A new 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 amid escalating global uncertainties and tariff pressures. The report, titled "Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges," underscores the region's urgency to diversify supply chains and capture growth opportunities in Southeast Asia.
According to the study, ASEAN economies continue to gain prominence, with Singapore, Vietnam, Thailand, Malaysia, and Indonesia emerging as the top destinations for GBA enterprises over the next three years. Companies expect to allocate an average of 30 percent additional resources to their ASEAN expansion plans, with Vietnam as the top priority (47 percent increase in resources), followed by Indonesia (37 percent) and Thailand/Malaysia (32 percent each). The primary strategic focus is on driving sales growth, especially in Thailand, Vietnam, and Indonesia, while expanding production and sourcing bases in Vietnam, Thailand, and Malaysia.
The study also reports a 25 percentage point year-on-year increase in the number of GBA businesses seeking to expand or maintain sales operations within ASEAN, with 98 percent of surveyed enterprises targeting these dynamic markets. Notably, 91 percent of respondents intend to expand or maintain their ASEAN-based production and sourcing hubs, a seven percentage point increase compared to 2024, highlighting stronger intent to diversify supply chains and mitigate external risks.
While momentum is clear, the study highlights significant hurdles. 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 GBA companies currently have green initiatives underway, slightly up from 81 percent in 2024 and marking a three-year high. Furthermore, 96 percent of respondents plan to increase or maintain their 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 for the next two years is now HK$874,771, nearly double the HK$462,535 recorded in 2024.
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. With our extensive ASEAN network, deep local insights and sustainability leadership, we help businesses in Hong Kong scale faster, strengthen their resilience and capture opportunities with commitment."
The survey reaffirms Hong Kong's role as a critical platform for GBA enterprises. Hong Kong's connectivity with both GBA cities and the ASEAN bloc earned a score of 7.9 out of 10. Among the 73 percent of GBA enterprises intending to accelerate ASEAN development, two-thirds have leveraged Hong Kong's platform. On ESG, Hong Kong's green services were rated 8.8 out of 10, and more than 90 percent of respondents are considering or already increasing their uptake of Hong Kong's sustainable development services, including green financial products, green financing, ESG reporting, and green asset valuation.
Wing Chu, Deputy Director of HKTDC Research, said, "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 in fast-evolving markets. Hong Kong's unique positioning as a superconnector allows businesses to leverage the city's comprehensive trade, financial and professional services platform to navigate this transformation efficiently."
The report, based on insights from more than 600 businesses across Hong Kong and five mainland GBA cities, examines how businesses are adjusting strategies amid global challenges. It compares results with three earlier studies, including the 2024 report on GBA supply chain diversity. The full report is available for download here (Chinese only, English version available by end of January).
