BIPH and Hungary hold 1st PHL-Hungary online business forum, matchmaking event

Following the successful 2nd Philippines-Hungary Joint Committee on Economic Cooperation meeting in December 2020, both countries renewed their commitments to intensify two-way trade and investment relations in the 1st Hungary-Philippines Online Business Matchmaking Event on  May 18-20, 2021.

The first day of the virtual event focused on trade, while the second on investments, and the last was allocated for the B2B matchmaking.

The three-day event was attended by over 300 participants from both the Philippine and Hungarian business and government sectors. The B2B matchmaking was likewise a success, with 122 registered participants from both countries.

Mr. István Joó, Deputy State Secretary for Export Development of the Ministry of Foreign Affairs and Trade of Hungary, emphasized the strong economic cooperation between the Philippines and Hungary in the fields of green industry and technology, education, environmental diversity, food safety, and innovation.

This was also highlighted by the visit of the Hungarian ministerial delegation last year to the Philippines since the onset of the pandemic, adding Hungarian offensive interests in water management, health, aviation, and ICT.

Dr. Ceferino Rodolfo, Undersecretary for the Industry Development and Trade Policy Group and Board of Investments Managing Head, reiterated that the renewal of the Memorandum of Understanding between the Philippine International Trading Corporation through its President, Mr. Dave Almarinez and the Hungarian Export Promotion Agency through Dr. Kristof Szabo, provides a framework to facilitate two-way Philippines-Hungary trade.

Usec. Rodolfo also invited Hungarian companies to expand their business in the Philippines and maximize the use of EU-GSP+, which allows over 6,000 product lines from the Philippines to enter the EU at zero tariff. He also encouraged Hungarian businesses to take advantage of the recently signed Regional Comprehensive Economic Partnership agreement between ASEAN and its five dialogue partners, namely, China, Japan, South Korea, Australia, and New Zealand.

The Hungarian company presentations featured mostly consumer goods, with the exception of the Hungarian Water Technology Corporation, represented by its CEO, Mr. Adrian Kiss. Joining Mr. Kiss were Mr. Marton Bodnar, Country Head of Hell Energy Drinks Philippines and Mr. Tamas Szobolevszki, Sales Manager at Babolna TETRA Ltd. Hell Energy Drinks has an extensive Philippine presence, especially in Visayas and Mindanao, with its headquarters stationed in Davao.

From the Philippine side, the company presentations included Mr. Antonio Tiu, President and CEO of Agrinurture Inc., Mr. Greg Banzon, Executive Vice President and Chief Operating Officer of Century Pacific Food Inc., and Mr. Yoshihiro Ohno, Sales Manager of HIMEX Corporation. Agrinurture and Century Pacific are both exporters of food products, while HIMEX is engaged in the distribution of medical devices.

Workforce and Skillset as Value Proposition  

Usec. Rodolfo emphasized the Philippine Board of Investments (BOI) Approved Investment performance with a 48% January-May year-on-year growth in 2021, while BOI-approved investments in 2020 were the second-highest approval level in the BOI’s 53 years of existence,  signaling continued investors confidence despite the pandemic.

The passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law was also mentioned, which is expected to boost inward investments into the country. Usec. Rodolfo underscored that the DTI and BOI remain committed to pursuing further improvements in the country’s investment climate to make it more conducive to businesses and that businesses can trust the Philippines.

Usec. Rodolfo likewise highlighted the strength of Philippines-Hungary investment relations even during the pandemic, which was evident by the processing of Travel Ban Exemption for members of the Hungarian business community who needed to be present in the Philippines for their operations.

Mr. Gergely Jakli, Chairman of the Board and CEO of EXIM, Hungary’s export-import bank, announced that it is open to finance more than $700 million in export transactions to the Philippines. The said amount is available as a free limit for companies interested in export or investment ventures.

Mrs. Ma. Corazon Halili-Dichosa, Executive Director of the Philippine Board of Investments, invited Hungarian companies to look into the Philippines as an excellent manufacturing base for products destined to other key markets at a preferential rate through free trade agreements and GSPs.

ED Dichosa also highlighted the Philippines as a tactical partner of the Hungarian business in Asia, emphasizing its strategic location, high labor productivity, and the availability of qualified and highly technical talent pool as its competitive advantages.

Mr. Gábor Lehőcz, Head of Commercial Section and Vice Consul of the Embassy of Hungary, Manila, presented investment opportunities and incentives for Philippine companies that intend to establish a presence in Hungary. Mr. Lehőcz underscored Hungary’s strength in innovation and R&D for Filipino companies looking for potential business partners.

With Hungary as a market for Filipino products, Mr. Lehőcz mentioned that there are opportunities in healthy and organic food and agricultural products.

Mr. Arthur Tan, Chairman and CEO of AC Industrials, expounded on the establishment of their presence in Europe as a Filipino company and cited the reasons behind their choice of identifying such locations in the continent, such as incentives, infrastructure, and the network to capitalize on the available market.

The company has established its presence in the UK, Germany, and Serbia among others, leveraging the Philippines as a base to deploy Filipino skilled professionals. Mr. Tan likewise highlighted the importance of equipping the local workforce with highly sought skillsets and manpower as one of the features that elevate the Philippines’ attractiveness as a foreign investment destination.

Mr. László Bárány, CEO of MasterGood Kft, mentioned the challenges the company faced expanding its operations in Vietnam, including red tape and issues in the bureaucracy and employment. Mr. Bárány went on to say that they have employed Filipino workers in their company in Vietnam and is looking at increasing their numbers in the future, having been impressed by their professional capabilities.

When asked whether they will also establish a presence in the Philippines, Mr. Bárány said they will venture first with their distribution in the country and eventually set up their local presence. ED Dichosa assured Mr. Bárány that BOI will provide the necessary support should they expand in the country.

Philippine Ambassador to Hungary H.E. Frank R. Cimafranca invited both Philippine and Hungarian companies to look into each other’s market as manufacturing and distribution hubs. Hungarian Ambassador to the Philippines H.E. Dr. Titanilla Tóth emphasized the growing strategic partnership of both countries, establishing strong relations as stable partners in trade and investment.

In 2020, Hungary ranked as the Philippines’ 49th trading partner (out of 224), 29th export market (out of 210) and 64th import supplier (out of 204). The Philippines’ main exports to Hungary are machines, ICs, and semiconductor products, while the country’s top imports from Hungary include pharmaceutical and electronics products.