The Vanuatu Foreign Investment Promotion Agency (VFIPA) is spearheading a comprehensive review of the country’s Reserved and Restricted Investment Lists, underscoring its unwavering commitment to building a resilient and prosperous economy. Scheduled for completion by mid 2025, this review will ensure that Vanuatu’s investment framework remains responsive to evolving economic trends, fostering a business-friendly environment that attracts sustainable investments and enhances national prosperity.

The Reserved Investment List consists of business activities reserved exclusively for Ni-Vanuatu citizens, while the Restricted Investment List outlines sectors where foreign investment is permitted under specific conditions. Since the enactment of the initial Vanuatu Investment Promotion Authority (VIPA) Act No.15 of 1998 [CAP 248] back in 1998 that has been repealed in 2019 and replaced with the current Foreign Investment Act No. 25 of 2019, no formal review has been conducted, making this reassessment a vital step in refining Vanuatu’s economic direction.

This review is a strategic move to bolster investor confidence, diversify the economy, and unleash the full potential of Vanuatu’s private sector. By refining these investment policies, the government is laying the groundwork for accelerated business growth, increased job creation, and enhanced national income. This will ensure that investment regulations are not only competitive but also fully aligned with Vanuatu’s vision for sustainable economic development.

VFIPA acknowledges the importance of balancing foreign investment with the protection of local businesses. The review will carefully assess how to encourage foreign participation in sectors that require capital and expertise. The ultimate goal is to drive innovation, improve service quality, and ensure that investment policies reflect the realities of a dynamic global economy.

According to Gelpen Silas, Manager of the Registration and Monitoring Division   the upcoming review will decide whether some activities should be removed, added, or opened to joint ventures. Silas stressed that the main goal is to gradually reduce the number of restricted activities to make Vanuatu more attractive to foreign investors while still protecting important sectors. He noted that keeping strict restrictions without regular reviews can hold back economic growth and discourage investors who could contribute money and skills. “We tell investors we welcome them, but then we impose limitations when they arrive. This review aims to address such inconsistencies and ensure we strike a balance between protecting local businesses and attracting much-needed investment,” he said.

The review also comes at a crucial time as Vanuatu continues to build economic resilience following global market shifts and recent natural disasters. By creating a more adaptive and investment-friendly environment, Vanuatu will not only accelerate post-disaster economic recovery but also reinforce its standing as a competitive investment destination.

This upcoming review is supported by a technical expert funded by PacerPlus, with VFIPA as the local counterpart ensuring the transfer of knowledge and skills so that such reviews can be conducted internally in the future. What VFIPA is doing now—through consultations, media releases, and stakeholder engagement—is preparatory work aimed at raising awareness and ensuring stakeholders are well-informed about the review process and its objectives.

VFIPA remains committed to an inclusive and transparent review process, engaging key stakeholders from government, private sector representatives, and civil society organizations to ensure that the outcomes support both local entrepreneurs and foreign investors. This collaboration will lead to an investment climate that fosters sustainable development, long-term economic stability, and increased investor confidence.

The successful completion of this review by mid-2025 will mark a significant milestone in Vanuatu’s economic strategy, positioning the country as an attractive hub for quality investments that drive national growth while safeguarding local interests. VFIPA is confident that these strategic adjustments will enhance Vanuatu’s economic trajectory, ensuring prosperity for years to come.