, amounting to 868.14 million Euros. The
second highest level of investment was reached in the renewable energy sector (199 million
Euros), followed by the chemical industry investments representing 184.75 million Euros,
but service centres also attracted a substantial amount of investment flow (140 million
Euros).
A thorough examination of the investment background reveals that the most substantial
working capital flow, around on third of the 2014 investment volume, is related to Indian
investors (494.8 million Euros), the major part of which being represented by a new comer in
the automotive assembly industry. The second biggest investor is China, with an investment
volume of 195.05 million Euros; the third place is taken by Japan with 150.19 million Euros.
Róbert Ésik considers that the FDI industry breakdown clearly shows that Hungary has made
firms steps in the direction of becoming a centre of automotive industry within the Central
Eastern European region.
H-1055 Budapest, Honvéd utca 20. • +36 1 872-6520 • www.hipa.hu
Regarding the number of newly created workplaces, investments coming from the USA
created the most new workplaces, altogether 2729. The second place is taken by India with
1575 persons, Germany ranks third with 1431 newly created workplaces. According to a
breakdown of industries, in 2014, the highest number of new workplaces was created in the
service centre sector (SSC) (3595), an area which is still being characterized by an
outstanding need for qualified workforce speaking foreign languages. Just a slightly lower
number of new workplaces, altogether 3500 were created in the automotive industry. The
two sectors have generated altogether more than two thirds of the newly created
workplaces. The electronic industry rank third, with 1089 newly established workplaces.
For 2015 HIPA foresees the predominance of the same industries. Róbert Ésik said that HIPA
is currently negotiating 100 active investment projects awaiting a decision, a substantial part
of which aiming at strengthening the automotive industry.
***
Background
In order to make investment promotion more efficient, the Hungarian government
established, as a successor of HITA, the Hungarian Investment Promotion Agency (HIPA),
which is the first government agency dedicated entirely to investment promotion since the
change of the regime. Being more efficient and proactive, HIPA continues to search for
investors and foster investments in Hungary, besides assisting reinvestment projects by after
care activities.
*The final GDP data will be available in March
Additional information
Hungarian Investment Promotion Agency
Communication Department
Phone number: 06 1 872 6520
sajto@hipa.hu
www.hipa.hu