1. The Hungarian Investment and Trade Development Agency - ITD Hungary –
Eszter Rumbold-Molnár
Deputy-Director/Commercial Secretary
ITDH Brussels Office/Hungarian Embassy Commercial Section

2. ITD HUNGARY Central Agency for Investment and Trade Promotion
Founded: 1993 September (Predecessor: Investcenter 1988)
Owners: Ministry of Economy and Transport, Ministry of Foreign Affairs
Form: incorporated non-profit company

3. ITD Hungary’s Main Functions
Background:
Hungary’s high exposure to international trade (total foreign trade abt. 130% of GDP;
total FDI abt. 50% of GDP, GDP abt. 60 bn EUR)
- foreign business of paramount importance
ITDH’s Main Functions:
Investment Promotion
Trade Development
EU Integration Assistance

4. ITDH Network Headquarters: Budapest
SLOVAKIA
Salgótarján
Miskolc
UKRAINE
ITDH
Network
Eger
Debrecen
AUSTRIA
Győr
Budapest
Veszprém
Tatabánya
Békéscsaba
Kecskemét
ROMANIA
SLOVENIA
Zalaegerszeg
Szeged
Kaposvár
Szekszárd
SERBIA
and
MONTENEGRO
Headquarters: Budapest
Nation-wide network: 14 Regional Offices
World-wide network:
35 Foreign Offices in 29 countries
10 Representative Offices in
neighbouring countries
CROATIA

5. ITDH Services Offered (1)
Information and Advisory Service
on Investments and Trade
Business Events
Conferences, Fairs, Exhibitions, Business Network Meetings
Databases: companies, investment opportunities, industrial parks
ITDH Euro Info Centre (EIC) in Budapest
Publications: country and sector analyses, trade information, legal circumstances

6. ITDH Services Offered (2)
Information and Advisory Service for Investors:
- macroeconomic, financial and legal environment
- assistance in locating investments, finding business partners and sites (local governments, industrial parks)
- available support schemes (SMART Hungary, Europa, special schemes for SMEs)
- liaisoning with lawyers, accountants, HR experts, financial institutions, central and local authorities assistance in licencing procedures

7. ITDH Services Offered (3)
Information and Advisory Services for Trade Partners:
- trade, customs and foreign exchange regulations
- market and trade opportunities and potential partners
- assistance in locating outsourcing opportunities, potential suppliers and subcontractors

8. ITDH – Facts and figures in 2002
ITDH was directly involved in projects leading to foreign direct investments worth abt. EURO 302 million,
creating appr new jobs
ITDH organised 368 professional programs
(128 investment promotion, 240 trade development)
Export products of 1000 Hungarian companies were displayed at 122 exhibitions in foreign countries

9. FDI to Hungary with assistance of ITDH

10. ITDH Brussels office
Responsible for Luxemburg-Hungary commercial relations, together with the Hungarian Embassy and our Honorary Consul in Luxemburg, and the Belgium/Luxemburg-Hungary Chamber of Commerce
Database available on concrete business partner requests from Hungary
Business partner search service through our internet site:
Our event in Luxemburg, in December 2003:
Conference on Hungarian Capital market and investment

11. SMART HUNGARY
New, quality oriented investment promotion policy of Hungary
Selective stimuli for FDI (high level of FDI achieved – shift from quantitative to qualitative growth)
Total compliance with EU rules, regulations and standards

12. Strategic Goals of SMART Hungary
to support 'old' investors' businesses and reinvestments
to foster higher value added R&D, innovative, manufacturing and service-oriented investments
to promote Hungary's regional role (regional centres)
to pull up less-developed regions
to stimulate reliance on local suppliers
to improve ecological awareness

13. Concept of Incentives FDI incentives brought in line with EU rules:
- most of old tax incentives abolished by ,
- new grant schemes introduced from
Level of support based on “investment intensity”:
tax allowances+grants+other incentives
total cost of investment
Intensity ratio set for each region and industrial sector.

14. Major Incentives – Tax-Related
Corporate tax: 18%
Tax on dividends withdrawn or transferred abroad: 20%
Tax benefits from 2003:
- development tax benefit
- tax-free investment reserve (deferred tax)
- tax allowance for corporate R&D, innovations
- tax benefits for training and retraining
- tax rate reductions (personal income tax, healthcare)

15. Major Incentives – Direct (1)
Available for companies registered in Hungary
Strictly regulated rules of application
Support depend on
- industry sector
- number of employees
- invested amount

16. Major Incentives – Direct (2)
Expansion of competitive investments (high quality, high value added industries, infrastructure, training, IT, environment awareness)
Establishment of regional centres (regional corporate and strategic service centres)
R&D, innovation (knowledge based centers and industries, industrial parks, incubation houses)

17. Role of ITDH One-stop-shop for foreign investors
Separate department deals with large investors (individual support packages)
EU Structural Funds implementation
– intermediary body

18. ITD Hungary – headquarters H-1061 Budapest, Andrássy avenue 12
ITD Hungary – headquarters H-1061 Budapest, Andrássy avenue 12. Tel: Fax:
ITD Hungary – Brussels office B-1061 Brussels, rue Mignot Delstanche 57. Tel: Fax: