Doing Business in Hungary 2010 - International Franchise Association

inconsistent. Although Hungary adopted a market economy only 20 years ago, competition is
fierce in virtually every sector. Many of the market leaders are from Western Europe (especially
Germany, Hungary’s leading trading partner), but increasingly Hungarian and Asian (e.g.,
Chinese) firms also play a formidable role in the economy. All companies must comply with
standards, regulations and certification requirements of the EU, which Hungary joined in 2004.
http://www.buyusa.gov/europeanunion
For more information on Hungary’s regulations, please refer to Chapter 3, Selling U.S. Products
and Services and Chapter 5, Trade Regulations and Standards.
Market Opportunities Return to top
In spite of the many challenges that accompany the global economic crisis, Hungary remains an
attractive market for U.S. investment and exports. Hungary’s strategic location in Europe,
access to EU markets, highly skilled and educated work-force, sound infrastructure and other
advantages have led companies such as GE, Alcoa, AES, GM, IBM and many others to locate
facilities here, both in manufacturing and services. Currently, there are 2000 partially owned,
and 128 wholly owned US companies operating in Hungary.
Foreign direct investment (FDI) has helped modernize industries, create jobs, boost exports and
spur economic growth. Cumulative FDI stock has totaled more than US $80 billion since 1989,
the highest in the region on a per capita basis. Among the important sectors: automotive, IT,
logistics and, more recently, shared services (e.g., back office and/or call center operations). All
told, American companies have invested more than $9 billion in Hungary since 1989, making
the U.S. the 4th-largest foreign investor behind Germany, Austria and the Netherlands.
Meanwhile, U.S. exports to Hungary have topped US$1 billion dollars in each of the last five
years, led by IT equipment, automotive components, industrial engines and other manufacturing
supplies. U.S. exports to Hungary were US$1.29 billion in 2008, up slightly over 2007 exports of
US$1.10 billion. January through November, 2009 export figures from the US to Hungary were
US$1.02 billion.
Funding from the EU has also driven growth, and will continue to do so. Since 2004, EU funds
have been used to improve telecommunications, energy and highway infrastructure. As part of a
second National Development Plan (2007-2013), Hungary will allocate approximately €25 billion
(US$36.8 billion) in projects ranging from tourism and transportation to healthcare and
environment. For a complete listing of the most promising industries, please see Chapter 4,
Leading Sectors for U.S. Export and Investment.
Market Entry Strategy Return to top
The U.S. Government – through Embassy Budapest and the Departments of Commerce, State,
and Agriculture – stands ready to support U.S. firms, whether entering or already doing
business in Hungary. The U.S. Embassy promotes a sound Hungarian business environment
and advocates on behalf of U.S. companies bidding on major Hungarian Government tenders or
facing business problems due to government policies. In addition, the staff of U.S. officers and
Hungarian commercial specialists at the Embassy’s U.S. Commercial Service (USCS) can
assist U.S. firms to access the Hungarian market and solve commercial problems through costeffective
service programs and market research.
For more information, please refer to Chapter 3, Selling U.S. Products and Services, and visit
the USCS Budapest website, http://www.buyusa.gov/hungary/en/
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