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Business
Business Profile
| As Hungary’s commercial capital, Budapest is sheltered from the worst of the country’s unemployment – the 2001 rate was 4.2% compared to 5.7% on a national level. The economy is dominated by the engineering, pharmaceutical, electronics and computer industries, as well as by scientific research. The main business district is in Pest.
The first democratically elected government took office in 1990, after the collapse of the Soviet Union and the rapid privatisation of state assets made Hungary attractive to foreign investors, particularly after the country joined NATO. In 2001, approximately 25% of Hungary’s GDP was generated by companies with a majority of foreign investors and over 80% of GDP was in the private sector. About three-quarters of Hungary’s banks are largely governed by Western European financial institutions – for example, the German Bayerische Landesbank is a strategic shareholder in the MKB, currently Hungary’s principal corporate bank. ITD Hungary, founded in 1993, to stimulate trade development and investment, has helped multinational corporations, such as Sony, GE Lighting Tungsram, Clarion and TDK, settle in the country. The main investors in Hungary are Germany, the USA, Austria, France and Italy.
The Hungarian stock exchange began to revive in the mid-1980s, after a 40-year pause, a decisive factor being the opening of the Budapest Stock Exchange in June 1990. Agriculture is becoming increasingly important. Wheat production amounted to 5.15 million tonnes in 2001, rising from 3.71 in 2000. Wine is also an important concern and 2000 production totalled some 380 million litres. Western analysts predict that Hungary is set to benefit from strong economic growth in the medium term. The two major problems facing the Government, however, are controlling wages and cutting the budget deficit. While it is predicted that Hungary will take at least one generation to adapt to Western business culture, the country itself is keen to be seen as an emerging market, similar to Western economies.
Following the terrorist attacks on 11 September 2001, the Hungarian government instituted a package designed to prevent economic slowdown. The ‘Széchenyi Plus’ aimed at both increasing areas like road building and strengthening small- and medium-sized enterprises. However, there has been much criticism of the attempt to keep GDP above 4% while forcing inflation down to 4.5% and predictions that the economy will slow down regardless. So far, this has not happened and Hungary has advanced from 32nd to 26th place in the Current Competitiveness Index.
Business Etiquette
The dwellers of Budapest like to do business with people they know and trust, so it is worth business visitors’ time taking the time to build relationships. This is particularly true of the older generation – the younger generation are usually more direct and to the point. They are also much more likely to speak English. These 20 and 30 year olds occupy important positions, which the older school resents. Verbal greetings are extremely important – shaking hands (one waits for women to offer their hands), then saying the full name (surname, then forename). ‘How are you?’ is not a rhetorical question and requires an answer. Business cards (névjegy) – preferably in Hungarian – are vital. One also shakes hands on leaving. Punctuality is essential. Giving and receiving gifts is common, so one should have promotional gifts at hand.
Hungarian is a difficult language but, contrary to popular opinion, it is not impossible to learn. A lack of knowledge of the language, culture and business context is often seen as a sign of arrogance and can also lead to social segregation. Asking a colleague to act as a translator (Tolmác) can often lead to resentment, since this is seen as servicing rather than managing. Imposition of additional red tape is seen as a lack of trust and being overly confident is often regarded as naivety
Hospitality is extremely important and dinners tend to be quite formal affairs with a dress code. One should never drink until one’s host raises his glass, possibly with a toast. When visiting a colleague’s home, gifts should include wine or spirits for the host, flowers for the hostess and chocolates for the children.
Business clothing should exhibit a refined elegance. Mobile phones are an important part of one’s personal presentation. The business year is busiest in spring and autumn. Standard working hours are generally 0800-1630 Monday to Thursday, finishing earlier on Friday, however, meetings can be fixed outside these hours, even at weekends. The distinction between office and home phone numbers is far from clear – keeping in touch is vital and calls in the evening and at weekends are common.
Business Services
Business Contacts: Budapest Chamber of Commerce
Krisztina körút 99, 1016 Budapest
Tel: (1) 488 2000. Fax: (1) 488 2180.
