The Hungarian government has offered to provide $700-million in export financing to the Philippines to further boost trade between the two countries.
István Joó, Deputy State Secretary for Export Development of the Ministry of Foreign Affairs and Trade of Hungary, announced the export financing facility on the first day of the 1st Philippine Hungary Online Business Forum and B2B Event.
“The Hungarian Export Import Bank is open to financing export transactions to the Philippines of more than $700 million,” said Joo in a speech at the opening of the three-day online event.
According to Joo, the total amount is available as a free limit for companies interested in export or investment ventures. “Hungary is ready to act as a gateway for Philippine companies, planning to operate in European markets,” he said.
He said the Hungarian Investment Promotion Agency (HIPAA) facilitates investments by providing them client oriented services. Hungary also offers several types of incentives in order to support the settlement of the Philippine companies in Hungary, while HIPAA provides up to date information for inquiring companies.
On one hand, he said Hungary is ready to help Philippine companies in need of a more welcoming and safe corporate atmosphere to resettle their existing or new businesses in Europe.
On the other hand, Joo, who is also the Hungarian government commissioner responsible for the Budapest Sustainability Expo and Summit 2021, also encouraged
Hungarian companies are to pursue businesses in the Philippines, and to invest here to profit from one of the fastest growing economies in the world.
Majority of the Hungarian firms that are interested in the Philippines are engaged in water management, the health industry, aviation, and ICT infrastructure developments, food and beverages and IT services.
“I’m certain that this online business forum will prove helpful in solidifying and deepening our economic relations during these challenging times,” Joo said as he expressed hope for Philippine companies to get to know the business opportunities in the partnering countries that will encourage them to pursue opportunities for numerous ventures to strengthen economic cooperation between the two countries.
For his part, Trade and Industry Undersecretary Ceferino S. Rodolfo said Hungary has remained one of the largest trading partners of the Philippines in the EU. Philippine exports to the EU in 2020 amounted to $7.5 billion, of which about $2 billion dollars enjoy GSP plus preferences.
Most of the Philippine exports to Hungary include any electronics, pneumatic tires, spectacle lenses gaskets and washers.
Rodolfo has noted of improvements in bilateral trade in Hungary since the signing of the agreement on economic cooperation that established the Philippines Hungary Joint Commission and economic cooperation in 2017.
“I encourage our Philippine businesses to explore opportunities with the highest income in very welcoming market like Hungary, and to further maximize the use of GSP plus preferences,” Rodolfo said.
Likewise, he invited Hungarian businesses to come to the Philippines and use them as a jump off point to access the Asian regional market.