Facilities for the new business in Vietnam and Kenya
This report helps in understanding the cultural specification of Vietnam and Kenya. The business situation in both the countries is analyzed to understand the cultural specifications. Both are the convenient locations for providing facilities to the new businesses. This task defines the facilities provided for the new business. Finally, the cultural specifications of Vietnam and Kenya have been discussed in the terms of general geopolitical characteristics.
Vietnam has a stable government and communal structure which makes it a perfect place for the capital investment. Vietnam is situated in the cradle of Southeast Asia and bordered by China. The geographic advantage of the country serves as a home base to the companies. It is one of the fast-growing Asian companies with high GDP growth. The GDP was 6% in 2014 whereas it increased to 6.7% in 2015. The country is the enormous importer of capital goods which are essential to meet infrastructure needs and the consumer goods in order to satisfy the expanding consumer market. The macroeconomic environment has been stabilized due to the upgrading of the stability of exchange rates and a decrease in the level of inflation. The country remains one of the smart locations for the foreign investors on the account of low wages, favorable demographics, political stability, and location (Parsons, 2017).
The people of Vietnam are having a specific mix of cultures, languages, and history. Vietnam is the most ethnically homogenous country and makes up 90% of the population with Vietnamese. The 85% of the population belongs to the indigenous groups that are Thai and Hmong. Most of the country’s vocabulary comes from the Chinese language (Van Chung, 2015). In 1910, it made French the official language. Buddhism is the largest religion in Vietnam. There are other religions such as Catholicism, Cao Dai, and Hoa Hao sects.
According to the report of the World Bank, the attractiveness of Kenya has improved to investors. The country has been ranked third in the report of World Bank 2017 in the ease of doing a business index. Kenya is considered the economic, viable and logistics hub of East Africa. Kenya is the third most competitive economy. Kenya promotes both local and FDI. The government of Kenya has simplified the business license and efforts to amend the companies act. Most of the investment in Kenya falls under the micro and small business sector (Ngomuo, Mneney & Ndakidemi, 2014). The country has been popular in fascinating private equity capital. The U.S. companies are setting up it’s operations and taking advantage of the location of Kenya. The culture of the business in Kenya is governed by Harambee (Choi & Glassman, 2018).
The culture in Kenya is purely Kenyan. The culture of Kenya is built on the absorption of new and mixed cultures. The GDP of the country was 5.4% growth in 2014. Further, it is expected to bounce to 5.8% in 2018 and 6.1% in 2019 (The World Bank, 2018). The inflation fell to 7.2% in 2014. Kenya is one of the stable countries of Africa. The legal recourse is expensive in the country. The application of common law and doctrines of equity are subjected to the statutes of Kenya. The country has held consistent democratic elections. There are various opportunities available locally and regionally. The infrastructure is also superior in the country. Kenya simplified the process of setting up a business in 2016. The government is open to the foreign investment (Economic Freedom, 2018). There is a skilled labor force in the country which encourages the free flow of trade. The foreign investments are backed by the government policies. It has enacted a law on special economic zones. The work permit is required for the foreign nations expecting to work in the country.
There are three factors which play important role in the geopolitics of Vietnam:
- The major shipping route is long coastline on the South China Sea. South China is a major shipping route and holds the substantial oil and gas reserves. Having control over the South China Sea can interfere with the shipping route of Japan, Taiwan, Korea and many other countries. The country also has Cam Ranh Bay on the central coast and is one of the strategically important bays in Asia (Quora, 2016).
- Vietnam is one of the most popular countries in South East Asia. The country seeks to counterbalance Chinese influence in the region of Asia-pacific. The country has some degrees of political and economic influences, especially on Laos and Cambodia. It is predicted that Vietnam is going to operate with China, Russia, and the US which influences strongly to the geopolitics of the same area.
- The stable political situation and open foreign policy have helped the economy of Vietnam to grow strongly. A large population and geopolitical importance make the country an attractive destination for the foreign investment from the multinationals.
- Vietnam is expected to be among the largest and strongest economies of the world in the future. Vietnam is also a member of the ASEAN. Many high tech companies are coming in the country which requires talented local workforce and encouraging investment environment. The general business costs in the country are the lowest in the area.
The general geopolitical characteristics of Kenya are:
- The coastal region ranges two hundred fifty miles from the southern border. Kenya meets Tanzania on this border and it also borders Somalia in the north. This state is categorized by various biological features. The creation of a standard gauge railway through Tanzania is affordable and shorter in distance (Strategic Intelligence, 2016).
- The eastern plateau forelands are situated at just east of the right highlands. It constitutes a vast plateau of ancient rocks. They are areas of scattered hills and elevated constructions. The most conspicuous hills are Kasigau, Taita, Machakos, and Kitui.
- Rift Valley Region stretches from Lake Turkana area, consecutively southward through the Kenya highlands through Tanzania. The south of lake falls off to near two thousand feet at the border of Kenya-Tanzania.
Conclusion
Both the countries Vietnam and Kenya provide the best opportunities to the investors who want to conduct activities in the countries. Both the countries have a stable government and social structure which makes perfect places to carry on the business activities. The geopolitical characteristics of both the countries attract to conduct operations.
References
Quora, 2016. Geopolitically, is Vietnam an important country? [Online] Availabale at https://www.quora.com/Geopolitically-is-Vietnam-an-important-country [Accessed on 9 August, 2018].
Strategic Intelligence, 2016. Kenya’s Regional Dominance & Power; Nairobi’s Geo Strategic & Political Value Uncontestable. [Online] Availabale at https://intelligencebriefs.com/kenyas-regional-dominance-nairobis-geo-strategic-political-value-uncontestable/ [Accessed on 9 August, 2018].
The World Bank, 2018. The World Bank in Kenya. [Online] Availabale at https://www.worldbank.org/en/country/kenya/overview [Accessed on 9 August, 2018].
Economic Freedom, 2018. Kenya. [Online] Availabale at https://www.heritage.org/index/country/kenya [Accessed on 9 August, 2018].
Van Chung, T., 2015. The Characteristics of Culture and Religions in Ho Chi Minh City, Vietnam: Processes of Acculturation, Transformation and Accumulation. Tattva-Journal of Philosophy, 7(2), pp.27-51.
Ngomuo, M., Mneney, E. and Ndakidemi, P., 2014. Control of lethal browning by using ascorbic acid on shoot tip cultures of a local Musa spp.(Banana) cv. Mzuzu in Tanzania. African Journal of Biotechnology, 13(16).
Parsons, C., 2017. Lauren ME Goodlad. The Victorian Geopolitical Aesthetic: Realism, Sovereignty, and Transnational Experience. Oxford: Oxford University Press, 2015. Pp. 353. $95.00 (cloth). Journal of British Studies, 56(4), pp.911-913.
Choi, Y.J. and Glassman, J., 2018. A geopolitical economy of heavy industrialization and second tier city growth in South Korea: Evidence from the ‘Four Core Plants Plan’. Critical Sociology, 44(3), pp.405-420.
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