Announced FDI Increased 5 Percent: June 2024

Facilitating sustainable development goals investment has been the Agency's priority and expanding FDI projects to the outer provinces supports the Governments decentralization policy and recent Economic Corridor initiative.
In 2023 the number of new FDI applications received and registered surpassed the pre-covid level by 37% and 1367% over the previous year.

HIGHLIGHT

Despite the high level of uncertainty that is damaging international investors or delaying FDI plans due to the ongoing global challenges, VFIPA remained committed to working closely with its partners and stakeholders to respond and adapt to the new FDI context.

Foreign Investors are choosing Vanuatu as their investment location

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In 2023, announced FDI projects registered surpassed the pre-covid 19 level by 37% and 136% increase over the previous year. Over the same period, expansion of existing projects expressed through Variation of investment activities and ownership maintained strong momentum as well.

While the increase in the number of registered announced FDI projects could be attributed to the Agency’s online registration tool that makes investment registration by foreign investors easier, faster, and more transparent, strong recovery in the tourism industry cannot be denied following boarder re-opening during the 2nd half of 2022, and a high Government’s expenditure in infrastructure projects is attracting investments. For example, because of the tar-sealed roads on Malekula, and Tanna, 2 new FDI projects have been registered to establish on these 2 islands.

Our Relationship with our Strategic Partners Delivers


The Government’s long time needed One-Stop Shop (OSS) policy initiative could become a reality as a result of VFIPA’s strong partnership with PacerPlus Implementation Unit (PPIU) and the Department of External Trade.

This was achieved through joint collaboration between the PPIU, Department of External Trade and other partner agensies such as the Vanuatu Financial Services Commission (VFSC) and Department f Customs and Inland Revenue (DCIR).

Given the ongoing global and domestic challenges, VFIPA’s long term strategy of establishing networks with strategic partners to attract quality FDIs, is crucial. VFIPA maintains strong partnership with several regional and global strategic partners including (i) World Bank and WAIPA, (ii) Pacific Trade and Invest and (iii) PacerPlus.

Retention and Expansion of Existing Investors

PDI Lelepa Ltd
VFIPA, BDO and PDI Lelepa in discussion

Making sure strategic investors who are already registered and are already doing business in Vanuatu remained in the country is crucial given the high level of uncertainty dur to prevailing global shocks that makes it difficult for foreign investors to invest abroad.

As part of our Aftercare visitation program, 8 visitations have been undertaken to established projects we consider as having national strategic importance.

Looking ahead

The new FDI context because of big macro events such as the pandemic, Russia and Ukraine war causing energy crisis, supply chain disruptions and high inflation rates, calls for a new mindset all levels Vanuatu must align its priorities to match foreign investors shifts in strategies and priorities.

The VFIPA BOD recognized and acknowledged the ongoing efforts made by the Government to ensure its road to recovery is effective and sustainable. As part of its ongoing role in advising on attracting and retaining FDIs into the country, the BOD notes that the road ahead will not be easy therefore enhanced institutional collaboration between the government and private sector is necessary.

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