Vanuatu Investment Promotion Authority

Investment Sectors

Tourism Sector

Vanuatu's tourism sector plays a very significant role in the development of the national economy and the government has given it a very prominent status in its national development planning.

The following are some of the major sectors of Tourism industry in Vanuatu, which the government is strongly encouraging:

Tourism accommodation supply
Tourism recreational services
Inter-island cruises
Game fishing and scuba diving
Eco-tourism projects
Joint venture tourism projects

::Hotels
In total there are approximately 2,050 beds available in the country. The country has a huge potential to expand and build more five-star hotels. The expansion of existing superstructures will definitely have spin off effects in the hotel industry.

::Cruise Ships

The Pacific Sun, Pacific Princess and Pacific Star include Vanuatu in their itinerary. They visit other destinations in Vanuatu, including Port Vila and Luganville 7-9 times a month. More facilities & water sports activities are still needed in those destinations for cruise travellers.

::Yachts
On average, more than 500 yachts call in each year and find safe anchorage usually in Port Vila harbour. This number has recently been increasing significantly. Water and bunkering is available at the public wharf and some private facilities where yachts can tie up alongside.

All existing investors in Vanuatu seem well aware of the potential benefits accrued from tourism.

For further information concerning investment in the Tourism Sector please contact the VTO:

Vanuatu Tourism Office (VTO)
P.O Box 209, Port Vila
Phone: +678 22685
Fax +678 23889
Web: http://www.vanuatutourism.com

Agriculture Sector

Agriculture constitutes the major sector of the country's economy and the bulk of the people are directly dependent on it for their livelihood.

The objectives for agricultural sector include:

To encourage the re-establishment of a strong plantation sector with increasing levels of local participation in both its management and ownership. To encourage the participation of private companies in joint venture projects in which the localisation of staff will be vigorously pursued.
To expand and diversify export crop production.
To promote and develop agriculture in all regions of the Republic.
To diversify and increase production, through applied research and modern scientific practices, while at the same time preserving and reactivating what is valuable in tradition.
To ensure the balanced utilisation and conservation of the nation's natural resources.

::Cattle
The present exploitable cattle population is estimated at approximately 155,000 (1993) head, about 47% of which is part of the large estate sector (mostly grazing under coconut trees but also on a few open pasture cattle ranches). Development of the livestock industry has been supported by the setting up of, to date, presently underutilised meat-preparation and processing facilities. Unlike other countries in the region, the Republic of Vanuatu is self-sufficient in beef production and, in fact, beef is an established foreign exchange earner, with exports of beef products amounting to 1,898 tonnes and accounting for 11% of the total value of domestic exports in 1997.

For further information on livestock, quarantine and veterinary information please contact:

Director of Vanuatu Quarantine and Inspection Service
Ministry of Agriculture
Forestry and Fisheries
PMB 095, Port Vila
Phone: +678 23519
Fax +678 23185.

::Plantations

A feature of the agriculture system in Vanuatu is the plantation sector based on coconuts, cattle and cocoa. The total area under coconut plantation is estimated at 79,000 hectares. Annual production averages about 45,000 tonnes.

::Cocoa
Cocoa has traditionally been the second most important cash crop in the country. It is usually grown in the northern islands of the group. Production over the past 20 years has fluctuated between 300 tonnes and 1,000 tonnes of beans. Measures are being taken by the Department of Agriculture to redevelop production by better husbandry and processing in the smallholder and large estate sector.

::Coffee

Coffee Production has also been, like cocoa, undertaken for many years. The present level of production rarely exceeds 100 tonnes. There are plans to redevelop this production mainly through the setting up of a nucleus/smallholder plantation on the southern island of Tanna. This is mainly Arabica coffee however, there are also two other dwarf varieties recommended by the Department of Agriculture and Horticulture, namely the Catuai and the Catimor varieties which have a huge potential in terms of production. This is produced in the island of Tanna.

Forestry Sector

A National Forest Inventory (NFI) was done from 1991-93 and results indicate that approximately 75% of the land area is under natural vegetation, only 35% of it was classified as forest.

The Department of Forests is responsible for issuing Timber Licenses and monitoring timber-harvesting operations. All companies in Vanuatu pay an annual business licence fee and export duties where applicable.

The Government of Vanuatu encourages domestic processing of wood and export of value added forest products. In order to take advantage of the much greater value gained by in-country processing and to encourage modernisation and investment in the local timber industry there are restrictions on exports of unprocessed logs under the Forestry Act.

::Plantation Forestry

The main islands having significant potential plantation areas identified are Espiritu Santo (estimated at 9,000 ha), Erromango (4,000 ha), Malekula (3,000 ha), Vanua Lava (2,000 ha), and Efate (2000 ha).

The Government aims to facilitate Ni-Vanuatu participation and investment in forest industries, especially through joint ventures in the private sector and in mobile sawmills.

There are certain major commercial species that could be processed for both the domestic and international markets. These species include whitewood, milktree and tamanu, as well as for lesser-known commercial species. The use of timber in Vanuatu as an economic, durable and renewable commodity for housing and construction purposes still remains to be fully tapped. Vanuatu is seeking to satisfy domestic demand and to replace the import of processed products with local products.

