We are building the

CMYK future in Győr! Ezüst: Pantone 877 C

Stanc Hajtás: szaggatott Why does everyone come to Győr?

Győr, the innovative

The future is being built in Győr, announces the logo of the City of Meet- ings that demonstrates the strengths and variegation of the image of the city. The county seat of Kisalföld (Small Plain) has become the most dynamically deve- loping, innovative city of , with a solid financial background, well qualified market-specific labour force and a sta- ble economic environment that supports the enterprises, so the city management made a well-founded decision to use the above mentioned slogan, to that even the most important educational and eco- nomic actors of the city joined in the spirit of common future-building. Let us build the future together in Győr!

3

bef utm.indd 3 10/4/12 1:16 PM 1. Central role, with main focus on the economy

4 5

bef utm.indd 4 10/4/12 1:16 PM bef utm.indd 5 10/4/12 1:16 PM Geographic and economic Economic data and outlook characteristics of Hungary

General information Economic data

Due to its central location Győr has been Joining the in 2004 Location: Labour force: a beloved investment target for those brought numerous commercial and re- East-Central Europe 4.284 million (2011) foreign companies, which have wanted gulation advantages, enabling the free to expand their activity in East-Central trade and free flow of goods, capital and Time zone: Employment: Europe and on the most developed area services. GMT + 1 hour 3.82 million (2011) of Hungary. The telecommunication, Due to the high standard of the education transport and logistic infrastructure of system the high qualification of the labour Population of Hungary: Unemployment rate: the city, as well as its educational qua lity force in Hungary and in Győr is particu- 9.99 million (2011), the population of Győr 10.7% (2011), the unemployment rate of and standard of living have attracted a larly outstanding. The labour force of the is 130 thousand Győr is 6.2% (2012) huge number of foreign investors in the country is high qualified and has a work- previous years to the city of Győr, through specific knowledge of foreign languages; Participation in international Gross Domestic Product (mil USD, PPP): this to Hungary. their wage demand is relatively low. In organisations: 195,100 (2011) Győr lies in the north-western part of Győr the establishment of an education United Nations (UNO), NATO, European Hungary, on an area of 174.62 km2 and its system that is adjusted to the market Union, OECD, IMF, Organization for Secu- Consumer Price Index: geographic coordinates are: 48° 41’ N, 17° demand has attracted a huge number of rity and Co-operation in Europe (OSCE), 3.9% (2011) 38’ E. investors in the previous period. Conseil Européenne pour la Recherche Nucléaire (CERN), Danube Committee, FDI – Inward direct investment: Schengen Agreement, World Meteoro- USD 2 billion (2011) logical Organization, Bank for Interna- tional Settlements, International Atomic Export growth: Energy Agency, Wassenaar Arrangement 9.1% (2011) on Export Controls for Conventional Arms and Dual-Use Goods and Technologies Current account balance: Hungary (% of GDP) 1.5% (2011); forecast: Main industries: 1.1% (2012) automotive, electronics, pharmaceuticals, HAMBURG 1046 KM ICT, food

Currency: HUF (forint)

MÜNCHEN 617 KM

CONSTANŢA KOPER 1227 KM 598 KM

RIJEKA 598 KM

6 7

bef utm.indd 6 10/4/12 1:16 PM bef utm.indd 7 10/4/12 1:16 PM Regions of Hungary Accessibility of Győr

Bratislava (Sk)

Wien The city lies in the so called ‘Golden Trian- development of the airport is under pre- (A) gle’, between , and Brati- paration, the investment in the value of 7. slava, thus it can be accessed easily. There ca. 8-9 million EUR can be realised with Budapest (HU) 6. are three big international airports within the co-operation of the city of Győr and a 120 km circle from the city. Győr lies the Audi. As the result of this investment 3. a longer runway able to receive bigger 1. 4. directly at the Budapest-Vienna motor- way (M1), on the Budapest-Vienna inter- airplanes (Airbus 319, Boeing 737) will be national railway and next to the airport established together with a new passen- of Pér and the international river port of ger terminal building, a new control tower Gönyű. The motorway M1 connects Győr and a higher standard lighting technique 5. 2. to Western and Eastern Europe, while the system. The development of the airport road M15 provides direct connection to is planned to be ready on 30th June 2013. the Northern European countries. Győr is Győr is easily accessible, but there is a a stop along the Budapest-Vienna inter- huge traffic on its public roads because national railway line, on that there are of its central role. The traffic-orga- 1. Western 5. international Intercity and Eurocity trains. nisation is made more difficult by the 2. 6. A determining economic partner of the settlement-structure divided by the rail- 3. 7. Pér Airport is the Audi company of Győr, way line and the four rivers. In 2009 the 4. but more and more other local spare part lengths of public producers take part in the transports roads and squares The city connected mainly to the automotive in Győr built by the • is easily accessible on the road, Road network of Hungary industry, making use of the rapidity of municipality was in the air and on waterways; the service. A big advantage of the air- 379 km, and that • has had more and more incomes port is that it can be accessed fast from of the ones built from local business tax for years; Road network of Hungary Ukraine any part of the city, because it only lies by the state was • provides a calculable and stable

M30 M3 18 kilometres from the downtown. The almost 35 km. economic environment to the M15 Salgótarján Nyíregyháza M1 investments; M2 M49 M25 SK M9 M3 • does not have any debts in its financial M10 M3 Győr M86 Budapest M0 M31 Tatabánya M1 M35 M15 statements. M0 M0 Székesfehérvár M7 Veszprém M4 M6 M4 M5 M8 MOSONMAGYARÓVÁR Romania A Dunaújváros M8 M1 M8 WIEN Kecskemét M7 M9 M44

M70 GÖNYŰ Slovenia M7 Békéscsaba M9 Kaposvár M9 BUDAPEST M6 Szekszárd ABDA M43 Pécs M5 GYŐRSZENTIVÁN

