With the development of globalization, more and more companies have started to expand their businesses to overseas markets. In this process, hiring local employees has become the norm. Hungary, as a country in Central Europe, has an advantageous geographical location and political and economic environment that has attracted many companies to invest. So what are the benefits for employers to hire in Hungary? Let's learn about them together.
1. Low labor costs
Compared with other European countries, labor costs in Hungary are relatively low. According to data from the Hungarian National Statistical Office, the country's average hourly wage in 2019 was 9.6 euros, while the average hourly wages in Germany and France were 35.7 euros and 27.1 euros respectively. So hiring employees in Hungary can greatly reduce the costs of enterprises and improve their competitiveness.
2. Superior geographical location
Hungary is located in Central Europe, borders Ukraine and Romania to the east, Serbia and Croatia to the south, Austria and Slovenia to the west, and Slovakia to the north. It has an advantageous geographical location that can provide a broader market and more convenient logistics for enterprises. In addition, Hungary is the only European Union country that has a direct rail line to Russia and Ukraine, which also facilitates enterprises in expanding into the Eastern European market.
3. Strong government support
In order to attract more foreign investment enterprises to invest in Hungary, the Hungarian government has introduced a series of preferential policies. For example, foreign-invested enterprises in Hungary can enjoy tax reductions, land lease preferences and other benefits. In addition, the Hungarian government has set up some special agencies, such as the Hungary Investment Promotion Agency (HIPA), to provide one-stop services for enterprises and help enterprises solve problems encountered in operation in Hungary.
4. Rich talent reserves
Hungary has rich human resources. The country has many world-renowned universities, such as the Corvinus University of Budapest and the Budapest University of Technology and Economics. These universities have cultivated a large number of high-quality talents to provide various professional skills and talent pools for enterprises. In addition, Hungary also has a high English proficiency, which also facilitates enterprises to do business in the international market.
5. Similar cultural background
Although China and Hungary are geographically far apart, the two countries have a similar cultural background. Both are historically ancient and culturally profound countries with many commonalities in traditional culture, art, philosophy and other aspects. This cultural background similarity can make Chinese enterprises adapt to the local culture in Hungary more easily and better communicate and cooperate with local employees.
Appendix: Enterprise Success Story
A Chinese electronic company entered the Hungarian market in 2018 and set up a production base and research and development center there. The company hired a large number of local employees there and through technological innovation and continuous improvement of product quality, it has gained a good reputation in the local market. Currently, the company has become one of the leading enterprises in the Hungarian electronics industry and occupies an important position in the European market.