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China Investment Promotion Agency to set up office in Hungary

Hungary and China signed a letter of intent a week ago on opening an office of the China Investment Promotion Agency (CIPA) in Hungary, its first abroad, Hungarian Investment and Trade Development Agency (ITD Hungary) investment director Csaba Kilian told MTI on Tuesday. The office is expected to open in the second half of 2009.

China picked Hungary as the location for the office because of its central geographical position, direct flights between Budapest and Beijing, the country's skilled workforce and the fact that Hungary is the only country in the region where the Bank of China is present, ITD Hungary said. Compared to other countries in the region, Hungary also has the largest population of Chinese people.

“China sees Hungary as a regional distribution, manufacturing and logistics centre,” said ITD Hungary director György Rétfalvi.

China has invested USD 600 million-800 million in Hungarian companies, mainly in the areas of information and communications technology, electronics, telecommunications and research and development. Some 5,000 Chinese companies operate in Hungary, including many multinationals.

Between 20 and 30 Hungarian companies have invested USD 100 million-200 million in the areas of environmental technology, sewage treatment, renewable energy, dairy industry technology, building materials and establishing industrial parks.

ITD Hungary set up a Hi-Tech Centre in the Chinese city of Shenzhen to help Hungarian SMEs' entry onto the Chinese market in 2005. (MTI-Econews)