M60 Croatia GYŐR Serbia A WIEN M1 M1 Existing After 2013 IKRÉNY 2012 Broadened by 2013 2013 PÉR 8 9 GYŐRÚJBARÁT

bef utm.indd 8 10/4/12 1:16 PM bef utm.indd 9 10/4/12 1:16 PM 2. Dynamism and verve

10 11

bef utm.indd 10 10/4/12 1:16 PM bef utm.indd 11 10/4/12 1:16 PM Industry

The industrial past of Győr looks back The development of this area has been at big traditions, the real boom of undiminished until recently, and it is the branch was due to the purpose- being expanded for the seventh time ful industrialisation of the determina- already. The AUDI HUNGARIA MOTOR tive mayor Károly Zechmeister in 1887, Ltd settled down north-eastern from when a range of heavy-, light- and food the building complex of Rába Axle Ltd. industry enterprises settled to the city Győr is the second most significant and numerous infrastructural deve- industrial centre of the country after lopments were realised. After the turn Budapest, besides the above mentioned of the century the industry of Győr companies with the presence of such developed further and the Hungarian companies as Nemak, Dana or Lear. Its Wagon- and Machine Factory was built industry and its economy is strength- in 1908, then the city became the most ened by its outstanding geographic situ- significant industrial centre of the coun- ation between Vienna, Budapest and try between the two world wars. In 1991 Bratislava, and from the motorway M1 the City Council of the every part of the city can be accessed. The events determining the Municipality of the City The development of the loading station industry of the city of Győr accepted the of water transport (Győr-Gönyű inter- • 1896 – the Hungarian Wagon- regulation plan of the national port) begun. The importance of and Machine Factory Rt. (Rába) Industrial Park of Győr: this port has been continuously grow- that still operates successful in the industrial quar- ing by making navigable the Rheine- was established; ter lying in the east- Main-Danube canal, and also the place • 1991 – the first Industrial Park of ern part of the city of air transport (Győr-Pér Airport) has Hungary was established; Hungarian and for- been developing. The headquarters of • 1993 – AUDI HUNGARIA MOTOR eign investors began the Chamber of Commerce and Indus- Ltd settled down; building modern try of the county that organises the plants establishing economic life of the county can also be • 1995 – the Chamber of Commerce the first industrial found in the city. and Industry of the County park of Hungary. Győr-Moson-Sopron started its operation; • 1996 – Nemak Győr Ltd built its plant; • 2003 – Vill-Korr Hungaria Ltd was established; • 2011 – PWC opened its first office outside of the capital of Hungary, in Győr; • 2012 – the new Logistic Park of Audi is being built in Győr.

12 13

bef utm.indd 12 10/4/12 1:16 PM bef utm.indd 13 10/4/12 1:16 PM Education system adjusted to the market demand

Vocational education

In Győr there are continuous consulta- these 23 institutes there are 19 voca- tions among the city management, the tional schools that operate within the determining enterprises, the company- frames of the Győr Regional Integrated leaders, as well as the educational insti- Vocational Education Centre (TISZK). tutes of the city. As a result of this social The vocational education assortment of conversation the vocational education Győr is various, the students can choose of the city has been transformed in the among 121 professions. The number of recent years; the new system enables TISZK-students in Győr has increased in that the demands of the investors com- the past school year, too, more than ten ing to Győr meet the offer of the labour thousand students are learning in the market. The establishment of the trans- vocational education institutes operated formed education system serves as a by the municipality. good example to be followed for the other The new regulation also has the aim that big of the country. the employment of students be available The intention of the municipality with not only for the international big compa- the transformation of vocational educa- nies, but also for the micro- and small tion in Győr was to direct the young peo- companies. ple towards the lack professions, so that To help this, a profession-orientation they get such a modern knowledge that scholarship was also introduced in Győr, is required at the labour market. There- so the education system was even more fore the city supported the launch- adjusted to the demands of the labour ing of a countrywide unique vocational market, following the interests of the education system, in the frame of that economic actors. the number of grammar schools was The Mobilis Interactive Exhibition Centre - decreased and a scholarship system that presents the miracles of car-produc- was introduced, orienting young people tion in a spectacular form through inter- towards the lack professions and voca- active exhibitions and demonstrations in tional education. The municipality cur- order to help young people decide if they rently operates 22 secondary schools would like to choose a career in this field - and one independent dormitory. From opened its gates in 2012.

14 15

bef utm.indd 14 10/4/12 1:16 PM bef utm.indd 15 10/4/12 1:16 PM Where knowledge meets the talent!

Széchenyi István University

The Széchenyi István University serves educations that ensure the graduates the mainly on machine industry focused to be able to find a job that corresponds economy based on the high stan dard to their chosen profession. This is also production activity of Győr and the shown by the fact that 95% of the gradu- West-Hungarian area through its unique ates of Széchenyi can find a job that cor- education and further training offer and responds to their profession within half research activity in co-operation with its a year after their graduation and they do economic and social partners. mainly make good use of their knowledge The Széchenyi István University offers locally, in Győr. training programs in the areas of tech- As part of the development programs nical, IT, pedagogic, economic, interna- that renewed the campus basically a tional, social sciences, legal and admi- new modern laboratory for internal nistrational, social, medical- and health combustion engines was built, financed sciences and art studies. Its activity together by the Széchenyi István Uni- comprises every level of training, from versity, the AUDI HUNGARIA MOTOR Ltd. the vocational education through the and the city of Győr and on 1st March university BsC- and MsC-education until 2011 the Car-industrial Research Centre the PhD education and further training. started its operation. The Mobilis Inter- The 12,000 university students make active Exhibition Centre that was built the life of the city even more colourful by the city at the university can also and rich and they even bring economi- arouse the interest of young people and cally a remarkable income. Most stu- strengthen their commitment towards dents stay in the city after having gradu- the technical professions. Through its ated from the university, they find a job services and public engagement it is the and found a family here. acknowledged initiator and supporter The Széchenyi István University strives of the development of the regional - on the basis of its experiences gained ‘knowledge economy’, while it takes an through the wide-ranging labour mar- active role in the cultural, scientific and ket co-operations with enterprises and sport life of Győr and its region, as well institutes - for providing educations that as in the vocational guidance of young serve the real demands of economy, such people.

