Diplomacy & Trade 2019 February

FEBRUARY 2019 HUF 1710

IN THE VERY NEAR FUTURE, THE COMPETITIVENESS OF COMPANIES WILL BE DETERMINED BY THEIR SUSTAINABILITY PERFORMANCE. COMPANIES THAT TAKE APPROPRIATE ACTIONS TO MITIGATE THE RISKS OF, FOR INSTANCE, A HIGH CARBON FOOTPRINT WILL BE VALUED HIGHER.

EUR 6

CIRCULAR ECONOMY PLATFORM SEE MORE on page 20

18006 9

771558

980700

18007 9

771558

980700

18008 9

771558

980700

18009 9

771558

980700

Thailand 18010

9

9

This year, the Thai Embassy in Budapest celebrates its 30th anniversary. In an extensive interview, the Ambassador of the Kingdom of 977155898070018011 Thailand to Hungary, Jakkrit Srivali points out that18011 over these three decades, the two countries have enjoyed consistently excellent bilateral relations. He also tells Diplomacy&Trade about how much Hungary and Thailand have in 771558 980700 common and how they can serve as each other’s gateways into their respective regions.

771558

980700

country

FOCUS

see articles on pages 10-17

Vida Winery

The 2011 recipient of the ‘Winemaker of the Year’ award in Hungary, Péter Vida has launched new labels, a new image and a revised portfolio. These measures implemented at the winery named after him are the results of determined, long-term decisions made in the past years as the vineyards were replanted in accordance with their new strategy: to make wines, which reflect the true see article on page 27 Szekszárd terroir.

dt 2019 february.indb 1

2/6/19 1:44 PM

Ref A3

­­c c.

By Qat ar Airways

Take your business travel further Elevate your business with a rewards programme that makes the most of your corporate travel. With Beyond Business by Qatar Airways, your company can earn valuable Qrewards for every dollar spent, and enjoy exclusive benefits including fast track Gold and Silver status along with lounge access. Our new corporate rewards programme features three beneficial tiers, specifically designed to grow your business and take it further.

Visit qatarairways.com/beyondbusiness to learn more. *Terms and conditions apply.

2 dt 2019 february.indb 2

F E B R U A R Y

2 0 1 5

|

D I P L O M A C Y

&

T R A D E

|

w w w . d t e u r o p e . c o m

2/6/19 1:44 PM

s

c.

w w w . d t e u r o p e . c o m

dt 2019 february.indb 3

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 5

3 2/6/19 1:44 PM

Peter Freed PUBLISHER

monthly in print - daily on the web

www.dteurope.com

05 ON THE RECORD 06-07 COMPANY BRIEFS 08 ANALYSIS

22 SOCIETY 23 WITTYLEAKS by the Italian

10-17 THAI FOCUS

Concerts, festivals, events and exhibitions in and out of Budapest

Interview with Ambassador Jakkrit Srivali; Keeping the flag flying high in Bangkok; Connecting all of Asia; Red Bull; Vanessa-Mae; Tom Yum Thai

18-21 BUSINESS

OECD report on Hungary; Circular economy; FirstMed

Copyright 2004-2018 DUAX Kft., all rights reserved | ISSN 1589-8075 This magazine is produced by DUAX Kft. The opinions published in the magazine do not necessarily reflect the opinions of DUAX Kft.

4 dt 2019 february.indb 4

TELEPHONE [+36-70] 320-3051 | FAX [+36-1] 350-5660 E-MAIL editor@dteurope.com | ADVERTISING ­­adsales@dteurope.com

24-25 WHAT’S ON 26 GASTRONOMY Mangalica festival

27 WINE

Vida winery novelties

Diplomacy&Trade is preparing a special Focus section on Norwegian-Hungarian relations in recognition of the 15 years the two countries have been partners in the European Economic Area (EEA). The two countries are also fellow members in NATO, OECD and other organizations, which, according to the Royal Norwegian Embassy in Budapest, result in contacts and cooperation between Norway and Hungary being “consequently quite comprehensive and definitely broader than geography, trade and population size might indicate” and they “dispose of unique possibilities represented by the EEA and Norway grants financial mechanisms.”

These and other issues will be subjects of our interview with the Norwegian Ambassador to Hungary, Olav Berstad.

Márton Kovács/MFAT, Rondo Corrugated Board Manufactoring Ltd., Colliers International, Depositphotos.com, Hungarian Embassy Bangkok, Thailand Board of Investment, Joerg Mitter/Red Bull Content Pool, Kratingdaeng.com, Ryan Miller/Red Bull Content Pool, Mark Thompson/Getty Images/Red Bull Content Pool, Jay Nemeth/Red Bull Content Pool, Ali Bharmal/Red Bull Content Pool, Koncertpromo.hu, Vivien Csiki, Zoltán Bódis/www.facebook.com/bzfoto, ING, Lázár Todoroff, László Szili, Office of the President of the Republic, Patrick Murphy/PRM Digital Productions, Uránia, NAP Média, Gregory Batardon, Ora Hasenfratz, Csaba Farkas, MTI Photos: Zoltán Balogh, János Vajda, Noémi Bruzák, Zoltán Máthé, Zsolt Czeglédi, Tamás Kovács

annual fee of EUR 72 in Hungary, or EUR 90 to all other destinations. SEND REQUESTS AND INQUIRIES TO DUAX KFT. H-1034 Budapest, Bécsi út 60.

Ambassador

NORWEGIAN FOCUS – COMING SOON

CONTRIBUTORS: Sándor Laczkó, Tamás Magyarics, Réka A. Francisck, Massimo Rustico PHOTO CONTRIBUTORS: Depositphotos.com (Cover), Vida family wine estate (cover), Embassy of Italy, Museum of Fine Arts, Bertalan Soós, Budapest Airport,

NEWSSTAND PRICE: HUF 1,710 or EUR 6 - Subscriptions are ­a vailable for an

page 21

­­ contents

PUBLISHER: Peter Freed EDITOR: Sándor Laczkó COPY EDITOR: Joyce Freed PHOTO EDITOR: Dávid Harangozó SALES & MARKETING DIRECTOR: Tamás Varga DISTRIBUTION MANAGER: Tibor Ocsenás ADMINISTRATION: Judit Ludányi ASSISTANT: Ágnes Rapaport

COPIES ARE AVAILABLE AT SELECTED RELAY AND INMEDIO OUTLETS IN MAJOR HUNGARIAN CITIES.

pages 24-25

FirstMed bets on customer service in private healthcare

OPEC: Oil on troubled waters

AND DON’T FORGET

Museum+ evenings and other programs to attend

We welcome inquires for advertising in this issue.

PLEASE CALL TAMÁS VARGA FOR FURTHER INFORMATION +36 209350250 - tvarga@budapestweek.com F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

EMBASSY OF ITALY, DÁVID HARANGOZÓ, MUSEUM OF FINE ARTS, DEPOSITPHOTOS.COM

As the tangible signs of climate change are ever more apparent, the corporate world endeavors to contribute its share in reducing its effects. Just two months ago, 41 companies, institutions and organizations (including the Ministry of Innovation and Technology) signed a Memorandum of Understanding of establishing the Circular Economy Platform in Hungary. In this edition of Diplomacy&Trade, we discuss the motives, and experiences, so far, of some of these signatories.

Thailand is our focus country in recognition of the opening of the Royal Thai Embassy in Budapest 30 years ago. For Thailand, Hungary is the second most important trading partner in East Central Europe. Our Focus features interviews with the Thai ambassador in Budapest, Jakkrit Srivali and the Hungarian ambassador in Bangkok, Szilveszter Bus on the aspects of bilateral relations, including trade and investment as well as tourism and gastronomy, including the world's most popular energy drink that started in Thailand. We are also pleased to have an interview with the worldrenowned violinist of Thai descent, Vanessa-Mae. Our international affairs analyst looks at the troubled present and uncertain future of the Organization of the Petroleum Exporting Countries (OPEC).

The WittyLeaks column this month is authored by the Ambassador of Italy who gives his own version of a guided tour of Budapest for bikers.

Our gastronomy page reports on a Mangalica festival, while the wine section looks at new ideas and a revised portfolio that the 2011 winner of the Hungarian ‘Winemaker of the Year’ has now introduced. Our program guide has lots of events to recommend: from a boat show to Museum+ evenings.

While spring is around the corner I hear reports of fantastic skiing around the region within easy driving distance from Budapest. Take time to enjoy the beauty of winter.

A guided tour for bikers to Budapest by the page 23 Italian Ambassador

photos by

letter from the publisher

|

w w w . d t e u r o p e . c o m

2/6/19 1:44 PM

on the record

‘ANGELS’ TO HELP HUNDREDS OF THOUSANDS OF HUNGARIANS

Two new Vodafone Angels will start working full-time in 2019: Katalin Tóth-Berhát and Erik Trexler. They will each receive a gross monthly salary of HUF 400,000 for their work, which is above the average in Hungary.

Katalin Tóth-Berhát’s activities are aimed at supporting women suffering from endometriosis and at raising awareness of the condition. There are over 200,000 women struggling with endometriosis in Hungary, still, few people know about the existence of this condition. Endometriosis is one of the leading causes of infertility, and late diagnosis can lead to damage to other organs including the destruction of female organs.

Katalin studied the illness due to her personal involvement, and decided to help women in similar situations.

The other winner of this Vodafone position for 2019, Erik Trexler, has been disabled since birth. As a ’Full-time Angel’, he plans to show people how mobile technology tools can help in the daily life of people with severe disabilities.

As part of his program, Erik developed an application that helps communicate between healthy society and people with disabilities. The application provides useful information for professionals and those interested, and helps those affected and their parents. Throughout the year, as a full-fledged angel, he will conduct motivation speeches, animating lectures and trainings – online, through Skype – and bring the impaired closer to the mainstream of society by launching a blog.

HUNGARY TO LAUNCH CLIMATE FINANCE INSTRUMENT The Hungarian government has approved the establishment of the Western Balkans Green Center (WBGC), a new instrument to support green transition in Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia, the Balkan Green Energy News reports. This is the first step of a broader, more ambitious endeavor, to create a regional multi-donor fund in 2021.

Designed with the support of the Global Green Growth Institute (GGGI) under a cooperative project supported by the Ministry for Innovation and Technology of Hungary, the WBGC will support climate actions in these six countries.

The government decision calls for the set-up of a state-owned company, including financial provisions, for the next three years.

According to the GGGI, the WBGC will be complementary to existing instruments and will target areas that are underfinanced such as climate adaptation. As early as 2019, the WBGC will support project preparation and capacity building in the region through grant financing in water management, forestry, sustainable energy for buildings and sustainable city sectors, the press release reads.

The WBGC is the first step of a broader, more ambitious endeavor to create a regional multi-donor fund in 2021 supporting project implementation, using blended finance and targeted financial instruments for beneficiaries in Western Balkans.

The government proposal also calls for the set-up of an international committee and further engagement with the Visegrád and other Central European countries for the establishment of the regional multi-donor fund in 2021.

FIRST HUNGARIAN TO REACH SOUTH POLE ON FOOT

photos by

DEPOSITPHOTOS.COM, ZOLTÁN BALOGH/MTI, BERTALAN SOÓS, MTI

HUNGARIAN-AMERICAN FILM PRODUCER DIES AT 74

On January 7, 2019, Gábor Rakonczay became the first Hungarian to walk to the South Pole from the shore of the Antarctica. It took him, and the three other members of his group, 44 days to complete the officially 917-kilometer journey (which, Rakonczay says, was actually around 950 kilometers) under grueling conditions.

As the Hungarian news agency MTI reported, temperatures were just under -12 degrees Celsius at the start of the trip, but as the team approached the Pole, it sank to below -20 and occasionally as low as -30. During the trip, he towed a sled weighing 94 kilograms, lost 10% of his body weight and suffered frostbite on his face due to the almost constant icy headwinds.

As he wrote on social media, “I thank everyone for their support and encouragement because I have made it! I'm here at the South Pole. Forty-four days and four hours of marching… There were hard moments on the way, but I was always driven forward by a childhood decision and a contemporary thought. I imagined meeting my juvenile self who imagined what would happen to him if he grew up. He was full of plans and enormous goals without limits. So, that was me at the age of six. There was a time when, if we’d met, I would have had to explain to that 6-year-old why something didn't come out as I planned. Now, the idea was that the six-year-old is waiting for me on the South Pole. I arrive and we meet, we don't say a word, just look at each other. Then, we smile and hug each other closely. He continues to smile proudly, and I start to cry – a perfect moment. Standing up to yourself – not giving explanations, just being there, without compromise. It is the freedom that we bet our lives on as a child and try to keep as much of as we can, for as long as possible.”

In January, the founder of the Hungarian National Film Fund, Andrew G. Vajna died at the age of 74 in his Budapest home after a long illness.

He launched his career in the entertainment industry with the purchase of motion picture theaters in the Far East. Vajna met Mario Kassar at the 1975 Cannes Film Festival, which led to the formation of the production company, Carolco Pictures. In 1982, Vajna was a founder and president of the American Film Marketing Association. During that same year, Carolo Pictures produced its first film, ‘Superstition’. In December 1989, Vajna sold all his interest in Carolco and formed Cinergi Productions, Inc. to engage in the financing, development, production and distribution of major event motion pictures. In 1989, he founded InterCom that has become a market leader and a distributor of many Hollywood studios, including 20th Century Fox, Warner Bros., Sony Pictures, Disney and MGM. Since 2011, Andrew G. Vajna has been the Government Commissioner in charge of the Hungarian film industry.

