A joint study by UOB Hong Kong and the Hong Kong Trade Development Council reveals that enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area are accelerating expansion into ASEAN markets amid escalating global uncertainties and tariff pressures. The report, "Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges," finds 73 percent of surveyed GBA companies intend to fast-track their ASEAN business development, reinforcing the region's importance as a growth engine during global trade frictions.
ASEAN economies continue gaining prominence as expansion destinations, with Singapore, Vietnam, Thailand, Malaysia, and Indonesia emerging as top choices for GBA enterprises over the next three years. Companies expect to allocate an average of 30 percent additional resources to ASEAN expansion, with Vietnam receiving the highest priority at 47 percent increased resource allocation, followed by Indonesia at 37 percent, and Thailand and Malaysia each at 32 percent. Strategic focus centers on driving sales growth in Thailand, Vietnam, and Indonesia while expanding production and sourcing bases, particularly in Vietnam, Thailand, and Malaysia.
The study reports a 25 percentage point year-on-year increase in GBA businesses seeking to expand or maintain sales operations within ASEAN, with 98 percent of surveyed enterprises continuing to target these dynamic markets. This acceleration underscores heightened urgency to navigate intensifying geopolitical and tariff pressures. Notably, 91 percent of respondents 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 clear momentum, the study identifies significant hurdles for GBA enterprises expanding into ASEAN. The most cited challenge is finding suitable local partners at 47 percent, representing a 24 percentage point increase since 2024. Cultural and language barriers at 46 percent and difficulties sourcing specialist talent at 40 percent have also risen by 23 and 15 percentage points respectively, underscoring the need for trusted advisors and deeper cross-border support.
The research reveals continued progress in sustainability goals among GBA companies, with 83 percent currently implementing green initiatives—slightly up from 81 percent in 2024 and marking a three-year high. Furthermore, 96 percent plan to increase or maintain ESG funding over the next two years, with 66 percent intending to boost ESG investment—a 26 percentage point jump from 40 percent in 2024. The average intended ESG funding level for GBA enterprises is now HK$874,771, nearly double the HK$462,535 recorded in 2024.
The survey reaffirms Hong Kong's role as a critical platform for GBA enterprises accelerating ASEAN expansion and strengthening ESG programs. Hong Kong's superconnector function earns a score of 7.9 out of 10 for connectivity with both GBA cities and the ASEAN bloc. Among the 73 percent of GBA enterprises intending to accelerate ASEAN development, two-thirds have leveraged Hong Kong's platform to advance their expansion. On the ESG front, Hong Kong offers diversified sustainable development solutions, with green services rated 8.8 out of 10 by surveyed enterprises.
More than 90 percent of respondents are considering or already increasing their uptake of Hong Kong's sustainable development services over the next two years. The most in-demand services include green financial products and services, green financing services, ESG reporting and due diligence, and green asset valuation. The full report is available at https://research.hktdc.com/tc/article/MjIxMDQzMTcwMQ with additional research materials at https://research.hktdc.com/en.
