Enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area are accelerating expansion into ASEAN markets as global trade tensions intensify, according to a new joint study. The research, conducted by UOB Hong Kong and the Hong Kong Trade Development Council, finds that 73 percent of surveyed GBA companies intend to fast-track their ASEAN business development, with most planning to allocate additional resources to support this growth.
The study identifies Singapore, Vietnam, Thailand, Malaysia and Indonesia as top destinations for GBA enterprises over the next three years. Companies expect to commit an average of 30 percent more resources to their ASEAN expansion, with Vietnam receiving the highest priority at 47 percent increased allocation, followed by Indonesia at 37 percent and Thailand and Malaysia at 32 percent each. Strategic focuses include driving sales growth in Thailand, Vietnam and Indonesia while expanding production and sourcing bases, particularly in Vietnam, Thailand and Malaysia.
Even in Singapore, where GBA enterprises already maintain their largest presence, respondents plan to commit an average of 23 percent additional resources, especially for financing and establishing regional offices. The research reports a 25 percentage point year-on-year increase in businesses seeking to expand or maintain sales operations within ASEAN, with 98 percent of surveyed enterprises continuing to target these dynamic markets. Additionally, 91 percent intend to expand or maintain ASEAN-based production and sourcing hubs, representing a seven percentage point increase from 2024 and highlighting stronger intent to diversify supply chains.
Despite this momentum, significant challenges persist. Finding suitable local partners remains the most cited obstacle at 47 percent, a figure that has risen by 24 percentage points since 2024. Cultural and language barriers at 46 percent and difficulties sourcing specialist talent at 40 percent have also increased by 23 and 15 percentage points respectively. These challenges underscore the need for trusted advisors and deeper cross-border support as enterprises navigate complex regional landscapes.
The study reveals substantial progress in sustainability commitments among GBA companies. Eighty-three percent currently have green initiatives underway, 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 now stands at HK$874,771, nearly double the HK$462,535 recorded in 2024.
Hong Kong's role as a critical platform for ASEAN expansion and ESG leadership is reaffirmed by the survey. The city's superconnector function earns a score of 7.9 out of 10 for connectivity with both GBA cities and ASEAN markets. Among enterprises accelerating ASEAN development, two-thirds have leveraged Hong Kong's platform to advance expansion. On the ESG front, Hong Kong's green services receive an 8.8 out of 10 rating, with over 90 percent of respondents considering or already increasing uptake of sustainable development services. The most in-demand services include green financial products and services, green financing, ESG reporting and due diligence, and green asset valuation.
The full report, Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges, is based on insights from more than 600 businesses across Hong Kong and five key mainland GBA cities. It examines how companies are adjusting strategies amid global challenges and how Hong Kong continues to empower GBA enterprises to diversify supply chains within ASEAN while advancing ESG commitments.
