Hungary in the Belt and Road Hong Kong Institution of Engineers August 20, 2018 • Population: 10 million • Area: 93,030 km2 • Member of European Union since 2004 Stable Government • Government form: Parliamentary Republic since 1990 • Government in power since 2010, has won third consecutive term this April • Hungary is a stable and safe location Chinese relations • Chinese-Hungarian relations traditionally strong: Hungary was the first country in the world to recognize the People’s Republic of China • Next year the 70th anniversary celebrations of the establishment of diplomatic relations „Opening to the East” • Since 2010 an emphasis on further strengthening relations wits Asian countries • 2 new consulates in China: Chongqing (2010) and Hong Kong (2013) • Total of 5 offices in Greater China: Beijing, Shanghai, Chongqing, Hong Kong, Taipei China at Home in Hungary • The biggest Chinese community in Central-Eastern Europe • Bilingual Chinese / Hungarian School in Budapest opened in 2004 • CIPA & MOFCOM set up its European Office in Budapest in 2010 16+1 Cooperation • A framework of cooperation between China and 16 Central-Eastern European coutries • 16+1 Summit hosted by Budapest in November 2017 Hong Kong and Hungary • Hungary-Hong Kong relations in a strong momentum • Several high ranking visits both ways in recent years • Working Holiday agreement coming into force September 1 Foreign Policy • Foreign Trade Focused Foreign Policy • Foreign Trade merged into Foreign Ministry in 2014 • Supporting institutions under Foreign Ministry’s supervision Economic Data • GDP: 192,855 million EUR • GDP/capita: 19,651 EUR • GDP growth: 4% (2017) • Inflation: 2.4% • Government bonds: Investmeng Grade, Positive Outlook Developed Infrastructure • At the crossroads of 4 main European transportation corridors • The highest motorway density in the region • Extensive railway transportation network „Opening to the East” • Small country with an open economy • Hungary’s number one foreign trade partner is the European Union • Asia has become our most important non-EU trade partner • Hungary is Hong Kong’s biggest trading partner in Central-Eastern Europe Hub for Chinese Business • Bank of China in Budapest since 2003 & Opened 1st RMB clearing center in CEE in 2015 • CIPA & MOFCOM set up its European Office in Budapest in 2010 • 16+1 Development Bank Cooperation Center in Budapest Belt and Road • Hungary was first to sign a MoA on the „One Belt - One Road” initiative (2015) • Flagship Project: Budapest-Belgrade high speed railway Promoting Investment • Tax Regime • Subsidies • Legal Environment Attractive Tax Regime • 9% Flat Corporate Tax Since 2017 • 15% Flat Personal Income Tax • Average Labour Cost: 1163 EUR • Reduced Social Contribution Tax Subsidies Maximum Aid Intensity Map Subsidies • VIP Cash Subsidies for Job Creation and Asset Investment Subsidies • VIP Cash Subsidies for Technology Intensive Investments and R&D Projects Success Stories Success Stories Industry Highlights RENEWABLE ENERGY • Huge Potential in Solar and Geothermal Energy • Renewable Energy Support Scheme Industry Highlights AUTOMOTIVE • Hungary is already an automotive industry hub • Proving ground for self-driving and connected vehicles in development • E-mobility plan Project Examples PLATIO • Aesthetic, space-saving offgrid renewable energy system • Integrates high performance solar cells into attractive sidewalk paving elements made of recycled plastic Project Examples HOTEL/OFFICE BUILDING • Historical building in downtown Budapest • Concepts for 4- or 5-star hotel, with 178 rooms including 152 double rooms, 12 penthouses and 14 duplex apartments Thank You for Your Attention! .