Professional advisors in a challenging environment

The Deutsch-Ungarische Industrie- und Handelskammer (German-Hungarian Chamber of Industry and Commerce – DUIHK) looks back at a history of over two decades. Diplomacy & Trade carried a recent interview with the President of the Chamber, Dale A. Martin.

“Our main focus is the continuous professional support of German and Hungarian companies in their daily business,” the President of the Chamber Dale A. Martin tells Diplomacy & Trade.

He adds that “in the early years of the Chamber, when Hungary was just starting its transformation into a market economy, we primarily provided reliable information and advice on laws and regulations, customs and similar issues. With Hungary joining the EU, our activities shifted towards more sophisticated services, from pre-qualifying potential business partners through assisting new investment projects to wide-ranged consultancy in the field of HR and vocational training.”

There are, however, some permanent tasks like advocacy, which include assistance for companies in specific cases as well as providing professional information to lawmakers and administration officials regarding the general business environment from the perspective of companies. “I believe that in all of these areas we do have a track record and we are widely regarded as a professional, fair – I trust also unbiased – and reliable partner for both the Hungarian and the German sides.”

Services

Currently, DUIHK counts about 900 members, which makes it by far the largest bilateral business organization in Hungary. The Chamber comprises a number of well-known Germany-based international companies, but the bulk of members are medium-sized, which is reflected in the service offered to them. These services are designed to match the practical needs of the firms in their daily activities.

“We provide detailed information on specific market segments, help to find and pre-qualify potential suppliers or distributors, and advise new market entrants on legal, taxation or market issues. A very popular service is the cross-border reimbursement of VAT within the European Union. Last, but not least, we run our own education division, which organizes numerous training courses for companies and which now also plays an increasing role in the establishment of vocational training systems within Hungarian companies,” he points out.

The President believes one of the most important benefits of becoming a member of the Chamber is the large international network that may be converted into tangible results for a business. This network ranges from an extensive political and business background in Germany through intense relations with the Hungarian administration, to the top managers of individual member companies.

“This network not only enables us to support our members in specific affairs, but also to advocate general interests of the business community through multiple channels. Beyond this networking aspect it is self-evident that member companies are our first choice when it comes to offering business opportunities or providing more visibility. Last, but not least, we offer financial advantages to our members within our ‘member-to-member’ program.”

Best practices and feedback

There are presently three active working groups within the Chamber (Vocational Education, Healthcare, and Supplier Development). The President points out that these working groups are based on the same philosophy as the organization’s services portfolio, i.e. to deal with matters of practical relevance to members.

“At present, the reform of the vocational training system and the support of the Hungarian SME sector are priorities not only within our membership, but also for Hungarian policy makers and the economy as a whole. Both areas are essential elements for the future competitiveness of the country. Given their German background, our members have continuously made efforts to improve the professional skills of their staff. Our working groups consider two aspects: to identify best practices among interested companies on the one hand, and to provide empirical feedback on legislation and regulations on the other hand. This also applies to our supplier development group; after all, any additional longer term relationship in this area benefits both the German companies and the Hungarian economy as a whole.”

Rivalry and cooperation

There is said to be a rivalry between the different chambers of commerce as memberships are more and more based on interests rather than nationality. Dale A. Martin points out that “we have always focused on the interests of the business community, and are by definition and in spirit a bilateral chamber. All of them have their individual core activities and services, even if there might be a certain overlap in the membership. Furthermore, we traditionally maintain good relations with other major chambers when it comes to general issues of the economic environment in Hungary. We consider two requirements as crucial: our services should be relevant and useful to many members and they should be of excellent professional quality. I trust that if we manage to keep these standards we will remain a well-respected, professional advisor and service provider to our members as well as to our partners in both countries.”

Reliability and predictability needed

The DUIHK publishes several reports reflecting the state of the Hungarian economy. As to what the members of the Chamber think about how things are going in the Hungarian economy nowadays, the President notes that their membership is active in nearly every industry and service sector, therefore a common denominator is not that obvious. However, the DUIHK reports and surveys show a common approach in some important areas.

“A key message is that investments need a reliable and predictable environment and we emphasize economic policy and legal aspects. In this area, we have seen some progress in recent years, but there is still a lot to be done. It is important to emphasize that there is permanent and fierce competition around the globe for investment, especially for foreign direct investment and well-skilled staff. This competition requires continuous efforts to improve the investment environment. Regarding current economic trends, Hungary’s performance has improved, however it is important to be able to differentiate between one-off effects and underlying, long-term structural improvements,” the President points out.

Dale A. Martin has been DUIHK President since May last year. “When I was given the trust to chair the Board of the Chamber, one of my objectives was to raise the participation of our members in the activities of the organization. I’m convinced that the member companies represent a huge potential in terms of leadership experience, economic influence, and technological know-how. This potential could be better utilized for the sake of the whole community. Therefore, I try to activate our working groups and include the general membership in certain activities; moreover, I believe that intensifying the dialogue between our members and officials of the Hungarian administration is important in a rather challenging environment.”