The Provider of Quantifiable Services

CzechTrade is the state export promotion agency of the Ministry of Industry and Trade of the Czech Republic. Its aim is to develop international trade and cooperation between Czech and foreign companies. The Director the agency’s Budapest office, Dóra Egressy tells Diplomacy&Trade about the scope of their activities in Czech-Hungarian business relations.

As the Director explains, “CzechTrade is here to help businesses primarily on a B2B basis which means we are supporting Czech companies to meet their new Hungarian partners or distributors on many levels. From finding the right contacts to organizing face-to-face meetings through being present at various fairs organized in Hungary, we do all our best to get the deal done. We also help Czech companies grow their B2C activities, for instance, by developing strategies to improve the visibility of the brand in Hungary or by connecting them with agencies that can help with digital media campaigns, PR activities or advertisements.”
Another part of the agency’s activities aims at helping Hungarian companies to find their Czech supplier. One process involves submitting a detailed online enquiry of the service or product, which CzechTrade distributes via newsletters and webpages. “As a next step we proactively call the potential suppliers with the offer. In case of a bigger project, we can organize a Sourcing Day, when we first help to find and pick the right companies and organize a one-day meeting in Prague with the buyers of the Hungarian company on one side and the potential Czech partners on the other. We have many references, like MOL or GE in Hungary, Jaguar Land Rover or OBI abroad. We provide these foreign enquiries free of charge,” she adds.

Connecting business partners
Focusing on Czech companies willing to do business in Hungary, the first step is to fully understand the company’s activity, the product or service they would like to introduce and also their aim on the foreign market, the Director points out. Most of the time, the market entry strategy is built on finding a suitable partner or distributor. “Thus, we prepare market research to find the possible business partners. After approval from the client, the next step is to find out which companies are open to cooperation and to arrange face-to-face meetings or videocalls, including translating or interpreting services if needed. Also, for companies who intend to step onto the Hungarian market, we offer a possibility to reach out to the sector at various fairs and exhibitions (AgroMash, Construma, SIRHA, Industry Days) utilizing our agency’s booth. This is something a lot of companies take advantage of.”

In addition to this ‘core business’, CzechTrade constantly monitors the needs and expectations of the companies, alongside with the actual global challenges and adapts its services accordingly. The new service ‘Digital Marketing’ focuses on the localization of the online platforms and e-selling capabilities of a given company. “Another service that we offer is the Export Incubator, which will help companies get introduced to the local business and legal environment right in the given territory. We have two such running projects launched recently: one in Chicago and one in Bangalore but we will have new ones soon. Another of our services is connecting companies with designers in the frame of Design Center CzechTrade. The follow up is also very important to us. We are not losing contact with the client at the end of the searching process. We keep in contact, follow the developments and are ready to step in to help once again if needed,” she says.

Bilateral business
“Hungary is in a great position when considering Czech exports. It is easily accessible and despite of the two very different languages, both sides are open to cooperate in many different business areas. The main areas of the bilateral trade are in the automotive and electronics industries, but in my experiences, the FMCG sector is also high on this list, along with machinery, construction and various services. There is rising level of cooperation in the defense industry and in the energy sector as well. Our newest enquiries in Hungary’s direction are the IT sector, e-commerce and companies with sustainability and smart solutions,” Dóra Egressy highlights.

As for major players in bilateral economic cooperation, she emphasizes that “luckily, we can find a Czech company in literally every segment in Hungary. We can definitely mention several success stories like that of RAVAK, Alukov, SAPHO, LIKO-S and CPI Group in the construction industry, Alza.cz, operator of the Alza.hu e-shop, Kifli.hu (part of Rohlik Group), DODO and NOTINO from the e-commerce field, Peterka & Partners, Gordia, ASB Group, Akcenta, or RENOMIA for the legal, financial and insurance services sector, all the Czech beer and spirit companies, brands like Pilsner Urquell, Bernard, Postřižinské, Becherovka or Bidfood, Emco, Crocodile and Mattoni 1873 in the food industry. When we see a Škoda car, a trolley or bus by Ganz-Škoda (Škoda Transportation) it is easy to associate with the Czech Republic. However, only few people know, that, for example, the benches on Kossuth Square or in Millenáris Park in Budapest are made by mmcité, the manufacturer of carefully designed street furniture. Or that the huge chandelier that decorates the lobby of the Budapest Four Seasons Hotel is made by Preciosa. When you next dial a Yettel number, bear in mind that it is in Czech majority ownership as well, as the main owner of the telco company is the PPF Group.”
Regarding successful Hungarian investments in the Czech Republic, the biggest ones are MOL Česká Republika s.r.o, Innogy (subsidiary of MVM), Egis Praha s.r.o and Gedeon Richter Marketing ČR, or Delpra representing Pick Szeged.

City For the Future
The CzechTrade office in the Hungarian capital was reopened in 2010 and the Director stresses that “there have been many highlights very close to our heart. Certainly, the ‘Nice to MEAT You’ cooking shows organized with Bidfood Hungary, are among our favorites, just as the Czech-Hungarian legends’ ice hockey match in 2015. In the past 3-4 years, we started to focus more on the topic of sustainability and smart city, entailing that together with the Embassy of the Czech Republic in Hungary and the Ministry of Industry and Trade of the Czech Republic, we have created a wonderful project, ‘City For The Future’ which debuted in Hungary at the Civitas Sapiens Conference in September 2021. Our top event in Hungary so far has been on this theme as we organized it – together with the National Assembly of Hungarian Municipalities (TÖOSZ) –, at the HUNGEXPO fair site in Budapest in May this year, hosting almost 500 participants. ‘City For The Future’ is growing internationally as you could see such an exhibition at the DUBAI EXPO in January and in Barcelona Smart City Expo World Congress this November as well.”

Quantifiable value of services
In conclusion, Dóra Egressy notes that Hungary, being the ‘Honorary neighbor of the Czech Republic’, has been an enticing export destination for Czech companies for a long time – so has the whole CEE region. “Just as for Hungary, for the Czech Republic, Germany is the number one foreign business partner. Our network of 49 offices is divided into nine regional centers out of which the CEE, including Hungary, Poland, Austria, Germany and the Benelux countries.

Spiraling trade figures
In the past 12 years, the cross-border turnover of goods rocketed from EUR 4.4 bn to a record high EUR 10.9 bn while in the period from January to September this year, the cross-border turnover reached EUR 9.5 bn, “thus, there is chance that we can celebrate a new record this year. Hungary is the 10th most important foreign trade partner for the Czech Republic,” Dóra Egressy notes.