A new joint study reveals that enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area are accelerating expansion into ASEAN markets with heightened urgency amid escalating global trade tensions. The report finds 73 percent of GBA respondents intend to accelerate business development in ASEAN, with companies planning to allocate an average of 30 percent additional resources to expansion plans. ASEAN economies continue to gain prominence as destinations, with Singapore, Vietnam, Thailand, Malaysia and Indonesia emerging as top priorities over the next three years.
Vietnam represents the highest priority with 47 percent of companies planning increased resources, followed by Indonesia at 37 percent and Thailand and Malaysia at 32 percent each. 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 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, a seven percentage point increase from 2024, highlighting stronger intent to diversify supply chains and mitigate external risks. Despite clear momentum, significant challenges persist for GBA enterprises expanding into ASEAN. Finding suitable local partners represents the most cited challenge at 47 percent, a figure that has risen 24 percentage points since 2024. Cultural and language barriers at 46 percent and difficulties sourcing specialist talent at 40 percent have also increased substantially, underscoring the need for trusted advisors and deeper cross-border support.
The study reveals continued progress in sustainability goals, with 83 percent of participating enterprises currently implementing green initiatives, slightly up from 81 percent in 2024. 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 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, with its superconnector function earning a score of 7.9 out of 10 for connectivity with both GBA cities and ASEAN. 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 received an 8.8 out of 10 rating, with over 90 percent of respondents considering or already increasing uptake of sustainable development services. The full report is available at https://research.hktdc.com/tc/article/MjIxMDQzMTcwMQ.
