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Hungarian Investment and Trade Agency launches reinvest program

The Hungarian Investment and Trade Agency (HITA) will launch a reinvest program in the autumn that aims to identify big companies, map out their reinvestment plans and together determine the possibilities, HITA head Erzsébet Dobos said on Wednesday.

Speaking at a conference called "How to Sell Hungary to Your Headquarters", organized by the American Chamber of Commerce (AmCham), Dobos said businesses' intention to reinvest and their level of satisfaction would be gauged in the framework of the program.

Most foreign-owned companies already in Hungary want to reinvest in the country, Dobos said, citing a survey that showed 83% of German-owned companies want to reinvest in their Hungarian units.

HITA is managing almost 70 investment projects at present, up sharply from earlier years, she said. HITA is placing a special emphasis on biotechnology, IT, electronics, the automotive industry and service centers when offering investment incentives, she added.

Contract electronics manufacturer Flextronics' regional financial director Mark Hetényi told the conference the company had been in Hungary almost 20 years. Its Hungarian unit, which employs 12,000 people, generated revenue of HUF 2.6bn last year, up 53% from 2009.

The unit is Flextronics' third most important production base after ones in China and Mexico, Hetényi said.

Hungary presents an advantage from an investor's point of view because of its geographical position, its good transportation and education infrastructure, and the cost-efficiency with which added value can be created, he added.

Hetényi said the real sciences ought to be reinforced in schools and bureaucracy should be simplified.