LUGANVILLE, ESPÍRITU SANTO, VANUATU — 22 July 2026

The Vanuatu Foreign Investment Promotion Agency (VFIPA), in partnership with the Vanuatu Chamber of Commerce and Industry (VCCI) and with the support of the Ministry of Trade and Commerce, convened the inaugural Santo Government Agencies Investment Breakfast Forum in Luganville on the 9th of July 2026. The forum was designed to present investor-identified barriers to the government agencies responsible for resolving them, strengthen inter-agency dialogue and coordination on investment facilitation, agree on concrete follow-up actions, and produce a documented commitment to inform government policy and VFIPA's ongoing advocacy work. The session builds on evidence gathered at a separate Santo Private Sector Roundtable Discussion held on 7 July 2026, where VFIPA listened directly to business concerns on the ground. The initiative forms part of VFIPA's Aftercare and Advocacy function, which engages directly with existing investors to track challenges, coordinate with responsible government agencies, and bring forward evidence-based policy recommendations to improve the investment climate.
The forum drew on evidence from the 2026 VFIPA Annual Investor Survey, which captured responses from foreign businesses operating across Vanuatu. The survey found that a significant proportion of respondents reported one or more operational difficulties in 2026. In Sanma Province, investor registrations have grown considerably in recent years, reflecting strong investor appetite for Santo that is not yet being fully converted into productive investment.
The two most pressing concerns raised during the forum were:

1. Labour Shortages and Workforce Challenges. Investors raised concerns about persistent labour shortages and an unskilled workforce as key operational difficulties. Employers reported a recurring cycle in which they invest in training local workers, only to lose them to seasonal worker programmes in Australia and New Zealand, with no compensating mechanism in place. The tourism sector was identified as disproportionately affected. Work permit processing delays and communication gaps were also flagged as immediate concerns.
2. Government Approval Delays. Investors raised concerns about delays in government approvals, a difficulty that has been consistently reported across multiple survey cycles, confirming a structural rather than cyclical problem. Forum participants noted that establishing a new investment requires navigating multiple sequential approval steps across agencies, covering areas including licensing, customs, immigration, environmental compliance, labour, land, and tax. The cumulative time and cost of this process was identified as a significant barrier to investment entry and expansion.
According to UNCTAD, foreign direct investment inflows to Vanuatu fell from USD 53 million in 2019 to USD 9 million in 2023, a contraction of 83 per cent over four years. The World Bank records Vanuatu's FDI net inflows as a share of GDP at 2.6 per cent in 2024, among the lowest in the Pacific region. Vanuatu's economy remains 3 per cent smaller in real terms than in 2019, with real GDP per capita 11 per cent below pre-pandemic levels. These conditions underscore the urgency of the reforms being pursued through this forum process.
The outcome document from the forum remains in draft and will be finalised in due course. A full policy brief and forum outcome report will be made available upon completion.
Notwithstanding these challenges, Santo remains one of Vanuatu's most promising investment destinations, with demonstrated growth in investor registrations and a private sector that continues to engage constructively with government. VFIPA, VCCI, and the Ministry of Trade and Commerce are committed to translating the outcomes of this forum into concrete improvements in the business environment, working in close coordination with relevant government agencies. The collaborative approach demonstrated through this forum reflects the Government of Vanuatu's commitment to creating conditions in which investment can grow, jobs can be created, and communities in Santo and across the nation can benefit.
"Santo has the land, the resources, and the investor interest to drive meaningful economic growth. The challenges raised at this forum are real, but they are not insurmountable. Through the collaborative work of VFIPA, VCCI, the Ministry of Trade and Commerce, and responsible government agencies, we are committed to ensuring these concerns are heard and acted upon. Prioritising these reforms is not just good for investors, it is essential for the people of Santo and for Vanuatu's development future."
Mr. Lee Tabi, Senior Investment Officer, VFIPA