We have to overcome our inferiority complex and stop the practice of continuously monitoring what foreigners think about us,” said state secretary Zoltán Kovács. “We need to face our weaknesses, too.” Hungarians oft en believe that their country is at the same level as the more developed Western European countries, which he said is a “false illusion”. The process, which has already started with structural reforms and a change in work attitude, will be long and painful, he added.

Beyong Goulash

The Country Brand Council is responsible for building up a country communication that can represent Hungary with a unified image to both the Hungarian and international public. Kovács pointed out that that there are no politicians in the council any more; its members have been gathered from the areas of education, culture, the so-called creative sector and the private sector.

Hungary’s country brand strategy is currently under development by the Country Image Workgroup. This includes institutions such as the Hungarian Investment and Trade Agency (HITA), Hungarian Tourism Zrt, the Agricultural Marketing Center and relevant ministries. It is very important to harmonize the communication of these institutions in order to have a unified image, Kovács stressed.

Top Sectors

HITA focuses on five main sectors including biotechnology, information and communications technology, electronics, the automotive industry and Shared Service Centers, HITA head Erzsebet Dobos said.

Besides having high added value and environmental-friendly technologies, these sectors create new jobs and boost the development of Hungarian SMEs as well as R&D activities. “I think that the most successful area is that of the SSCs, beside the automotive industry,” Dobos said. There are currently more than 60 centers in Hungary with more than 25,000 employees.

“Most investors I talked to said that one of Hungary’s main strengths is the supply of fresh graduates with a high quality and diversified knowledge of foreign languages,” she noted. HITA has introduced a one-stop-shop system to help investors manage their projects, and apply for one-off government aid, such as cash subsidies, tax allowances, job creation and training subsidies, Dobos said. In addition, the agency has started to contact investors with plans to invest again in Hungary under its ‘Reinvest program”.

Hungary’s main advantages are its location, infrastructure, skilled labor and strong education system, said Flextronics regional financial manager Márk Hetényi. In addition, it has “a creative, clever and pushy people”.

An affiliate of a big multinational firm, such as Flextronics, has to prove its success to its headquarters by ensuring stability, transparent operations, a contribution to increasing the value of the entire group besides meeting with basic requirements, Hetényi said. In addition, the affiliates are encouraged to build a cultural bridge with the group, too.

Károly Gerendai, CEO of Sziget Kft , sees great potential in Hungary’s gastronomy, its culture and in certain areas of the health industry, such as dentistry and plastic surgery. He pointed out that a significant percentage of tourists visit Hungary because of the beautiful local girls, so “regulation in this area should be worked out in order to restrain the black economy”.

Source: AmCham's Voice Magazin