A new study by UOB Hong Kong and the Hong Kong Trade Development Council (HKTDC) reveals that enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are accelerating their expansion into ASEAN markets amid escalating global trade tensions. The report, titled "Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges," found that 73% of GBA respondents intend to accelerate their business development in ASEAN, underscoring the region's growing importance as a buffer against tariff pressures and supply chain disruptions.
The study highlights a significant shift in strategic priorities, with GBA companies allocating an average of 30% additional resources to their ASEAN expansion plans. Vietnam leads as the top priority, with a 47% increase in resource allocation, followed by Indonesia (37%) and Thailand and Malaysia (32% each). Even in Singapore, where GBA enterprises already have a strong presence, respondents plan to commit an additional 23% in resources, particularly for financing and establishing regional offices.
The push for expansion is driven by the need to boost sales growth and diversify supply chains. The study reports a 25 percentage point year-on-year increase in GBA businesses seeking to expand or maintain sales operations in ASEAN, with 98% of surveyed enterprises targeting these markets. Additionally, 91% intend to expand or maintain production and sourcing hubs in the region, a 7 percentage point increase from 2024, reflecting a stronger intent to mitigate external risks.
Despite the momentum, GBA enterprises face significant hurdles. Finding suitable local partners emerged as the top challenge, cited by 47% of respondents—a 24 percentage point increase from 2024. Cultural and language barriers (46%) and difficulties sourcing specialist talent (40%) also rose sharply, highlighting the need for trusted advisors and cross-border support.
On the sustainability front, 83% of GBA companies have green initiatives underway, and 96% plan to increase or maintain ESG funding over the next two years. The average intended ESG funding has nearly doubled to HK$874,771, compared to HK$462,535 in 2024. Hong Kong plays a pivotal role in this area, with its green services rated 8.8 out of 10 by surveyed enterprises. Over 90% of respondents are considering or already increasing their uptake of Hong Kong's sustainable development services, including green financial products, ESG reporting, and green asset valuation.
Hong Kong's role as a superconnector remains crucial, earning a score of 7.9 out of 10 for connectivity with both GBA cities and ASEAN. Among the 73% of GBA enterprises accelerating their ASEAN development, two-thirds have leveraged Hong Kong's platform to advance their expansion. The study, based on insights from over 600 businesses across Hong Kong and five mainland GBA cities, underscores how Hong Kong continues to empower enterprises to navigate global challenges and capture growth opportunities in ASEAN.
For more details, the full report is available at HKTDC Research (Chinese version, English available by end of January).