During this time, Hungarian movies financed by the Hungarian National Film Fund won altogether more than 130 international awards (including a Golden Globe award for Best Foreign Language Film) while the number of foreign films produced in Hungary increased significantly. w w w . d t e u r o p e . c o m

dt 2019 february.indb 5

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

UPCOMING NATIONAL DAYS February

March

April

6

New Zealand

National day

15

Serbia

National day

16

Lithuania

National day

24

Estonia

National day

25

Kuwait

National day

28

Egypt

Independence day

1

Bosnia&Hercegovina

National day

3

Bulgaria

National day

6

Ghana

Independence day

15

Hungary

National day

17

Ireland

National day

20

Tunesia

Independence day

21

Namibia

Independence day

22

Morocco

Independence day

25

Greece

National day

9

Georgia

National day

17

Syria

Independence day

18

Zimbabwe

Independence day

30

Netherlands

National day

HUNGARY TAKES 12TH PLACE IN BOCUSE D’OR WORLD FINAL Team Denmark won the 2019 Bocuse d'Or, the culinary competition also known as the Olympic Games of the kitchen. Two other Nordic countries, Sweden and Norway finished second and third, respectively. The Hungarian team of Ádám Pohner, Richárd Csillag and Viktor Segal finished 12th in the field of 24 teams competing in Lyon, France. The winner of the BestThemed Platter was Finland and the Best-Themed Dish winner was Bocuse's home country, France.

Of the two dishes the Hungarian team prepared, the theme of the meat dish was ‘Balaton’. It included roast veal chop, calf sweetbread with Jerusalem artichoke and tarragon, Jerusalem artichoke cream, radicchio and radish dumplings, green peas with mustard, onion tart and an exceptional ‘derelye’.

The other dish, the chartreuse, was called ‘Hommage Robuchon’ on the menu card. The chartreuse, itself was made with potatoes, eggplant and shellfish. The plate also included a horseradish apple salad with cucumbers, green asparagus, and a pastis sauce made with French anise liquor. According to Ádám Pohner's assessment, the team performed as planned. "It was a very intense and long day... I didn't see anyone else's work, I only know that what we wanted was done," he said.

HUNGARIAN BREED TO PATROL AMERICAN AIRPORTS The Transportation Security Administration (TSA) in the United States is in the process of swapping out pointy-ear dogs for floppy-ear dogs in an effort to put more of the public at ease when interacting with its canines, The Washington Examiner reported. One of the floppy-ear types chosen is the Hungarian pointer breed Magyar Vizsla.

"We find the passenger acceptance of floppy ear dogs is just better. It presents just a little bit less of a concern," TSA Administrator David Pekoske told the paper, adding that this type of dog "does not scare children."

Over the past 12 months, 80% of the dogs TSA purchased were sporting breeds. Christopher Shelton, branch manager of the TSA canine training center in San Antonio, Texas, said part of the reason TSA has purchased more 'sporting' dogs is because more breeders are raising these types of dogs.

TSA uses five types of sporting breeds: Labrador Retrievers, German Short-haired Pointers, Wirehaired Pointers, Hungarian Vizslas and Golden Retrievers, along with two types of pointy-ear or working dogs: the German Shepherd and Belgian Malinois.

The Vizsla was known in early Hungarian history. The ancestors of the present Vizsla were the trusted and favorite hunting dogs of the Magyar tribes that lived in the Pannonian Basin in the 10th century. Primitive stone etchings, over a thousand years old, show the Magyar hunter with his falcon and his Vizsla. The Vizsla began arriving in the United States at the close of World War II. As interest in and devotion to the breed began to increase, owners formed the Vizsla Club of America.

5 2/6/19 1:44 PM

­company briefs BUDAPEST AIRPORT CARBON NEUTRAL STATUS CONFIRMED

NEW AUTOMOTIVE PRODUCTION HALL IN DEBRECEN

‘STRATEGIC PARTNERSHIP COOPERATION’ WITH TUNGSRAM Tungsram, a Hungarian brand more than 100 years old, was revitalized in 2018 when a company, managed by a former executive of GE, purchased the EMEAT light source division of GE Lighting as well as its global car light division. This January, the Hungarian government concluded a ‘strategic cooperation agreement’ with Tungsram, recognizing its role and position in the Hungarian economy.

As a report by the Hungarian Investment Promotion Agency (HIPA) points out, Tungsram has always enjoyed a special position in the Hungarian economy. In the past years, one of the oldest and most prestigious brands of Hungary has been revitalized, with its 23 subsidiaries in 22 countries. It expanded to become an international corporation, that is, a globally operating Hungarian company emerged.

These 23 foreign units are strictly commercial. Production development takes place in Hungary only. Tungsram has five factories in the country: one in Újpest (District 4 of Budapest), two (in Hajdúböszörmény and Kisvárda) in the northeastern part of the country and another two (in Nagykanizsa and Zalaegerszeg) in the southwest, with more than 4,000 employees altogether.

Tungsram is a globally renowned brand. The company is very strong and has a good reputation in North Africa and in the Middle East and Asian and South American sales opportunities are going to be expanded, too. Its markets in Indonesia, with its one hundred million inhabitants, as well as in Malaysia, Pakistan and Egypt have already been developed. With its products sold in 100 countries, Tungsram is the third biggest privately owned Hungarian company. 95% of the revenue of the corporation comes from export, thereby significantly contributing to the expansion of Hungarian GDP and export.

CEVA PHYLAXIA EXPANDS HUNGARIAN PRESENCE Ceva Phylaxia, one of the world’s leading animal vaccine producers, will establish a new vaccine factory and research location in Monor, SE of Budapest, through a technology-intensive investment worth over EUR 26.3 million. The second Hungarian location of the French company will create 20 new jobs, most of them in the fields of quality control and R&D. Ceva Phylaxia Co. Ltd. is a member of the global Ceva Sante Animale, a company group ranking 6th among animal healthcare companies in the world.

Ceva Phylaxia, its with headquarters in Budapest, is not only the largest vaccine manufacturing and research and development center in the company group, but it is also the most advanced; more than

6 dt 2019 february.indb 6

Global automotive and industrial supplier Schaeffler AG opened a new production hall of its FAG plant in Debrecen, eastern Hungary. The 22,000-square-meter building, which was built as part of a EUR 80 million investment features new equipment, including machinery with state-of-theart grinding technology. Thanks to the considerable capacity increase, the European car manufacturing plants will be provided with bearings from Debrecen within the company group.

Germany’s Schaeffler AG group includes FAG and INA that are developing and manufacturing roller and slide bearings, linear wires and motor components for various purposes and usage, as well as LUK that produces complete powertrain systems and components for passenger and commercial vehicles.

The company group had 170 sites in over 50 countries in 2017, including 74 production and 18 research and development centers, employing a total number of 90,000 people combined, the Hungarian Investment Promotion Agency reports.

Schaeffler is manufacturing LUK transmission gears in Szombathely, western Hungary, while the FAG site, which celebrates its 20th anniversary this year, and which is involved in this recent development, produces bearings of various sizes and types, as well as transmission components, by currently employing more than 1,350 associates.

The newly opened production hall will also realize the significant extension of service areas, supply systems and technological capacity. As a result of the comprehensive development and the increased production volume, an estimated 500 new workplaces will also be created in the upcoming years.

EUR 100 million has been invested in this location since 2010.

In order to keep up with it rapid growth, the company has purchased a new site of 44 acres in

Monor. With the greenfield investment, the firm will develop the infrastructure required for the quality control of vaccines and will also launch the manufacturing of components required for the modern, state-of-the-art vaccine production to support the main production plant in Budapest.

Over the last decade, Ceva Phylaxia in Budapest has gained ever more ground in the increasing international competition; 95% of their products are exported to countries with significant meat production like Brazil, Thailand, China, Mexico and South Africa.

Ceva maintains multi-layered cooperation with the Veterinary Sciences Department of the Szent István University in Gödöllő and also has strong relations with the Pasteur Institute (Paris), the Institute for Veterinary Medical Research of the Hungarian Academy of Sciences, the Ames Laboratory (lowa, USA), and numerous other institutions in Africa, the Middle East, Asia and South America.

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

JÁNOS VAJDA/MTI, NOÉMI BRUZÁK/MTI, ZOLTÁN MÁTHÉ/MTI, BUDAPEST AIRPORT, ZSOLT CZEGLÉDI/MTI

The 200 millionth product, the engine of the Bosch iBooster's braking assistance system was presented at the Energy and Body Systems plant of Robert Bosch this January in Miskolc, NE Hungary. The unit of the German company reached this production volume in one and a half decades, and it is expected to increase in the future: as a result of the new, EUR 45 million technology-intensive investment announced at the event, the installation of assembly lines for manufacturing the new generations of engine cooling fans and eBike electric drives as well as the launch of the production of new products (window and seat movement engines) and the purchase of associated test equipment. Bosch has been present in Hungary since 1899. Those 120 years saw it develop into a significant corporation, a major foreign employer in the Hungarian industry. Nine subsidiaries of the Hungarian Bosch group currently employ more than 13,500 people. The retail and service network of the various manufacturing, commercial and development units covers the entire country, and Bosch's European logistics center is also located in Hungary. The Miskolc unit, in operation for over 15 years, manufactures parts and electric drives for the automotive industry, but in addition to production, the 2,500 employees also work on research and development and other activities with high added value. The complete eBike system – including the drive unit, the display, the battery as well as the cables and all equipment required for electric drive – is delivered to all parts of the world from Miskolc.

This newest investment, is of special importance to strengthen the test and development functions of the new generation production equipment of Bosch's e-bike, manufactured in Europe only in Miskolc.

In order to maintain efficient manufacturing, it is necessary to ensure the on-site support of engineers with a high level of product knowledge.

photos by

BOSCH ANNOUNCES EUR 45 MILLION TECHNOLOGY-INTENSIVE INVESTMENT

A communiqué by Budapest Airport says it has received from ACI Europe (the European organization of Airports Council International) the official certificate attesting its carbon neutrality, achieving this prestigious environmental accreditation for the second year. In the Central Eastern European region, Ferenc Liszt International Airport continues to be the single airport that meets the strict environmental requirements necessary to receive this accreditation. The focus of these requirements is that the airport is capable of counterbalancing – keeping a full balance – of CO2 emission generated in the course of its operation. The relevant strict environmental norms of carbon-neutrality are met by only 39 airports in Europe, mostly in Scandinavia and Italy. When the program was started six years ago, CO2 emission (i.e. carbon footprint) of Budapest Airport was assessed and then its per-passenger limit value as well as its targeted rate of reduction was defined. Budapest Airport says it received the carbon neutral accreditation due to a series of energy saving measures. Among other things, electric vehicles are used in more and more areas also by other companies operating at the airport, the heat insulation of several hangars and other buildings has been enhanced, and its water network and water consumption has been optimized.

In addition, Budapest Airport purchased ‘carbon credits’ produced by a Chinese wind power station project, thereby contributing to the international struggle against climate change. As part of its global responsibility, Budapest Airport undertook further significant environmental measures. It has announced that for the three-year period between 2019 and 2021, it will decrease its CO2 emission per passenger by 10% versus the 2016 level.

&

T R A D E

|

w w w . d t e u r o p e . c o m

2/6/19 1:44 PM

c­ ompany briefs GREEN COURT LAUNCHED IN INNER VÁCI CORRIDOR IN BUDAPEST

Codic International, the Brussels-based developer announced this January that construction has commenced on the office component of Green Court, their latest mixeduse development. The project is located in Budapest on Dózsa György Street, the new focus point of the inner Váci corridor. The project incorporates Green Court Office, a 21,000-sqm GLA premium office development, and Green Court Residence that comprises two residential buildings with 275 apartments. The apartments will be occupied by the end of this year, and the office project is scheduled to be handed over in the fourth quarter of 2020. Colliers International and Jones Lang LaSalle have been appointed co-exclusive leasing agents for the office development.

Green Court is designed to promote harmony and balance to its occupants. The mix of office and residential uses, strengthened by over 1,700-sqm GLA of common service retail, creates an unheralded work-life balance in Budapest. The combination of its prominent internal garden, the large terraces on each office floor and the adjoining Kassák park, provide this city-center project an unrivalled connection to its natural, green environment.

The seven-story Green Court Office development, just a few minutes' walk from the M3 metro, bus and tram stops, has large and efficient floor plates, each with access to private terraces overlooking the spacious inner green park. The three basement levels accommodate 300 cars and more than 100 bicycles as well as changing and shower facilities.

The acoustical and energy performance of the double-skin façade, smart building management system, and full-height 2.8-meter glass curtain-wall system will provide the occupants increased comfort and a feeling of well-being in their workplace and contribute to Green Court’s BREEAM Excellent certification.

Through a HUF 2.08 billion (EUR 6.7) million capacity expansion investment project, the German company Eissmann is expanding its manufacturing area and purchasing new machinery, while creating 140 new jobs in Nyíregyháza, NE Hungary. As Parliamentary State Secretary Levente Magyar from the Ministry of Foreign Affairs and Trade stated, the investment is supported by the Hungarian government with HUF 556 million.

Eissmann Group Automotive, based in Bad Urach, Germany, is a leading global manufacturer of high quality interiors in the high-end/ lower volume segment of the automotive industry. Its product portfolio ranges from operator modules and trim components to complete interior systems. The total turnover and operating revenue of the Group in the last financial year was around EUR 450 million, with around 5,000 employees at 13 locations worldwide.

Eissmann's Hungarian site in Nyíregyháza was the company’s very first foreign location in 1997 and it is still an important cornerstone of the Eissmann production world as it has grown to be the technology center for the Eissmann production system, the group's injection molding activities and also its gear selector lever and driver airbag production, with a turnover of HUF 23 billion.

The most recent EUR 6.7 million expansion consists of an additional 700 square meters initially, at the plant in Nyíregyháza. Construction started back in September 2018, and it is expected to be completed in April 2019.

Eissmann Group Automotive’s history dates back 55 years. It was in 1964 that the company ‘Helmut Eissmann – Technische Entwicklung und Vertrieb’ was founded by Helmut Eissmann and his sons Jürgen and Volkhard in Seeburg, near Bad Urach in the German state of Baden-Württemberg.

The new engineering and service center of Diehl Aviation has begun operations in Debrecen.

The unit of the aviation division of the German Diehl Gruppe corporate group will provide the internal divisions of the mother company with business services that will be extended to external clients in the long term. Creating 150 new jobs of high added value, this investment is the second in Hungary by this German corporation after its Nyírbátor site where cabin elements and airplane parts are manufactured.

