Chinese electric car giant BYD is opening its first European factory in southern Hungary, with plans to roll out both EVs and plug-in hybrid vehicles beginning in the second half of this year.
Szeged, the third largest city of Hungary, is known for its culture and history, but now, people believe the arrival of Chinese EV giant BYD will possibly reshape its future.
"BYD brings something new, adding diversity to this agriculture-focused city. An industry like this has a ripple effect, creating opportunities. It's a big step forward," said Attila Kokuti, president of Szeged Chamber of Commerce.
BYD's multibillion-dollar factory will be the first multinational investment in Szeged, transforming the city into an industrial and economic hub.
Experts say that since the project's announcement in 2024, housing demand has tripled, and property prices have increased by 12 percent over the past year.
"When the factory starts to work, and starts to produce electronic cars, there will be a huge demand from the workforce as well for housing opportunities, and it will also increase the home prices in terms of homes for sale and in terms of homes for rent," said Lazslo Balogh, a chief business expert from ingatlan.com, an online property listings marketplace in Hungary.
Real estate agents in Szged say there are enough homes in this city of 170,000 people to satisfy demand, but they say that could change as more workers move to the city.
Szeged's Chamber of Commerce said BYD's factory could attract suppliers and tech startups, boosting the city's economy.
For real estate agents like Szilvia Dajka, who is helping BYD secure housing for future employees, the transformation of the city into a major business hub is already here.
"Currently, contractors are focusing on building traditional apartment buildings in the city. There hasn't been much of a residential building boom, but we expect that to change soon," said Dajka.
BYD's factory is set to open later this year, initially producing 150,000 vehicles annually and creating 3,000-4,000 jobs. In the future, the plant could employ up to 10,000 workers at full capacity.
BYD's first European factory in Hungary to open in late 2025
BYD's first European factory in Hungary to open in late 2025
Economic and political stakes are rising as tensions persist along the Thai-Cambodian border, just as the crucial high season for tourism begins.
In Thailand's Trat Province, a gateway to several popular resort islands, curfews, tighter airport screening and foreign travel warnings are triggering a wave of hotel cancellations, raising fears of prolonged damage to the local tourism industry.
Though Trat is not a frontline in the conflict, it is a border province, and with clashes continuing between Thailand and Cambodia in the nearby mountains, perception alone is proving as damaging to tourism as the fighting itself.
"We're concerned that it's starting to affect the islands as a whole, which are popular tourist destinations for both Thai and foreign tourists during this time. We're starting to get information that there is an average cancellation rate of around 40 percent," said Attapol Arunwuttipong, Secretary of the Trat Chamber of Commerce.
Hotel operators in this province say that cancellations began almost immediately after clashes flared along the border and the impact ripples outward fast. Tourist cancellations led directly to lost jobs for guides, drivers, and chefs, draining the local economy at the start of the peak travel season.
Konticha Sunate, owner of Banpu Resort, said she has lost nearly half her bookings in a matter of days. Around 50 percent of her rooms have been canceled, many by guests who were due to arrive this week. For small operators like her, the timing could not be worse.
"There's a lack of confidence. And there's a lot of uncertainty. We don't know long the fighting with Cambodia will last. That makes customers feel scared and unsure, especially at this time. I think this is the main reason why customers are canceling and not booking. So, I think recovery will be quite difficult and long," she said.
Local officials insist tourist areas remain safe, far from any military engagement, but reassurance struggles to compete with headlines of jets, artillery, and sporadic sounds of explosions.
However, not all vacationers have been deterred. Mariana Kuiken and her husband recently arrived from Belgium, deciding to stick with their plans despite the warnings.
"If we were staying close within Trat, I think I would be a little bit concerned of hearing these noises. But since we're going to be on the islands, I don't really expect to hear that. If I hear it, then yeah, I think it will be a little feel a bit different. But yeah, for now, I have confidence that it will not further escalate," said Kuiken.
Border tensions drain tourists from Thailand's Trat Province