16 17

bef utm.indd 16 10/4/12 1:16 PM bef utm.indd 17 10/4/12 1:16 PM The determining actors of the economic life in Győr

Chamber of Commerce and Industry of the County Győr-Moson-Sopron The biggest companies of the Industrial Park in 2011

The modern Chamber of Commerce and operating the Consumer Protection Con- Foreign owned Hungarian owned Industry of the County Győr-Moson-Sopron ciliator Corporation and Ethic Committee was established in 1994 and it started its and providing other business services. The Nemak Győr Alumíniumöntöde Kft. West Hungária Bau Kft. activity on 1st January 1995. Its mission Chamber of Commerce and Industry of the Automotive Playback Magyarország Kft. Raabvill Kft. is the even better business success of County Győr-Moson-Sopron is the mem- the member enterprises, the strengthen- ber of Enterprise Europe Network, that is Győri Keksz Kft. (Győr Biscuit Ltd.) Vill-Korr Hungária Kft. ing of the economic life of the county and part of the ‘Competitiveness and Innova- the support of international relations. The tion Framework Program’ (CIP) supported IGM Robotrendszerek Kft. STS Group Zrt. member enterprises represent the main by the European Committee. The Enter- industries of the county, that are as follows: prise Europe Network co-ordinates almost Propex Fabrics Kft. Somogyi Elektronic Kft. iron-, metal- and car industry; building- and 600 partner organisations in more than building material industry; food industry; 40 countries, supporting the competitive- timber-, furniture- and plastic industry; ness and innovation in a local, European tourism; transport and transportation. The and other level. Due to the membership Besides the big companies there are rooms and a conference room available for Chamber provides numerous services that in Enterprise Europe Network the circle of also smaller enterprises. The settled the companies. are useful for the enterprises, among its services is also completed with sharing the companies can reach many services in the The 184.4 hectares area is currently used by activities we can find services connected to international experiences, with the infor- area of the park: there is a customs office, 99%, but in its direct neighbourhood there economy-development, commerce-deve- mation about the EU and local application two restaurants, a café, a hotel and in are numerous possibilities to the further loping services, legalisation of documents, possibilities as well as with providing Euro- the INNONET there are more negotiation development and expansion of the area. Széchenyi card, program organisation, pean Union legal information. information services, vocational education, The main characteristics of the Győr International Industrial Park International Industrial Park of Győr Gross total area: Main branches settled here: The International Industrial Park of Győr Ltd 1989 – has been a determining factor 184.4 hectares • car-supplying industry was established in 1991 as the first indus- in the economic life of the city. Its main • machine industry trial park of the country. Its main activity is advantages are that it has an outstand- Companies: • textile industry the development and operation of one of ing geographi situation in the heart of more than 100 companies from 14 • electronic industry Hungary’s most modern parks, the Indus- Central Europe, it has a direct motorway countries • plastic industry trial Park of Győr that is on an EU-level. The and railway connection, its ownership • transportation, distribution founders’ circle of the company has been relations are clear, it lies on an area that Number of employees on this area: • wholesale stable from the beginning, in the course of is free from soil pollution and has a high- 4,500 persons time there were organisational transfor- standard infrastructure and direct public mations and the Municipality of the City utility connection possibility. Total investment value on this area: of Győr recently bought out the portion of In the International Industrial Park of Győr EUR 448 million property of the Austrian owner from the the metal processing and the machine previously jointly owned company, thus industry are determining, but the logistic Number of realised expansions: expressing the economic strength of the area is continuously strengthening, and the 7 city the whole Industrial Park became 100% food industry also has a more and more owned by the city of Győr. significant presence. Besides the Hunga- The International Industrial Park – that is rian companies there are also foreign com- a good example of the economic trans- panies present here from 14 countries of 18 formation after the political change in the world. 19

bef utm.indd 18 10/4/12 1:16 PM bef utm.indd 19 10/4/12 1:16 PM The most important companies in the life of the city

Audi

The AUDI HUNGARIA MOTOR Ltd that has the significant investment Audi will also Vocational School and the companies its seat in Győr is member of the German establish its logistic park in Győr, in the Audi and Nemak. Audi AG, and the central engine-supplier direct neighbourhood The social responsibility of AUDI HUN- of Audi and the Volkswagen-holding. of the Industrial Park. Even Audi chose the city of GARIA MOTOR Ltd can be seen in many Győr Besides this the Audi TT Coupé, the TT The significant invest- areas of the city life. In the field of cul- Roadster sport cars, the Audi A3 Cabrio- ment in the value of almost 72 million ture the company has been a committed let and the RS 3 Sportback are only pro- Euro will further strengthen the finan- supporter of the internationally famous duced in Győr. Audi Hungaria has been cial situation of the city and support the company of the Ballet of Győr and of one of the companies in Hungary that outstanding economic attractiveness of the successful summer closing concert reached the highest revenues for years Győr. The building of the logistic park will with international stars that as part of and it is the biggest exporter of the already be started in 2012. the event-series ‘Four Seasons Festi- country, its export is 9% of the whole There is an excellent relation between val – Summer’ attracts every year ten- Hungarian export. AUDI HUNGARIA MOTOR Ltd and the city thousands of people. The city lays huge In 1992 the German big company chose of Győr, they help and support each other emphasis on the organisation of inter- Győr from the ca. 150 possible sites, in every area of life, the two parties are national sport events that are also sup- because of the excellent settlement co-operating in economic, development, ported by AUDI HUNGARIA MOTOR Ltd factors, economic-geographic situa- tax policy, financial, cultural, educational according to its sponsoring strategy (Tri- tion, developed industrial culture and and sport issues. athlon European Championship, Canoe- car-industrial traditions of the city. The In 2007 the Audi Hungaria Internal Com- Kayak World Championship, International value of the investments of the factory bustion Engines Institute was estab- Basketball Gala etc.). The city can also be in Győr until now exceeds 3.3 billion lished as part of the Technical Sciences proud of its first league teams in football Euros, thus it is one of the biggest foreign Faculty of the Széchenyi István University (soccer), futsal (indoor football), basket- investors in Hungary. Audi that already in Győr. In this institute the practice-ori- ball and handball. The German company has 9,000 employees is going to establish entated education and the development has been the main sponsor of the Győri a full-spectrum factory in Győr with an of the abilities behind the profession, as ETO Woman Handball Team since July investment of ca. 1 billion Euro, through well as the bilingualism stand in the focus 2006 and the emphasised supporter of this it creates 1,800 new workplaces. of the special higher education. During the Győri ETO Football Club since 2011. Together with the direct and indirect sup- their studies the students can regularly pliers and service providers the company participate in the research and develop- will employ almost 15 thousand people in ment projects of Audi Hungaria. In 2011 the region from the second half of 2013. a new building was built in the city of Győr: From the beginning of the whole capacity in the co-operation of the Széchenyi Ist- production of the factory daily 500 cars ván University and the AUDI HUNGARIA will be produced, that will enable the pro- MOTOR Ltd the new building of the Audi duction of ca. 125,000 vehicles annually. Hungaria Internal Combustion Engines The establishment of the new vehicle- Institute was constructed. Within the factory will add a plus value of 930 mil- frames of the vocational education sys- lion Euro to the recent 3.3 billion Euro tem there is also a unique and close co- Audi-investments in Hungary. Besides operation between the Lukács Sándor

