ENTERPRISE AGENCY - ZEMPLÉN EUROPEAN HOUSE

Regional and area development progrmme
Zemplén Enterprise Zone

One of the basic principles for our succesful work is to provide optimal condititons for enterperneurial and investment activity, so we consider the active participation in the regional development progrmme's essential. Since 1996 we have been elaborated area-development office to help for local governments and for its area-development association's work, we elaborate the area and economic-development programmes and plans, and we operate an investment urging activity.

In 1998 our region's ukrainian and slovakian area received special economic area status from Hungarian Government as a result of economic and area-development activity. The Zemplen Enterprise Zone has been designated, so we perform its manager activity. The Zemplen Enterprise Zone extend to Sárospatak and Sátoraljaújhely city and its administrative area. Nowadays in Hungary the enterprise zone provide the best possibility for financial assistance and taxation conditions for investors and enterprises.

We took a part in Industrial Park of Sátoraljaújhely's establishment, and in winning of industrial park title. Our organization perform the managing activity of industrial park by local government commission from 2004.

As a manager organization of industrial park we made prezentations, publications, and multilingual - hungarian, german, english,- installation subject-matters, CD-ROM, videofilms, and we organized investment forums. The investment and cooperation compilation's aim is to show this region's supply for investors and enterprises, and to mediate the investent possibilities and to utilize the built spreading possibilities.

As a result of our area and economic development activity, the national and foreign investors settled in this region, but there is several possibility for realization.

Small areas of Zemplén region and titles for funds:

Further information of the small areas >>

General informations about Zemplen Enterprise Zone:

Dear Potential Client,
Dear Investor,

The border region of Borsod-Abaúj-Zemplén county neighbouring with Slovakia and Ukraine was designated a 'Special Economic Zone' by the Hungarian National Government in 1998. The Zemplén Enterprise Zone covers the administrative area of Sárospatak and Sátoraljaújhely along with the adjacent 52 other settlements in the region.

The category of 'enterprise zone' represent the best available subsidy and taxation conditions for those interested potential investors and businesses. As the managing organisation of the enterprise zone the Zemplén Regional Enterprise Development Foundation elaborated a public relations strategy for the zone as early as the year of launching the zone with the aim of informing those interested about the natural and man-made values, as well as the investment and co-operation capability of the region.

This particular publication is an attempt to provide information to you about the current investment opportunities in the enterprise zone. We are convinced that this particular region of Hungary with its outstanding traditions and valuable facilities as well as the available qualified workforce and the well-operating routine of the cross-border economic co-operation will make it a promising target area for you to invest.

Our Foundation is ready to provide additional information, organize personal site tours and negotiations or manage programs so as to serve the interests of the potential investors and to successfully implement the regional development program of the Zemplén Enterprise Zone.

István Juhász
managing director

General survey

Economic and social process of changes in the 1990s boosted differences within certain regions as well as counties. A statistical small area system covering the whole territory of the country was developed by the KSH (Central Statistical Office). While designating the districts several relations available among settlements such as work - force attraction, transport and other provision services were considered.

Based on this statistical system the Hungarian Government designated small areas entitled to gain support in the system of area development. It was done in accordance with the indexes applied in the European Union (NUTS.III). There are altogether three statistically small areas with settlements indicated in the table below that are situated in the Zemplén region. Each area can apply for regional development funds.

On the basis of the governmental regulation it can be stated that statistical adjacent areas of the Zemplén region are all underdeveloped territories. Except for the Bodrogköz region each can be described as a area of agricultural region development with permanent and even high rate of unemployment.
The economy of the region in the 1990s was characterised by having significant recession. Its simple reasons were crises of steel and machinery industries of the Borsod industrial region resulting in unemployment of a great number of work-force commuting from the regions. Owing to the collapse of the Comecon market local companies specialised in machinery industry and even their deliveries underwent a crisis, a failure or rationalisation of production followed the privatisation in the towns of Szerencs, Sárospatak and Sátoraljaújhely. Agricultural production in the disadvantageous rolling countryside and even on territories with inland water was also striving against economic decrease. This situation was intensified by compensation and even by legal modification of co-operatives. The crisis of wine - production in the Tokaj -Hegyalja region was primarily influenced by a strong decrease in the huge amount of Soviet export. It is still overproduction that characterises the wine-growing region.

The registered rate of the unemployed being approximately 20% is significant in the whole region. As for age-allowance, pre-retirement, pass out from frequent pension and even from getting unemployment benefit rate of unemployed can be considered over the double of the rate mentioned previously.

Both economic crisis and isolation induced continuos migration in the region. It is to be feared that depopulation might reduce tourism in so far as village-country service and hospitality regress since the small number of local inhabitants.

However, there are several outstanding observable incidences in the social and economic life of the region: reintegration of the region into the circle of developed countries is guaranteed by companies built on local resources and owned by European and American investors as a result of privatisation and green field investments. The derivative advantage of privatisation is that foreigners with local interest, having been acquainted with tourism - related opportunities of the region will return to Zemplén with the company of their friends.
We can experience initial signs of booming in national tourism. It is such a significant issue since we can not speak about tourism development without having high standards of national tourism.
It is the combination of conference and thermal tourism, hunting tourism done by visitors that can be considered as a special type of tourism in the towns of Sátoraljaújhely and Sárospatak.

It is also a positive condition that there are plenty of natural resources relatively available in Zemplén combined with entrepreneurial skills and willingness of its inhabitants all resulting in economic development.

The issue of infrastructure is also characterised by favourable tendency in the region. The expanding network of telecommunication makes ISDN and mobil services as well as access to Internet DSL and RadioNET available, too.
As for gas service, it was installed gradually and adjusting to local demands in settlements of the almost all territories. In general, drinking-water supply is completed, however sewerage networks are only installed in towns.
As for the infrastructure of transportation we can witness developments for the following reasons. Access to the region has been significantly improved by building the Tisza bridge at Cigánd, which is situated in the area of Felso-Tisza. The northern part of Hegyköz (Hollóháza) was linked to the valley of the Hernád River and to Motorway 3 through the town of Kéked by building a new public motorway available. Redevelopment of the arranged Motorway M3-M30 in the direction of Miskolc and Nyíregyháza can still improve access to the region.
On one hand absence of electrifying the railway section between Sátoraljaújhely and Mezozombor is still extreme issue of railway transportation since exchange of engines increases running time of train services. On the other hand there is one significant results realised. The Inter City Train running between Sátoraljaújhely and Budapest three times a day.

It is the so called Zemplén Enterprise Zone Programme expanding to statistical districts of Sátoraljaújhely, Sárospatak and Bodrogköz that can boost economic development in the region via investment concessions available and in the sector of investments and tourism.

Small areas of Zemplén Enterprise Zone and titles for funds:

Tax advantages

• State subsidies through central funds and allocated sums.
  
• System of invitations for tenders co-ordinated by the Regional and County Council for Regional development:
  - non-repayable and repayable support, preferential loans.
• Long-term preferential loans for development.

Rules >>
Additional information from the enterprise zone >>