The payment method used for foreign investment registration certificates (FIRC) by foreign investors has seen a significant shift from hard cash to electronic payments. This shift is one of the objectives for having an online portal and the Agency is very happy with this outcome.

Since its launching in late 2023, payments of application by hard cash declined from 29.3% to 8.4% in 2024 while payments using cheque through local bank accounts has seen a significant decline from 56% in 2023 to 15% in 2024. Conversely, use of electronic payments via bank transfer and credit card have shown massive increases from 19% to 72.4%  and 0.3% to 4.3% respectively over the same period.

Based on this trend, the Agency is optimistic it will achieve its goal of doing away with hard cash payment for foreign investment applications in 2 to 3 years from now. From a policy perspective, this is a very positive shift as it is contributing to the Government’s ongoing efforts to improve the country’s investment climate. And as a gateway to foreign investors, the Agency is proud to have such a modern tool in place that not only does it contribute to transparency and faster processing of foreign investment application but also gain confidence from both existing and potential foreign investors.

Achieving a complete cashless FIRC payment will strongly support the Government’s decentralization policy aimed at expanding developments and service deliveries to other provinces other than SHEFA and Port Vila. Provided there is an internet connection, investors can apply for a new application, submit a Variation and submit an annual survey wherever they are in Vanuatu. Up to 70% of the current FDIs are in SHEFA and Port Vila and it has been and remains VFIPA’s goal to expand FDI locations to these outer provinces.

Foreign direct investment (FDI) strategies are evolving due to the prevailing global challenges such as geopolitical conflicts and tensions, covid-19 pandemic, energy crisis, supply chain disruptions and global inflation. According to recent records, investors have committed to investing in certain sectors, however, in most cases their investment plans have always been delayed. The introduction and use of this tool was timely as it allows investors to maintain their application while still abroad until the situation becomes better.

While the Agency is happy that it has achieved one of several objectives for shifting to an online and automated system, there are other equally important ones yet to be pursued. It is a long and hard journey the Agency has taken to be part of a digital community and will make every effort necessary to ensure the system supports the core requirements for online registration, application processing and reporting and contributing to the long-term goals for the Agency in line with the Governments NSDP 2030.