Mainland Enterprises Tapping into ASEAN Opportunities

Mainland Chinese enterprises are actively pursuing opportunities arising from the Belt and Road Initiative(BRI), with a particular focus on ASEAN markets, according to the findings of a 2026 HKTDC survey[1]. The survey found that 91% of respondents are looking to further expand into ASEAN countries. Beyond market expansion, many companies are also planning to strengthen their supply chain presence in the region. In addition to traditional industrial activities, the overseas engagement of Mainland enterprises now also extends to supply chains, the emerging industries and many high‑value‑added service sectors. Among the areas seen as particular priorities are AI‑ and electronics‑related innovation, new energy, healthcare and wellness, and many tourism‑related sectors.

High demand for Hong Kong services

Tellingly, nearly all of the participating enterprises highlighted their need for professional services support when entering the various ASEAN markets, particularly with regard to legal compliance and compliance‑related accountancy services. In addition, many respondents also specified a need for marketing and e‑commerce services, as well as supply chain integration solutions.

Of those enterprises looking to increase their engagement with ASEAN, 83% indicated they would seek relevant support from Hong Kong’s professional service sector, making the city the preferred option for business development support. Recognised as the prime “super connector” between the Chinese Mainland and many international markets, Hong Kong was widely seen as offering a unique and comprehensive array of professional services by many Mainland enterprises.

Broad business range

The survey also showed that Mainland enterprises are pursuing a broad range of business activities within ASEAN, with quite different priorities in terms of manufacturing and services interests,

Manufacturing sector

For overseas expansion‑minded manufacturing enterprises, Vietnam and Thailand are seen as the priority destinations. Both markets are home to well‑established industrial ecosystems across a number of sectors – most notably electronics, textiles and automotive production – while also having distinct cost advantages. Other popular destinations include Indonesia, Malaysia and Singapore, with more than 40% of surveyed enterprises seeing them as preferred locations for future expansion.

Services sector

Within the services sector, Singapore is deemed the most attractive ASEAN market, with 54% of overseas expansion‑minded respondents singling it out. Overall, its appeal as a strategic regional base seems to largely stem from its stature as a global finance, trade and legal services centre.

Ranked second and third were Vietnam and Thailand, with both seen as key beneficiaries of the ongoing global supply chain reconfiguration. Beyond that, their manufacturing sectors are continuing to enjoy rapid growth, with the corresponding demand for services also set for sustained growth.

Diverse business operations throughout ASEAN

Mainland enterprises are increasingly adopting nuanced strategies when it comes to ASEAN, with many tailoring their business activities to the unique strengths and positioning of its constituent markets. For the most part, the aim is to establish resilient regional supply chains and integrated business networks.

Within the manufacturing sector, sales expansion is the priority, while secondary objectives tend to vary from market to market. Singapore, for instance, is seen as ideal for warehousing, transportation and logistics operations (largely on account of its world‑class infrastructure and connectivity), while Vietnam and Thailand are both highly valued as production hubs, and Malaysia is considered a prime source of industrial products and raw materials.

In the case of service‑sector enterprises, their ASEAN expansion is primarily geared to establishing regional industrial‑chain networks. In terms of their principal business expansion activities, Singapore and the Philippines are favoured for overseas sales activities, while other ASEAN markets are more utilised for procurement‑related services, including outsourcing activities.

In the case of secondary business functions, Singapore, Malaysia and Indonesia were the preferred locales for corporate services operations. For overseas sales support, Vietnam and Thailand were the favoured options, while the Philippines scored highly as a procurement hub.

New wave of ASEAN expansion

With such emerging sectors as AI and new energy continuing to gain momentum, Mainland enterprises have been quick to prioritise their expansion throughout ASEAN. In line with the specific industrial strengths and differing development priorities of individual member nations, the uptake of these hi‑tech sectors has shown considerable variance.

AI- and electronics-related innovation

Throughout ASEAN, though, the rapid development of AI has catalysed the expansion of many related value chains, especially in the case of semiconductors, electronic components and data services. The survey also noted that Malaysia, Vietnam and Indonesia were the favoured destinations for semiconductor manufacturers, while AI services providers were more likely to opt for Singapore or Malaysia as their primary strategic regional hub.

Malaysia, meanwhile, has reinforced its role as a key semiconductor manufacturing location, while also being considered ASEAN’s prime source of industrial materials. Overall, many Mainland enterprises have recognised the country’s advantages when it comes to electronics manufacturing, semiconductor assembly/testing, industrial materials and supply chain ecosystems.

New energy, wellness and tourism

With the new energy sector another key driver of outbound investment, many related Mainland enterprises have opted to focus on Malaysia, Thailand and Vietnam. The latter has been particularly favoured on account of its strong manufacturing capabilities and export advantages. Thanks to their supportive energy transition policies, growing market demand and well‑developed industrial infrastructure, meanwhile, the popularity of Malaysia and Thailand as manufacturing locations for new energy equipment (and related items) is continuing to grow.

Considerable interest has also arisen from the significant potential of many ASEAN markets when it comes to healthcare, wellness and cultural tourism. Indeed, rising regional demand has prompted many medical and healthcare enterprises to expand into Vietnam, Thailand, Malaysia and Singapore. At the same time, their abundant tourism resources and expanding consumer markets have seen Singapore, Malaysia and the Philippines emerge as preferred destinations for business expansion for many Mainland enterprises with a focus on cultural tourism, hospitality or leisure services.