GBA manufacturers boost supply chains

Gordon Yang

Over 90 percent of the Greater Bay Area manufacturers have strengthened their supply chains, prioritizing mainland China and the Association of Southeast Asian Nations markets, according to a report published by the Hong Kong Trade Development Council and United Overseas Bank Hong Kong.

The report's conclusions were drawn from the survey of more than 600 GBA 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.

Asean 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.

Besides supply chain developments, the adoption of environmental, social, and governance rose 16 percentage points to 81 percent among surveyed companies in 2024.

The report also confirmed Hong Kong's successful role as a GBA-Asean super-connector in 2024.