A HUF 10 billion tender for the fashion and design industry was submitted for consultation

Following a joint press conference held by the Hungarian Fashion and Design Agency and the Ministry for Innovation and Technology, a public dialogue has begun about a HUF 10-billion funding package provided by the Ministry to the fashion and design industry. Those wishing to apply have two weeks to comment on the tender. The final version of the application is expected to be available from 15 November.

The call for tender was preceded by a comprehensive sectoral study conducted by Hungarian Fashion and Design Agency involving 369 respondents and representing different segments of the fashion industry, and it surveyed the impact of the Covid-19 pandemic exerted on the sector.  The majority of the respondents said that the decline in their revenues was the most serious challenge they had to face. Most of them experienced a minimum of 75% drop in their earnings in April while their expenses did not shrink dramatically as, in this sector, paychecks take up the lion-share of regular costs businesses need to cover.

Based on the outcomes of the survey, HFDA submitted a proposal to economic policy-makers in which they highlighted the needs of the fashion industry and called for a policy dialogue between the Agency and the Ministry.

On 15th October, a new chapter opened for Hungary’s fashion and design sector: as it was announced at the press conference, held by the Hungarian Fashion and Design Agency and the Ministry for Innovation and Technology, that a public dialogue has been opened about a 10-billion-HUF funding package provided by the Ministry to the fashion and design industry to support initiatives that will seek to respond to commercial and productivity challenges experienced by small and medium-sized enterprises. Companies wanting to apply for funding will have 10 days to comment on the tender now available on the website of the Ministry for Innovation and Technology, which will help the Ministry to finalise the details of the tender.

The package will seek to provide funding for companies of the sector to boost their technologies so that they will be able to maintain and strengthen their ability to retain jobs and generate income. This financial support is also hoped to assist Hungarian businesses to seize some new opportunities created by the current crisis and, after a global repositioning in the sector, they may be able to gain a better position in the global fashion market.

Businesses with a minimum of one closed business year and at least one employee on the payroll are invited to apply. The amount of funding granted will range between HUF 5m and 150m that successful applicants will be able to spend on new equipment, machinery, manufacturing licences, know-how, intangible assets, estate development, IT products, industrial property consultancy and marketing activities helping them to penetrate the market. The above list may be modified as a result of the feedback received during the next two weeks. 

The final version of the application will be available from 15 November on the official website of the tender.