Founded in 1902, the family-owned Diehl group is located in Nuremberg. The group, which has five main divisions (Metal, Controls, Defense, Aviation and Metering), has as many as 17,100 employees to develop, produce and distribute its products in 92 venues worldwide. Their revenue reached EUR 3.75 billion in the last year.

The Hungarian unit belonging to Diehl Aviation is the plant operating in Nyírbátor since 2011 where cabin elements and other parts are produced for Airbus A320, A330, A350 and A380 aircraft. The latest development of that site, an expansion announced in June 2017, included the creation of 230 new jobs, and the purchase of new buildings and machinery.

In cooperation with the company’s German units, the Debrecen engineering center will focus on post-manufacturing service tasks and the 150 new employees will be primarily engaged in the support of purchasing, client support, program management and financial activities, in cooperation with the University of Debrecen.

According to the Hungarian Investment Promotion Agency (HIPA), the expansion of Diehl Aviation signals that Hungary has become a location to be considered for 'Invented in Hungary' type investments producing higher added value for international corporations, after the ‘Made in Hungary’ type projects, which focus on manufacturing.

WORLD RECOGNITION FOR HUNGARIAN PACKAGING COMPANY The Hungarian packaging company Rondo Corrugated Board Manufacturing Ltd., a subsidiary of the Austrian family firm Rondo Ganahl Aktiengesellschaft, has won with two products, a display box (in the ‘Food’ category) and a flower box (in the ‘Other’ category), from the 2019 WorldStar Packaging Awards. Winners were announced in January and will be recognized in an Awards Gala Ceremony in May in the Czech capital, Prague.

The flower delivery box for fashion magazine promotion is a unique hexagonal flower box with a built-in insert, designed from one piece,

photos by

MÁRTON KOVÁCS/MFAT, RONDO CORRUGATED BOARD MANUFACTURING LTD., COLLIERS INTERNATIONAL, ZSOLT CZEGLÉDI/MTI

AUTO INTERIOR SOLUTIONS SUPPLIER EXPANDS ITS NYÍREGYHÁZA SITE

DIEHL AVIATION OPENS NEW CENTER IN DEBRECEN

w w w . d t e u r o p e . c o m

dt 2019 february.indb 7

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

printed and die-cut on one machine. The insert holds a vase containing aqueous gel for storing the flower. When the box is opened, the magazine hides the insert and the bouquet appears to rise directly from the magazine, providing a spectacular impact. The large glass vase (with a full weight of up to 4 kg) is secured on all sides by the integrated insert, and protected by a double layer of corrugated cardboard at the bottom. The graphics are printed in white on kraft-brown cardboard, resulting in a natural and sophisticated look.

Also recognized is from the ‘No-front’ twinbox product family. These are shelf-ready transport and display boxes for the Lidl

supermarket chain, to be placed in multiple rows on shelves where spice packets are immediately available through an open front. A novel solution was developed for the closure on top, with creases on the flaps instead of slots, to provide stabilization during production. Narrow side rims on the front reduce lateral movement during transport and the empty area on top makes it easy to remove the products. No tape is required for closure and the packaging is completely homogeneous. With the top removed, the boxes can be used as simple trays on shelves. The WorldStar Packaging Awards competition has been held since 1970. The judging session of this year’s entries (319 from 35 countries) was held in Jinan, China, last October.

7 2/6/19 1:45 PM

analysis OIL ON TROUBLED WATERS

BY TAMÁS MAGYARICS

A few decades ago, the initials of the Organization of the Petroleum Exporting Countries were a rather dreaded four-letter word in the Western World, from the U.S. through much of Europe to Japan.

This was especially true in the 1970s when the members of OPEC practically held hostage the industrially advanced countries, the so-called first world countries, by hiking oil prices at will. Fossil energy was a political weapon, as well: it was introduced first in response to the U.S.’s (and other western countries’) assistance to Israel during the Yom Kippur War in 1973. The cooperation among the members of OPEC has not been that smooth all the time, though, despite the fact that the organization was not torn apart even by wars between some of its members – witness the decadelong war between Iran and Iraq in the 1980s.

OPEC+ Changes have occurred recently that have weakened the coherence of the group and, therefore, its political clout in the world. One of them relates to the emergence of the so-called OPEC+; in reality, it means that Russia and Kazakhstan have been taking part in OPEC’s decision-making process for some time. It is especially Russia’s presence that has the potential of threatening higher prices of oil, which most of the members of OPEC favor; as Rosneft CEO Igor Sechin put it bluntly, if oil prices go down, Russia will boost output.

Russia is a one-dimensional country as far as its economy is concerned (‘a Saudi Arabia with nuclear weapons’): the larger share of its GDP is generated by the production and sale of fossil energy sources (oil and natural gas);

8 dt 2019 february.indb 8

therefore, it is a must for Moscow to rake in as much revenue as possible from these sources, and if their price declines, they tend to compensate by increasing production.

Troubles for suppliers Another problem for OPEC is President Trump’s determination to put the U.S. on a self-sufficient basis in energy production and consumption.

The U.S. purchased enormous amounts of oil from OPEC members in the Middle East, Africa and Latin America in the past, but not now. In fact, the Trump administration is making efforts to appear as a competitor in the world market of energy supplies. So far, it has made inroads into the LNG supplies, and is targeting first and foremost the European countries with the geopolitical, geostrategic, and geo-economic goals of reducing the continent’s energy dependence on Russia. In a more competitive environment, Moscow would not be able to generate as high a revenue as it needs to bankroll its ambitious foreign political goals in its neighborhood and as far as the Middle East, with obvious strategic advantages for the U.S., Russia may be worried about another development in this area. President Trump and President Xi Jinping agreed in Buenos Aires in December 2018 that Beijing would increase its energy purchases from the U.S. If it is really realized (and there is a big ’if’ given the volatile trade relations between the two countries), then another traditional OPEC – and Russian – market will become more competitive in the future. The Trump-Xi agreement/understanding may be bad news for another country with a more or less one-dimensional economy, Iran, because Tehran, similarly to Russia, have based their energy export mainly on China (the No. 1 energy importer in the world).

Internal rivalry

in reality, almost exclusively Saudia Arabia’s.

The American-Saudi cooperation during much of the history of OPEC, especially in the last few years of the Cold War when the Reagan administration was closely coordinating energy policies with King Fahd, defined worldwide energy policies to a large extent. The relations between Washington and Riyadh have come under certain strains recently. On the political side, the murder of Jamal Khashoggi caused friction between the two countries, and a number of members of the U.S. Congress even called for the suspension of arms sales to Saudi Arabia, which might have affected its standing in the region, especially vis-ávis Iran. Another aspect of this incident may have longer term estrangement on a personal level: the likely successor of King Salman, Prince Mohammad bin Salman has become a persona non grata in a number of quarters, and it is difficult to predict now how long it will take for him to live down his current bad reputation in political and economic circles.

As for the energy front, America’s efforts to attain self–sufficiency, and even beyond that, to become a major energy exporter, has put Saudi Arabia on the spot to some extent. In addition, President Trump requested Riyadh that Saudi Arabia cut prices, but it is not in the best interest of the Arab country.

Finally, there is one estimate that seems ominous for the coherence of OPEC, and its importance as an organization in the future: since 1982, OPEC has cheated on its own production targets 96% of the time. If this number increases, that will in reality be the end of the organization – at least in the form in which it was conceived in Baghdad in 1960.

OPEC’s coherence is further weakened by the rivalry between the organization’s largest oil producer, Saudi Arabia, and the one with the largest natural gas reserve in OPEC, Iran. They are engaged in a sectarian struggle (Sunni versus Shia), as well as a geopolitical contest to become the major regional power in the larger Middle East.

Their rivalry has produced ’collateral damages’ in the region; first and foremost Yemen, which is seen as a proxy for Iran

by Riyadh. Another casualty, though, not in the physical sense of the destruction of lives and property, is Qatar, which left OPEC as of January 1, 2019. At first sight, this is not that big deal for the organization: Qatar produced around 2% of the total oil output of OPEC. However, the country is the largest exporter of LNG in the world, and there is a rather slow but gradual shift towards cleaner energy. Doha has already indicated that it will significantly expand its production of natural gas, from 77 million tons to 110 million tons annually, that is, by 43%.

Qatar’s decision to leave OPEC can mainly be attributed to its disputes with Saudi Arabia and some other Arab countries, such as the United Arab Emirates, Bahrain and Egypt, which have imposed an economic boycott on Doha. Its departure may have serious longer term consequences for the organization.

Saudi Arabia on the spot The 800-pound gorilla in OPEC is, obviously, Saudi Arabia, which is currently pumping some 10.5 million barrels a day (bpd), that is, around a third of the total amount produced by OPEC (31.6 million bpd). So, it is not too far off the mark to say that whatever weight OPEC has is, F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

Tamás Magyarics is a foreign policy analyst

&

T R A D E

|

photo by DEPOSITPHOTOS.COM

THE UNCERTAIN FUTURE OF OPEC

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

s

c.

dt 2019 february.indb 9

2/6/19 1:45 PM

GATEWAYS INTERVIEW WITH JAKKRIT SRIVALI, THAI AMBASSADOR TO HUNGARY

When asked about similarities and commonalities between the two countries, the Ambassador says the first thing that comes to his mind is food. “Of course, both Thai and Hungarian culinary traditions have their own distinctive flavors, but some Hungarian dishes would not be out of place in a Thai kitchen, either. For example, goulash soup would go very well with Thai jasmine rice. We also share a love for fiery spices: Hungarians’ love affair with paprika is mirrored in the Thai people’s passion for chili. We also share a deep love of sports.

Though, our two national teams were not in the last soccer World Cup, we love the beautiful game as much as anyone else.

Interestingly, there are some 80 Thai boxing clubs in Hungary, which suggests that Hungarians are as fond as Thais of combat sports and martial arts.

Another thing we have in common is that both our countries are regional hubs for automobile manufacturing.

With an automotive industry that is the largest in Southeast Asia, Thailand is known as the Detroit of Asia, since American, Asian and European car makers that set up shop there enjoy a globally integrated supply chain

FACTS COMPARED AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world

F E B R U A R Y

2 0 1 9

|

Bilateral trade Hungary is the second largest trading partner of Thailand in East Central Europe.

Ambassador Srivali highlights that “Our trade volume was over USD 600 million last year.

The official figures for 2018 showed significant improvement for both imports and exports, with computer and electronic equipment and auto parts among the top traded items. According to EuroStat, Thailand has ranked first amongst ASEAN import markets since 2013. It is also the fifth-largest Asian supplier for Hungarian companies after China, the Republic of Korea, Japan and Taiwan.”

Thailand prides itself as the ‘Kitchen of the World’, not only for its popular cuisine, but also for the quality, abundance and variety of ingredients such as rice, fresh exotic fruits, poultry, meat and seafood, not to mention the seasonings that make Thai food so addictive.

“Since Hungarian consumers are already acquainted with Thai food, we plan to introduce less well-known products such as pineapple, coconut products, fruit juices and health drinks, among others,” he adds.

HUNGARY

THAILAND

93,028 sq km 111 9,825,704 (July 2018 est.)

92 -0.26% (2018 est.)

214 8.9 births/1,000 population (2018 est.)

206 76.3 years (2018 est.)

88 1.3 migrant(s)/1,000 population (2017 est.)

54 USD 29,600 (2017 est.)

68 4.2% (2017 est.)

54 12,030,940 (2017 est.)

75 41 (2013) 103

513,120 sq km 52 68,615,858 (July 2018 est.)

20 0.29% (2018 est.)

173 11 births/1,000 population (2018 est.)

177 75.1 years (2018 est.)

115 0 migrant(s)/1,000 population (2017 est.)

98 USD 17,900 (2017 est.)

98 0.7% (2017 est.)

5 121.53 million (2017 est.)

11 101 (2013) 56

D I P L O M A C Y

&

T R A D E

|

DÁVID HARANGOZÓ

Source: The CIA World Factbook

dt 2019 february.indb 10

A lot in common

photo by

This year, the Thai Embassy in Budapest celebrates its 30th anniversary. As Ambassador Srivali recalls, Thailand and Hungary established diplomatic relations in 1973. The Royal Thai Embassy was established at its present location in the Buda Hills in 1989. “Over the three decades, we have consistently enjoyed excellent bilateral relations. We have had a number of royal visits to Hungary, including by our present King when he was Crown Prince, and a visit by Prime Minister Prem Tinsulanonda in 1988. President Árpád Gönz visited Thailand in 1993.”

He adds that “the major bilateral mechanisms underpinning our cooperation are a Political Consultation, where we exchange views on regional and international issues, and a Joint Commission on Economic Cooperation, which promotes bilateral cooperation in various areas. We even have a mechanism at the local level: in 1997, Budapest became the first European city to establish sistercity relations with Bangkok. The most recent achievement in our relations is the conclusion of a bilateral Extradition Treaty. Our relations are also flourishing at the people-to-people level.

There is growing interest and

10

and world-class ecosystem. Like Hungary, Thailand plans to shift more towards the production of electric and other ecofriendly cars in line with market demand.”

interaction on numerous fronts, including trade and investment, culture, education and tourism.”

BY SÁNDOR LACZKÓ

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

thai focus estimated at over USD 1.4 billion. “Many Hungarians I have spoken with are repeat visitors to Thailand, some having been there more than a dozen times and some spending their holidays there every year. I believe Thailand’s enduring popularity as a travel destination is due to more than its natural beauty and cultural attractions. The friendliness and warmth of its people have given Thailand a reputation for hospitality and servicemindedness. The many Thai spas and restaurants in Hungary can offer a taste of Thailand, but for the full experience, of course, one has to travel there. In the other direction, more Thais are being drawn to Hungary by its grandeur, wonderful cuisine and friendly people.”

Chairing ASEAN

The Ambassador stresses that Thailand is open and ready for more economic interaction with Hungary. “Thailand is preparing for general elections to be held on March 24, 2019. The Thai economy is gearing up for new engines of growth under the ’Thailand 4.0’ economic policy. Much opportunity also lies in the development of massive infrastructure projects such as the Eastern Economic Corridor (EEC) and the Southern Economic Corridor (SEC). In the next five years, USD 50 billion will be invested to upgrade the logistics infrastructure in the Eastern region. Projects being planned include a high-speed rail link connecting three international airports, expansion of deep seaports and industrial ports, and dualtrack rail links between major industrial parks nationwide. Hungarian investors and innovators can benefit from investing in the targeted sectors under the EEC and Thailand 4.0 economic policy, such as advanced agriculture and biotechnology, food processing, comprehensive healthcare, smart electronics and digital industry.”

