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. A new joint study, “Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges”, released today by UOB Hong Kong and the Hong Kong Trade Development Council (HKTDC), reveals GBA companies are now scaling their ASEAN strategies with greater urgency to boost growth and strengthen supply chain resilience.ASEAN growth set to accelerate further
Reflecting this renewed urgency, the study finds 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.
Even in Singapore, where GBA enterprises already have the largest footprint, respondents intend to commit an average of 23 percent in extra resources to accelerate their business development in the country, especially in areas, such as financing and establishing regional offices.
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. This acceleration underscores the region’s heightened urgency to navigate intensifying geopolitical and tariff pressures.
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.
Heightened challenges in ASEAN expansion
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 and has climbed steadily over the past three years. Cultural and language barriers (46 percent) and difficulties in sourcing specialist talent (40 percent) are also on the rise, up 23 and 15 percentage points, respectively. These challenges underscore the need for trusted advisors and deeper cross-border support.
Growing commitment to ESG
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.
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