Hungary is a part of the European Union’s single market, with a medium-sized economy. Hungary may represent an attractive business environment for investors seeking out to enlarge their operations, especially in the leading industries available here, such as automotive or electronics. Our Hungarian company formation specialists can provide you with a detailed presentation on the top industries in Hungary.
Foreign investors interested in opening a company in Hungary should know that the most representative industries available here are the following:
The Automotive industry
The automotive industry, in which more than 115,000 persons are employed, generates 21% of the country’s Gross Domestic Product (GDP). At the moment, it is the fastest growing industry in Hungary, sustained by 712 companies with operations in this field. Hungary represents a regional distribution centre for countries in the Center and Eastern Europe, benefiting of a strategic geographical position (member of the European Union and Schengen area) and developed logistics and infrastructure.
The electronics industry
Hungary is the most important electronics provider of the Central and Eastern Europe (CEE), employing more than 112,000 people. The electronics industry represents 22% of the total manufacturing industry in Hungary;at thesame time, Hungary is responsbile for 26% of the total electronics production in the region.
Pharmaceutical and medical technology industry
The pharmaceutical and medical technology industry in Hungary is the most representative in the CEE, employing more than 15,000 individuals. Hungary’s economy is highly influenced by the pharmaceutical industry, as the industry has developed here from more than one century ago.
Information and communications technology industry
The information and communication technology (ICT) accounts for 10% of the country’s GDP. The ICT market in Hungary is comprised of telecommunications, IT services, outsourcing services and software and harware products. Hungary stands out in the ICT research and development market, which one of the most important in the region. Reseafrch and development in the ICT sector is highly concentrated on software development, providing anti-virus and IT security services.
The food industry is mainly made up by micro-enterprises with less than 10 employees (up to 85% of the companies involved in the industry); 47% of the food industry is represented by foreign capital. The products with the highest share of foreign direct investment are: meat and meat products, tea, coffee and soft drinks. Food and beverages industries accounted for 7.6% of the total level of exports (at the level of 2014), mainly destined to countries in the EU space (more than 90%).
Hungary, a member of the Organization for Economic Cooperation and Development (OECD) since 1995, became a part of the European Union in 2004. The service sector in Hungary represents 60% of the GDP and forecasts have shown that the industry will further grow due to local investments.
Manufacturing industry in Hungary accounts for 30% of the GDP.
Another important industry is tourism, which employs almost 150,000 individuals. The main touristic attractions are the capital city, Budapest (3,000,000 visitors), and the Lake Balaton (1,000,000 visitors).
If you need further information on the main industries in Hungary, please contact our Hungarian company formation agents.
Regardless of the industry in which you will opt to set up a company, our consultants can provide additional services that can be requested by investors after they set up a legal entity.
Investors can request from our team taxation and accounting services. For the latter, we can put you in contact with our accounting firm in Hungary, who have an in-depth experience in providing corporate accounting services.