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Over 90 percent of Greater Bay Area manufacturers have strengthened their supply chains, prioritising mainland China and Southeast Asia markets, according to a study by Hong Kong Trade Development Council and United Overseas Bank.
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The report’s conclusions were drawn from the survey of more than 600 Greater Bay Area companies conducted in the third quarter of 2024.
The mainland remained the top choice for GBA firms' supply chain and production diversification. Sixty percent of respondents say GBA supply chains are highly innovative and driven by digital solutions. Fifty-two percent of respondents believed the GBA has sufficient overseas logistics service capabilities.
The Association of Southeast Asian Nations leads overseas supply chain destinations, with 84 percent of surveyed enterprises planning to maintain or expand production/sourcing activities there. The primary reason for this preference lies in the strong ties between China-ASEAN trade, driving 39 percent of firms' regional preference.
The report also mentioned that the adoption of environmental, social, and governance rose 16 percentage points to 81 percent among surveyed companies. The relevant budget allocation increased by 25 percent to HK$462,535 in 2024, indicating respondents' greater willingness to expand their ESG investment.
The survey confirmed Hong Kong's successful role as a GBA-ASEAN super-connector in 2024. Furthermore, 80 percent of respondents showed interest in learning about and using Hong Kong's green professional services more frequently, up from 70 percent in 2023.
(Gordon Yang)
