Hungary, Kazakhstan discuss business, investment cooperation in Nur-Sultan
Having greeted all the participants of the Forum, Kazakh National Economy Minister Ruslan Dalenovnoted that the event had tuned into an efficient mechanism of establishing direct and business links between the two countries.
“The friendly relations between Kazakhstan and Hungary are time-tested. Hungary is one of the important trade and economic and investment partners of Kazakhstan in Europe. We highly appreciate a further expansion of bilateral economic interaction, which meets the interests of Hungary to expand the cooperation with our country”, he said.
Over 40 enterprises including Hungarian capital in construction, agriculture, trade and production sectors run in Kazakhstan, thus the country is Hungary’s fourth largest CIS trade partner. The countries hold considerable potential for developing trade and economic and investment cooperation, that needs to be realized. The trade turnover between the countries was US$139 million in 2016, that could significantly rise in the future. The Kazakh-Hungarian Strategic Council, the Interparliamentary Council, the Business Council, as well as the joint Direct Investment Fundsuccessfully operate.
The speaker also underlined that Kazakhstan aims to occur among the top 30 countries in the world, the structural and institutional reforms are under way focused on new economic growth to ensure the country’s competitiveness globally. Kazakhstan’s investment climate corresponds to all the international standards, with over US$500 billion attracted over the years of independence. Kazakhstan is an associate member of the OECD Investment Committee, and placed in the 28th position in the Doing Business rankings.
According to the Kazakh National Economy Minister, digitalization will cover all the areas of state governance, and the ongoing industrialization program will allow to reduce the country’s participation in the economy by 20% of GDP. The speaker has also invited the Hungarian representatives to take part in the AIFC, noting the Financial Center’s uniqueness.
“Kazakhstan is among the first to support the initiative and join the “Silk Road” Economic Belt and is a part of the “One Belt, One Road” project. The “Silk Road” economic initiative contributes to our social program “Nurly Zhol”, which, in turn, aligns with regional strategies of the Eurasian Economic Union”, he said, inviting Hungary to join the over 183 million consumers market of the EEU.
There are all favorable conditions to attract Hungarian investment capital to the country’s economy as the Kazakh side welcomes Hungarian business’s involvement in developing the domestic, knowledge-based and export-orientated production in accordance with the investment policy.
Concluding his speech, the speaker called for expanding trade and economic, investment and cultural relations between the two countries.
“I am glad we are strategic partners, with our work becoming more and more productive. Here are ones of them. Firstly, the diplomatic contacts are being formed well, the bilateral trade turnover are being intensively developed, as well as economy, education and culture”, Hungarian Deputy Prime Minister, Finance Minister of Hungary, Mihaly Varga, said.
The Hungarian Finance Minister outlined that it is the first time a delegation of 100 people visited Kazakhstan, including representatives of different sectors, they are water management, agriculture, medicine, energy, machinery, transport, and so on.
“We intend to establish these contacts not only in relation to certain measures, but to give our contracts agradual manner. To this end, both sides are provided with serious support. For instance, the Hungarian Trade Industrial Chamber, KazEnergy, the Business Council, other financial capacities and strengthened political contacts also provide support. In my opinion, the EXPO held in Astana was also a good example of building business contacts. This Forum provides further opportunities to strengthen and develop contacts between our countries”, he said.
According to him, Kazakhstan is the strategic partner of Hungary in the Central Asian region, and plays a significant role in expanding eastward contacts. Hungary recognized the change in leadership in Kazakhstan, and is confident that the presidential election will reflect the stability of Kazakhstan’s domestic policy, which, in return, will demonstrate the continuation of the successful policy, that allowed Kazakhstan to be among the 50 most developed countries in the world.
The speaker also stressed that the Hungarian Government supports entrepreneurs in the Kazakh market. Since 2015, the Kazakh-Hungarian agricultural investment fund has been operating, as well as Hungary intends to launch a representation office of ExImBank in Nur-Sultan, and a trading house will be set up in Moscow contributing to exports in Kazakhstan.
The direct flight en route Budapest-Nur-Sultan, opened in the summer of 2017, also contributes to increased business contacts, making it possible to carry 5 thousand passengers.
The Forum also featured bilateral meetings between Kazakh and Hungarian entrepreneurs, discussing the cooperation in the agro-industrial complex, light and food industries, construction, the chemical industry and machinery. The Forum saw the signing of 10 cooperation agreements between the two countries in multiple areas. The trade turnover between Kazakhstan and Hungary in the period between 2018-Q1 of 2019 totaled US$155.4 million, including exports from Kazakhstan to Hungary standing at US$28.2 millionbetween 2018 and 2019, and imports to Kazakhstan from Hungary US$127.2 million.
Adlet Seilkhanov
