Budapest is known as the "Pearl of the Danube," functioning not only as Hungary's largest political, economic, and scientific hub but also as a leading, dynamic center for R&D and innovation in Central and Eastern Europe, regularly ranking among the Top 100 Global Emerging Ecosystems. High-value-added and high-tech industries like biopharmaceuticals, a well-established medical technology sector, telecommunications, and a vast worldwide Shared Services Center and Business Services (SSC/GBS) ecosystem are the main drivers of the city's economy. Notably, leveraged by an exceptionally competitive business environment featuring the lowest corporate income tax rate in the EU at only 9%, Budapest acts as a powerful magnet for global FDI inflows, while emerging as a vital logistics and next-generation smart automotive industry hub.
Former Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong receives Mr. Janos Kendernay - Photo: Electronic Information Portal of the Ho Chi Minh City Party Committee
Through commerce lanes, high-level delegation exchanges, and intellectual connectedness, the two communities' cooperative accomplishments have shown to be extremely useful over time. The relationship channels between Ho Chi Minh City and Budapest have consistently reached significant milestones thanks to the strategic support of the Hungarian Investment Promotion Agency (HIPA) and bilateral friendly promises. High-quality resources have continuously supported Ho Chi Minh City's technological advancements, including experience-sharing programs in urban governance, collaborative research in science and technology applications, specialized healthcare, and the promotion of cultural and UNESCO World Heritage exchanges from the capital, Budapest.
In order to draw in direct investment, share governance expertise, and establish strategic alliances with partners from the City of Budapest in five crucial areas, Ho Chi Minh City is growing its networks of partnerships, especially in light of its recently expanded sustainable development space:
1. High Technology, Digitalization, and Artificial Intelligence (AI): Promoting joint research, the transfer of core technologies and AI solutions, and attracting software enterprises from Budapest to invest in the City's digital ecosystem and smart automotive sectors.
2. Pharmaceuticals and Biotechnology: Partnering in technical alliances, and transferring research and production solutions for specialized medicine and pharmaceuticals in accordance with international standards from Budapest's major conglomerates.
3. Smart Cities and Green Infrastructure: Attracting enterprises to collaborate on constructing digital infrastructure, optimizing modern urban planning and management solutions, and developing sustainable living spaces.
4. Eco-Urban Development and Redevelopment: Adopting practical experiences and implementing models from flagship European mega-projects like the Liget Budapest Project to perfectly re-engineer green, climate-resilient living spaces.
5. Scientific, Technological, and Innovation Cooperation: Building sustainable connectivity models between leading universities and tech enterprises and developing eco-science parks to serve as knowledge nuclei.