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Hungary - European Region of the Future - Central Europe
( 25 / April / 2005 )
„The judges scored Hungary highly for its recent GDP growth and economic potential”
Hungary has won the category of "European Region of the Future - Visegrad" and "European Region of the Future - Central Europe" according to the evaluation of fDI Factfile.
fDi magazine is the specialist global foreign/inward investment title from the renowned Finantial Times group.. The fDi Factfile is the popular annual guide to key investment locations.
The competition was designed to uncover competitive advantages some regions/cities have over other regions. Although FDI flows are back on the increase after a few quiet years, competition has increased, especially in Central/Eastern Europe. The recent expansion of the EU has now made it even more difficult for countries to differentiate their respective advantages and as such this award is a major boost and a vote of confidence in Hungary as a key investment location. This award should be a cause of celebration, as Hungary has beaten regions from Switzerland, Austria, Poland, Czech Republic and Slovakia.
By winning this award, the judges felt Hungary (as a region) had more to offer investors over the coming years than countries including Switzerland, Austria, Poland, Czech Republic, and Slovakia and the sub-regions who entered from those countries.
„In a tie-break, Hungary beat Greater Zurich to first place. Low fixed costs, especially low rents and wage levels helped to tip the balance. The country has targeted an effective promotion strategy and substantial incentives to make inward investment cost effective for companies. Investors can use up to 25% of profit before tax as a development reserve for five years. Grants are also available to businesses engaged in a broad range of activities, from research and development to building up production capacities for modern high-tech products and improving the information communications technology sector. Similar incentives are available to companies that introduce environmentally friendly technologies, establish regional corporate centres or help to develop the region’s smaller companies. The judges scored Hungary highly for its recent GDP growth and economic potential. FDI inflows into Hungary in 2003 reached EURO 2.2 billion. The largest deal was the USD162 million (EURO 131 million) investment made by General Motors.”