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, titled "Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges," reveals that 73 percent of surveyed GBA companies intend to speed up their ASEAN business development, with most planning significant resource increases to support this strategic shift.
The study identifies Singapore, Vietnam, Thailand, Malaysia and Indonesia 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, with Vietnam receiving the highest priority at 47 percent increased resource allocation, followed by Indonesia at 37 percent and Thailand and Malaysia at 32 percent each. Even in Singapore, where GBA enterprises already have their largest presence, respondents plan to commit an average of 23 percent extra resources to accelerate development, particularly in financing and regional office establishment.
Strategic priorities focus on driving sales growth in Thailand, Vietnam and Indonesia while expanding production and sourcing bases, with Vietnam, Thailand and Malaysia emerging as preferred locations. The research shows 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. Additionally, 91 percent of respondents 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 and mitigate external risks.
Despite this momentum, the study identifies significant challenges facing GBA enterprises in ASEAN expansion. Finding suitable local partners represents 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 in sourcing specialist talent at 40 percent have also increased substantially, underscoring the need for trusted advisors and deeper cross-border support.
The research reveals growing commitment to environmental, social and governance initiatives among GBA companies. Eighty-three percent of participating enterprises 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 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 for GBA enterprises is now HK$874,771, nearly double the HK$462,535 recorded in 2024.
Hong Kong's role as a critical platform for GBA enterprises seeking to accelerate ASEAN expansion and strengthen ESG programs 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 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 its green services rated at 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 research report is available at https://research.hktdc.com/tc/article/MjIxMDQzMTcwMQ with additional research materials accessible through https://research.hktdc.com/en.
The report, based on insights from more than 600 businesses across Hong Kong and five key mainland GBA cities, examines how companies are adjusting strategies amid global challenges and how Hong Kong continues to play a pivotal role as a superconnector. This strategic shift toward ASEAN markets represents a significant reconfiguration of regional business priorities as enterprises seek to build resilience against global trade uncertainties while pursuing sustainable growth objectives.
