Report: Over 90% of the surveyed manufacturing companies in the Greater Bay Area have completed or are in the process of undergoing supply chain transformation.

Recently, the Hong Kong Trade Development Council and Dah Sing Bank (Hong Kong) jointly released a research report on the diversification of supply chains in the Greater Bay Area: focusing on the connectivity of ASEAN, Hong Kong and the Mainland. The report was based on in-depth surveys of over 600 Greater Bay Area enterprises in the third quarter of 2024, and analyzed and compiled the results. The report shows that over 90% of the surveyed manufacturing enterprises in the Greater Bay Area have already completed or are currently undergoing supply chain transformation. Gavin Gyte, CEO of Dah Sing Bank (Hong Kong), said that 72% of companies are actively strengthening supply chain resilience, while those who have not yet started are expected to roll out relevant plans in the next 2 years. Winnie Fan, Director of Research at the Hong Kong Trade Development Council, stated that most Greater Bay Area enterprises are actively expanding production bases, primarily expanding production facilities in the Mainland of China to strengthen supply chain resilience. ASEAN is the preferred choice for Greater Bay Area enterprises to achieve supply chain diversification. 84% of surveyed enterprises will maintain or expand their production or procurement operations in the ASEAN region, an increase of over 50 percentage points from 31% in 2023. The attractiveness of ASEAN is due to good trade relations with China, as well as the synergistic effects brought by regional economic agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Belt and Road Initiative being valued by enterprises. In terms of individual ASEAN markets, Singapore, Malaysia, and Indonesia are currently and in the future popular locations for business, while the Philippines, Cambodia, Laos, and Brunei are also receiving increasing attention. Winnie Fan stated that Hong Kong, as a "super connector," mainly focuses on "Flow," with Hong Kong primarily serving as a platform to help Mainland Chinese enterprises invest in ASEAN. If a brand enters a country, it will drive the maturity of the entire supply chain. As for the impact of Donald Trump's return to the US presidency on the supply chain, Winnie Fan stated that Trump may impose tariffs on all major partners, which will have an impact on global trade flows in the short term, but it will also accelerate the shift in trade and believes that cooperation with new regions can offset the pressures faced by traditional markets. Greater Bay Area enterprises are also committed to accelerating the implementation of environmental, social, and corporate governance (ESG) measures. Specifically, 81% of surveyed companies stated that they have implemented green sustainable development plans, a 16 percentage point increase from the 65% surveyed in 2023. Companies are also more willing to increase investment in ESG aspects, with investment budgets for the next 2 years generally increasing by about 25%, with the average amount increasing from HK$371,333 in 2023 to HK$462,535. With approximately 3 million enterprises in the entire Greater Bay Area, ESG-related investments can create opportunities worth HK$1.3 trillion.