Chapter 3: Hungary
(continued)
Among those respondents purchasing foreign environmental technologies, about half buy directly from a foreign supplier, while the remainder buy from local representatives. Buyers frequently opting for direct purchases included foreign-owned firms or joint-ventures, and clients requiring customized and very specialized technologies. In the latter category, it was noted that direct purchase is often the only option, because a local representative office often does not exist. In the respondents' opinions, when a local representative office does exist, the foreign manufacturer usually does not carry out direct sales, directing clients to the local representative instead. With the growing number of in-country representatives, local purchase is expected to increase.
Opinions of respondents from the R&D sector with respect to foreign suppliers were restricted to laboratory equipment, instruments, and pilot technologies. Similar to other respondents, product quality and references are considered first. Purchases are made, in roughly equal proportion, from local representatives and from producers abroad. In general, direct purchases were preferred where previous contacts with the supplier were established, or where higher quantity orders were made.
A third of respondents regarded available credit or other forms of funding from a foreign supplier as a major advantage. Interestingly, several respondents noted that, in practice, foreign financial support often was not fully effective, either because no Hungarian financial institution would become a co-financing partner in such schemes, or, when they did, the stipulated conditions would make borrowing (even with preferential foreign financing) as expensive as borrowing from a bank.
Opinions were divided with respect to the quality of after sales service - some respondents believed it was good, while others stated service was poor, unpunctual and unreliable.
Other obstacles (mentioned by about 15 percent of respondents) included high customs duties, changing environmental regulations, difficulties to ensure local technical service, communication problems with foreign suppliers (mainly with respect to language), and the lack of information concerning suppliers.
Fifteen percent of the interviewed experts did not experience any problems with buying environmental technologies from abroad.
