January 2020 started with a major change to VIPA services when the Bill for the Foreign Investment Act which was tabled and passed in late last year was officially gazetted on the 15^th of January and became the new law governing foreign investment activities in Vanuatu.

With this change also came VIPA’s name change from the Vanuatu Investment Promotion Authority to the Vanuatu Foreign Investment Promotion Agency. A name change to Agency as opposed to Authority was mainly to ensure this title matches the services that VIPA as a facilitation agency will now be carrying out.

The Act comes with key changes that the Agency will effect through its services and these include a more policy focused investment promotion agency. One key function of the VIPA Board under the Act is to determine, approve and monitor investment policies and other relevant policies and strategic directions that contribute to achieving the mission and vision of the Agency. In this light, the VIPA Management will be screening and determining all applications whilst the Board of VIPA is focused on policy matters.

The private sector representation on the Board has increased compared to the old Act which only saw one representative through the VCCI. Board representation from the private sector now will see 3 private sector reps.

The Act requires VIPA as an agency to proactively carry out an effective facilitation role by assisting foreign investors in all necessary steps to obtaining key permits to set up a business in Vanuatu.

For the first time since its inception, the new VIPA Act allows for the revision of the Reserved List of Activities which will be carried out through public consultations with the input from all key stakeholders. This allows VIPA to be in line with international best practices of doing business as is elsewhere globally.

Annual Survey’s now replace the Renewals that investors are obligated to submit. The Annual Survey requests similar information asked from the Renewals due to the importance of the data and it is the prime opportunity for investors to detail their investment highs and lows. It is equally important that investors keep proper records of their investment so that figures that are reported through the Annual Surveys are close to accurate as possible.

VIPA will be organizing awareness raising sessions for all key stakeholders and the public as well on features of the new Act and key updates on the review of the Reserved List which through the Act can now be carried out.

VIPA’s awareness sessions will enhance people’s understanding of the Act and how it will help FDI inflow into Vanuatu.