Opportunities for the development and deepening of the trade and economic relations between Bulgaria and Hungary and the potential for building new successful business cooperation were discussed by the participants in the Bulgarian-Hungarian Business Forum held in Budapest on Friday. The event was organized by the Commercial and Economic Section (CES) of the Embassy of the Republic of Bulgaria in Budapest at a time when the drivers of the European economy are stagnating and the need to create compensatory instruments to cope with the challenges in the medium term is emerging. The potential for the development of trade and economic relations between Bulgaria and Hungary is seen as one such alternative.
Bulgaria’s caretaker Minister of Economy and Industry Petko Nikolov addressed the forum saying that Hungary is one of Bulgaria’s key partners in the field of trade and investment, as the trade between the two countries amounted to EUR 2.3 billion last year. In the first half of 2024, it reached EUR 1.2 billion.
Bulgaria’s Ambassador to Hungary Hristo Polendakov said that while the Bulgarian-Hungarian trade and economic relations are good, there is untapped potential for improvement. The diplomat expects trade between Bulgaria and Hungary to hit EUR 3 billion in 2024. He shared his goal to utilize forums and business cooperation in order to achieve balance in these relations, as they are currently in favour of Hungary.
Nevena Stoyanova, who runs CES in Budapest, is convinced that at the heart of successful partnerships are several fundamental conditions that Bulgarian businesses have at their disposal and that would contribute to expanding cooperation between Bulgarian and Hungarian companies. Two conditions she pointed out were connectivity and innovations. Stoyanova emphasized Bulgaria’s strategic location that allows the country to act as a bridge between Europe and Asia and thus, provide access to a market of 1.3 billion people. Stoyanova presented the leading economic sectors in Bulgaria over the last five years, which are electronics and electrical engineering, automotive industry, information technology, robotics and mechatronics, chemical and mining industry.
Hungarian investments in Bulgaria total EUR 2.38 billion, according to data cited by Yulian Balchev, Secretary General of the InvestBulgaria Agency. He talked about its services and the incentives for investors. Business costs are among the advantages of doing business in Bulgaria. He cited the average price per megawatt/hour of electricity in October, EUR 89.35; the price of natural gas in October, EUR 32.57 per MWh; the price of water, EUR 0.94 to EUR 2.7 per cubic metre; industrial space rents, EUR 3 to EUR 5.8 per square metre; office space rents, EUR 10 to EUR 15 per square metre; and the cost of labour, with the average wage at EUR 1,173 and the minimum gross wage at EUR 477 per month.
Deputy Energy Minister Georgi Samandov focused on the long-term energy partnership and the long-standing traditions of Bulgaria and Hungary in nuclear energy production. He stressed that Bulgaria has the largest installed nuclear capacity in Southeastern Europe and is one of the three European countries with experience in decommissioning nuclear facilities. Bulgaria could share this experience with Hungary, said Samandov.
The Bulgarian Chamber of Commerce and Industry (BCCI) was also represented at the forum. Its President, Tsvetan Simeonov, expressed BCCI’s support for the expansion of bilateral economic ties between Bulgaria and Hungary. Gabriela Dimitrova, Director of International Cooperation and International Organizations at BCCI, presented the Chamber’s services and initiatives in support of foreign companies and investors in Bulgaria.
The Bulgarian-Hungarian Business Forum presented good practices from Bulgarian municipalities, successful forms of business cooperation and tourism opportunities in Bulgaria.
Bulgaria’s top exports to Hungary are petroleum products, medicines, iron, cables, spare parts for cars, glassware and vehicle glass, and bakery products. The main imports from Hungary are parts for electric accumulators, batteries, electric motors, cars, generators, automated data processing machines, meat and products for the food industry, said Nevena Stoyanova.
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