March 23: Polish-Hungarian Friendship Day
Polish-Hungarian Friendship Day is not just a celebration, but also a symbol of the ancient and close connections between the two nations. In addition to the friendship that has developed between Hungarians and Poles, trade relations also play a significant role in their relationship. Over the past decades, a favorable economic cooperation has emerged, realized through continuous logistics and trade activities. We conducted an exclusive interview with our Polish partner, Jakub Wąsała, from Supreme Logistics.
Scroll down for the interview!
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Hungarian exports to Poland increased by 9.5% in 2023 compared to the previous year. Additionally, capital flows between the two countries are continuously ongoing; in May 2024, the largest Polish logistics company announced its entry into the Hungarian market. As the sixth largest economy in the European Union, Poland plays a key role in Hungary’s trade relations, serving as one of its most important partners.
From the Past to the Present
The Hungarian-Polish relationship has a long and complex history rooted in our shared history, culture, and geographical proximity. Within the framework of the Visegrád Cooperation, the close collaboration between the two countries ensures that they progress along common interests, creating numerous political and economic opportunities. However, the outbreak of the Russian-Ukrainian war has brought significant changes to the relationship between the two countries. While Poland has actively supported Ukraine with weapons and military equipment, Hungary has adopted a more cautious approach, emphasizing the promotion of peace, which has further deepened the differences between the two nations.
Over the past three years, the bilateral relations have deteriorated significantly due to diplomatic tensions and political differences, creating an unprecedented situation. The increasing tensions among V4 countries have further complicated matters. However, trade relations between the two countries remain critically important, as their decades-long collaboration ensures resilience during economic crises. Trade not only contributes to the prosperity of both nations but also to the stability of the Central European region.
Let's see some numbers
Data on foreign trade product turnover indicates that the exchange of goods between the two countries is characterized by a Polish surplus, as the value of Polish imports arriving in Hungary consistently exceeds that of Hungarian exports, resulting in a negative trade balance. Following the impact of the COVID-19 pandemic, growth was observed on both sides until 2022; however, in 2023, Polish imports decreased by 5.8%, while Hungarian exports increased by 9.5%. Major Polish exports include vehicles and parts, electronic equipment, and furniture, while Hungary predominantly exports pharmaceuticals, vehicles, and chemical products. The decline in imports was driven by a contraction in domestic demand, as well as the effects of economic crises, particularly the Russian-Ukrainian war. Preliminary data indicates that during the period from January to October 2024, imports increased by 1.1%, while exports rose by 13.8% compared to the previous year.
What does our Polish client, Jakub, say?
On the occasion of Polish-Hungarian Friendship Day, we asked our dear Polish client, Jakub, a few questions to gain deeper insight into the current state of relations between the two countries and their future opportunities.
How long have you been working with us?
Jakub: I think it’s been about 4-5 years. The first shipment was arranged by Gyöngyi when I was just an intern at TerraLogistics, fresh out of university.
What common values unite us?
Jakub: We have very similar cultures. We are civilized countries that respect each other and our time, and we share similar customs. We greet each other and both nations are hard workers. Poles and Hungarians are diligent people, and we have cooperated during difficult times (wars, etc.).
Is there a joint project that you are particularly proud of?
Jakub: I consider the Veszprém-Nowa Sól project to be my favorite; it was two pallets, totaling 1200 kg. However, there have been many interesting projects in the past, and I can’t highlight just one. It wasn’t a one-time job; sometimes we handled 7-10 shipments in a short period, which I believe is a very good achievement.
What challenges do Polish companies face in the Hungarian market, and how can they be overcome?
Jakub: One of the biggest problems is that the Hungarian police sometimes stop Polish trucks and impose high penalties without explanation. It’s a lengthy process to recover the paid amounts that were unjustly imposed. More individuals should be working in this sector in Hungary who can communicate in English or Polish to clarify these situations. Typically, these cases are ignored, or we simply do not receive responses. Sometimes Polish companies find themselves with fines of 2,000 or even 4,000 euros, putting them at a loss.
What advice would you give to Polish entrepreneurs looking to enter the Hungarian market?
Jakub: I think Hungarians like to know exactly when trucks will arrive, down to the minute. They want full information to perform their work properly. Sometimes Polish drivers do not provide enough information, which causes problems with the flow of details and information between manufacturers, loading companies, and delivery points. It might be worth spending an extra 1-2 minutes providing accurate information. Polish companies also fail to inform clients, and once the truck is loaded, the tracking is neglected. We need to work more precisely in this regard, as it reflects that Polish companies respect Hungarian businesses. This is an area where Polish companies are weak.
If you have Polish shipments in export or import relations, choose us and enjoy the peace of mind guaranteed by INCON!