DÁVID HARANGOZÓ

DEPOSITPHOTOS.COM

photo by

photos by

Gateways Regarding opportunities for the two economies growing closer, he believes that the roles of small and mediumsized enterprises (SMEs) in bilateral trade will increase in the future, as a result of the long-tail effect, where markets undergo a proliferation of niches due to information technology.

He is of the view that there are several areas where Hungarian and Thai enterprises, including SMEs, can work w w w . d t e u r o p e . c o m

dt 2019 february.indb 11

|

together to identify promising niches.

These include food processing and packaging, agriculture, horticulture, engineering and vehicle manufacturing, water purification, healthcare and pharmaceuticals.

“Both Hungary and Thailand can serve as each other’s gateways into their respective regions. For example, a leading

Thai producer of instant noodles, Thai President Foods, now manufactures their product in Esztergom under the Mama and Thai Chef brands for distribution to European markets. Hungarian companies can likewise use Thailand as a base for ASEAN, and in particular the emerging markets of the Mekong Subregion.”

Joint efforts Thailand and Hungary established in 2005 the Joint Commission on Economic Cooperation (JCEC) to be D I P L O M A C Y

&

T R A D E

|

the mechanism for promoting bilateral economic benefits. According to the Ambassador, the JCEC is an important instrument in elevating Thai-Hungarian bilateral relations and cooperation.

The 2nd Session of the JCEC, held in Budapest in 2015, established guidelines for further promoting bilateral cooperation and set up a number of joint working groups and committees. Under the JCEC, the Joint Committee for Scientific and Technological Cooperation agreed to promote joint research in agriculture management, biotechnology and energy. As a result, in March 2018, the National Research, Development and Innovation Office (NRDIO) of Hungary decided to support four ThaiHungarian joint research projects, providing EUR 100,000 per project to work with researchers from Thai universities. This academic year, the first group of 39 Thai students in Hungary under the Stipendium Hungaricum scholarship program started their studies in various science and social disciplines. “Thailand looks forward to hosting the 3rd Session of the JCEC this year to build upon these efforts and open up new areas of cooperation.”

This year, Thailand has assumed the chairmanship of ASEAN that celebrated its 50th anniversary in 2017. For its ASEAN chairmanship, Thailand has adopted the theme ‘Advancing Partnership for Sustainability’ to promote ASEAN as a people-centered community where no one is left behind, in line with the United Nations Sustainable Development Goals. Such a Community will need to be resilient, dynamic, inclusive and futureoriented. At the same time, the ASEAN Community will need to be outwardlooking and proactive in cultivating a positive regional environment. “To this end, we will seek to strengthen our external partnerships, for example, the East Asia Summit. We also wish to see the conclusion of the Regional Comprehensive Economic Partnership, a free trade area comprising almost half of the world’s population. And we hope to make better use of the new generation of Dialogue Partners to enhance ASEAN’s voice on the global stage on key global issues, such as climate change, transnational crime and other cross-border challenges,” the Ambassador iterates.

From Thai food to Muay Thai In their efforts of popularizing Thai culture in Hungary, the Embassy plans to organize the annual Thai Festival on July 7, 2019. As before, the event will be held at Budapest City Park, bringing together the most popular Thai restaurants, spas, shops and cultural performances for the enjoyment of the Hungarian public. “Although, thousands visit the Thai Festival every year, it can only give but a taste of Thai culture. This year the Embassy is also focusing on specific areas such as food, sports and fashion,” the Ambassador points out.

Surveys indicate that Hungary’s third fastest-growing cuisine is Thai. “Since such dishes as Pad Thai and Tom Yum are already familiar to most people, we aim to introduce less well-known aspects of Thai food to the Hungarian public. This will include the healthpromoting ingredients that go into Thai dishes and how easily such dishes can be prepared at home.

Another area we will continue to focus on this year is Muay Thai, as it attracts many foreign guests to train in our country. Since my arrival in Budapest in 2017, I have been surprised at how popular Muay Thai is among Hungarians, both as a sport and a fitness regime.

In June, this year, we will bring 15 Muay Thai instructors from Thailand to conduct free ‘training the trainers’ workshops. We are also planning to re-introduce Muay Thai combat training for the Hungarian military which was a successful joint program by the Thai Embassy and the Hungarian Ministry of Defense in 2017.”

Another project in the pipeline, he says, is to acquaint the Hungarian public with traditional Thai textiles, which are an art form and way of life. “In April, we will organize a Thailand Fashion Trophy contest, inviting students from fashion schools in Hungary to enter designs using Thai hand-woven textiles.

The winner of the competition will be awarded a trip to Thailand.”

Travel destinations Tourism between the two countries has been experiencing growth. Quoting statistics, Ambassador Srivali notes that last year, 29,484 Hungarians visited Thailand, a 20% increase from 2017.

Spending by Hungarian tourists has also increased by almost 4% and is

F E B R U A R Y

2 0 1 9

11 2/6/19 1:45 PM

­­thai focus

Favorite places

The first diplomatic contacts in Thai-Hungarian relations took place 150 years ago. As the Hungarian Ambassador to Thailand, Szilveszter Bus tells Diplomacy&Trade, “we have quite an anniversary to celebrate this year. In 1869 the AustroHungarian Monarchy and the Kingdom of Siam concluded their first international agreement, and shortly after, His Majesty King Chulalongkorn visited Hungary during his European travels.”

Modern-day diplomatic relations date back over 45 years and the Hungarian Embassy in Bangkok celebrated its 40th anniversary last year.

As Ambassador Bus highlights, “our relations have always been cordial, but I am happy to tell you that right now, they are deeper and more dynamic than ever before. In the last three years, our foreign ministers have met on multiple occasions, and we have concluded bilateral agreements in different sectors, while our trade volume increases every year. Minister of Foreign Affairs and Trade Péter Szijjártó has done a lot personally to keep this relation healthy, pragmatic and engaging even in a period most sensitive for Thailand’s international scope of movement.”

Tourism between Thailand and Hungary has been experiencing growth. As the Ambassador notes, the two countries are quite similar in this perspective, as well. “We both are regional tourism powerhouses, with Hungary receiving 22 million tourists each year, more than twice its own population; and Thailand, of course, being the ultimate tropical dream destination for many millions across the globe. We are happy to have increased the number of Thais visiting Hungary significantly, although, because of the borderless Schengen area, we do not have exact numbers. Nevertheless, we look to continue along this trend with tourism workshops, and a conscious building of the image of Hungary in our host country.”

As for the main attractions of Thailand, he says there are so many it would be a shame to miss any of them, so, he only mentions his personal favorites. “The immense and powerful cultural and religious heritage is beautifully represented in the Northern cities, like Chiang Mai, and also in Ayutthaya, the historical capital, or Bangkok, a global city itself. Thailand is home to more than 100 protected National Parks with mindblowing natural treasures. Mountains, jungles, wildlife; everyone can find their favorite attraction here. And certainly, the tropical beaches of the Southern islands are second to none, when it comes to relaxation, watersports or gastronomical pleasures.”

Previously, Szilveszter Bus was Deputy State Secretary responsible for the Hungarian government’s Southern Opening policy. “I was honored to have the task of nurturing my nation’s relations with such partners. The real momentum with Thailand came when we made it clear: Hungary stands on the ground of mutual respect and understanding. We do not come here to lecture others. What matters for us is our partners’ stability and prosperity, so, I will never join the choir of those who try to pressure a sovereign country for being different from us. Obviously, my main goal in that position was to kick start trade relations where needed, and increase the scope, where we were already in business. There is a safe chance that Thailand can maintain the first/second place in trade volume among our ASEAN partners, but no matter how the positive results, there is always room for growth. Building on these foundations I can say with confidence that my main goal is to make Hungary Thailand’s number one partner in Central Europe in every aspect.”

Distance is only geographical

Commenting on the numerous examples of cooperation, he says that “there is a lot more to our relations than protocol meetings in shiny halls. Since 2000, we have had a HungarianThai Agricultural Working Group, which meets every two years, the next round convenes in Hungary soon. They deal with very detailed, scientific issues; it is enough to say, as an example, that thanks to this Working Group, the Hungarian poultry export to Thailand has multiplied in recent years. But there is more in agriculture: we have facilitated cooperation between Hungarian and Thai veterinary universities with exchange programs of both professors and students, and we have an ongoing R&D cooperation between the national institutions for livestock development and

12 dt 2019 february.indb 12

KEEPING THE FLAG FLYING HIGH

One of the tasks of the Hungarian Embassy is popularizing Hungarian culture. “The cultural presence of our Embassy in Bangkok has long been stronger than the relative weight of Hungary in the region, and we are proud of showing off our cultural treasures to a Thai audience sensitive to such qualities. We have had several Hungarian movie screenings, classical concerts, modern theater, we have published the first ever V4 literature anthology in Thailand in cooperation with Chulalongkorn University, and we participated in European projects as well, like the European Languages’ Café and the EU Film Festival. In the coming months, we are preparing more visuals, such as movies, fashion shows and dances, and we are also planning some surprise cultural moments, so, it is worth staying tuned,” Ambassador Szilveszter Bus concludes.

HUNGARY’S AMBASSADOR TO THAILAND ON HEALTHY, PRAGMATIC AND ENGAGING BILATERAL TIES

health. The two Ministries of Justice have recently concluded the much needed bilateral Extradition Treaty, and I don’t need to explain how important this is in criminal-administrative cooperation. Finally, criminals will not see Thailand as a safe haven, and if Thai authorities catch any ‘bad guys’ from Hungary, it will be much easier to take them home, to face Hungarian courts.”

He adds that the cooperation in the field of education is of great importance for him, personally, “as I believe our youth are the key to blooming future relations. Under the aegis of the Stipendium Hungaricum Scholarship program, Hungary offers 40 full scholarships to Thai university students on a yearly basis. The first group started their studies at Hungarian universities last September.”

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

|

EMBASSY BANGKOK

Versatility

Cultural mission

photo by HUNGARIAN

Thailand and Hungary are far from each other geographically but, the Ambassador stresses, “in our century, geographical distance does not mean as much as it used to, but it is true, we come from very different cultural backgrounds. Still, the more I discover the people of this wonderful country, the more I see the similarities: two proud nations with strong identities, rich histories and culture; two sovereign, forward-looking countries with a clear vision about the future. And, if you don't mind me being too practical: two countries with the political will to harvest opportunities in the fields of trade, business, political cooperation, education, innovation, and culture.”

Last year, Ambassador Bus visited the National Innovation Agency of Thailand. “Thankfully, both governments consider innovation a key element to a prosperous future. The Hungarian state awarded funding to four Hungarian-Thai joint research projects, with subjects reaching from agro-industries to nano-technology. The Horizon 2020 European program supports three Hungarian-Thai innovation projects on infrastructure, food safety and researcher mobility. I would say we are on the right track here, and our colleagues are constantly seeking new opportunities for cooperation.”

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

thai focus

CONNECTING ALL OF ASIA ECONOMIC CORRIDORS MAKING THAILAND ASIA’S NEXT BIG INNOVATION HUB

photos by THAILAND

BOARD OF INVESTMENT

Situated close to some of the world’s most powerful economies and promising emerging markets, Thailand lies in the heart of the Asia-Pacif ic region. This means easy access to 3.5 billion people across Asia, a market that accounts for USD 24 trillion, approximately 30% of the global GDP. Thailand’s eastern provinces of Chonburi, Rayong and Chachoengsao have been the country’s major manufacturing hubs for decades, successfully producing petrochemicals, automobiles and electronics. Additionally, because these provinces are strategically located on the Gulf of Thailand, they have also been major export centers. Now, the region, which already exports numerous manufacturing products worldwide and draws millions of visitors every year, is set to experience unprecedented infrastructure upgrades through the new Eastern Economic Corridor (EEC).

As the Director of the Frankfurt Office of the Thailand Board of Investment in Germany, Dr. Ratchanee Wattanawisitporn explains to Diplomacy&Trade, the ambitious USD 45 billion EEC, which was greenlit in 2017, a part of ‘Thailand 4.0’, is a new economic model that aims to transform Thai industries from manufacturingbased to high-tech. “The country plans to do this w w w . d t e u r o p e . c o m

dt 2019 february.indb 13

|

by fostering innovations in targeted industries such as robotics, aerospace, and digital economy.

Thanks to its current infrastructure networks and government initiatives, Thailand hopes to turn these provinces into a leading digital and innovation hub that connects the other countries in the region by land, sea and air,” she adds.

The infrastructure developments, which are still in progress, will be ready for use within the next 5-10 years. However, many business leaders already see their potential and companies strategically based in Thailand are already reaping the benefits. According to the CEO of e-commerce company Lazada, Alessandro Piscini, “all of these initiatives the Thai government is working on are going in the right direction to support business development. If you’re talking about infrastructure, new ports, and new facilitates that support logistics networks, all of these things together will be a very big driver of growth for Thailand in the coming years.”

Logistics network to connect Asia

Becoming Asia’s innovation hub

Core of the EEC is an intention to bridge Asia’s economic powerhouses. The creation of the country’s first high-speed rail linking its three major airports (Suvarnabhumi, Don Mueang, and U-Tapao) as well as an extensive revamp of the U-Tapao airport (Rayong-Pattaya), itself, are among the first steps toward making this vision a reality and substantially reducing logistics costs. The project will also expand access to regions such as Chiang Mai in the north, Nong Khai in the northeast and Hua Hin in the south.

Similarly, the expansion of two cutting-edge deep sea ports at Laem Chabang and Map Ta Phut will support Thailand’s increasing export growth.

In addition, the development of a commercial port in Sattahip will allow the region to be more accessible to cruise liners and luxury yachts, easing tourists’ access to the area.

