GBA Enterprises Accelerate ASEAN Expansion Amid Global Trade Uncertainties

Enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area are accelerating expansion into ASEAN amid escalating global uncertainties and intensifying tariff pressures. A new joint study released by UOB Hong Kong and the Hong Kong Trade Development Council reveals GBA companies are scaling ASEAN strategies with greater urgency to boost growth and strengthen supply chain resilience. The study finds that 73 percent of GBA respondents intend to accelerate business development in ASEAN, reinforcing the region's importance as an increasingly urgent growth engine amid global trade frictions.

ASEAN economies continue to gain prominence, with Singapore, Vietnam, Thailand, Malaysia and Indonesia emerging as top destinations for GBA enterprises over the next three years. Companies expect to allocate an average of 30 percent additional resources to ASEAN expansion plans, with Vietnam receiving the highest priority at 47 percent increase in resources, followed by Indonesia at 37 percent and Thailand and Malaysia at 32 percent each. The primary strategic focus is on driving sales growth in Thailand, Vietnam, and Indonesia while expanding production and sourcing bases 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. 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. The acceleration underscores heightened urgency to navigate intensifying geopolitical and tariff pressures.

While momentum is clear, the study highlights significant hurdles GBA enterprises face during ASEAN expansion. The most cited challenge is finding suitable local partners at 47 percent, a figure that has risen by 24 percentage points since 2024. Cultural and language barriers at 46 percent and difficulties in sourcing specialist talent at 40 percent are also rising, up 23 and 15 percentage points respectively. These challenges underscore the need for trusted advisors and deeper cross-border support.

The study reveals continued progress among GBA companies in pursuing sustainability goals, with 83 percent currently having green initiatives underway, slightly up from 81 percent in 2024. Furthermore, 96 percent of respondents 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 level of ESG funding 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 seeking to accelerate ASEAN expansion and strengthen ESG programmes. Hong Kong's role as a superconnector earns a score of 7.9 out of 10 for connectivity with both GBA cities and ASEAN. Among the 73 percent of GBA enterprises intending to accelerate ASEAN development, two-thirds have leveraged Hong Kong's platform to advance expansion. On the ESG front, Hong Kong offers diversified sustainable development solutions necessary for green business development, with green services rated at 8.8 out of 10 by surveyed enterprises.

More than 90 percent of respondents are considering or already increasing 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 report, based on insights from more than 600 businesses across Hong Kong and five key mainland GBA cities, examines how businesses adjust strategies amid global challenges and how Hong Kong continues playing a pivotal role as a superconnector. The full report is available at https://research.hktdc.com/tc/article/MjIxMDQzMTcwMQ.