E-mail: nemzetkozi@bkik.hu
Website: www.bkik.hu
There is no Hungarian Chamber of Commerce in the UK; the commercial department of the Hungarian Embassy can provide information instead:
Embassy of the Republic of Hungary (UK)
35 Eaton Place, London SW1X 8BY
Tel: (020) 7235 5218. Fax: (020) 7823 1348.
E-mail: office@huemblon.org.uk
Website: www.huemblon.org.uk
Hungarian American Chamber of Commerce (USA)
286 Congress Street, Boston, MA 02210 or 400 Hillside Street, Milton, MA 02186
Tel/Fax: (617) 698 6335.
E-mail: lengyel@compuserve.com
Website: www.hungary.com/haccne
Hungarian Trade Commission (Canada)
Suite 1110, 121 Bloor Street East, Toronto, Ontario M4W 3M5
Tel: (416) 923 3596. Fax: (416) 923 2097.
E-mail: hungtor@istar.ca
Sydney Hungarian Business Forum (Australia)
Consulate General of the Republic of Hungary, PO Box 130, Edgecliff, NSW 2027
Tel: (02) 9328 7859/60. Fax: (02) 9327 1829.
E-mail: huncons@matra.com.au
Website: www.matra.com.au/~hungemb
Convention and meeting planners
Budapest Kongresszusi Kozpont
(Budapest Congress Centre)
Jagelló út 1-3, 1124 Budapest
Tel: (1) 372 5400 or 372 5425/6. Fax: (1) 372 5700/35.
E-mail: bcc@accor-hotels.com
Website: www.bcc.hu
Regus Business Centre
Rákóczi út 42, 1072 Budapest
Tel: (1) 267 9111. Fax: (1) 267 9100.
Website: www.regus.com
Regus has conference facilities, lets office suites and provides multi-lingual secretarial services.
Convention and meeting venues
Hungexpo Co Ltd (Budapest Fair Centre)
Street address: Expo tér 1, Albertirsai út 10, 1101 Budapest
Postal address: PO Box 44, 1441 Budapest
Tel: (1) 263 6000. Fax: (1) 263 6098.
E-mail: hungexpo@hungexpo.hu
Website: www.hungexpo.hu
The largest exhibition venue in Hungary, situated close to the airport. Available for exhibitions or larger conferences (up to 2000 people). State-of-the-art audiovisual equipment, in-house catering services, built-in translator booths.
HIT Stadium
Gyömroi út 63, 1103 Budapest
Tel: (1) 432 2700. Fax: (1) 260 3717.
E-mail: info@hit.hu
Website: www.hit.hu
This new building of the Hungarian Christian Congregation is suitable for large conferences, meetings and exhibitions and is set in a pleasant park.
CEU Residence and Conference Center
Kerepesi út 87, 1106 Budapest
Tel: (1) 327 3155/0. Fax: (1) 327 3156.
E-mail: CeuCenter@ceu.hu
Website: www.hotels.hu/ceucenter or www.ceu.hu
Residential conference centre with meeting and function rooms for up to 300 people. Amenities include a business centre, computer access and leisure facilities.
Office equipment hire
Accord Group Kennedy Balogh
Veres Pálné utca 26, 1053 Budapest
Tel: (1) 266 6950. Fax: (1) 266 8860.
E-mail: kb@accordgroup.hu
Website: www.accordgroup.com
Secretarial service
World Trade Center, Budapest
Kecskemeti utca 14, 1053 Budapest
Tel: (1) 338 2416. Fax: (1) 318 3731.
Translation service
International Language Services Ltd
Móricz Zsigmond kortér 3/A V.2, 1114 Budapest
Tel: (1) 209 6386/7. Fax: (1) 372 0136.
E-mail: ils@ils.hu
Website: www.ils.hu
Unusual conference venue
Recreation and Cultural Centre of the Hungarian Army
Stéfania Strasse 34-36, 1443 Budapest
Tel: (1) 321 7850. Fax: (1) 343 2817.
The Cultural Centre consists of the Stefánia Palace, built in 1885, whose elegant interior is ideal for conferences, exhibitions and parties; and the modern Glass Palace, built in 1979, with professional light, sound cinema and video equipment as well as simultaneous interpretation.
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