Mr. Márton Nagy, Minister for the National Economy of Hungary, shares his insights on how Japan-Hungary ties powered results in 2025 and what comes next in 2026, from battery manufacturing and electric vehicles to digitalization, artificial intelligence and exports.
Bridges: Which Japan-Hungary collaborations in 2025 delivered the most impact, and what lessons carry into 2026?
Nagy: Hungary’s foreign economic relations are characterized by the principle of ’economic neutrality’ to provide a meeting point for the Western and Eastern capital and knowledge. Asian investments from China, South Korea and Japan, have expanded significantly in Hungary in recent years. With nearly 200 companies employing close to 30 thousand people, Japan is our 9th largest investor.
Being one of the most open, export and investment-oriented country in the EU, Hungary offers an entire incentivizing ecosystem to attract foreign investors. In the past 10 years, the Hungarian Government has supported 72 major Japanese investments, worth almost 1.7 billion euros, creating more than 5000 new jobs.
As a key automotive and EV hub in Europe, Hungary will play a paramount role in Europe’s decarbonization efforts. Japanese investors are crucial in driving innovation. Suzuki, the first large greenfield investor in Hungary after its regime change in the 1990s, has announced a 23 million euro production development project, which is supported by 4.8 million euros in state funding. But there are many more successful Japanese investment stories in Hungary, like the 52.4 million euro investment of the in-vehicle modules manufacturer Alpine Electronics, or the instant food producer Nissin’s development project to establish its second production capacity in Hungary, the only ones in Europe.
In the past 10 years, the Hungarian Government has supported 72 major Japanese investments, worth almost 1.7 billion euros, creating more than 5000 new jobs.
Márton Nagy, Minister for the National Economy of Hungary
Looking ahead to 2026, we would like to further build on Japanese investments that bring cutting-edge technology, high added value and strong R&D capabilities. Beside innovation, we also welcome the cultural enrichment and mutually beneficial partnerships provided by these economic ties.
In 2025, what actions proved most effective for talent, innovation, and the green and digital transitions, and what are the immediate priorities for early 2026?
Driven by the green transition, demand for electric vehicles and batteries is set to surge. In anticipation of that, Hungary acted early and thus Bloomberg NEF projects that by 2030 Hungary will have Europe’s second largest battery capacity with over 250,000 MWh. With major manufacturers such as Magyar Suzuki, the automotive sector remains vital to meeting future demand.
In 2025, to encourage innovation and the green and digital transition, the Government has established an incentive system, the Sándor Demján Program, which helps SMEs to digitalize, invest, and expand internationally. While under the Ányos Jedlik Program, improving company energy efficiency remains a key priority. For households, the energy home renovation program continued with higher loan limits and reduced co-financing requirements.
In other areas, we consider AI as a key driver of competitiveness. Although Hungarian businesses are still at an early stage in using or investing in AI, the updated AI Strategy promotes progress through supportive funding, education and regulation to foster AI development and application.
Looking ahead to 2026, we would like to further build on Japanese investments that bring cutting-edge technology, high added value and strong R&D capabilities.
Which concrete reforms or investments will drive productivity, exports and growth in Hungary?
Ongoing investments by BMW, BYD, and CATL are set to boost exports, growth, and electromobility. The investments of the Sándor Demján Program will also have their impact in 2026. The companies participating cover a wide range of the economy, thus providing a stable basis for growth.
We also have high expectations of implementing the EU’s AI Act, as it introduces an innovative, soft law–based regulatory approach that is tailored to Hungary’s productivity needs and is aligned with our ambitions in the field of AI.
To boost our AI ecosystem, two capital investment programs will provide around 66 billion forints to boost high-growth deep-tech and AI projects, supporting R&D and practical AI applications, while Hungary has set up the Hungarian AI Coalition, with 600 organizations, which promotes AI through education. Through these efforts, we are building a robust and future-ready AI ecosystem.
