Why do some factories in the Pearl River Delta prefer to move to Hunan and Jiangxi rather than to Guangxi?

Nowadays, some factories in the Pearl River Delta would rather move to Hunan and Jiangxi than build factories in Guangxi. There is actually a reason for this.

We all know that building a factory depends on many conditions, including human resource market, raw materials, transportation costs, economic hinterland, overseas markets, etc.

Compared with other places, Guangxi does have a relatively weak industrial base.

First of all, let’s talk about the origin of raw materials.

Most of the factories in the Pearl River Delta are heavy industries, so the raw materials they need are nothing more than coal resources, iron ore resources, and steel resources.

But Guangxi is a traditional agricultural province. There are few places in the province with iron ore resources, and even if there are iron ore resources, they are not of high quality.

And if the factory is built in Guangxi at this time, then they will need to spend a lot of transportation costs to transport some heavy industry raw materials to Guangxi, which will not be worth the gain.

Therefore, Guangxi can often only undertake some light and small industrial processes.

Secondly, let’s talk about the economic hinterland.

Although Guangxi is close to Guangdong, Fujian and other places.

However, Guangxi's economic capabilities will never compare with those of these major economic provinces.

What's more, Guangxi is a typical hilly area with a relatively small economic hinterland. Therefore, when factories are established in Guangxi, sales channels are often difficult.

Moreover, there are many Danxia Mountains in Guangxi, which hinders the construction of factories to a certain extent.

Finally, look at labor resources.

Although there is indeed a large labor force in Guangxi, these laborers are often unwilling to stay in Guangxi, and instead choose to work in some developed cities in Guangdong.

Therefore, the labor force left in Guangxi in the end may only be some older people without a high level of education.

Because the wage level in Guangxi is far lower than that of other developed cities, some people would rather stay away from their hometowns than stay in Guangxi to work.

Therefore, if the factory is built in Guangxi at this time, there will be a lack of certain labor resources and corresponding high-tech talents.