Quarter one 2021 fdi report
Total announced FDI projects registered during the 1st quarter of 2021 remained low at 40% of the average pre-crisis level, outlook a major concern for Vanuatu as a developing economy
MAIN POINTS
- Announced FDI projects increased 33% during the 1st quarter (Q1, Jan-Mar) 2021 year-on-year (YoY) compared with the same quarter of previous year (2020), driven largely by Accommodation and Food Services and Wholesale Retail projects and supported by divergence in sectors and industries. A spike in project announcements during the 4th quarter of 2020 was due to fee exemption for new applications.
- Total announced investment amount and jobs during the quarter were VT 6 Billion and 367 respectively with construction industry accounting for the majority of the share.
- Of the total announced investment amount, 83% was attributed to the Construction Industry, a classic example of industry-divergence by source markets in line with national efforts to shift to other priority sectors due to the pandemic.
- China and Australia remained Vanuatu’s top key investing countries with China dominating in overall number of announced projects worth over VT95 Million and offering 42 job opportunities for the locals. Total announced investment amount and job opportunity from Australia were VT 5 Billion and 218 respectively.
- Regards announced projects by sectors and industry, Wholesale and Retail ranks top accounting 33% of all announced projects followed by Accommodation, Food and Services Activity and Construction with 13% and 8% respectively.
- In terms of total announced projects by location, 79% are located in Port Vila and Efate, 13% in Luganville and Sanma while the remaining 8% chose to locate in the provinces of Malampa and Tafea.
- The number of Variations approved was 29 (up 12%) during the 1st quarter 2021 YoY compared to same period of the previous year. Compared to the previous quarter (Q4,2020), existing FDI projects intending to maintain their investment through expansion of activities and strengthening their business ownership structures maintains a strong upward trend.
