Subchapters:
- Introduction
- Addressing
- Business Meeting
- Communication
- Recommendations
- Public Holidays
Introduction
Hungarian business conduct is based on European standards of conduct. You need to prepare well for the meeting, know the market situation, have all the necessary certificates ready, references are an advantage.
Addressing
Reaching out to market partners requires a lot of attention and preparation. We recommend contacting the company’s top management, including employees responsible for the purchase of goods or services. Addressing partners should be an email in the first step. We recommend attaching a presentation of the service or product (in English or Hungarian), price lists, a list of obtained references, etc. If they do not respond within 1-2 weeks, you can remind them. The Czech export support agency PaulTrade operates in Budapestactively searches for export opportunities, can translate a letter of appeal or a one-page introduction of the company, address selected business partners, can obtain verified business contacts, verify interest in the offered product, help with product presentation, provide assistance in establishing a company, organize participation in selected exhibitions, etc. PaulTrade focuses on the B2B area.
Export client center was established in October 2014 as a joint project of the Ministry of Foreign Affairs of the Czech Republic, the Ministry of Industry and Trade and the PaulTrade Agency with the aim of providing Czech entrepreneurs with quick and practical help with their expansion into foreign markets. The services provided include, for example, consultation on investment and export plans, information on export news and opportunities, planned professional and territorial seminars and events directly on foreign markets, etc.
Individual Czech companies can contact the embassy with a request for assistance in preparing negotiations, mediation of relevant contacts, obtaining the necessary information from various authorities, providing assistance in negotiations with the state administration, etc. The embassy focuses on the B2G area.
For a simpler procedure, we recommend contacting a local verified representative who knows the market well and has already established wider relationships.
Business meeting
Successful trading requires a professional approach, flexibility and offering goods or services of the highest level. If there has already been a successful e-mail communication between Czech traders and Hungarian partners, you can proceed to the first meeting. Instead of the first meeting, we recommend the business partner’s office, or it is possible to invite him to a restaurant for lunch. Exchanging business cards is a matter of course. If you bring him a gift, he will be delighted.
The business dealings of Hungarians are characterized by good preparation, a well-thought-out strategy and tenacity. If a Hungarian sits down to a business meeting, he expects to reach an agreement with his partner. He is willing to make compromises that he has prepared in advance in the variants. Hungarian traders have an overview of the market situation, prices and competing companies. He talks openly about problems. It should be taken into account that they often require the provision of exclusivity.
Punctuality is usually a matter of course for a Hungarian. If the given word could not be kept for various reasons, the Hungarian prefers to provide information or an explanation, possibly calling for a new negotiation in time.
Personal contacts and visits are important for Hungarians. They are open, but trust has to be earned.
The use of titles in addressing is not very widespread in Hungary.
We recommend that you adhere to the time set aside for the meeting.
In Hungary, it is not customary to invite a business partner to one’s home.
Communication
Hungarian is the language used in negotiations. However, English is usually not a problem for the younger generation of businessmen. If you know that the other party does not have a full command of English (it is more commonly used than German), then we recommend that you bring a Hungarian interpreter with you. Visit Aparentingblog for more information about Hungary culture and traditions.
Working hours of companies, banks and sales hours in shops are basically similar to those in the Czech Republic. Within the framework of the state administration, a shortened Friday is used, i.e. working hours up to approximately 2 p.m., which must be taken into account when communication with the authorities is needed.
We don’t recommend talking about politics.
Recommendation
We recommend that you prepare honestly for the meeting, as you will be answering, for example, technical questions.
In most companies, there is a directive management style, so the leaders decide on the outcome of the negotiations.
When entering the market, you will definitely need documents and marketing materials in Hungarian.
When concluding agreements, we recommend a written form.
We recommend checking the creditworthiness of the business partner.
Public Holidays
Hungary has a total of 13 public holidays, when work time off is provided. If a public holiday falls on, for example, a Tuesday or a Thursday, there is a practice of providing the next day off work and it will be combined with the weekend within 4 days off. Subsequently, this day off is usually worked on a working Saturday. The Hungarian government announces these shifts of free days in the Hungarian Gazette in the first half of the previous year. In practice, it can be seen that a greater number of employees take vacation between December 24 and January 1. Christmas Day is not a national holiday, but a day off is usually provided, which is worked on a working Saturday.
Public holidays when work leave is granted:
- New Year – January 1
- The outbreak of the revolution (1848, it is customary to wear the tricolor) on March 15
- Labor Day – May 1
- Saint Stephen’s Day (first king of Hungary, 10th-11th century) – August 20
- Uprising against the Soviet Union (1956) and establishment of the Republic of Hungary (1989) – October 23
- All Saints’ Day – November 1
- The first Christmas holiday – December 25
- Boxing Day – December 26.
The Easter holidays are variable (they fall on the same date as in the Czech Republic) and consist of Good Friday (not celebrated in the Czech Republic), Easter Sunday and Easter Monday.
Moving holidays of Pentecost: 50 days after Easter, Whit Sunday is celebrated, followed by Whit Monday.