Dr. Ratchanee Wattanawisitporn, who is also the Director of the Investment Section at the Royal Thai Consulate-General in Frankfurt-am-Main, Germany, notes that, however, in the 21st century, infrastructure means more than roads and ports.

According to the Organization of Economic Cooperation and Development (OECD), access and connectivity are linchpins of digitally-powered economic growth. “This is why Thailand has developed Digital Park Thailand (EECd), a data hub with ultra-high-speed broadband infrastructure.

The economic cluster, strategically located on the Eastern Economic Corridor, will be home to digital global players and innovators in Asia. Moreover, Thailand’s plans to equip EECd with submarine cables, satellite stations and a data center will ensure that the center meets the needs of even the most demanding technology companies.”

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

Thailand is taking a similar approach with the Eastern Economic Corridor of Innovation (EECi), where researchers will develop innovations that will be used in the real world, improving the lives of local people and making Thailand a hub for future-thinking innovation.

Together, these projects help to make Thailand an attractive place for rising tech companies, according to David Sun, Huawei’s Southeast Asia CEO. Companies such as Huawei are already successfully tapping into the skyrocketing appetite for electronics in the region.

OECD forecasts that Asia will remain the world’s fastest-growing region through 2030, with many ASEAN countries leading the way with economies that are rapidly going digital. This economic growth, along with the development of cutting-edge infrastructural facilities in Thailand such as EECd and EECi to foster innovative businesses, creates unprecedented opportunities for business visionaries. Thanks to progressive incentives and forward-thinking policies, the Land of Smiles is embracing a future of innovation.

13 2/6/19 1:45 PM

EVERY CAN COUNTS

According to marketing experts, Red Bull has generated awareness and created a 'brand myth' rather than following a traditional approach to mass marketing. This approach was implemented through proprietary extreme sport event series such as Red Bull Cliff Diving World Series, Red Bull Air Race, Red Bull Crashed Ice and stand-out stunts such as the Stratos space diving project. Red Bull also associated itself with the nascent extreme sports movement. The company sponsored snowboarding and free-skiing contests and Flugtag, a homemade flying machine challenge (Dietrich Mateschitz, himself is an enthusiastic collector of vintage aircraft).

Red Bull's marketing arsenal also includes multiple sports team ownerships (Formula One teams Red Bull Racing and Scuderia Toro Rosso, football clubs RB Leipzig, FC Red Bull Salzburg, FC Liefering, Red Bull Brasil and New York Red Bulls), celebrity endorsements, and music, through its record label Red Bull Records.

RED BULL ENERGY DRINK CONQUERED THE WORLD IN THREE DECADES

More than 75 billion drinks in 100% recyclable cans sold in 171 countries worldwide in the last 32 years – in short, this is where Red Bull is in 2019. The energy drink of Thai origin started its international expansion in Hungary 17 years ago.

only the launch of a completely new product, in fact, it was the birth of a totally new product category. Today, Red Bull is available in 171 countries and over 75 billion cans of Red Bull have been consumed, so far.

In fact, the history of the energy drink goes back to over four decades to 1976 when Thai businessman and investor Chaleo Yoovidhya introduced a drink called Krating Daeng (Red Gaur) in Thailand. Six years later, Dietrich Mateschitz was on a business trip from Austria to Thailand and noticed that this drink cured his jetlag. He met Chaleo Yoovidhya and the two men co-founded Red Bull GmbH of Austria.

Each partner invested USD 500,000 of savings into the company. Yoovidhya and Mateschitz each held a 49% share of the new company with the remaining 2% given to Yoovidhya's son, Chalerm. It was agreed that Mateschitz would run the company. He changed the ingredients somewhat to give the drink a more international taste. With this, Mateschitz created the formula of Red Bull Energy Drink and developed the unique marketing

International expansion

concept for it. In the new formula, some ingredients were dropped and carbonation was added to suit Westerrn palates and the brand was set on the path of international success. Components of the legendary elixir included B vitamins, glucuronolactone, sodium and caffeine. One ingredient, the amino acid taurine, was derived synthetically, not from bull testicles, as rumor had it. (It should be noted that the amino acid in products sold in Hungary is not taurine but arginine.) Red Bull's selling proposition was that it increased stamina and mental concentration, making it a natural cure for one of the original target users, long-distance drivers. The taste of the thick yellow beverage, said to be akin

to liquid gummi bears, lent added distinction to the brand. On April 1, 1987, Red Bull was sold for the very first time in its home market Austria. This was not

The Red Bull energy drink began its international journey in 1992 when it appeared for distribution in neighboring Hungary (and Slovenia).

Many Hungarian consumers still recall the advertisement slogan ‘Red Bull gives you wings’. Red Bull was introduced in Germany in March 1994.

By June, it was claiming a quarter of the sports drink market there, despite being priced at about three times as much as a can of Coca-Cola. Red Bull started to be sold in the United Kingdom in 1994 and marketed there as Red Bull Stimulation after 1996.

Red Bull entered the United States in 1997, focusing at first on four western states: California, Oregon, Texas and Colorado. It was marketed to Americans as a non-corporate alternative to Coke and Pepsi, and both packaging and pricing helped set it apart. The drink was sold in unique, narrow 8.3-ounce (about 245-milliliter) cans.

The end of the can - a new beginning Naturally, Red Bull’s production and global distribution needs energy and thus, causes an environmental impact. Red Bull is very aware of its environmental responsibility and is constantly striving for improvement. The company is going to great lengths to ensure that its carbon footprint stays as small as possible across the entire lifecycle of the can. All in all, recycling a can takes 95% less

photos by

JOERG MITTER/RED BULL CONTENT POOL, KRATINGDAENG.COM, RYAN MILLER/RED BULL CONTENT POOL, MARK THOMPSON/ GETTY IMAGES/RED BULL CONTENT POOL, JAY NEMETH/RED BULL CONTENT POOL, ALI BHARMAL/RED BULL CONTENT POOL

14 dt 2019 february.indb 14

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

|

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

c.

energy than producing a new one. Red Bull has made a conscious decision to use aluminum cans.

Today, Red Bull cans weigh significantly less than some years ago, which saves precious raw material.

All cans are 100% recyclable: once they have been collected and reached the recycling facilities, not the tiniest bit of aluminum is lost. They can be melted down and re-used an infinite number of times with absolutely no loss in quality. The constant decrease in weight also makes a difference: the less aluminum that goes into cans in the first place, the smaller the carbon footprint.

As the company points out, “every can counts. The beverage can is the world's most recycled drink packaging. Of course, this is only possible if the cans are collected and (re-)introduced into the recycling loop. If a can is left carelessly littering the landscape, naturally, it cannot fulfill its recycling potential.

Unfortunately, littering is still a problem in some regions. Making sure your can ends up in a waste or recycling bin helps keep our landscapes pristine, increases recycling rates and reduces energy consumption as well as the drain on natural resources. If your country has a dedicated aluminum recycling system, please, dispose your can correctly.”

Wall-to-Wall production Apart from using 80% of its energy from renewable sources, Red Bull implemented what it calls 'Wall-to-Wall' production at the production site, which means that the cans are manufactured and filled on the same site – helping save many miles of transport. Since empty cans do not have to be transported

w w w . d t e u r o p e . c o m

dt 2019 february.indb 15

|

to the fill-up plant, this reduces the footprint significantly. As a result, approximately 3.6 billion cans annually need no further transport until they are ready to leave the facilities for their final destination. According to the company, this saves the equivalent emissions of more than 18,000 truck journeys of 700 kilometers each or more than 12.76 million kilometers per year.

Wall-to-Wall production saves 9,687 tons of CO2 emissions each year.

With its perfect shape and weight, the can is an ideal transport packaging.

Red Bull's manufacturing base in central Europe has a lot of advantages: the company guarantees that the same premium product quality is enjoyed around the world, thanks to its state-of-the-art production process and the use of high quality ingredients, such as locally-sourced alpine water. New efficiency-enhancing technologies – which, in turn, help preserve natural resources – can be implemented immediately. The energy used for production comes from the local region; around 80% is sourced from renewable energies – and Red Bull is working to improve this figure however possible.

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

15 2/6/19 1:45 PM

thai focus

16 dt 2019 february.indb 16

Vanessa-Mae INTERVIEW WITH

year in April and am thankfully fit again. It’s time for a new album and I’m also working on my autobiography,” she says. “Living my dream of being a ski bum is great but the best job in the world is being on stage, making music.” She says she will, however, continue to ski. “It is the setting, that I adore most in skiing. I love the purity of the air, the backdrop of the Alps – I feel inspired and humbled when I ski – mountains do that to me.

But away with the hard and endless trainings!

Now, I have more time to dedicate to music.

Crossover music is so wonderful in helping free inhibitions and creating fantastical worlds, for both the artist and the listener.

I hope in my way to do some good with my new music. I know I am good at it, and it feels great to make magic with music: it’s almost like I am able to move mountains.”

"I CELEBRATE THE WHOLE WORLD WITH MY MUSIC, BUT IN SPORTS, I COULD REPRESENT ONLY ONE COUNTRY."

ABOUT THE ARTIST

Sharing her birthday with the legendary violinist, Nicolo Paganini, Vanessa-Mae Vanakorn Nicholson was born 196 years later on October 27, 1978 in Singapore, to a Chinese mother, Pamela Soei Luang Tan and Thai father, Vorapong Vanakorn. She was four when her parents split up; her mother married a British lawyer and moved to London with her daughter.

She was nicknamed ‘Teeny Paganini’ when, at just eight, she became the youngest pupil at the National Conservatory of Music in Beijing, studying with Professor Lin Yao. Eventually, she returned to London and entered the London’s Royal College of Music to continue honing her technique.

She made her world debut in 1988 to a sensational reception at the Schleswig Holstein Festival in Germany and made her UK debut with the Philharmonia Orchestra that same year. In 1991, at the age of 12, she was invited by the London Mozart Players to headline their Mozart Bicentenary tour of the Far East and was the youngest artist ever to play as a soloist with the orchestra. At the age of 13, she had already recorded three highly-praised classical albums. With the release of her debut album, The Violin Player, in 1995, she become a globe-trotting star. Her brave approach of presenting the violin in a new style caused controversy among some traditionalist critics but its enormous popularity around the world established her as a world star and subsequently inspired a wave of new artists to follow in her footsteps. She has sold over 10 million albums, holds over 40 international awards for both pop and classical recordings, and her concert specials have been broadcast in over 100 countries.

Vanessa-Mae is a dynamic live performer with a grueling touring program that has taken her around the world several times over. She has visited over 50 countries and performed in spectacular venues such as the Kremlin Palace in Moscow, Hyde Park in London and the Acropolis in Athens.

She made her US debut in Times Square where she hopped spontaneously onto a passing yellow taxi – an explosive performance seen all over the world. She gave the first ever concert on the famous frozen lake of St. Moritz, making a spectacular entrance to the stage by delta-gliding down from a 2,500-meter mountain. She was the only foreign artist invited by the Chinese to perform at the pivotal historical moment of Hong Kong’s reunification to China.

Fusing the worlds of music and sport, Vanessa-Mae was invited to play the national anthem at Wrigley Field, at Comiskey Park and at the World Alpine Ski Championships in Vail Colorado. She has also performed at the opening ceremony of the Winter Paralympics in Salt Lake City Utah and the opening race of the F1 Grand Prix season in Melbourne. She ran as an Olympic Torch Bearer as the Olympic Torch Relay passed through London on its way to the Olympic Games in Beijing.

Vanessa-Mae has supported charities worldwide including the Royal Society For The Prevention Of Cruelty To Animals, and she is an ambassador of Cruelty Free International.

She has contributed to a number of film projects, including Walt Disney Pictures’ Mulan. ABC’s Arabian Nights and recorded Roxane’s Veil, written for her

by Vangelis for her album Choreography, which was later used on the soundtrack album of Oliver Stone’s film Alexander. Vanessa-Mae was the subject of a highly acclaimed BBC science documentary, which analyzed the relative roles of nature and nurture in creating her extraordinary talent. She was voted one of the “50 Most Beautiful People In The World” by People magazine and one of the “World’s 100 Sexiest Women” by FHM. She created a sensation at Paris fashion week with her catwalk debut for Jean-Paul Gaultier’s show where she gave a surprise impromptu performance with her violin while modelling the show’s finale - the wedding dress.

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

|

DEPOSITPHOTOS.COM

Violin virtuoso Vanessa-Mae first picked up a fiddle at the age of four (having already started the piano a year before).

Her first ski lesson also took place around that time. “My mother introduced me to skiing when I was little, but later, she was strongly against it. She considered this sport far too dangerous, similar to horse-riding, hockey and handball.

I gave up playing the latter ones, but skiing was different. To me, skiing symbolizes freedom and something away from music. Music is my passion.

It is the essence of who I am. Skiing, on the other hand, is my dearest hobby,” says the artist who, since 2009, resides in the Swiss Alps, in Zermatt, a little town lying at the foot of the 4,478-meter Matterhorn. The region is called ‘Matterhorn glacier paradise’ and it is Europe's largest and highest-lying summer skiing region – the best place to be, especially if one decides to train for the Winter Olympic Games. “It has been my dream to be a ski bum since I was 14. This is something I am determined to do,” Vanessa-Mae stated back in 2013, hoping to represent Thailand as a downhill skier at the 2014 Winter Olympics in Sochi, Russia. “I am a British citizen but I also hold a Thai passport. My Thai father, like most Thais, has never skied but he was really excited about me doing this,” she said upon being accepted by the National Olympic Committee of Thailand to represent the country. Following tireless training, she did, indeed, make it: qualifying for, and participating at, the 2014 Winter Olympic Games, competing under the name Vanessa Vanakorn (her father's surname), Vanessa-Mae became an Olympian. She finished 67th in her giant slalom alpine race at the Olympics – almost a minute behind Tina Maze, who took gold – but ahead of a quarter of the racers who didn’t even make it to the finish line. “I didn’t know that coming last would still be such a good feeling,’ she said. What I realized after Sochi is that it is better to have done something, even if not perfectly, than not to have done it, at all. Of course, there is a risk that I could break something, but life is short and you have to live it fully.” Her unique bridge from artist to athlete also led to her being the guest of honor at the first ever International Olympic Committee President’s Dinner. On the question whether she would ever give it another go with the Olympics, Vanessa-Mae reveals that it was, for a while, her intention to qualify for the 2018 Winter Games, but an awful ski crash during a race on December 4, 2017 dislocated her shoulder so badly that it ruled out making the qualifying grade in late January. “I was operated on last

MOVING MOUNTAINS WITH MUSIC

photos by KONCERTPROMO.HU,

Vanessa-Mae made Guinness World Record by becoming the youngest soloist to record both the Beethoven and Tchaikovsky violin concertos at the age of 13. Over the years, her conservative classical style gave way to a more modern outlook and she developed her own crossover style – something she will demonstrate in Budapest during her upcoming concert on May 24.

