Introduction Introduction in to thein to the WestWest - - Pannon Pannon RegionRegion

András VissiAndrás Vissi

West-Pannon Regional Development AgencyWest-Pannon Regional Development Agency

- Hradec Králové, 15. November 2005 - - Hradec Králové, 15. November 2005 -

West - Pannon RegionWest - Pannon Region

Zala

Vas

Győr-Moson-Sopron

Population: 1 millionArea: 11 329 km2

THE WESTTHE WEST-PANNON-PANNON REGION REGION• Open Borders 4 countries and speaks 7

languages

• Gateway to Europe 60% of transport and goods leaves Hungary here

• Innovation paradox GDP is not all: No. of researchers half of national average

• Prepared Has wide experience in EU assisted program

implementation

Why the region of initiatives?Why the region of initiatives?

• Dynamic economic development (60% of EU 25 GDP)

• Outstanding foreign capital involvement

• Open economy, steadily growing and quality export

• Highly qualified workforce, high employment rate

Business landscape overview Business landscape overview

in the rank of GDP per capita West Pannonia is the 2nd

Győr-Moson-Sopron 2nd, Vas 4th and Zala 6th in county

order

industrial production since 1991 tripled

the highest economic activity is in Vas – 42,8% of actives

within the total population, in Zala the lowest with 38,5%

the level of unemployment never exceeded 10%, however

there are significant differences within the region

Pro’s forPro’s for the the region region

geographic location – Austrian, Slovenian, Croation and Slovakian border

quality of the human resource

high level of economic activity, low level of unemployment – app. 6%

relatively balanced economic structure – employment: 4% in agriculture

43% in industry and 53% in service sector

with respect to GDP after Budapest the most advanced region

high ratio of foreign investment

various touristic attractiveness is guaranteed by thermal water, natural

environment, wine and gastronomy, cultural programs, traditional values

Con’sCon’s the modern, business-related vocational training suffers

weaknesses

lack of integration of education institutions on regional level

despite of low unemployment, threat of companies leaving is valid

though in Hungary GDP is high, it is far behind EU average

low integration of multinationals into local economy

R+D level is low, within Hungary as well

average salary level is only 90% of national average, irrespective of

high GDP

differences within the region are significant, both economicly and

socially

SSectoral profileectoral profile

role of agriculture further decreased, from 7% in mid90s to 4% in 2002

in industry the cheap labour based companies left, or leaving

within the industry food and light industries were devaluated

machinery industry gained share, in Gy-M-S the car manufacturing, in

Vas machinery parts, communication technical manufacturing

in food industry meat processing, dairy and beverage branches are significant

chemical industry started heavily based on CO2 resource in Vas

in wood processing the ASZTALOS branch is strong

textile industry is fragile, as it is based on cheap labour force costs, suffering

from decline

9400 Sopron, Új u. 12. Tel.: 99/512-910 Fax: 99/512-919

9700 zombathely, Kőszegi u. 23. Tel.: 94/509-350 Fax: 94/326-147

Employment of branches 1990 - 2001

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 %

Győr-M.-S. 1990

Zala 1990

Agriculture Industry Service

Vas 1990

West Pannon region 1990

2001

2001

2001

2001

TourismTourism profile profile tourism is decisive, 2/3 of settlements is related to tourism, 8 out of 26

national touristic regions is here

thermal tourism is the most important, Zala leading, spas in 22 settlements,

with internationally competitive service level

healing spas: Balf (Sopron), Bük, Győr, Hévíz, Kapuvár, Lenti,

Mosonmagyaróvár, Sárvár, Szeleste, Zalakaros , thermal spa in further 12

settlements

77 settlements belong to wine regions, the most important ones are

Pannonhalma, Sopron, Somló, Balatonfelvidék – wine routes, wine festivals

and celebrations

Bicycle tourism is also significant, 300 km road-surface, more than 20% of

the total national

Central East European concentration Central East European concentration of OEM’sof OEM’s (car and engine plants)(car and engine plants)

100 km 200 km 300 km 400 km

By 2006

• Approx. 4-5 million cars in CEE

• Approx. 900.000 cars within 120 km of Györ

• Approx. 3.5 million engines within 300 km of Györ

• Approx. 2.5 milion enignes within 160 km of Györ

?

Pannon Business InitiativePannon Business Initiative

Objectives: The development of industries with

competitive advantage in the region into networks,

The creation of new integration contacts, The definition of regional economic priorities

for the distribution of government support, The compatibility of clusters operating in the

region.

Clusters in the regionClusters in the region

Automobile industry – Panac

Machinery industry – Chamber of Commerce

Thermal and spa tourism – Thermal Cluster

Wood industry – Wood cluster

Local products cluster

Textile cluster

Thank you for your Thank you for your attention!attention!