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Mục 6,7 Kenya (Phong)

Kenya has an extensive road network and rail system connecting most parts of the country. It has three international airports, including Jomo Kenyatta International Airport in Nairobi, which is the busiest airport in Africa. In 2015, Kenya Airways established direct flights between Nairobi and Hanoi with three weekly flights. The main goods exported from Vietnam to Kenya include rice, electronics, and plastic products. Kenya's flower industry generates about 1.29% of GDP and is one of the largest employers in the country, providing over 100,000 direct jobs and 2 million indirect jobs. Though Kenya faces competition from other flower producers, it enjoys duty-free access to key markets in Europe and Asia.

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50 views2 pages

Mục 6,7 Kenya (Phong)

Kenya has an extensive road network and rail system connecting most parts of the country. It has three international airports, including Jomo Kenyatta International Airport in Nairobi, which is the busiest airport in Africa. In 2015, Kenya Airways established direct flights between Nairobi and Hanoi with three weekly flights. The main goods exported from Vietnam to Kenya include rice, electronics, and plastic products. Kenya's flower industry generates about 1.29% of GDP and is one of the largest employers in the country, providing over 100,000 direct jobs and 2 million indirect jobs. Though Kenya faces competition from other flower producers, it enjoys duty-free access to key markets in Europe and Asia.

Uploaded by

Phan Tuan Tai
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Kenya - officially named The Republic of Kenya - is a country in Eastern Africa.

It is
bordered by Ethiopia to the north, Somalia to the east, Tanzania to the south, Uganda
to the west, and Sudan to the northwest, with the Indian Ocean running along the
southeast border. Kenya became independent on December 12th, 1963.

6. Nature of infrastructure
Kenya has an extensive road network of approximately 95,000 miles connecting most
parts of the country. The state-owned Kenya Railways Corporation (KR) manages
Kenya's single-track railway system, which runs from Mombasa through Nairobi to
the Ugandan border. The international and domestic air transport infrastructure is
relatively well-developed in Kenya. There are 3 international airports; the largest is
Nairobi's Jomo Kenyatta International Airport, which serves more than 30 airlines
providing scheduled services to cities around the world. In total, Kenya has 230
airports, including 21 that are paved. Wilson airport in Nairobi, the busiest airport in
Africa, handles light aircraft and general aviation.
On March the 31st 2015, Kenya Airways established a straight air path from Nairobi
to Hanoi with 3 flights a week to ensure the higher movement demand between 2
nations.

7. Specific Marketing Information


The main goods exported from Vietnam to Kenya include: rice, computer, electronic
parts and plastic products.
The floriculture sub sector has recorded the highest growth in volume and value of cut
flowers exported over the years, with Kenya attaining the lead supplier status to the
EU against competitors. Moreover, the entry of Kenyan flowers into China has
opened new opportunities for startups.

8. Suggestion for doing business in Kenya


The Kenyan flower industry is viewed as the oldest and largest in Africa generating
approximately 1.29% of the country’s GDP. Its industry revenue comes from the
domestic market and some major foreign markets in China, Europe, Russia and North-
America. The flower industry is one of the largest employers in the country, providing
employment to over 100,000 people directly and an estimated 2 million
people indirectly, mostly women.
In this special flower industry, there are the big five which are Kenya, Netherlands,
Ecuador, Ethiopia and Colombia. However, Kenya is already for a number of roses
and summer flowers the most favourable production country. The climate in Kenya is
reasonably stable. In addition, soil and greenhouse structures are relatively
inexpensive. East African countries have by far the lowest labour costs. Wages in
Ethiopia are still much lower than in Kenya, but Kenyan employees have more
experience in floriculture. Even though there are four big competitors with Kenya,
Kenya still has its own comparative advantages about land, soil, labour and quality of
flowers. Especially, Kenya’s cut-flowers enjoy a duty or quota-free export
arrangement in the EU and Japan market and The African Growth and Opportunity
Act (AGOA) to US market.
According to all the analysis above, Vietnamese firms who have enough potential
resources to invest directly to flower industry in Kenya will take full advantages of the
opportunities and elites that the industry enjoys and even make it better than local
competitors. Internally, the industry has operated with a lot of loose bricks such as
waste of water, fisheries damage, women abusement and workers’ right violations.
Firstly, Vietnamese enterprises should collaborate with local firms as joint ventures or
partnership to acknowledge the culture, process, conditions, etc and try to fill the
loose bricks to make the business better. When Vietnamese firms have their own
business model, they can make a M&A and use broad market strategies to develop
and grow faster.

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