20 21

bef utm.indd 20 10/4/12 1:16 PM bef utm.indd 21 10/4/12 1:16 PM Nemak Rába

The company Nemak Győr that can be To the development the company gained a The Rába company that was established the Hungarian Army until 2018 according to found in the Industrial Park of Győr was support of 4,8 million Euros with two suc- 116 years ago is nowadays one of the big- a contract signed by the Hungarian State. established in 1993. As main profile the cessful tenders in the gest Hungarian vehicle-industrial enter- In the previous years the company became enterprise that has a revenue of almost frames of the New Innovation on the highest prises. With the site-rationalisation that the important supplier of numerous enter- level! 200 million Euros produces cylinder-heads Széchenyi Plan Eco- ended in 2006 the company concentrated prises that belong to the elite club of the for the European car industry, and employs nomic Operative Program. From the invest- the operation of the Holding centre, the world’s vehicle industry and besides this more than 800 people. The biggest Euro- ment resources a 3,000 square meters big Rába Axle Ltd and the Rába Vehicle Ltd to the trucks mounted with Rába axles pean cylinder-head factory of the Mexican production hall and a 1,340 square meters the site in Győr. reached great results on Dakar. Nemak-group supplies its products among big aluminium storage hall were built and The activity of the group is built on three After a more than one decade long co- others to Opel, Renault, Audi and BMW. machine-lines and equipments of big value legally independent pillars that are con- operation John Deere trusted Rába again The company expanded its plant in 2012 were installed. Nemak that is nowadays nected to each other. The axle branch pro- with the development of the axles of one with an investment of 30 million Euros. As one of the most important economic actors duces axle components for heavy vehicles: of its top-category products, the 560 a result of the development they can pro- of the West-Transdanubian region realised trucks, busses, special vehicles and trac- horsepower strong rubber belt tractor. The duce annually 2.5 million cylinder-heads, a the investment in the Industrial Park of tors. Its products are locally developed and development was successful, the series- half million more than previously, so they Győr. planned axles and Rába gives a significant production started and the parties signed created 200 new workplaces. part of the world production of these pro- a long-term supplier agreement for 5 years. ducts. The vehicle and vehicle parts busi- The axle that was realised as the com- nesses mainly supply seats to Hungarian mon development of the world’s leading and foreign car-factories and for railway agricultural vehicle producer, the Deere & carriages. The company has a significant Company that has its seat in Moline (Illinois role in the boosting of Hungarian defence State, USA) and the Rába ensures the driv- industry, as well and it supplies military ing and steering of one of the world’s big- vehicles in a value of more million Euros to gest size, power and efficiency tractor.

22 23

bef utm.indd 22 10/4/12 1:16 PM bef utm.indd 23 10/4/12 1:16 PM 3. The future is being built in Győr!

24 25

bef utm.indd 24 10/4/12 1:16 PM bef utm.indd 25 10/4/12 1:16 PM Győr, the city of meetings

Converging rivers, intersecting roads, Hun- in the 17th and 18th centuries, through garian hospitality, the impulse of youth the reconstruction of the inner medieval and the excitement of a city deeply rooted part, it became one of Hungary’s most in history: this is Győr, the city of meet- beautiful baroque . At the end of the ings! Győr is Hungary’s sixth largest city 19th century it developed into an indus- and home to nearly 130,000 people. Due trial centre, which is a role it still plays to its outstanding geographic location, today. Győr’s appeal today is not only its developed industry and highly skilled dynamic industrial development, but also labour force Győr is the country’s most its cultural life, outstanding sport events, dynamically developing innovative city. thermal bath, sacred and secular monu- The most important factor in the promo- ments, attractive inner city streets and tion of the city’s development is its loca- terraces, which are elements of a mosaic tion on the bank of the Danube. Along the that makes this European city complete right bank of the river important trans- and gives it its pulse. port routes were established leading Due to the confluence of four rivers Győr westwards from the central part of the is the ‘city of rivers’, whose waters lend Carpathian Basin. Already in Roman times a unique atmosphere to the city through this territory was important, as it was their gentle embrace. The picturesque the link between Aquincum (Buda) and Moson-Danube, Rábca, Marcal and Rába Vindobona (Vienna). It is for this reason - which once lent its name to the city - that Győr ranks among Hungary’s most make a romantic walk irresistible. Even important cities with respect to ancient from a wooden raft the ancient city walls, history and it is one of the settlements, wonderful green spaces, old restaurants which has had a leading role in the his- popping up under the shade of old trees tory of Hungary since its establishment. or Radó Island, which is considered the In Roman times a civil was also built island of lo vers, can be admired. Meriting near the castrum (castle), which defended its ranking as Hungary’s third richest city the province. About 1,000 years ago, at the in monuments, the baroque inner city is time of the birth of the Hungarian State it ornamented by palaces that conjure up became a bishopric and prefectural cen- times past, characteristic corner balco- tre. During the time of Turkish rule it was nies and statues. a fortress that defended Vienna and then

26 27

bef utm.indd 26 10/4/12 1:16 PM bef utm.indd 27 10/4/12 1:16 PM Interview with Mr. Zsolt Borkai, mayor of the city of Győr and president of the Hungarian Olympic Committee

The future is being built in Győr!

