Summary
High import tariff in Kenya, especially in the agricultural sector impedes trade significantly. Furthermore, trade in Kenya is risky due to uncertainties that result from import regulation which is often interfered by domestic supply and demand, together with political factors. Kenya uses trade barriers to protect domestic producers from external competition, a measure that would prohibit trade in the region, and perhaps an impediment from global recession recovery. A case in point is the Kenya’s extreme use of tariff on trade, which according to WTO; Kenya applied a 12.6 percent in 2008 only, which was rather prohibitive.
In Vietnam, tariffs have been reduced considerably, specifically with the aim of meeting ASEAN and WTO objectives. However, some key segments remain sheltered. Roughly all the tariffs indicators have been going down. In addition, the mean tariff rates have remained more or less stable. High tariffs are mainly directed on specific sectors such as used cloths, vehicles, spirits, beverages and vehicle parts (Athukorala, 2006). In view of this analysis, it goes without saying that doing business in Vietnam is better as the tariffs rates and policies, together with other factors that impede import business are less prohibitive compared with Kenya.
References
Athukorala, P. C. (2006). Trade policy reforms and the structure of protection in Vietnam, The World Economy, 29(2), 161-187.
UNICTAD. (2012). Country notes. Web.
US. Commercial Service. (2012). Connecting you to U.S Suppliers. Web.