A joint study released today by UOB Hong Kong and the Hong Kong Trade Development Council (HKTDC) reveals that 73 percent of enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are accelerating their business development in ASEAN, underscoring the region's urgency to navigate intensifying geopolitical and tariff pressures. The report, titled "Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges," highlights that GBA companies are scaling their ASEAN strategies to boost growth and strengthen supply chain resilience.
ASEAN economies continue to gain prominence, with Singapore, Vietnam, Thailand, Malaysia and Indonesia emerging as top destinations over the next three years. Companies expect to allocate an average of 30 percent additional resources to their ASEAN expansion plans, with Vietnam receiving the highest increase (47 percent), followed by Indonesia (37 percent) and Thailand/Malaysia (32 percent each). The primary strategic focus is driving sales growth, especially in Thailand, Vietnam and Indonesia, while expanding production and sourcing bases, with Vietnam, Thailand and Malaysia as top choices.
Even in Singapore, where GBA enterprises already have the largest footprint, respondents intend to commit an average of 23 percent extra resources to accelerate business development, particularly in financing and establishing regional offices. The study also reports a 25 percentage point year-on-year increase in GBA businesses seeking to expand or maintain sales operations within ASEAN, with 98 percent continuing to target these markets. Notably, 91 percent intend to expand or maintain ASEAN-based production and sourcing hubs, a seven percentage point increase from 2024, highlighting stronger intent to diversify supply chains and mitigate external risks.
Despite the momentum, significant hurdles remain. The most cited challenge is finding suitable local partners (47 percent), a figure that has risen by 24 percentage points since 2024. Cultural and language barriers (46 percent) and difficulties in sourcing specialist talent (40 percent) are also on the rise, up 23 and 15 percentage points, respectively. These challenges underscore the need for trusted advisors and deeper cross-border support.
On the sustainability front, 83 percent of surveyed enterprises currently have green initiatives underway, slightly up from 81 percent in 2024. Furthermore, 96 percent plan to increase or maintain ESG funding over the next two years, with 66 percent intending to boost investment—a 26 percentage point jump from 2024. The average intended ESG funding is now HK$874,771, nearly double the previous year's figure.
Adaline Zheng, CEO of UOB Hong Kong, said, "For GBA enterprises, ASEAN is not just the next stop – it is the growth frontier. Hong Kong amplifies that momentum, and UOB has the expertise to connect it." Wing Chu, Deputy Director of HKTDC Research, added, "With the shifting global supply chain landscape and tariff uncertainties, many GBA enterprises are accelerating their ASEAN engagement not merely as a means of risk diversification, but to capture new growth opportunities."
The survey reaffirms Hong Kong's role as a superconnector, earning a score of 7.9 out of 10 for connectivity with both GBA cities and ASEAN. Among the 73 percent of enterprises accelerating ASEAN development, two-thirds have leveraged Hong Kong's platform. On ESG, Hong Kong's green services were rated 8.8 out of 10, with over 90 percent of respondents considering or increasing uptake of Hong Kong's sustainable development services, including green financial products, green financing, ESG reporting, and green asset valuation.
The report is based on insights from more than 600 businesses across Hong Kong and five mainland GBA cities (Dongguan, Foshan, Guangzhou, Shenzhen and Zhongshan), comparing results with three earlier studies. The full report can be downloaded from the HKTDC Research website (Chinese only, English version available by end of January).