The situation of Győr in Hungary is an obvious decision for Győr. We re-draw outstanding from many points of view, lots our revenues to the development of the of positive news are appearing about the city, so the development will not stop. city, what is this due to? Everything connects with everything. Yes, fortunately many good things are hap- The renovation of the downtown, the pening in our city, the invested energy of popularity of our cultural programs, our the previous years, the co-operation that sport results together with the economy is characteristic in the city and the thinking made Győr one of the most attractive and together, as well as the hard work of my most popular settlements. This can also colleagues have their results that appear be seen from the touristic figures. on every area of life. We have a stable economy and a balanced financial situation, Now Győr became a touristic centre, how while our connection to the actors of the could you reach this? market sector is also excellent. Győr is Its unique aptitudes predestinate Győr to be attractive for the investors, there are new one of the most visited inland destinations: companies from week to week that settle on its area three rivers are converging down in the city. This is mainly due to the directly next to the most important sights, intensive infrastructure-development of its downtown finishes on podium regarding the previous years, the attractive economic the number of monuments in Hungary, its environment, the presence of Audi in university that is entwined with the car- Győr, the vocational education specific industrial innovation, its spa- and thermal transformation of our education system bath, rich arts- and cultural life offer ever and our city marketing activity through so much motivation to the travellers. that we can show what kind of values and Therefore we decided 5 years ago to turn abilities has the city of Győr. Győr into a touristic centre. We only had to demolish the previous negative industrial The economic power and attraction of city image and show that nowadays the city is almost unique in the country. Győr is much more than an industrial city. Recently it was decided that even the Those ones who only visited our city long Logistic Park of Audi is going to be built in ago do not even believe how many things Győr, and the city bought 100% of the Inter- happened; fortunately this is also shown in national Industrial Park of Győr, as well. the number of guest nights. Győr welcomes What do these decisions mean for Győr? the tourists with a new, youthful image, Our economy will further strengthen, we with a Touristic Visitors’ Centre that meets will stand on even more feet and we can the requirements of the 21st century, realise further developments. Building with continuous touristic attractions, as the logistic park in Győr is a great result, well as due to its cultural institutes with the attractive environment helped taking unforgettable experiences. There has been

28 29

bef utm.indd 28 10/4/12 1:17 PM bef utm.indd 29 10/4/12 1:17 PM an unbelievable jump in the number of Besides the unique aptitudes why is Győr What kind of support can the government tourists and the results of this year even an attractive destination for investors? and the city give the potential investors, exceed those of the previous ones . Győr and its closer environment is if they choose Győr as the venue of their after Budapest the second most investment? The future is being built in Győr! – significant area of Hungary regarding There are many possibilities, on the one announces the slogan of the city. What its economic potential. The Municipality hand we can talk about a subvention does Győr plan in the future? of the City of Győr lays an outstanding co-financed by the European Union, on the We have big plans that will not only emphasis on ensuring those optimal other hand about the investment-helping mean a lot for the city, but also for whole conditions that ensure the conditions support on the basis of the decision of the Hungary. We submitted a declaration of of successful operation in the long Government of Hungary. In the case of intent for the organisation of the Euro- run both for the Municipality and the those particularly important investments, pean Youth Olympic Festival 2017, which economic companies investing in the whose value exceeds 10 million Euros the is the little sister of the Olympic Games area of the city. A proof of this can be Hungarian Government provides a support and the third biggest Olympic event with that more internationally acknowledged on the basis of a central decision in the 4,000 participants and at least 4-5,000 multinational companies decided to form of development tax allowances and spectators. We are working on the bid with start developments in Győr in the inte- other employment-connected support. full speed, because if in December we get rest of the their of its long-term goals. The investments that are co-financed the right to host this event, then the Olympic The budget of the Municipality of the by the EU can also be interesting for Flame can at last inflame in Hungary. The City of Győr for the year 2012 is almost the investors, because there are still EYOF disposes namely of the same rights 200 million Euros. The municipal significant resources available for the and rank as the big Olympic Games, but this support of the realisation of the above realisation of projects until the end competition is for the age group of 14-17 mentioned goals is shown by the fact of 2013. The realisation of the Olympic year-old athletes. This means a significant that the development expenses of the connected to the EYOF as well as sport infrastructure development and the Municipality mount up to 20.32% of the the hotel inevitable for the organisation building of a rising generation centre for whole budget, while the extent of the tax of the event is particularly supported by Győr, while it irrevocably introduces the revenue of the city from local business both the city and the country. In Győr we city to whole Europe. Both the Hungarian tax exceeds 40% of its budget. are doing everything in order that people Government and the Hungarian Olympic have a job and to that such enterprises Committee are supporting the bid in an are needed that are well provided with emphasized mode. capital and are standing on solid basis. Together with them we are building the future and we are waiting for our further partners to join us!

30 31

bef utm.indd 30 10/4/12 1:17 PM bef utm.indd 31 10/4/12 1:17 PM 4. Investment in Hungary

32 33

bef utm.indd 32 10/4/12 1:17 PM bef utm.indd 33 10/4/12 1:17 PM How does one invest in Hungary?