The former violin prodigy, now 40, tells Diplomacy&Trade about her two loves: music and skiing.

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

thai focus

TOM YUM THAI AUTHENTIC THAI CUISINE

50 THAI SPECIALITIES In our restaurant, you can choose from 50 Thai specialties and over 300 variations! We offer soups, salads, appetizers, curries, pasta, wok dishes, fish and desserts. You are also welcome to choose from among special drinks, teas, cocktails, quality wines and Pascucci coffees.

ALWAYS A WELCOMING, FRIENDLY ENVIRONMENT

Tom Yum Budakeszi

Our hospitality-centered restaurants are inspired by the joyful, kind atmosphere of Thai culture.

Traditional Thai cuisine is completely different from Hungarian gastronomy both in its taste and eating habits. We use many special and distinctive spices and our food is made by Thai cooks based on traditional recipes using only quality ingredients, fresh and juicy vegetables and meat.

Tel: +36-23-952-017 2092 Budakeszi, Fő tér 5.

STRAIGHT FROM THAILAND

Tel: +36-1-210-0822 1095 Budapest Soroksári út 8-10.

Tel: +36-1-273-0903 1061 Budapest Andrássy út. 2.

Tom Yum Soroksári

http://tomyum.hu

photos by VIVIEN

CSIKI, ZOLTÁN BÓDIS/WWW.FACEBOOK.COM/BZFOTO

Our goal is to introduce Thai flavors to our Hungarian audience and foreigners, and ensure quality and satisfaction – our Thai chefs are here to help. Try a Thai specialty in our authentic restaurant today!

Tom Yum Andrássy

w w w . d t e u r o p e . c o m

dt 2019 february.indb 17

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

17 2/6/19 1:45 PM

business

EXCELLENT PERFORMANCE WITH RISKS FINDINGS OF THE 2019 OECD ECONOMIC SURVEY ON HUNGARY

The Hungarian economy is in the midst of a strong recovery, driven by high levels of employment that are boosting wages, consumer conf idence and domestic demand. Government policy should aim to prolong the economic expansion, ensure that growth is greener and benef its are shared by all Hungarians.

The Survey, presented in Budapest by Alvaro Pereira, Director of Country Studies in the OECD Economics Department, and Hungary’s State Secretary for Financial Affairs, Gábor Gion, highlights the importance of government policies to promote skills acquisition, mobility and stronger regional growth. It also underlines the need to address population ageing, to limit pressure on public finances, notably as concerns pension and health spending.

“The Hungarian economy is growing at a rapid pace, with unprecedented levels of employment, unemployment at historic lows and strong wage growth all contributing to a demand-led expansion,” Alvaro Pereira said.

“This excellent performance is not without risks, notably as concerns growing inequality between Hungary’s regions. Ensuring longterm sustainability will require policies to create economic opportunities for all.”

Countering unbalanced growth The western and central parts of Hungary, which are the main recipients of foreign investment, and Budapest, which benefits from being a large agglomeration, have

THE CHALLENGES OF SUSTAINING HUNGARY’S PENSION AND HEALTH SYSTEMS

An aging population is leading to rising financial pressures in the pension, health care and long-term care systems. Official projections suggest that ageing-related spending could increase by 3.2% of GDP by 2070. Less optimistic assumptions about demographic developments and labor market outcomes could add several percentage points to pension spending. Moreover, the risk of old-age poverty is relatively high in the earnings-related pay-asyou-go pension system and expected pension benefits are difficult to calculate. Measures to correct these issues could double the projected increase in public pension spending in the long run. In addition, the centralized health care system does not pay attention to price signals, contributing to reduced access and outcomes that are worse than elsewhere. Structural reform could improve efficiency, but securing a projected increase in life expectancy of 10 years, aligning it with the EU average, is likely to require additional public resources. This, together with the cost of new technologies and improving quality and coverage, could increase spending by as much as 50% by 2070. The fragmented long-term care system puts relatively large responsibility for such care on family members, implying that public spending in this area will increase, particularly as economic structural changes affect the geographical distribution of the population, the Survey explains.

MACRO-POLICY RECOMMENDATIONS

• Gradually increase interest rates • Continue to exit from unconventional monetary policy measures

• Tighten fiscal policy to avoid overheating of the economy • Population ageing is creating policy challenges

MAIN FINDINGS • The economic outlook looks strong … ... but the economy faces risks, including overheating of the labor market • The high stock of inward FDI has bolstered GDP, but leaves unaddressed challenges …

• Upskilling, mobility and stronger regional growth are needed for securing equitable growth • Population ageing is creating policy challenges

18 dt 2019 february.indb 18

Taking care of health and the environment To reduce public spending pressures from health care, the Survey points out the need to improve efficiency across the health system. This could include reducing hospital stays through enhanced out-patient care, concentrating in-patient care in fewer, but better equipped and more specialized hospitals, and integrating long-term care systems.

To make growth greener and improve environmental outcomes, the Survey suggests that road tolls and taxes take better account of vehicle environmental performance. Congestion charges combined with better public transport can be used to improve urban air quality.

Fiscal incentives could be used to encourage replacement of inefficient and high-emission heating systems, the Survey said.

(The Survey is published on the responsibility of the Economic and Development Review Committee (EDRC) of the OECD, which is charged with the examination of the economic situation of member countries.)

ECONOMIC OUTLOOK REMAINS STRONG…

grown faster than the rest of the country, which suffers from low levels of employment, high levels of social transfer recipients and poor integration into regional and national supply chains.

To counter this unbalanced growth, the Survey suggests the central government afford local authorities greater autonomy to execute projects that benefit the local economy. Better vocational education and training is needed, with courses and curriculum adjusted to the needs of the local labor market.

To address the pressure on public finances from population ageing, the Survey proposes Hungary F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

The Survey suggests growth is expected to have risen 4.5% in 2018, following past strong performance.

Domestic demand is fueled by strong private consumption, reflecting high real income gains, and dynamic business and housing investments.

The unemployment rate has fallen to a historically low level and labor shortages have emerged. This has been, accompanied by strong and broad-based wage increases, helping to preserve a high level of income equality, and restarting income convergence. Inflation reached 3.8% in the autumn of 2018, partly as the result of higher energy and food prices, before coming down again. Productivity growth has accelerated, although, it remains well below real wage growth and the rate prevailing in the decade prior to the international financial crisis.

&

T R A D E

|

HARANGOZÓ, DEPOSITPHOTOS.COM

Excellent performance with risks

raise the statutory retirement age to 65 by 2022, then link further changes to the increase in life expectancy. It also suggests removing all possibilities for early retirement while introducing a basic state pension to guarantee a minimum income for all pensioners.

photos by DÁVID

The latest OECD Economic Survey on Hungary looks at the factors behind the current expansion, as well as policies necessary to overcome the principle domestic and external challenges to the outlook. The Survey projects a growth of 3.9% this year and 3.3% in 2020, and lays out an agenda for making the economy stronger, sustainable and more inclusive.

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

Non-stop from Budapest to London City Airport!

From 18th February 2019

lot.com

dt 2019 february.indb 19

2/6/19 1:45 PM

business

CIRCULAR ECONOMY PLATFORM

Facilitating the paradigm shift On behalf of BCSDH, Managing Director Irén Márta stresses that the transition toward the circular economy represents a great business opportunity that involves a new way of looking at the relationships between markets, customers, and natural resources through the responsible management of reserves.

“The Business Council for Sustainable Development in Hungary and its partners play a prominent role in facilitating the paradigm shift and joint thinking, along with building a community of forward-thinking change leaders and sharing business solutions that make a real impact. For the new model to develop and spread, collaboration and knowledge sharing are required, with the involvement of businesses, government and science.” She highlights that there are 55 companies, institutions and organizations that have signed the Memorandum of Understanding on the Circular Economy Platform initiative.

COMPANIES AND ORGANIZATIONS JOIN FORCES FOR SUSTAINABLE DEVELOPMENT

Inspiring approach ING Wholesale Banking Hungary Country Manager and CEO, Tibor Bodor calls attention to what the UN Intergovernmental Panel on Climate Change (IPCC) pointed out: urgent and far-reaching action must be taken by governments, corporations and society in order to prevent irreversible damage to Planet Earth. “Fortunately, there have been a variety of methods developed by corporations to do so.

Our responsibility is to share this experience and foster the transmission of best practices.

That is why ING was among the first actors to provide a platform for stakeholders to discuss how to ensure impact in the form of a conference on sustainability and innovation.”

He adds that “at ING we reward improvement.

We want to help businesses improve their sustainability performance and offer them the financial incentives to do so. A sustainability rating enables tracking progress, not only to assess today’s performance but also to map out tomorrow’s opportunities.”

He is of the view that in the very near future, the competitiveness of companies will be determined by their sustainability performance.

“Companies that take appropriate actions to mitigate the risks of, for instance, a high carbon footprint will be valued higher than companies that don’t, all other things being equal." He quotes Isabel Fernandez, Head of ING Wholesale Banking by saying that "industries, policy makers and banks, we all need to work together to make this happen."

As for circular economy, he stresses that “it is an exciting and inspiring approach to create a new economy, a new way of consuming, using and producing products. The circular economy aims to create a system without waste that keeps all resources flowing continuously between producers and users. A system with low environmental impact and high economic activity.”

20 dt 2019 february.indb 20

As Human Resources and Corporate Affairs Director at Heineken Hungária Breweries, Márta Pálfalvi points out, more and more companies realize that circular economy makes business sense. Waste in any form is a loss for business, hence, it should be eliminated. “However, circular models require structural changes, which cannot simply address the output, but need serious reorganization throughout the entire value chain. This comes with an initial investment, which companies might be reluctant – or might not be in the position – to make. This is where policy makers, regulators can play a key role in facilitating and accelerating the transition to this business model.”

The implementation requires constant challenging of the ways of working. “You have to teach the organization to think end-toend, where each colleague understands what happens before and after their work phase in order to be able to change the processes. It comes with a serious mindset change which takes time and effort. End-to-end value mindset is the only way to efficiently reduce, C eliminate and reuse waste. It takes years but the benefits are visible right from the start. M Our global ambitions for 2020 were announced Y in 2010 and we measure and report certain CM KPIs from all areas of sustainability. These ambitions were reshaped and relaunched as MY ambitions 2030, which does not mean, of CY course, that we do not have to meet those CMY previously set. It is a complex set of KPIs which include CO2 footprint, water consumption, K and also waste management. The newly launched targets widen the scope and define the ambitions throughout the whole value chain of the business, looking beyond our own operations. Partnership with suppliers and customers is also key to the circular economy model,” she adds.

Dezső Tápai, National Sales Manager Essity Hungary Ltd. argues for having joined the circular economy initiative by saying that “businesses and society will need to think in new and innovative ways as part of the transfer from a linear economy, where we manufacture new and dispose of the old, to a circular economy, where we minimize resource consumption and waste, and instead, recycle and reuse. We have a long tradition of working with resource efficiency and innovation.

We have reduced the environmental impact of all of our product categories and have worked with energy efficiency as part of our ESAVE program since 2010. In addition, we work with material savings to optimize our raw material use at the same time as we minimize environmental impact and waste, which inspires our manufacturing teams to find new ways to re-use, recycle or find new use for waste.”

As to how the implementation of circular economy solutions fit into the day-today practice, he points out that “we work to create customer and consumer value while improving the environmental footprint of our products and services. Our innovations are based on understanding consumer and customer needs while delivering better, safer and more environmentally sound solutions. This helps Essity to contribute to a sustainable and circular society.”

He highlights that Essity aims to reduce the carbon footprint of its products. “This means focusing on forest management, energy efficiency at our production facilities and among suppliers, as well as smarter product designs. Essity’s contribution toward Goal 13 includes improving resource efficiency in manufacturing and product features, setting science-based targets to reduce greenhouse gas emissions, and supporting Diplomacy-n-Trade.ai 1 2017.and 02. 27.

11:22:30 relevant external commitments agreements.”

Regarding the implementation of circular economy solutions, she points out that “currently, there are several business solutions that incorporate the principles of the circular economy. The spread of these examples indicates acknowledgement and understanding of the concept. It is very important to highlight that responsible supply chains play a key role in the circular economy as most processes cannot be implemented solely within an organization, but only in partnership with suppliers. In the framework of this Platform, the Parties will initiate a high level dialogue to accelerate the transition with knowledge institutions, governments and other relevant stakeholders on an annual basis with the next summit taking place in November 2019.”

LÁZÁR TODOROFF, LÁSZLÓ SZILI, DÁVID HARANGOZÓ

Makes business sense

Creating customer and consumer value

photos by ING,

In November 2018, the Circular Economy Platform was off icially established in Hungary at the initiative of the Business Council for Sustainable Development in Hungary (BCSDH), the Embassy of the Kingdom of the Netherlands and the Hungarian Ministry of Innovation and Technology. Diplomacy&Trade asked for the views of three companies that were among the initial signatories to this platform as well as that of the Business Council for Sustainable Development in Hungary.

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

|

w w w . d t e u r o p e . c o m

2/6/19 1:45 PM

business Expansion

Regarding plans to expand services in Budapest and in the region, the CEO highlights that “we currently occupy the entire fifth floor of the Hattyúház office building. This January, we signed a lease to take additional space to begin offering out-patient surgery. However, our expansion is not limited to the Hattyúház building. We have a plan for additional locations in the city as well as elsewhere in Hungary. As for regional development, we began working on a project in Italy last year and we expect our clinic in Rome to open in the second half of this year. We are also looking at other major cities in the region.”

