General informations of economics
Sátoraljaújhely Industrial Park   Suitable properties for investition
Carpathian Border Region Economic Development

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.

We continually gather and arrange information on the investment and co-operation opportunities within the framework of the PR program.  Several presentations, publications, a CD-ROM and a video film have been made and you can browse our website www.zemplen.hu. We also host investors' forums and organize study tours to the region. As a tangible result of our regional development and economy improvement activity, several domestic and foreign investors have settled in the area, but there is a great number of additional opportunities to   realize.

Dear Sir/Madam

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.

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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 four 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 for the following reasons :

Small areas in Zemplén and titles for funds :

A= region underdeveloped socially and economically
B= area of industrial reconstruction
C= area of agricultural development
D= area struggling with permanent and high rate of unemployment

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 Sárospatak 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 region of Abaúj and Szerencs. 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 shopping and thermal tourism done by Slovakian and Polish 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. There is a Satellite-exchange branch office of the MATÁV Rt.

( Hungarian Telecommunication Incorporated ) established in Szerencs.

It offers opportunities for direct dial calls within the area with a code No. 47 and available in the whole area including the least populated villages and suburbs.

The expanding network of telecommunication makes ISDN services as well as access to Internet available, too.

As for gas service, it was installed gradually and adjusting to local demands in settlements of the areas of Abaúj-Hegyalja, Tokaj-Hegyalja and Hegyköz implemented by the Zemplén -Abaúj Kft. ( Gas -Works Ltd. ) A gas network passing through the Tisza River was completed in the areas of Bodrogköz and Taktaköz previously.

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 3 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 are two significant results realised. The Bartók Inter City Train running between Frankfurt and Debrecen, stops in the town of Tokaj. Moreover, a railway line that links settlements of the Abaúj-Hegyalja areas to Szerencs was not failured.

There is an ”excursion narrow-gauge railway line” that serves tourism purposes and runs between the settlements of Pálháza and Kokapu. Its further development by utilising construction works of the railway line used to operate but failured between Sátoraljaújhely-Kenézlo-and Zemplénagárd can also make transportation available as far as the town of Sátoraljaújhely as a first step and it may start on entrepreneurial basis.

More outstanding access to the region is served by building a temporarily running airport covered with grass. It is situated in the outskirt of the town of Sárospatak having a runway and hangar already completed and making private planes with four seats available either to take off or to land under appropriate weather conditions ( hunting tourism ).

There are pleasure boats currently running on the Tisza and Bodrog rivers that are available for visitors travelling as far as Sárospatak.

However, intermediate ports have already been built e.g. at Bodrogolaszi. The tours are usually organised by the Tokaj Tours.

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

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Tax advantages

• Complete tax exemption for big investments.
• Complete tax exemption for regional investment after their
  value regardless to type of business.
• Preferential taxation in the form of tax retention.
• Provision for one-sum depreciation depletion after tangible assets.
• Accelerated depreciation of buildings.
• State subsidies through central funds and allocated sums.
• System of invitations for tenders co-ordinated by the County
  Council for Regional development :

- non-repayable and repayable support, preferential loans.
- long-term preferential loans for development.

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