Enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are accelerating their expansion into ASEAN amid escalating global uncertainties and intensifying tariff pressures, according to a new joint study released by UOB Hong Kong and the Hong Kong Trade Development Council (HKTDC). The study, titled “Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges,” reveals that 73 percent of GBA respondents intend to accelerate their business development in ASEAN, reinforcing the region’s importance as a long-standing and increasingly urgent growth engine amid global trade frictions.
ASEAN economies continue to gain prominence, with Singapore, Vietnam, Thailand, Malaysia and Indonesia emerging as the top destinations for GBA enterprises over the next three years. To support expansion plans, companies expect to allocate an average of 30 percent additional resources to their ASEAN expansion plans. Vietnam is the top priority (47 percent increase in resources), followed by Indonesia (37 percent) and Thailand/Malaysia (32 percent each). From a strategic perspective, the primary focus is on driving sales growth – especially in Thailand, Vietnam, and Indonesia – while expanding production and sourcing bases, with Vietnam, Thailand and Malaysia the top choices.
The study also reports a 25 percentage point year-on-year increase in the number of GBA businesses seeking to expand or maintain sales operations within the ASEAN bloc, with 98 percent of surveyed enterprises continuing to target these dynamic sales markets. Notably, 91 percent of respondents intend to expand or maintain their ASEAN-based production and sourcing hubs - a seven percentage point increase compared to 2024, highlighting stronger intent to diversify supply chains and mitigate external risks.
While the momentum is clear, the study also highlights significant hurdles GBA enterprises face as they expand into ASEAN. The most cited challenge is finding suitable local partners (47 percent), a figure that has risen by 24 percentage points since 2024. Cultural and language barriers (46 percent) and difficulties in sourcing specialist talent (40 percent) are also on the rise. 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. Of the participating enterprises, 83 percent 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 their ESG funding over the next two years, with 66 percent intending to boost their ESG investment – a 26 percentage point jump from 40 percent in 2024, recording a three-year high. For the next two years, the average intended level of ESG funding on the part of GBA enterprises is now HK$874,771, nearly double the HK$462,535 recorded in 2024.
Adaline Zheng, CEO of UOB Hong Kong, said, “For GBA enterprises, ASEAN is not just the next stop – it is the growth frontier. Hong Kong amplifies that momentum, and UOB has the expertise to connect it. With our extensive ASEAN network, deep local insights and sustainability leadership, we help businesses in Hong Kong scale faster, strengthen their resilience and capture opportunities with commitment. We help businesses win the next chapter of regional growth.”
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 is widely recognised and highly appreciated, earning a score of 7.9 out of 10 for connectivity with both GBA cities and the ASEAN bloc. Wing Chu, Deputy Director of HKTDC Research, said, “With the shifting global supply chain landscape and tariff uncertainties, many GBA enterprises are accelerating their ASEAN engagement not merely as a means of risk diversification, but to capture new growth opportunities in fast-evolving markets. Hong Kong’s unique positioning as a superconnector allows businesses to leverage the city’s comprehensive trade, financial and professional services platform to navigate this transformation efficiently, while strengthening their ESG commitments.”
Among the 73 percent of GBA enterprises intending to accelerate their ASEAN development, two-thirds have leveraged Hong Kong’s platform to advance their expansion. On the ESG front, Hong Kong offers diversified, forward-looking, sustainable development solutions necessary for green and sustainable business development, with its green services rated at 8.8 out of 10 by surveyed enterprises. In addition, more than 90 percent 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 report, based on insights from more than 600 businesses across Hong Kong and five key mainland GBA cities (Dongguan, Foshan, Guangzhou, Shenzhen and Zhongshan), examines how businesses are adjusting strategies amid global challenges, and how Hong Kong continues to play a pivotal role as a superconnector. The full report can be downloaded at HKTDC Research (Chinese only, English version available by end of January).
