Hungary keen on infotechnology, water, agriculture ventures with Philippines

THE Philippine-Hungary Business Forum was convened yesterday along with the re-opening of the Embassy of Hungary in Manila, signaling more economic cooperation between the two countries.

“We came to the Philippines, we established personal presence in order to route Hungarian companies to work together with the Philippines and for more marketdriven opportunities,” said Hungarian Minister for Foreign Affairs and Trade Peter Szijjarto during the forum.

Hungarian’s trade chief pointed out three major areas in economic cooperation: research and development (R&D)/information technology (IT), agriculture and water management.

“Because we are a landlocked country, we have to put all our emphasis on the skills and creativity and the Hungarian people, so we put many emphasis in R& D- driven fields and IT, meaning that IT applications, urban development and management applications and machinery applications are based on the highest technological level and we can offer these kinds of technological products and know-how too,” Mr. Szijjarto said.

As for agriculture, he added that Hungarian food security is among “the strictest” in Europe, noting that its constitution bars the sale of genetically modified products.

“We have been in long negotiations with authorities here in the Philippines to receive permission and licenses to be able to start the meat export to the Philippines... this morning we just received a letter from the ( Department) of Agriculture that three Hungarian companies have the license to start exporting meat to the Philippines, which will be a big boost to our agricultural exports,” Mr. Szijjarto said.

In water management, Mr. Szijjarto said: “Hungary represents a world-class level of technology and management in the region.”

To facilitate Philippine and Hungarian business- to- business cooperation, Mr. Szijjarto said that the Hungarian Export-Import Bank can offer credit lines for exports, joint ventures and projects.

“I would like to encourage you to take advantage of this credit line which consists of long- term credits with very low interest rates,” he said.

He reiterated that Hungary supports the signing of a Philippine-European Union free trade agreement.

Chief Executive Officer to the Hungarian National Trading House Zsannet Olah also spoke to representatives of the Philippine business sector in yesterday’s forum.

“The Hungarian National Trading House, which is owned by the Hungarian government, is in contact with nearly 4,000 Hungarian companies. That’s why we are able to introduce reliable potential business partners companies to the Philippines for economic,” Ms. Olah explained.

Representatives from several Hungarian companies were brought to yesterday’s forum to network with Philippine companies, which include: Master Good Kft. ( poultry), Iodine Aqua Ltd. (water), Tranzit Food Ltd. (poultry), Biro Peter (renewable energy), Budapest Waterworks (water management), Leviter Kft. (publishing), Selek & Miller’s Consulting (consulting), and Mango Birodalom Kft. (dried fruits).

A Memorandum of Understanding was signed between the Philippine Chamber of Commerce and Industry (PCCI) and the Hungarian Chamber of Commerce and Industry, represented by PCCI President George T. Barcelon and Hungarian Ambassador Jozsef Bencze.

The Philippines-Hungarian Economic Cooperation Agreement was also signed by Mr. Szijjarto and Trade Secretary Ramon M. Lopez yesterday, calling for the creation of a Joint Economic Commission (JEC).

The JEC will serve as a platform for both nations to discuss trade, investment, and economic cooperation.

“Cooperation activities include exchange of information, participation in trade- and investment-related activities and promotion of economic cooperation among institutions,” said Mr. Lopez.

The Department of Trade and Industry (DTI) in a statement identified electronics, auto parts, processed food, jewelry and personal care products as those it intends to promote in Hungary, as well as tourism.

On the other hand, the DTI identified manufacturing, food, aerospace, Information Technology and Business Process Management (IT-BPM), retail and energy eff icient technologies as sectors for investment promotion.

Data from the DTI showed that Hungary ranked as the Philippines’ 40th largest trading partner in 2016, 26th in the export market and 63rd as a supplier of imports.

Hungary has a corporate income tax rate of 9%, a personal income tax rate of 15%, which according to Mr. Szijjarto is among the “lowest rates in Europe.” —