Social responsibility

A HEALTHY BUSINESS

BUDAPEST-BASED CLINIC BETS ON CUSTOMER SERVICE ON THE EXPANDING PRIVATE HEALTHCARE MARKET Professional consultations, a welcoming and comfortable environment, central location and convenient end-to-end services – all this is provided by the highly-qualif ied and dedicated staff at FirstMed, the multi-disciplinary health clinic that celebrates its 20th anniversary this February.

photos by DÁVID

HARANGOZÓ

Since opening in 1999, FirstMed has become the leading provider of private English-speaking family practice, women’s health, pediatric and specialist medical services in Budapest, serving individuals, families, companies, embassies, tourists and NGOs in the Hungarian capital.

The clinic was founded by Dennis A. Diokno, an American businessman, who gained his experience in private healthcare in Russia and China in the 1990s. At the end of that decade, he was sent by his boss to explore the possibilities of opening clinics in Budapest, Prague and Warsaw.

He liked the business opportunities offered by the region so much that he himself decided to set up a business in the Hungarian capital after raising money through family and friends. “I really liked Hungary; I fell in love with the people, the culture, and from a business perspective it seemed like the right place to be,” he says.

Busiest services It was not only the money that came from his family but also the ‘feel’ for healthcare, having grown up in such an environment: his father is a physician, his mother a nurse and his two sisters work in the pharmaceutical industry. He says what he likes most about his job is working in a service industry, focusing on customers and the customer experience. w w w . d t e u r o p e . c o m

dt 2019 february.indb 21

|

Dennis A. Diokno, who is CEO and Founding Partner of FirstMed in Budapest, tells Diplomacy&Trade that “while our busiest services are primary care like family practice, pediatrics and gynecology, our other 30+ specialties, including orthopedics, cardiology, ENT (ear, nose and throat), to name a few, see just as many patients. These services and practices are also very much sought after by our clients.”

He explains that “we like to think of our patients as family. Many of them are long time patients returning again and again. When a patient contacts us – either online, by phone or meeting us at the reception – we make sure they receive prompt attention. We are proud of keeping preregistered appointment times and the time our doctors spend with the patients. Should a patient have specialty needs or require treatment outside of the clinic, we arrange appointments and monitor the process to ensure the best customer service possible.”

He notes that he is very proud of the clinic’s transparent operations, reliable and qualitycontrolled customer services. The staff consists of 100+ physicians, nurses, radiology and laboratory technicians, customer service, billing and back office support. People in customer service speak seven languages, all doctors speak English and have international experience.

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

Transparency Although, about three quarters of the clientele are expats living in Hungary temporarily or permanently, Dennis A. Diokno sees the number of Hungarian patients growing. He is of the view that while, in general, health awareness is growing and people have more money to spend, the primary reason for growth is the declining conditions in the state healthcare system in the country. There are frequent reports of underpaid and overworked doctors and nurses and there is a ‘gratuity’ system in place. Patients pay into the pockets of doctors and nurses for services that they are otherwise entitled to for ‘free’. He stresses that this is why one of the great advantages Hungarian patients appreciate at FirstMed is transparency.

Describing the guidelines of the company’s corporate social responsibility (CSR) policy and practice, Dennis A. Diokno points out that “from our first year in Budapest, our clinic has always supported charitable causes. We focus on organizations that are healthcare and child related. The Robert Burns International Foundation and the Csodalámpa (Magic Lamp) Foundation receive the largest portions of our charitable gifts, but we support many foundations and causes with cash and in-kind donations.”

He adds that FirstMed is very proud of its CSR programs, it is at the core of their values and activities. “Being a health care provider, we have spent a lot of time supporting sick children by working closely with Csodalámpa Alapítvány for over ten years now. Our colleagues work as volunteers as we know first-hand how much a joyful and positive experience can contribute to the healing of a child or sadly sometimes only to the daily survival.”

FirstMed also started supporting the Robert Burns International Foundation several years ago. The foundation focuses its efforts on raising money to benefit sick and underprivileged children in Hungary and Central Europe. “We sponsored the foundation’s curling tournament, which brought companies together to introduce people to the sport and we sent the leading FirstMed team to the annual Burns Supper.”

The CEO concludes by saying that “we are active members of several chambers. With the British Chamber of Commerce in Hungary (BCCH), we offer networking platforms as well as training opportunities for SMEs to gain contemporary digital business skill sets.”

21 2/6/19 1:45 PM

society

India Republic Day To celebrate the 69th Anniversary of his country’s Republic Day, the Ambassador of the Republic of India, Kumar Tuhin invited fellow diplomats, Indians living in Hungary and special guests for a reception followed by dinner in the Budapest Ballroom of the Kempinski Hotel Corvinus Budapest. The event honored the date on which the Constitution of India came into force on January 26, 1950.

Chinese New Year The Ambassador of the People’s Republic of China, Jielong Duan, welcomed guests, including many members of the Chinese community in Hungary, to a reception and dinner with traditional Chinese entertainment in the Millenáris Park event center, to celebrate the new Chinese Lunar Year, the Year of the Pig. The reception took place as part of the Chinese New Year Festival.

Presidential New Year Reception

DÁVID HARANGOZÓ, OFFICE OF THE PRESIDENT OF THE REPUBLIC, TAMÁS KOVÁCS/MTI

The President of the Republic of Hungary, János Áder, held his annual New Year Reception for the Diplomatic Corps. After welcoming the participating diplomats accredited to Budapest, the President dedicated most of his speech to concerns about accelerating climate change. “What is at stake here is not the status of the atmosphere, but the future of our societies, of human civilization,” he said.

LOT: 90 Years of Magic

22 dt 2019 february.indb 22

photos by

A poster exhibition of the 90-year-old LOT Polish Airlines invites visitors to a special journey in time. With the help of rarely seen historical posters exhibited in the Polish Institute in Budapest, visitors can recall the long history of the airline.

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

|

w w w . d t e u r o p e . c o m

2/6/19 1:46 PM

witty leaks

WITTY

IN THIS SERIES, DIPLOMATS SHARE PERSONAL ACCOUNTS OF THEIR EXPERIENCES ON “EXCURSIONS” into Hungarian culture, art, gastronomy & scenery.

LE A K S

WHY I LOVE BUDAPEST AND MY BIKE A FOREIGN BIKER’S GUIDE TO THE HUNGARIAN CAPITAL

BY MASSIMO RUSTICO, AMBASSADOR OF THE REPUBLIC OF ITALY

I arrived two years ago in this beautiful city that immediately kidnapped me for its beauty. Italy and Rome in particular, where I live and work, are an open-air museum but I became fascinated by the beauty of Budapest. It has preserved the charm of an imperial city, with its snug and elegant historic center. I admire the great avenues named after the heroes of the Hungarian Risorgimento, who spent their lives fighting for the independence of the country and who took their cue from Italy, where Mazzini's vision had given life to the revolutionary events of the ‘spring of peoples’.

But Budapest is also dear to me, because – among so many reasons – it preserves the Roman remains visible in Aquincum, built by Emperor Trajan as the capital of Lower Pannonia in 106 A.D. and where he moved his lieutenant's office. I’d also like to mention the inscription on the tomb of John of Lázó, Transylvanian Archdeacon, buried in the church of Santo Stefano Rotondo, at Celio, in Rome, which states ‘Viandante’ (traveler), if you see someone born on the banks of the frozen Danube, now covered with Roman land, do not be surprised, since Rome is the homeland of all of us."

COURTESY OF THE EMBASSY OF ITALY photos by

…and riding the bike Among my favorite pastimes is the bike, which I bought before the summer and now regret I had not done it before. I was a little frightened by the ascent of the Rose Hill, which is now so familiar to me. The best moment is when I jump on the saddle and descend towards the Margaret Bridge where, I relive the thrill of boyish freedom, with the wind on my face. Of course, now I am an attentive cyclist who hardly lets w w w . d t e u r o p e . c o m

dt 2019 february.indb 23

|

At the end of the bridge, I turn toward the Parliament. The magnificence of this building always strikes me as the first time: its spires and its dome that rise towards the sky, as if to symbolize how much man aspires to perfection; its white marbles, pierced and worked like a lace. And, I enjoy watching the many boys, who especially at sunset and in the evening have fun with their skates on the large square in front of the building. And if I find myself in the square on Saturday or Sunday, a stop at the Szamos Café.

It is a must, where a good chocolate gives me energy.

From there, I sometimes head to the Hotel President, where I park my bike and sit on the terrace. With its 360-degree view, it is an ideal place to admire the beauty of the city from above. But what strikes me most is the Palace of the Treasury, once a postal savings bank, a building built by renowned architects Ödön Lechner and Sándor Baumgarten. With its yellow-green majolica and the many dragon heads that adorn the roof, it is one of the best expressions of the art nouveau in Budapest. From there, I head to Andrássy Avenue with its beautiful buildings and a great bike path that leads to the great Hero Square and Liget Park, where I bike far and wide. It is very pleasant, without machines and with many red squirrels that I see climbing on trees. During the hot season, the park trees give shade and coolness, and although, the Embassy is just around the corner, I never have time to drop by during the week.

Ville Lumière

Walking the streets…

Coming back to the current Budapest, full of pastry shops and cafes with breezy windows, but also very intimate places, where you can taste an excellent espresso accompanied by a slice of almás rétes (apple strudel) or Eszterházy cake.

Walking aimlessly through the narrow streets of what the ghetto once was, I see that it is full of small artisan shops and vintage shops, but also remains a strong testimony of Jewish culture.

And what about the Szimpla, Budapest's first ruin pub, with its Sunday eco-friendly market?

Simply delicious to wander between the banquets of producers of vegetables, cheeses, breads and sauces. It is here that I can buy jam of ‘szilva cukor nélkül’ (plum without sugar) – since to throw an eye to the weight is always good – or shiitake mushroom sauce.

Downtown Pest

himself attempt the young teenager's pirouettes!

And luckily, the traffic in Budapest is very neat: each car is channeled in its own lane and there are no surprises, at the last moment when a motorist cuts in front of you to turn. When I reach the Margaret Bridge, I leave Buda behind me to venture towards Pest. This bridge represents for me the union between two cities: the sober and modern architectural style of Buda, linked with the art nouveau and medieval style of Pest, but also the union between a defined residential area and the financial and commercial one. It symbolizes for me the union between two souls that rock to the calm and incessant rhythm of the great river. But before getting to Pest, I always make a trip of Margaret Island, where

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

sometimes it seems to me that I am admiring a picture of Monet: groups of kids lying on the grass, children playing, dogs running happily, athletes running along the side banks of the island, a different flowering for each season and .... the ‘fountain of music’ where, during the summer, I stop to admire its beauty for a few minutes, listening to classic notes or to modern ones. In my wanderings on the island, I’ve also discovered that the Hotel Danubius, which has kept intact a hall of the late nineteenth century, has a professional coffee machine decorated with majolica by Herend, of surprising beauty, which still makes a great espresso – a dive into the past with the quality of the present!

Pest for cyclists is fantastic, with its flat paths that wind among old buildings and new ones, with the large avenues crossed by trams and trolleybuses, with long paths along the Danube.

And, at sunset, when the light of the day goes down, the lights of the bridges, of the castle and of the Parliament are lit. The heart of Budapest is transformed into a Ville Lumière that you can embrace with your gaze and hold in your eyes. It is certainly one of the most beautiful images that I cherish and will cherish of this city – emotions that sometimes bring me back to the fascinating Istanbul, where I was Consul General. Budapest represents for me a bridge between Western and Eastern culture. It is as if ideally, we leave the spires ... for the bulb domes!

This is one of my favorite bike routes ... ecological and healthy. We should all work harder to reduce CO2 emissions. I am aware that not using the car in your free time may be of little benefit to the cause of pollution and climate change, but it is still a first step, a small contribution to the environment, a source of life for us and for future generations. Exercise is then fundamental for physical and mental health, while it invigorates our muscles, allows the mind to detach itself from everyday problems and breathe a sigh of relief.

In short, I'm thrilled to have rediscovered my passion for the bike that has so far accompanied me in a discreet and silent way without ever abandoning me – for which I'm really grateful!

23 2/6/19 1:46 PM

what's on GIRL WITH A PEARL EARRING AND OTHER TREASURES FROM THE MAURITSHUIS MUSEUM NETHERLANDS

FEBRUARY 16 URÁNIA FILM THEATER Discover the secrets behind one of the world’s most enigmatic masterpieces, via documentary films screened in English with Hungarian subtitles at the Uránia Film Theater.

‘Girl with a Pearl Earring’ by Johannes Vermeer is one of the most enduring paintings in the history of art. Even today, its recent world tour garnered huge queues lining up for the briefest glimpse of its majestic beauty - in Japan 1.2 million people saw the exhibition. Yet, the painting itself is surrounded in mystery. This beautifully filmed new documentary seeks to investigate the many unanswered questions associated with this extraordinary piece. Who was this girl?

Why and how was it painted? Why is it so revered? After its world tour, the ‘Girl with a Pearl Earring’ returned to the much-loved Mauritshuis in The Hague, the Netherlands, which has just completed extensive renovations.

Enjoying unparalleled exclusive access to this historical exhibition, the film takes the audience on a journey as it seeks to answer many of the questions surrounding this enigmatic painting and its mysterious creator, Vermeer. Using the recently completed and highly complex makeover of the museum as its starting point, the film goes on a behind the scenes detective journey to seek out the answers that lie within the other masterpieces housed in the collection. www.urania-nf.hu

BUSÓJÁRÁS (MARCH OF THE BUSÓS)

FEBRUARY 28 - MARCH 5, MOHÁCS, 160 KM SOUTH OF BUDAPEST Busójárás, a pagan Hungarian ritual, is the symbolic ‘burying’ of winter and the welcoming of spring. The annual, six-day fest involves folk music, dance and parades featuring the Busós, people wearing traditional masks and sheepskin vests or jackets as costumes resembling monsters from Hungarian folk tale heritage.