Establishing a business Accounting requirements

In Hungary the same rules for establishing most commonly established in Hungary. The statutory accounting records must within a minimum of three working days. a business apply to foreign individuals and Foreign businesses may also conduct their be maintained in accordance with local Documents must be stored in a readable legal entities as to Hungarian citizens and business activities in the form of a branch GAAP. Bookkeeping has to be coordinated format for a minimum of 10 years in hard Hungarian entities. In the following table office or representative office established and reviewed and SFS has to be prepared copy. we have summarised the four main types in Hungary. by an accountant certified and regis- Hungarian companies must file their of business associations, which are the tered as auditor or chartered accountant local GAAP SFS and founder’s resolution at the Hungarian Ministry for National (in relation to profit distribution) annu- Limited partnership (Betéti társaság) Economy. They are responsible for the ally within five months of their financial Business association without legal personality; Hungarian bookkeeping and for compiling year end. They must be filed electroni- At least one member with unlimited liability; Main characteristics At least one other member is only obliged to provide a capital and supplying true and reliable informa- cally (not XBRL) using the mandatory pre- contribution (limited liability). tion, for maintaining and ensuring that defined special format of pdf files that Founders who do not have the minimum capital required for a limited For whom recommended the data disclosed in the SFS conforms are uploaded on to the website. Printed liability company. to legal provisions, provide a true and fair documents converted into an image file Minimum number of founders Two view and are sufficiently documented in format (scanned) shall not be accepted. A Minimum amount of initial capital HUF 1/member compliance with Hungarian accounting special file received from the Ministry of Limited liability company (Korlátolt felelősségű társaság) principles; furthermore their name and Public Administration and Justice must Business association with legal personality; individual licence number are included in also be filed in order to support the pay- Established with an initial capital contribution, the amount of which the SFS. ment of the publication fee. Main characteristics is predetermined by law; The members are only liable up to the amount of their capital Documents can be stored outside of Hun- Non-compliance with the above- contribution (limited liability). gary. However, in case of a tax inspection mentioned accounting requirements For whom recommended Generally recommended because of limited liability. by tax authorities original documents can trigger penalties and criminal law Minimum number of founders One and records must be made available punishment.

Minimum amount of initial capital HUF 500,000 (cca. EUR 1,670)

Private company limited by shares (Zártkörűen működő részvénytársaság) Business association with legal personality; Established with share capital consisting of shares of a pre- Main characteristics determined number and face value; Invitations to the public to subscribe for shares are prohibited. Founders who have the required minimum capital and intend to provide different rights to the members of the company in the form For whom recommended of preference shares (i.e. preferred dividends, preference related to voting rights, etc). Minimum number of founders One

Minimum amount of initial capital HUF 5,000,000 (cca. EUR 16,670)

Public company limited by shares (Nyilvánosan működő részvénytársaság) Business association with legal personality; Established with a share capital consisting of shares of a pre- Main characteristics determined number and face value; The shares can only be subscribed publicly. Founders who do not have the required minimum capital or if the For whom recommended company’s activity will be costly. Minimum number of founders Two

Minimum amount of initial capital HUF 20,000,000 (cca. EUR 66,670)

34 Source: PWC-Investing Guide, Hungary 2012 35

bef utm.indd 34 10/4/12 1:17 PM bef utm.indd 35 10/4/12 1:17 PM Establishing a business in Hungary step-by-step

Preparation of corporate documents by a Hungarian attorney-at-law (certain documents must be countersigned by a Hungarian attorney). STEP 1 Time to complete: minimum one day. Costs: Attorney fees range widely.

Opening of a bank account STEP 2 Time to complete: one day. Costs: depending on the bank.

Registering the company at the Hungarian Court of Registration and obtaining a tax identification number. Time to complete: in the case of companies established using standard format constituting documents – one working hour from the issue of the company’s tax identification number (NB: this simplified registration procedure is not available for public companies limited by shares), otherwise the registration procedure takes 15 working days. It should be noted that the process can be more time-consuming if the procedure is suspended because the tax authority needs more than one day to provide the Court with the tax identification number. Costs: Registration fees: STEP 3 • for limited partnerships: HUF 50,000 (cca. EUR 167); • for limited liability companies and for private companies limited by shares: HUF 100,000 (cca. EUR 334); • for public companies limited by shares: HUF 600,000 (cca. EUR 2,000). Simplified registration procedure: • for limited liability companies and for private companies limited by shares: HUF 50,000 (cca. EUR 167); • for limited partnerships: HUF 25,000 (cca. EUR 83).) Publication fees: uniformly HUF 5,000 (cca. EUR 17). In the case of the simplified registration procedure, publication is free of charge.

Registration with the Hungarian tax authority and the Hungarian statistical office (KSH). STEP 4 Time to complete: one day. Costs: free of charge.

36 Source: PWC-Investing Guide, Hungary 2012 37

bef utm.indd 36 10/4/12 1:17 PM bef utm.indd 37 10/4/12 1:17 PM Hiring and employment

