Japanese Companies Important For Hungarian Economy

  • 3 Jun 2019 9:57 AM
  • Hungary Matters
Japanese Companies Important For Hungarian Economy
Japanese companies are an important factor in Hungary’s growing economy, contributing to its Europe-topping first quarter annual growth of 5.3 percent, Foreign Minister Péter Szijjártó said.

Speaking ahead of a working lunch with Japanese investors organised by the Hungarian Investment Promotion Agency (HIPA) in Budapest, Szijjártó said that cooperation between Japan and Hungary had always been based on mutual respect.

 “[Cooperation] has never been as stable and fruitful as it is today,” he said. Japanese investments in Hungary are worth 2.5 billion US dollars and over 160 Japanese companies employ 34,000 people here, he noted.

Over the past five years, HIPA held successful talks with Japanese firms on 21 occasions and signed agreements resulting in 808 billion dollars-worth of investment and 3,000 new jobs, Szzijjártó said.

He expressed thanks to the heads of Japanese companies investing in Hungary for placing trust in the Hungarian economy and people. He highlighted Osamu Suzuki, chairman and CEO of Suzuki Motor Corporation, who was the first Japanese businessman to set up a factory in Hungary.

The investment was made soon after the end of the communist era and it is still the only Suzuki plant in Europe, he added. Szijjártó said Hungary’s economy was undergoing structural changes.

 While the global economy has slowed down, it is important that the Hungarian government is making decisions to keep economic growth 2 percentage points above the European Union average.

An economic protection plan has been introduced to maintain economic growth, involving further tax cuts on labour and upgrading vocational training, he added.

Suzuki told the event that the plant in Hungary, built in 1992, is the second largest production facility of the carmaker overseas.

Production has grown from annual 50,000 cars in the initial period to 190,000 cars since and the Suzuki models produced in Hungary are exported to 123 countries around the world, he added.

MTI Photo: Koszticsák Szilárd

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Siemens Mobility Set To Triple R&D Headcount In Hungary

    Siemens Mobility Set To Triple R&D Headcount In Hungary

    • 1 Apr 2021 9:47 AM

    Siemens Mobility will create 120 new R&D jobs in its Budapest office in order to implement the “Digitalization of track-based transport modes”, by increasing the number of those employed in this field to 169. 

  • BBJ Expat CEO Award 2021 Shortlist Announced

    BBJ Expat CEO Award 2021 Shortlist Announced

    • 15 Feb 2021 9:46 AM

    The Budapest Business Journal has announced the three-person shortlist for its annual Expat CEO of the Year Award, one of the most anticipated events in the expat business calendar.

  • Watch: New Linde Investment Worth HUF 14 Billion In Hungary

    Watch: New Linde Investment Worth HUF 14 Billion In Hungary

    • 19 Jan 2021 8:30 AM

    Linde Gáz Magyarország is boosting its domestic capacity and investing 14 billion forints (EUR 39m) in its air separation plant in Kazincbarcika, in north-eastern Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said.