Investment in Vanuatu: Investment market access
The Vanuatu Investment Promotion Agency (VIPA) is the government agency in charge of investment and foreign investment, responsible for promoting foreign investment, formulating foreign investment regulations and providing services to investors.
Vanuatu welcomes foreign investors to invest in Vanuatu. However, in order to protect the interests of domestic investors, the economic feasibility of foreign investment applications and the credit worthiness of investors should be evaluated. The Government restricts certain investment activities to domestic investors, such as small retail stores, travel agencies, inter-island trade, handicrafts, construction of private homes, and offshore fishing operations.
Vanuatu has listed tourism, agriculture and services as key priority sectors for investment. Apart from tariff reduction, the government has not formulated any other special preferential policies. According to the Vanuatu government, foreign investment is generally self-owned overseas funds, and there are no special regulations on specific investment methods.
Vanuatu does not have relevant regulations on foreign M&A, nor does Vanuatu have regulations on foreign BOT.
Investment in Vanuatu: Preferential policy
Vanuatu grants import tax incentives to certain imported goods that are in line with the Government's policy of incentives and used to promote the country's economic development. Approved foreign-funded projects may apply for exemption of trade tax, such as exemption of import tariff on imported products used in manufacturing or processing, and imposition of import tariff on imported goods used in agriculture, horticulture, livestock, forestry projects, tourism development projects, mineral exploration and development, fishing facilities at the minimum preferential rate of 5% as appropriate.
The Government of Vanuatu focuses on encouraging foreign investment in tourism, agriculture, fishing and services, especially in labor-intensive industries that substitute Vanuatu's own products for imports. In order to create a suitable investment environment and encourage foreign investment in the private enterprise sector, the government of Vanuatu passed the Foreign Investment Law in 1998, and established the Foreign Investment Committee, which is now the Vanuatu Investment Promotion Agency (VIPA), responsible for promoting foreign investment and formulating relevant regulations for foreign investment. We will encourage foreign investment by cutting or reducing trade taxes. Currently, there are no special economic zones in Vanuatu. The government is conducting a feasibility study on the establishment of export processing zones.
