Hungarian officials are seeing great potential for investments in India - a country described as one of the most dynamic countries by Hungary’s Deputy Minister of Foreign Affairs. A new policy implemented by Hungary encourages future business collaborations with the Asian country. At the same time, Hungary is also favored by Indian foreign investors who see the country as a business hub in Europe.
The Hungarian automotive sector is receiving new foreign investments as a French automotive supplier announced that it will invest 8 billion HUF in a city in western Hungary. Negotiations are already on the way between the Hungarian government and the French supplier for a second wave of investments.
Mihály Varga, the Hungarian Minister of Economy, declared the government in taking into consideration the modification of the taxation system within the banking sector. At the 52nd Congress of the Hungarian Economic Association, the Minister, said amending the financial transaction tax and the special taxation rates applied to banks will most likely stimulate lending. These considerations come after the European Commission’s critics brought to the Hungarian bank tax. At that time, the Hungarian Minister of Economy said the tax was important for the country’s stabilization.
The Hungarian Central Statistics Office (KSH) reported that the construction sector output has recorded a growth of 8.8% in November last year. According to the workday-adjusted figures and the unadjusted figures, this rise in the construction sector has been recorded for the 22nd month in a row. New orders in the construction sector mean that foreign investors in Hungary can look to this business sector as a potential investment area in Hungary.
Hungary is a good and, as some investors would put it, a safe investment choice. Its location in Europe, its main trading partners and its policy for foreign investments allow foreign investors to look forward doing business in Hungary. The country is welcoming towards foreign businesses, however, the country is going through some changes that aim at improving its foreign policy. Among the main changes is the country’s approach towards accomplishing its economic interests.
Recent developments in the property investment market in Hungary seem to indicate that the country will most likely exceed the highest level recorded so far for property investments, in 2007. The third quarter of 2014 shows an impressive 379 million euro investment volume, and experts believe that investments in real estate in Hungary will continue to see a further increase.
The Hungarian business environment is characterized by numerous favorable aspects. Its predictability makes it a safe choice for foreign investors and it offers certain and reliable business opportunities. The country has managed to tie several important business alliances with Asian countries, as revealed in an Asia-Europe Meeting earlier this month.
Hungary is a Central European country and foreign investors who want to open a business here or engage in various activities with Hungarian business owners should know that, as in the case of any foreign country, there are several particularities that need to be observed.