For further information regarding forestry and the development of forestry in Vanuatu please contact:

Director of the Department of Forestry
Ministry of Agriculture
Forestry and Fisheries
PMB 9064, Port Vila
Phone: +678 23171
Fax +678 25051
Email: forestry@vanuatu.gov.vu

Aquaculture Sector

Aquaculture opportunities such as: Trochus, Green snail, Pearl shells, Giant clams, Milk fish, Mullet fish, Oysters, Prawns (fresh water and marine) and Reef fish.

Other Aquatic exportable products such as: Dried sea slug (bech-de-mer), Rock lobsters, Live reef fish, Oysters, Giant clams and Aquarium fish trade.

Aquaculture opportunities such as:
Trochus, Green snail, Pearl shells, Giant clams, Milk fish, Mullet fish, Oysters, Prawns (fresh water and marine), Reef fish

For further information regarding fisheries, whether traditional fishing or coastal fisheries or Oceanic fisheries including the training programmes for prospective fishermen, village fisheries development, boat building, fish preservation, fish transportation and marketing please contact:

Director of the Department of Fisheries
Ministry of Agriculture
Forestry and Fisheries
PMB 9045, Port Vila
Phone: +678 23119
Fax +678 23641
Email: fishery@vanuatu.gov.vu

Fisheries Sector

Opportunities exist in the Giant Clams, Shrimp and Fish Farming around the islands of Vanuatu.

::Giant Clams
There are four different Species that exist in Vanuatu. These include Tridena Maxima, T-Crocea, T-Squamosa, and Hippopus. Vanuatu’s wild stock of Giant clams has been exhausted. Investment is sought for Mari culture and Farming of Giant Clams. Technical support and expertise is available from the Fisheries Department.With Vanuatu’s growing Tourism industry, and strong positive outlook, there is a continuing demand for Seafood Delicacy, in Hotels and Restaurants, not just locally but overseas too, especially in the Asian Markets. The Export opportunity is strong. Tax incentives are available for foreign investors in this industry. Fisheries is one of the major Government priority sectors of development apart from tourism and agriculture.

::Shrimp
There is never a shortage of demand for Shrimps on Restaurant Tables both locally and internationally. Substantial Opportunity exists in Vanuatu for Shrimp
Mari-culture and Farming. There is great export potential for this product in the future. Focus is encouraged on the Monotone Specie, a brackish Water species. Demand for Shrimps exceeds the supply both in the Local and Overseas Markets. Tax Incentives are available for investors wishing to venture in this particular industry.

::Fish Farming
This is an un-touched industry in Vanuatu. There are certain locations in Vanuatu that have good & strong potential for Fish Farming On land as well as with seawater.
Specific specie encouraged by the Fisheries Department is Milk Fish. There is currently zero export in fish farming, hence fish farming is strongly encouraged by the Fisheries department. There is an annual fish processing establishment license of VT22, 500. The Export permits cost around VT5, 625 per product per consignment.

Other Fishery Oppotunities are as follows;

Tilapia
Macrobrachium rosenbergii
Coral
Kapaphygus (seaweed)
Penaid shrimp
Green snail
Oyster (mangrove)
Sea cucumber
Mudcrab
Coconut crab
Eel
Rock lobster
Larval ranching
Oyster (Pacific)
Carp
Pearl oyster
Mossambicus tilapia
Sponges
Milk fish
Tropical abolone
Grouper (Live reef fish food trade)

For further information on fisheries in Vanuatu please contact:

Director of the Department of Fisheries
Ministry of Agriculture
Forestry and Fisheries
PMB 9045, Port Vila
Phone: +678 23119 & 23621
Fax +678 23641
Email: fisheries@vanuatu.gov.vu

Manufacturing Sector

This sector continues to remain in the priority list of the government given the significant importance it could play to enhance the country's economy.

The manufacturing manufactured products for the domestic market and for export. The production and refinement of coconut fuel

Industries producing consumer goods for the local market are generally small and based in urban areas. They produce soft drinks, bread, furniture and clothing.

Current export products are:

Beef
Coconut Oil and Fuel
Kava
Vegetables
Nuts
Spices
Vanilla
Artefacts
Wood products
Fish<
Dairy products
Ginger

TVET Education Sector

Vanuatu's TVET (Technical, Vocational Education and Training) Sector plays a very significant role in the development of the skills of the people of Vanuatu and both the formal and non-formal economies of the pacific nation.

The TVET Education Sector is effectively coordinated within a national training framework (The Vanuatu Qualifications Framework) and is managed by the Vanuatu National Training Council (VNTC) who maintain the highest possible quality of the system using the Vanuatu National Training Standards (VQTS).

The Following are some of the benefits being enjoyed by current international investors of TVET Education industry in Vanuatu:

Working within a nationally unified TVET training system
Links between Industry, Training Providers and Students
The support from the VNTC in terms of provision of nationally accredited course certification
Promotion of courses through the VNTC newsletter, national register of registered training providers and website
The knowledge that they are helping develop the skills of the people of Vanuatu

All existing and new investors in the TVET Education Sector of Vanuatu continuously report the value and return on investment (both economical and in terms of social development) they receive from their decision to help "develop a skilled nation through quality training.."

For further information concerning investment in the TVET Education Sector please contact the Vanuatu National Training Council:

Vanuatu National Training Council (VNTC)
P.O Box 153, Port Vila
Phone: +678 2134
Fax +678 27535
Email: vntc@vanuatu.gov.vu