{"id":36098,"date":"2023-04-19T09:20:07","date_gmt":"2023-04-19T09:20:07","guid":{"rendered":"https:\/\/helpers.hu\/uncategorized-fa\/foreign-owned-companies-in-hungary-in-numbers\/"},"modified":"2024-07-19T12:42:08","modified_gmt":"2024-07-19T12:42:08","slug":"foreign-owned-companies-in-hungary-in-numbers","status":"publish","type":"post","link":"https:\/\/helpers.hu\/fa\/%d8%ab%d8%a8%d8%aa-%d8%b4%d8%b1%da%a9%d8%aa\/foreign-owned-companies-in-hungary-in-numbers\/","title":{"rendered":"Foreign-owned companies in Hungary in numbers"},"content":{"rendered":"\n

Latest statistical data<\/h2>\n\n\n\n

While KSH, the Hungarian Central Statistical Office regularly collects and analyzes data, their latest comprehensive report<\/a> is on data from 2020 (while data tables<\/a> are updated constantly). Even though the last couple of years have been troubled first by the COVID-19 pandemic and later by the war in Ukraine, data over the last 15 years seem consistent, and still offer some insight.<\/p>\n\n\n\n

Foreign-owned companies in the EU<\/h2>\n\n\n\n

In the member states of the European Union, more than 25% of added value is generated by foreign-owned companies. According to data from 2018, their proportion was the highest in Ireland with around 67%, while it was above 33% in the countries that joined the EU since 2004, meaning Hungary as well as Bulgaria, the Czech Republic, Estonia, Latvia, Slovakia, Poland, and Romania. Out of this total, 55% is generated by companies governed from other EU countries and 45% from outside the EU.<\/p>\n\n\n\n

The share of foreign-owned companies on the Hungarian market<\/h2>\n\n\n\n

Since 2008, the number of companies in Hungary grew from 566,000 to 674,000. At the same time, the number and proportion of foreign-owned companies was reduced from 18,700 and 3.3% to 15,200 and 2.3% \u2013 while they kept producing about 50% of the added value generated in Hungary, and employing about a quarter of the Hungarian work force<\/strong>. Moreover, in 2020 they realized about 44% of all the gross investment in tangible goods \u2013 which is again in line with data from the preceding period, which fluctuated between 55% and 40%, and in fact shows a slight increase compared to the previous years.<\/p>\n\n\n\n

The proportion of owners seated in EU member states and third-countries was 65:35 both in 2008 and in 2020. However, the 2020 data is the result of a sudden change from 70:30, which might be a product of Brexit taking effect that year.<\/p>\n\n\n\n

Industries and size of operation<\/h2>\n\n\n\n

If we consider the generation of added value<\/strong>, the share of foreign-owned companies in Hungary is the biggest in the processing industry<\/strong> (which has the biggest share in Hungary anyway) with about 67%. It is followed closely by information and communication<\/strong> at 58% and energy<\/strong> at 51%. If we consider production value, the same sectors will be in the front, with slightly different rates (73%, 56%, and 48%, respectively).<\/p>\n\n\n\n

Foreign-owned companies also tend to use more advanced technology<\/strong>, introducing their practices on the Hungarian market and driving development and innovation. This is most obvious in the processing industry, where the number of foreign-owned companies using highly advanced technology is the double of Hungarian ones<\/strong> (18% vs. 9,8%), and the difference is even more conspicuous for those using mostly advanced technology (47.9% vs. 19.2%).<\/p>\n\n\n\n

Regarding the size of the operation in Hungary, we will see that most large enterprises are foreign-owned<\/strong>, meaning more than 70% of companies with 250+ employees, reflecting the share of foreign investment in Hungary. The smaller the number of employees, the smaller the share of foreign-owned businesses becomes: companies with 50-249 employees at 47%, 10-49 employees at 21%, fewer than 10 employees at 13%.<\/p>\n\n\n\n

Pandemic related developments<\/h2>\n\n\n\n

While the pandemic hit every sector of the economy hard, added value generated in Hungary in fact increased by 1%<\/strong> compared to the previous year, both for domestic (+1.3%) and foreign-owned businesses (+0.8%).<\/p>\n\n\n\n

This is just an average, however: both hospitality<\/strong> (accommodation and food services) and logistics<\/strong> (transportation and storage) suffered greatly<\/strong> (-37% and -19%), while the losses of foreign-owned companies (-62% and -30%) were more than double of those of domestic ones (-30% and -12%). In construction, while there was an overall reduction (-1.5%), companies under domestic ownership still managed to grow (+2%), while those under foreign ownership suffered (-28%).<\/p>\n\n\n\n

In industries where significant growth was realized<\/strong> in spite of the pandemic, foreign-owned undertakings did typically well compared to Hungarian ones. These include real estate related activities (+10.4% vs. -1.1%), wholesale and retail trade (+6.3% vs. +1.4%), the processing industry (+6.4% vs. +2.2%), and even scientific and technical activities (+12% vs. +10.8%).<\/p>\n\n\n\n

There is room for your business in Hungary too<\/h2>\n\n\n\n

As you can see, foreign-owned companies are an integral part of Hungarian economy. They generate about half of the domestic added value, employ a quarter of the local work force, and drive innovation with advanced technology. If you can find the right niche on the Hungarian market, you are just a feasible business plan away from success.<\/p>\n\n\n\n

Helpers Hungary offers assistance not only with company formation<\/a>, but also market research and business planning. Take advantage of our local network and extensive know-how, plan your European operation on a solid basis.<\/p>\n\n\n\n

Got you interested? Get in touch today. Just fill in the form below.<\/strong><\/p>\n\n\n\n

Was this article useful? Find us on Facebook<\/a> and never miss an update about topics relevant to living, working, and doing business in Hungary.<\/p>\n","protected":false},"excerpt":{"rendered":"

Foreign-owned companies have been contributing massively to Hungarian economy over the last fifteen years. Get an overview of what this means in numbers, and consider how your business might fit a niche on the Hungarian market.<\/p>\n","protected":false},"author":8,"featured_media":12633,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1113],"tags":[1153,1118,1028,930,896],"class_list":["post-36098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1113","tag-analysis-fa","tag-brexit-fa","tag-business-fa","tag-investment-fa","tag-lifestyle-fa"],"yoast_head":"\nForeign-owned companies in Hungary in numbers - Helpers Hungary<\/title>\n<meta name=\"description\" content=\"Foreign-owned companies are an integral part of Hungarian economy through generating added value, employing local work force, and driving innovation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/helpers.hu\/fa\/%d8%ab%d8%a8%d8%aa-%d8%b4%d8%b1%da%a9%d8%aa\/foreign-owned-companies-in-hungary-in-numbers\/\" \/>\n<meta property=\"og:locale\" content=\"fa_IR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Foreign-owned companies in Hungary in numbers - 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