Foreign investment promotion

Problem

Low international market share

Foreign trade is not a widespread activity by domestic SMEs. When it comes to foreign trade large enterprises play the leading role. SMEs contribute to the Hungarian foreign trade by only 20%. The export-import ratio of the Hungarian-owned foreign trade businesses (including all business sizes) is 25%, while the export only is 11% and the import only is 46%. In terms of income flow, the structure of the Hungarian economy is asymmetric with more capital flowing out of the country and less capital flowing in from international investments.

Low international market share
Low international market share

Solution

It is important that the level of foreign income transferred to Hungary should match the level of income leaving the country, this process could be driven by foreign investment. With the help of KKVPRO foreign investment promotion, we aim to increase the international and regional market share of small and medium-sized domestic enterprises by joint acquisitions of international businesses. The funding is intended to support the international market expansion of our domestic partners, hence improve their competitiveness and exploit their growth potential.