They usually carry large wooden noisemakers or cowbells, and make quite a racket. As a highlight of the march, the Busós make their way to the bank of the River Danube where they set afloat a coffin, containing a Busó costume. On the very last day of the festival, they burn another coffin on the main square of the town. The festival’s roots are based in the legend that many soldiers and locals allegedly escaped to Mohács Island after the defeat of the Hungarian army in 1526. They were able to drive the invading Turks away from their new home by dressing up in Busó costumes and masks; the Turks ran away in panic and fear. Busójárás has gone through changes in past years, losing some of its traditional elements. Yet, it has managed to preserve its basic symbolism. “The municipality of Mohács does everything to preserve these traditions for future generations, and not to let the festival turn into some wacky old bazaar,” organizers say. www.mohacsibusojaras.hu

WALKING WITH THE DINOSAURS - THE ARENA SPECTACULAR

APRIL 19, 20 AND 21 BUDAPEST SPORTS ARENA Seen by over 9 million people in more than 250 cities around the world, WALKING WITH DINOSAURS - The Arena Spectacular has arrived to Hungary. Be amazed and thrilled as the greatest creatures ever to walk the Earth return before your eyes. The dazzling USD 20 million production features new, state of the art technology, making this the biggest and best dinosaur show in the world. Internationally renowned designers have worked with scientists to create 18 lifesize creatures, including the Stegosaurus, Raptors, and the terrifying Tyrannosaurus rex!

Marvel at the story of their 200-million-year reign on Earth as the continents split and the show transitions from the Triassic to Jurassic eras. Watch them walk, hear them roar, and see their fight for survival and supremacy depicted in almost cinematic realism in front of you. Walking with the Dinosaurs is the mustsee live arena experience for audiences of all ages, so, book your tickets now… before they become extinct! www.livenation.hu

24 dt 2019 february.indb 24

F E B R U A R Y

2 0 1 9

|

D I P L O M A C Y

&

T R A D E

|

photos by

FEBRUARY 21-24 HUNGEXPO BUDAPEST FAIR CENTER This is the biggest boat exhibition in Hungary, the opening event of the sailing, boating and water sport season. The annual exhibition attracted over 8,000 people last year.

During the four days of this year’s show, up to 40 exhibitors will present their sail, electronic and motor boats, countless accessories, sail brands and services, along with the latest developments in boat engineering and boating accessories. This year, for the first time, the exhibition is organized in co-operation with the annual Travel Exhibition, featuring a great number of travel agencies, domestic and foreign tourism operators. Apart from Algeria, the foreign guest of honor, a handful of special guests will participate including India, Cuba, Morocco, China, Malta, Egypt, Vietnam, Italy and Indonesia. www.hungexpo.hu

DEPOSITPHOTOS.COM, PATRICK MURPHY/PRM DIGITAL PRODUCTIONS, URÁNIA

BUDAPEST BOAT SHOW AND TRAVEL EXHIBITION 2019

w w w . d t e u r o p e . c o m

2/6/19 1:46 PM

what's on GUIDO & MAURIZIO DE ANGELIS CONCERT STARRING TERENCE HILL AND KABIR BEDI

FEBRUARY 16, BUDAPEST SPORTS ARENA Guido and Maurizio De Angelis are among the most famous movie soundtrack composers in the world, credited for soundtracks such as ‘Sandokan,’ ‘Orzowei,’ ‘Around the World with Willy Fogg’ and ‘Zorro’. They have played all genres and their songs stormed the European charts. One of their flagship songs, ‘Santamaria’, for example, stayed at the top of German charts for several weeks in 1980. Under the name of Oliver Onions, they composed soundtracks for most Bud Spencer and Terence Hill movies, but their work did not end there: during their long career they worked and composed music under several aliases like Guido & Maurizio De Angelis, M&G Orchestra, Dilly Dilly and Oliver Onions. With this concert, the world-famous composer brothers would like to show their respect and say farewell to the recently deceased Bud Spencer, who was their personal friend. The soundtracks of famous movies such as ‘Watch out, we’re mad!’

‘They Call Me Trinity’, ‘Even Angles Eat Beans’, ‘Crime Busters’, Sheriff and the Satellite Kid’, ‘Banana Joe’, to mention only a few, will be brought to life during a big orchestra band concert in Budapest. World renowned Italian actor Terence Hill agreed to undertake the role of a patron for the charity auction that takes place during the event. The organizers will be auctioning an original, renovated Dune Buggy, one similar to that seen in the legendary movie, ‘Watch out we are mad!’.Terence Hill will announce the winner bid during the concert and the car will be presented ceremoniously to the highest bidder. Another world-famous actor, Kabir Bedi from the popular '80s series ‘Sandokan’ will also be a guest during the event. www.broadway.hu

KAORI ITO: I DANCE BECAUSE I DO NOT TRUST WORDS

FEBRUARY 21, TRAFÓ Kaori Ito was born in Japan and has been dancing since childhood. At age 20, she moved to New York, continuing her studies there and later in Tokyo. She was dancing with Philippe Découflé, James Thierrée, Angelin Preljocaj and Sidi Larbi Cherkaoui before choreographing her own work titled ‘I dance because I do not trust words.’

“This project will deal with the relationship between a father and daughter. I want to recreate a meeting with my father, to retrieve something, which is lost. A personal and artistic meeting, the meeting of two people separated by thousands of miles and by a sort of cultural distance,” the dancer says. www.trafo.hu

photos by

NAP MÉDIA, GREGORY BATARDON, MUSEUM OF FINE ARTS, ORA HASENFRATZ

MUSEUM+ EVENINGS AND SPECIAL EVENTS AT THE MUSEUM OF FINE ARTS THRU THE YEAR, MONTHLY Budapest’s Museum of Fine Arts offers numerous new ways of exploring – and learning about – fine arts. Discovering something unique and personal about a work of art is what makes it interesting and memorable to us. It is in this endeavor that the museum calls on other forms of art: dance, theater, literature, classical and pop music, fashion design, gastronomy, and countless other fields of art, within their framework of special programs, offering guided tours, workshops and many other activities. During the Museum+ evenings (on one Thursday each month), the museum opens its doors to those who would like to explore the old and new masterpieces of the permanent collection during evening hours. For the larger temporary exhibitions, special opening or ‘finissage’ events are organized. www.szepmuveszeti.hu

JÚLIA KAROSI QUARTET & BEN MONDER

FEBRUARY 10, MÜPA Júlia Karosi has been known as a defining figure on the Hungarian jazz scene for years now. This, despite the fact that her jazz career only took a serious turn after she had completed two Masters Degrees in liberal arts. In 2009, she founded the Júlia Karosi Quartet, whose repertoire consists mostly of her original compositions, a blend of classical music and modern jazz. Her latest album Bidin' My Time, released in September 2018, is a compilation of George Gershwin classics scored by Márton Fenyvesi and featuring the RTQ String Quartet. Júlia Karosi's 2014 album, Hidden Roots, released in New York, delves deeply into the relationship between her musical roots and jazz.

This exploration produced original compositions and Hungarian folk song arrangements, which received critical acclaim at home and abroad. Motivated by this success, Karosi continued her research into the deeply rooted culture of Hungarian music, where she found renewed inspiration at the source: the works of Bartók and Kodály. Since early 2018, she has worked on vocal arrangements of Bartók and Kodály through a scholarship from the Hungarian Academy of Arts. A selection of these works will be heard in her performance here. The final concert of the Jazz Showcase will also feature one of New York's most sought-after guitarists, Ben Monder. His original compositions, transcendental playing and unmistakable sound pair perfectly with the Júlia Karosi Quartet's style. www.mupa.hu

w w w . d t e u r o p e . c o m

dt 2019 february.indb 25

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

25 2/6/19 1:46 PM

gastronomy

MANGALICA FESTIVAL 2019 THE ANNUAL MANGALICA FESTIVAL TAKES PLACE ON FEBRUARY 8-10 AT BUDAPEST'S SZABADSÁG SQUARE WITH TASTINGS, PRESENTATIONS AND CULTURAL PROGRAMS. This program was launched in 2007 and immediately won the hearts of Budapest citizens. The fest traditionally celebrates the curly-haired mangalica pig, a Hungarian heritage breed, alive and...well, prepared. Visitors can taste a variety of products, including hurka (blood or liver sausage), kolbász (sausage), pork stew, cracklings and everything imaginable (and beyond) made of mangalica pork. The festival also offers cultural programs to entertain all, including arts and crafts fair and concerts.

About the breed The breeding of mangalica began in Hungary in the first decades of the 19th century when two boars and two sows arrived from Sumada, Serbia. These hogs were then used for cross-breeding hogs from Szalonta and the Bakony. The result was a smashing success and the mangalica was bred almost exclusively in Hungary at the end of the 19th century. This shining period was ended by the Second World War. The endless massacres did not spare the pigs. Pig farms were destroyed one after the other during the bombing raids. However, the post-war reparation shipments caused even more damage in the mangalica herd than the war losses. In the 1960s, the number gradually decreased and the mangalica virtually vanished by the ‘70s as its number was only about 200 – worldwide. Today, the number of mangalica hogs is over 10,000 – thanks to the enthusiastic breeders, who have done their best since the early 1990s to ensure the survival of this breed.

Why has the mangalica become the symbol for healthy meat consumption? www.mangalicafesztival.hu kempi-D&T-20for30-127,5x160-201902:Layout 1

1/28/19

Its meat contains as much cholesterol as that of other types of hog but – as you can read on the web site of the Hungarian National Meat Industry Research Institute – it contains a considerable amount of 3:18 Omega-3 PM Page fatty1acid. Of course, it is healthy only when the meat is consumed moderately.

20 for 30 An exciting but unexpected event?

A presentation due next week?

A management meeting?

Team building in a show kitchen left to the last minute?

Consider it done. If you pick the right location. Kempinski Hotel Corvinus Budapest’s experienced event team is right with you. Even if you have less than 30 days to execute the brief. Request a quote now and receive 20% off.

The offer is valid for inquiries made no later than 30 days to the proposed date of the event, availability permitting.

It must be a new event booking, taking place until 31 March 2019.

Please check the rates on kempinski.com/budapest.

FOR MORE INFORMATION, CONTACT US ON MEETINGS.CORVINUS@KEMPINSKI.COM

photos by DEPOSITPHOTOS.COM

OR +361 429 3571

26 dt 2019 february.indb 26

F E B R U A R Y

2 0 1 8

|

D I P L O M A C Y

&

T R A D E

|

w w w . d t e u r o p e . c o m

2/6/19 1:46 PM

wine Back in 2011, the Hungarian wine community was focused on Péter Vida who received the prestigious ‘Winemaker of the Year’ award. The following years were relatively quiet in terms of publicity but behind the scenes, the Vida family was rather busy. Important long-term decisions were made and the vineyards were replanted in accordance with their new strategy: to make wines, which express the true Szekszárd terroir. The final piece of the jigsaw will be put in place this year with the completion of the technology overhaul. The stage is finally set to produce exquisite wines for Hungarian wine stores, fine dining restaurants and the expanding international markets.

New labels

WINE BOTTLES WITH STORIES TO TELL

VIDA WINERY LAUNCHES NEW LABELS, NEW IMAGE AND A REVISED PORTFOLIO

“Our goal is to promote the idea that the genuine Szekszárd wines are the ones which are elegant and welcoming. We found that Spanish graphic designer Xavier Bas, who has assisted in the development of several iconic brands over the years, has the same commitment to his job as we have to ours. We have worked together for almost exactly a whole year starting last January. He visited us in Szekszárd to get to know our family, vineyards and wines and to find out what the ‘Szekszárdian spirit’ is about,” says Péter Vida Jr. It’s not just the bottles that have new labels but the complete Vida image has changed; there is a new logo and the product line has been revised.

The basic supermarket line, the so-called ‘Fairy-wines’ are light and refreshing, made in a popular style with an instant appeal. The terroir line is made up of kadarka, kékfrankos and bikavér, as these are the types which best express the elegance and the unique character of the Szekszárd terroir. These wines come in the special Szekszárd bottle.

There is no change at the top of the range: the flagship wine of the winery remains the La Vida blend made only in exceptional vintages.

Bonsai in Szekszárd

Xavier Bas Disseny is a Barcelona-based branding and packaging design agency founded in 1998. The agency specializes in projects in the F&B sector and counts wineries and distributors in the world of wine and beer among its clients.

“As well as to identify a wine, a label needs to stir our imagination and our emotions,” the designer believes. “The label must appeal to us, speak to us on behalf of the wine, showcase it, make us keen to try it and ultimately seduce us. A label or range of labels is a powerful communications medium for launching and introducing brands into their market, enabling them to compete effectively.”

photos by VIDA

FAMILY WINE ESTATE, CSABA FARKAS

Some years ago, the Japanese distributor of Vida wines came to visit the estate and wanted to see the vineyards. He noted that the gnarly centenarian kadarka vines reminded him of bonsais.

“A kadarka plantation from 1920 is extremely rare and is of special value in itself. Quite often, we literally have to kneel in front of the rootstocks to prune them as these are ancient bushtrained vines. The image on the label – a mix of a bonsai tree and an old vine – aims to convey the sense that the wisdom of the plant is bigger than that of humans even if it is diminutive in size,” says the founder of the winery Péter Vida Sr, adding that this story inspired Xavier Bas to choose the label of Kadarka to be the most striking label of the portfolio. The new labels were introduced in mid-January both in Hungary and abroad.

ABOUT THE DESIGNER

w w w . d t e u r o p e . c o m

dt 2019 february.indb 27

|

D I P L O M A C Y

&

T R A D E

|

F E B R U A R Y

2 0 1 9

27 2/6/19 1:46 PM

­­c c.

WHICH WIIINGS SUIT YOU? NEW

28 LRB_1819-2_280x360_Flügelmacher_sajtó_ENG.indd 1 dt 2019 february.indb 28

F E B R U A R Y

2 0 1 5

|

D I P L O M A C Y

&

T R A D E

|

w w w . d t e u r o p e . c o m

2019. 02. 05. 11:13 2/6/19 1:46 PM