Labour costs Labour law

Hourly labour costs (EUR) An employment relationship can only be The minimum amount of paid leave is established through a written employ- twenty days, which increases with the ment contract, regardless of the antici- employee’s age (the first increase is Romania pated duration of the employment. The when the employee reaches the age of Hungary employment contract must specify the 25). The maximum amount of paid leave Poland employee’s base salary, the employee’s is thirty days, which applies to emp- Slovakia position, and the specific place of employ- loyees over 45. Minors and employees Czech Republic United Kingdom ment. After the employment contract has with children are entitled to additional Spain been signed, the employer must provide days. The paid leave days must be granted Austria the employee with a written description in the year in which they are due. Germany of his or her most important rights and Hungary has a new Labour Code since France obligations. July 2012. Similar to its predecessor, 0 5 10 15 20 25 30 35 Effective as of 1st January 2012, the the new law also declares that employ- Compared with other EU countries, labour costs in Hungary are in the lower third. mandatory minimum gross monthly ment is only legal if it is based on a writ- Source: Eurostat – Hourly labour costs 2010 wage is HUF 93,000 (cca. EUR 310), but for ten work contract which includes the workers employed in positions requiring employee’s salary and job description. a secondary school diploma or advanced Full-time working hours generally Unemployment vocational training (or higher education) remained at eight hours a day, and there it is HUF 108,000 (cca. EUR) per month. is still extra pay for afternoon, night and The global economic crisis deeply affected data (10.8%). On the contrary, the employ- Employers must pay additional premi- Sunday shifts, as well as remunera- the Hungarian labour market: due to the ment figures of Győr are countrywide out- ums for evening and night shifts, week- tion for overtime. At the same time, the fall in export orders and companies’ cost standing, the unemployment rate is the end work and overtime. number of extraordinary working hours cutting measures, many employees lost lowest in the whole country. One of the Standard working hours for full-time that can be ordered in a calendar year their jobs. The unemployment rate in Sep- most important goals announced by the employment are eight hours a day, or has been raised from 200 to 250, but the tember 2011 was 10.7%, a slight decrease Hungarian Government is to encourage forty hours per week. Employers may not maximum number that can be set in col- compared with the previous quarter’s companies to create jobs. order more than 250 hours of overtime a lective contracts will remain 300 hours. year, or more than 300 hours if a collec- The regulation of working time has also Unemployment rate (in Q3 2011) tive bargaining agreement or a separate become employer-friendlier. written agreement with the respective 16,1% 13,9% employee to that effect is in place. 12,5% 10,7% 9,7% 8,9% 9,1% 10,0% 7,2% Remuneration

The remuneration received for work Employers must pay additional wages for Total should reflect the activity carried out and evening and night shifts, weekend work Budapest the qualification required for the job. The and overtime. Average monthly wages

Central Hungary statutory gross minimum wage for 2012 vary by region, as shown in the table below. Northern Hungary Central Transdanubia Northern Great Plain Southern Great Plain is HUF 93,000 (cca. EUR 310) per month. Southern Transdanubia Source: KSH, 2011

38 Source: PWC-Investing Guide, Hungary 2012 39

bef utm.indd 38 10/4/12 1:17 PM bef utm.indd 39 10/4/12 1:17 PM Average monthly gross wage (EUR)

Total 700.3 Southern Great Plain 552.5 Northern Great Plain 555 Northern Hungary 585,7 Southern Transdanubia 583.8 Western Transdanubia 614.8 Central Transdanubia 631.1 Central Hungary 836 Budapest 890.4 Source: KSH, 2011

Foreign workers

Foreign nationals can work in Hun- in Hungary applicable to EEA (Euro- gary under the terms of a Hungarian pean Economic Area) and third country work contract or as assignees. The legal nationals are different, as outlined below. requirements for staying and working

An EEA national staying in Hungary for longer than 90 days needs to obtain a European Economic Registration Card and an Address Card from the Immigration Office. Area (EEA) nationals The company where the EEA national carries out his/her activities must report the EEA national’s position and nationality to the Labour Office.

The Hungarian entity is obliged to submit a workforce demand application form before a work permit application can be submitted. When the workforce demand application has been accepted, the work permit application can be submitted. The permit must be obtained before Third country nationals the commencement of the employment. A Schengen visa has to be obtained for the individual to enter Hungary. The application should be submitted with the work permit application at the Hungarian Embassy in the individual’s home country.

Demographic capital, education, language

In 2009/2010, more than 65,000 stu- sciences and human sciences. dents graduated from Hungarian uni- An increasing number of primary and versities and colleges with graduate and secondary schools teach English and Ger- post-graduate degrees. The most popu- man as second languages. French, Rus- lar majors are economics, law, IT, technical sian, Italian, Spanish and Chinese bilingual sciences, engineering, health and medical schools are also available in Hungary.

40 Source: PWC-Investing Guide, Hungary 2012 41

bef utm.indd 40 10/4/12 1:17 PM bef utm.indd 41 10/4/12 1:17 PM Key tax-related issues

Corporate income tax (CIT) Value added tax (VAT)

Hungary has concluded double tax trea- Dividends, interest and royalties are As a general rule, Value Added Tax (‘VAT’) pharmaceutical products, audio books, ties with 70 countries, including all EU exempt from withholding tax under the should be charged on the following printed books, newspapers and certain member states, Switzerland, the USA, domestic rules. transactions: live performance activities. Canada, China, Japan, South-Korea, Brazil, Capital gains realised by foreign persons • Supplies of goods and services pro- Under the general rule, VAT returns have Mexico, etc. Double tax treaties are also are exempt from CIT in Hungary. However, vided for consideration in Hungary; to be submitted quarterly. However, in being negotiated with several countries, this exemption does not apply to capital • Intra-Community acquisitions of some circumstances monthly or annual e.g. Taiwan, United Arab Emirates, Qatar, gains that are related to participations goods in Hungary; VAT returns have to be prepared. Jordan and Syria, while those with Swit- in Hungarian real estate companies; in • Import of goods. In the case of intra-Community transac- zerland, Austria, Belgium and Singapore these cases, transfer tax may also apply. The standard VAT rate in Hungary is 27%. tions, the taxable person has to submit are in the process of re-negotiation. There are also two reduced rates, 18% and recapitulative statements (monthly or 5%. The 18% rate applies to certain dairy quarterly). These statements can be sub- products and commercial accommodation mitted to the Hungarian Tax Authority Local business tax (LBT) services. The 5% rate applies to certain only in electronic form.

