The Trade and Investment between GBA and ASEAN and the Roles of Hong Kong report also found GBA companies highly value Hong Kong's services[1] and expect the city's role as a business hub facilitating trade and investment between the two regions to grow in importance.

Among the 10 ASEAN countries, Singapore, Malaysia, Vietnam, Thailand and the Philippines, are the most popular trade and investment destinations. In the next three years, most of the GBA companies will choose Singapore (55.4 per cent), Malaysia (53.0 per cent) and Vietnam (51.1 per cent) as markets for sales, while Vietnam (14.5 per cent), Thailand (10.4 per cent) and Indonesia (8.1 per cent) are the preferred production or sourcing bases. Another 10.4 per cent of the GBA companies also preferred to set up their regional offices in Singapore.

The GBA companies surveyed said ASEAN countries' cost-effectiveness, abundant resources and huge markets are the key pull factors. Those in the industrial goods sector expressed the greatest interest (6.56 out of 10) in expanding their business further in ASEAN. This was followed by companies in real estate, hospitality and construction (6.21), as well as the business, professional and financial services sectors (5.71).

Mrs Christine Ip, CEO - Greater China of UOB, said, "Cross-border trade and investment flows between ASEAN countries and the GBA are driven by the two regions' increasing interconnectivity and collaboration in areas such as sustainable development. At UOB, we are committed to assisting companies in capturing overseas business opportunities through our deep sectoral expertise, strong local talents and our extensive footprint in Southeast Asia. Over the past 10 years, the UOB Foreign Direct Investment Advisory Unit has supported more than 3,500 companies in their cross-border investments, of which about one-third are Chinese companies."

Mr Nicholas Kwan, Director of Research, HKTDC, said, Hong Kong must further foster its interconnectivity with other GBA cities and ASEAN countries in order to boost its role in facilitating two-way trade and investment flows.

He said: "When the pandemic subsides and border controls relax, cross-border trade and investment will be more active. GBA companies must reconnect with overseas buyers and partners quickly. Being the trade fair capital and business hub in Asia, Hong Kong can help GBA companies fortify ties with their counterparts in ASEAN and promote trade between the two regions."

Hong Kong's role and services sector highly regarded

The research also showed that GBA companies value Hong Kong's role in the region's collaboration with ASEAN countries, giving the city an average score of 7.33 out of 10. Almost half (47.2 per cent) gave a score of eight to 10.

Respondents hope that within the GBA, Hong Kong can be a one-stop business centre (41.6 per cent), provide a simplified and harmonised tax system (38.7 per cent) and offer more diversified investment products and services (38.4 per cent).

Click here to continue