Shipping Goods From Vietnam to Kenya: A Complete Guide for Startups

If you’re in the early stages of launching your business and have just finished developing your product, you might be tempted to ship it directly from Vietnam or Indonesia — the world’s top two manufacturing destinations — to your final sales channels. After all, why add another layer of complexity to an already challenging process? But wait… is that really a good idea? Shipping goods from Vietnam to Kenya can be a tricky process. However, there are several compelling reasons to not only leave your product with a trusted third party logistics company but also establish a strategic partnership with one prior to shipping. A quick Google search will reveal that many businesses continue utilizing this model. In fact, there are more than 4,000 third party logistics providers operating in the United States alone.

Kenya’s Importance as an Emerging eCommerce Hub

If you’re looking to expand your business outside of your home country, Kenya is a great place to start. According to the World Bank, Kenya has a gross domestic product of $86 billion and a population of about 51 million people and is one of the most attractive manufacturing destinations in Africa thanks to its relatively cheap labor force and first-world infrastructure. Most notably, the East and Central African Growth Corridor (the EAC has been widely referred to as the “New Silk Road”) is a transportation network that connects countries in the region, including Kenya, with those in the European Union. When the project is completed in 2021, it will include a highway between the port of Mombasa, Kenya and the capital city of Nairobi, and a railway that connects Nairobi with the Indian Ocean port of Dar es Salaam, Tanzania.

Warehousing and Inventory Management

One of the main advantages of importing goods from Vietnam to Kenya is that it allows you to warehouse them at a local storage facility and manage your inventory remotely. This enables you to keep a close eye on your inventory, leave a positive first impression with customers, and quickly respond to demand spikes. If, for example, the product you’re importing is a high-demand item, it’s likely that your local warehouse will run out of stock. However, by utilizing a third party logistics partner that is strategically located in a location with a large amount of potential customers, you can ship additional units from your Vietnamese manufacturing partner to the Kenyan warehouse. Moreover, you can easily keep track of all those units by using a software system that supports a wide variety of devices and applications.

Quality Assurance and Repairs

If you’re importing goods from Vietnam to Kenya, you can also use your logistics provider to oversee quality control at the manufacturing facility and repair broken or defective products. This can help improve your product’s consistency, enhance your brand, and build customer trust. This is especially important if your product is likely to be used in an outdoor setting, where it’s likely to encounter extreme weather conditions. If, for example, you manufacture sportswear, you should consider partnering with an outdoor apparel company that has experience in the industries of clothing, footwear, and equipment.

Limiting Liability and Fraud Protection

You can also use a logistics provider to protect yourself from fraud and limit your liability. For example, if you’re importing goods from Vietnam to Kenya and collaborating with a local distributor who is responsible for collecting payments, you should consider using an e-commerce payment gateway that provides fraud protection. Such payment gateways are designed to detect and prevent fraudulent transactions, which can significantly reduce your risk of experiencing a loss. In addition, you should also partner with a logistics provider that offers insurance protection against fraudulent activities such as money laundering and terrorist financing. For example, a trusted 3PL provider will be able to detect any red flags and report them to the proper authorities.

Export Compliance and Customs Clearance

Finally, you should consider importing goods from Vietnam to Kenya if you want to save money on taxes and fees. It’s important to note that not all countries are part of the world’s free-trade zones and therefore don’t benefit from the reduced taxes and tariffs that come with being a FTZ member. If you’re unsure about whether or not your country benefits from a free-trade agreement, you can compare customs regulations in different countries here. If your country is a member of the World Trade Organization and you’re importing goods from Vietnam to Kenya, you can take advantage of preferential tariff rates by utilizing a customs broker. Once you’ve completed your shipments, you can send them to your logistics provider, who will work with your customs broker to clear them for entry. This can help you save up to 40% on taxes and fees.

Bottom line: Why you should import goods from Vietnam to Kenya

If you’re looking to expand your business overseas, importing goods from Vietnam to Kenya is a great way to get your foot in the door. Not only can you take advantage of lower production costs, but you’ll also be able to save time by managing your inventory remotely. Furthermore, you’ll be able to build trust with customers by providing consistent and high-quality products and reducing your exposure to fraudulent activities. Furthermore, you’ll be able to save money on taxes and fees by partnering with a customs broker.