INVESTMENT

MANAGEMENT

16 SEPTEMBER, 2021
FDI IN NUMBERS

Total value of FDI globally in:

• 1970 : 13 Bn $
- 1990 : 204 Bn $
- 2015 : 2,041 Bn $
- 2019 : 1,500 Bn $
- 2020 : < 1,000 Bn $
A reduction tendency in the global FDI since 2015
Source: UNCTADSTAT

https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=96740
IFDI FLOW - HUNGARY
• 1988 : 0 $
• 1990 : 554 M $
• 2000 : 2,764 M $
• 2015 : – 14,537 M $
• 2019 : 5,205 M $
• 2020* : 4,169 M $
• Stock of FDI in 2019 : 97,081 Bn USD

• Source : UNCTADSTAT
• https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=96740
• * World Investment Report 2021
MAJOR EVENTS IMPACTING THE GLOBAL
FDI FLOW
• + Opening up new markets / India, China, CEE
• + Emergence of new technologies
• + Sustainability,environmental,climate awareness
• - Industry recessions / dot.com, electronics
• - Financial crisis / Lehmann Brothers,etc
• - 9/11
• - Covid-19
• - Growing Protectionism
• - Disintegration / Brexit
INVESTMENT PROCESS
PARTICIPANTS

• Investor’s project team

• Investment recipient’s project team
• Government Investment Promotion team
INVESTOR’S PROJECT TEAM

• Investment Project Manager

• Experts in the fields of:
- Architectural planning
- Engineering
- Legal
- Finance&Accounting
- HR
PROJECT TEAM

• Consultants
- Real Estate / CBRE, Colliers,JLL, Cushman and Wakefield are most active on the Hungarian market
- Accounting and professional services/ Big 4 – EY, KPMG,Deloitte, PwC
- Management / McKinsey Company, Boston Consulting Group, Accenture, etc.
- Legal
- HR
Etc.
ROLES AND TASKS OF THE TEAM

• Carry out due diligence of potential countries/regions/sites

• Have continued discussions with reps of Central / Local recipients
• Prepare preselection – then – final selection decisions
• Budgeting
• Prepare schedule of the investments in worst case/optimistic /
realistic scenarios
INVESTMENT RECIPIENT’S PROJECT TEAM
• Reps of Local Government
• Local MPs
• Local economic development agencies
• Site developers / Industrial Parks
• Public services / utility companies
• Public / private employment organizations
• Educational institutions
ROLE OF RECIPIENT’S PROJECT TEAM

• Provide comprehensive information on local development

opportunities
• Information on the expected costs of
- site development
- Infrastructure
- local taxes
- incentives
ROLE OF RECIPIENT’S PROJECT TEAM

• available sites
• labor force
• educational institutions
• building and EHS regulations
• long term economic development plans
• preferred industries
• etc.
GOVERNMENT’S TEAM
• Investment promotion agencies
• Government Ministries
• Foreign / Economic Ministers
• Prime Minister
• In Hungary:
• Hungarian Investment Promotion Ageny
• Ministry of Foreign Trade and Foreign Affairs
• PM
TASKS AND ROLE OF GOVERNMENT’S TEAM

• Provide macro-economic data

• Information on the economic policy of the Gov
• Approach to foreign investments
• Legislation re foreign investments
• Available incentives and support
• Preferred industries
• https://hipa.hu/main#why-hungary