Entrepreneurs must pay the local busi- activities, but cannot exceed the maxi- ness tax (‘LBT’) to the municipalities mum determined in the Act on Local Tax Environmental Protection Product Fee where their activities are located. (2%). If a company carries out its business LBT must be paid on the amount of activities within the jurisdiction of more Businesses engaged in manufactur- purchases of certain products must pay adjusted annual turnover determined by than one Hungarian local municipalities, ing, importing and intra-Community an environmental protection product fee. law. When calculating the LBT base, the its LBT base has to be allocated amongst annual turnover can be reduced by the the different municipalities. cost of goods sold, the costs of inter- LBT has to be paid even if the company Personal Income Tax mediated services and subcontractors’ had a tax loss for CIT purposes. activities, the costs of materials and the The LBT base of a foreign permanent Personal Income Tax and social security rates applicable on employment income - 2012 direct costs of R&D. Royalty and interest establishment of a Hungarian company is Employee % Employer % income are exempt from LBT. included in the Hungarian LBT base, how- Personal income tax* 16 or 20.32 The tax rate is determined by the local ever, the LBT base of a foreign permanent Pension contribution** 10 Social contribution 27 government within whose jurisdiction establishment of a Hungarian company is Health insurance and unemployment 8,5 the company carries out its business exempted from the Hungarian LBT. contribution Training fund contribution 1,5

* 16% up to the annual gross income of HUF 2,424,000 (cca. EUR 8,080) and 20.32% above Innovation contribution ** capped at HUF 7,942,200 (cca. EUR 26,474) annual gross income

Companies fitting the definition in medium-sized enterprises and branches. the Accounting Act are subject to this The innovation contribution is calculated contribution, except for small and on the LBT base. The tax rate is 0.3%.

42 Source: PWC-Investing Guide, Hungary 2012 43

bef utm.indd 42 10/4/12 1:17 PM bef utm.indd 43 10/4/12 1:17 PM 5. Győr in the doorway of fame

44 45

bef utm.indd 44 10/4/12 1:17 PM bef utm.indd 45 10/4/12 1:17 PM Olympic Games in Hungary? Győr in the doorway of fame! European Youth Olympic Festival 2017

Jacques Rogge called the European Youth can be realised with the support of the Olympic Festival (EYOF) in being in 1990 in Hungarian Government in the co-opera- order to ensure young athletes the possibi- tion of the Hungarian Olympic Commit- lity to get to know the idea, the joint liability tee and the city of Győr. The pledge of the and the organisation order of the Olympic strength of this co-operation is Mr. Zsolt Games. Some European city organises Borkai, former Olympic champion, who every odd year the nowadays maybe most is the mayor of the city of Győr and the dignified review of the rising generations, president of the Hungarian Olympic Com- the meeting of the champions of the future. mittee in one person. The significance of Hungary, within that the city of Győr applies EYOF is also proven by the guarantee of 40 with good chances for the organisation of million Euros undertaken by the Hunga- the EYOF 2017. The little sister of the big rian Government that is also the secu- Olympic Games has all the rights and is rity of the establishment of sport facili- equally ranked as the recently organised ties and the realisation of the significant London Olympic Games. The difference is infrastructural developments at the ven- that on the EYOF athletes aged between 14 ues by the municipality. and 17 years arriving from 49 countries The city of Győr and the Hungarian Olym- compete in 9 sport disciplines. pic Committee have been working for more After the successful world competi- than a year on the bid that is already in tions of the previous period in Győr the the finish. The country has dreamed since EYOF 2017 is also such an event, whose 1896 about the organisation of the Olym- organisation – in the case of a positive pic Games. This dream can now come true decision of the European Olympic Com- with a European ‘small’ Olympic Games mittee – will anyhow organised in Győr, for that the whole coun- Information about the event further strengthen the try is keeping its fingers crossed. The • Duration: 8 days; international good rep- Ge neral Assembly of the EOC is going to • Number of participating athletes: utation, the touristic decide about the organisational rights on 4,000 persons; attractiveness and the 7-8. December 2012 in Israel. • Number of participating countries: sport diplomatic sig- In the case of a successful application there 49; nificance of Hungary will be countrywide unique developments • Sport disciplines: athletics, cycling, and the city of Győr. in Győr and such investments will be pos- gymnastics, judo, swimming, tennis, The successful bid sible that will ensure a long-term success- basketball, handball, volleyball; and the later excel- ful co-operation among the companies that • Size: corresponding that of the Winter lent organisation settle hear and the city. Olympic Games.

46 47

bef utm.indd 46 10/4/12 1:17 PM bef utm.indd 47 10/4/12 1:17 PM Contents Contact

Why does everyone come to Győr? ...... 3 Municipality of the City of Győr H-9021 Győr, Városház tér 1. 1. Central role, with main focus on the economy ...... 5 Geographical and economic characteristics ...... 6 Ms. Eszter DOMANYIK Economic data and outlook of Hungary ...... 7 head of department Regions of Hungary ...... 8 Marketing, Tourism and Communication Road network of Hungary ...... 8 Department Accessibility of Győr ...... 9 Tel.: +36 96 500 258 E-mail: [email protected] 2. Dynamism and verve ...... 11 Web: www.gyor.hu Industry ...... 12 Fax: +36 96 500 219 Education system adjusted to the market demand ...... 15 Where knowledge meets the talent! ...... 16 Ms. Orsolya GYARMATHY The determining actors of the economic life in Győr ...... 18 international consultant The most important companies in the life of the city ...... 20 Marketing, Tourism and Communication Department 3. The future is being built in Győr! ...... 25 Tel.: +36 96 500 250 Győr, the city of meetings ...... 27 E-mail: [email protected] Interview with Mr. Zsolt Borkai, mayor of the city of Győr Web: www.gyor.hu and president of the Hungarian Olympic Committee ...... 29 Fax: +36 96 500 219

4. Investment in Hungary ...... 33 Ms. Petra JAKAB How does one invest in Hungary? ...... 34 tourism consultant Hiring and employment ...... 38 Marketing, Tourism and Communication Key tax-related issues ...... 42 Department Tel.: +36 96 500 297 5. Győr in the doorway of fame ...... 45 E-mail: [email protected] Olympic Games in Hungary? Web: www.gyor.hu Győr in the doorway of fame! Fax: +36 96 500 219 European Youth Olympic Festival 2017...... 46

48 49

bef utm.indd 48 10/4/12 1:17 PM bef utm.indd 49 10/4/12 1:17 PM We are building the

CMYK future in Győr! Ezüst: Pantone 877 C

Stanc Hajtás: szaggatott