"To increase Hungary’s global competitiveness by enhancing the country’s attractiveness for FDI."
The Investment Policy Task Force has defined three main objectives for the period of 2015-2017:
- 1.) To create sustainable, investor-friendly business environment to keep and attract more FDI into Hungary and the region
- 2.) To maximize the economic and employment impact of FDI
- 3.) To create and clearly communicate an investment strategy and align the country’s education strategy accordingly
Members of the Investment Policy Task Force („Investment PTF”), who are representing a wide range of sectors, work closely to foster the above goals and objectives.
According to the Global Competitiveness Index prepared by the World Economic Forum every year, Hungary is ranked 69th (out of 138) in 2016-2017. For sustainable growth and enhanced competitiveness, Hungary’s investment promotion strategy needs to be adjusted to the innovation driven global environment. Therefore, the Investment PTF suggests more focus on high value-added industries, building on the competitive advantages of existing, well–developed sectors such as, but not limited to, the pharmaceutical, electronics manufacturing and mechanical engineering industries, the shared service, ICT, financial and professional services sectors.
For PTF meeting dates please click here.
Main Achievements and Activities in 2016
Partnership with HIPA:
Based on the Strategic Partnership Agreement signed with HIPA in 2015, a regular, meaningful dialogue has been successfully established between the two organizations. The Investment PTF in partnership with HIPA is pledged to support decision makers in appreciating corporate business processes and company procedures (including global decision making process). In 2016, the following two flagship events were organized jointly by AmCham and HIPA: the “Second Business Meets Government Summit” and the “Second Competitive Education Conference”.
Business Meets Government Summit:
In line with AmCham Hungary’s goal and vision, that is “to achieve a 10 spot World Competitiveness Ranking improvement in 10 years for Hungary with CEE”, AmCham together with the National Investment Promotion Agency organized this flagship event for the second time to continue the dialogue on key challenges and priorities for improving Hungary’s competitiveness. Similarly to the first summit, one of the main goals of the event was to develop a tangible list of recommendations in four selected areas: Business Sophistication and Environment, Digital Economy, Labour Market and Innovation. The event was hosted by Farkas Bársony, Lead of the Investment Policy Task Force.
Minister of Foreign Affairs and Trade Péter Szijjártó delivered the opening speech at the event, after which participants went on to exchange views in four closed-door roundtable discussions covering the four priority areas. High-level government representatives included István Lepsényi, Secretary of State for Economic Regulation, Róbert Ésik, president of HIPA, Ferenc Friedler, Vice President for Innovation and General Affairs, National Research, Development and Innovation Office, Ádám Szigeti, Head of Department, Department of Research and Development in Higher Education, Ministry of Human Capacities, Attila István Simon, Deputy Minister of State for Labour Market, Ministry for National Economy.
Cooperation for a More Competitive Hungary (2015/2016)
The essence of a series of professional discussions within AmCham in 2015, especially at the first Business Meets Government Summit and the first Competitive Education Conference, was summarized and published in a document titled „Cooperation for a More Competitive Hungary”. The document, which incorporates 19 points of recommendation and commitment, was published and sent to the Prime Minister and the Government in February 2016. This document served as a key instrument and guide for the Chamber’s advocacy activities throughout the year. Follow-up meetings with key decision-makers and stakeholders were organized to focus discussion on how to best implement the recommendations to enhance competitiveness. Recommendations have been thoroughly discussed with decision-makers of the Ministry for National Economy, HIPA, and Ministry of Human Capacities. There have been numerous legislative changes and impactful results based on this dialogue, about which Investment PTF Lead Farkas Bársony presented a report to the membership at the Second Business Meets Government Summit. A new issue of the “Cooperation for a More Competitive Hungary” recommendation package would be compiled by the end of 2016.
Cooperation with the Ministry for National Economy
The Ministry for National Economy and AmCham established a Strategic Working Group to ensure more progressive and structured relation between the two organizations and held a kick-off meeting on December 9, 2015, with the participation of István Lepsényi Secretary of State for Economic Regulation. Driven by the Investment PTF, two high-level working group meetings were organized in 2016, where participants discussed a great number of competitiveness related issues, in line with AmCham’s 19-point recommendation package, including taxation issues, the impact of Brexit on the Hungarian economy, the vocational training system, industry – university co-operation and many more. Three sector specific discussions also took place, providing insight on the opportunities and challenges specific to the electronic manufacturing industry, the healthcare industry and the telecommunications industry.
Sustainability (non-financial) reporting obligation
The EU imposed a new reporting requirement regarding the disclosure of non-financial and diversity information, that is the sustainability reporting (also known as CSR reporting), which will become a new standard in the EU from Q1 2017. Certain companies, specified under new legislation, will have to disclose information in Hungary including description of policies, results of policies, risk assessment, management bases and performance ration in many areas.
The Investment PTF has initiated discussions with Ministry for National Economy to understand the Ministry’s approach in this area. The Investment PTF has been dedicated to support our members in preparing for the sustainability (non-financial) reporting obligation that will come into force in January 2017. Representatives of the Investment PTF met the director and expert colleagues of the Accounting Department of the Ministry for National Economy responsible for new legislation in February 2016. AmCham provided information on the sustainability (non-financial) reporting obligation to the membership.
The Investment PTF
Cooperation with Committees: The Investment PTF cooperated and regularly exchanged views on key taxation related issues with the Tax Committee. The Investment PTF also cooperated on a regular basis with the Electronic Manufacturers’ Committee in the preparations for the regular AmCham-Ministry for National Economy Strategic Working Group meetings.
For the detailed list of the Investment Policy Task Force meetings in 2016 please, click here.
The Investment Policy Task Force is committed to:
- Work closely with strategic partners (HIPA, NGM, Ministry of Justice) on realizing the above goals;
- Advocate for raising Hungary’s competitiveness based on the set of recommendations prepared at the Second Business Meets Government Summit;
- Provide a platform for regular and meaningful dialogue between the government and business; organize the Third Business Meets Government Summit in 2017;
- Support policy-makers in better understanding local and global corporate decision-making processes;
- Support decision-making by conducting impact assessments before measures are introduced;
- Enhance communications with current and prospective foreign investors
|Policy Task Force Lead:||Dr. Ferenc Pongrácz|
|Board Pair & Advisor:||Mr. Péter Gerendási|
Advisor on Financial Institutions and Services Sector:
|Ms. Bea Előd|