Outcomes of Reserved and Restricted Investment Lists Review presented
The Vanuatu Foreign Investment Promotion Agency (VFIPA) hosted a validation workshop on 13 August 2025 to present the outcomes of the Review of the Reserved and Restricted (R&R) Investment Lists.
The workshop brought together government stakeholders and private sector representatives, reflecting strong collective interest in shaping an investment framework that both safeguards local business participation and encourages sustainable foreign investment. VFIPA acknowledged the financial support of Pacific Agreement on Closer Economic Relations Plus (PACER Plus), which made the review and validation process possible.
During the session, Consultant Sally Wyatt presented the consolidated consultation report on the R&R Lists, alongside key investment data and observations. Participants broadly endorsed the findings, noting that the review provides an important step forward in refining Vanuatu’s investment environment.
Ms Wyatt highlighted key trends, noting that while the number of registered foreign enterprises has steadily grown since the pandemic, activity slightly declined in 2024, with 898 registered foreign investment activities recorded. She further observed that inbound Foreign Direct Investment (FDI) has dropped sharply in recent years: from a peak of US$52.8 million in 2019 to just US$9.3 million in 2023, including a steep decline of -75% in 2022 that carried into 2023.
Vanuatu’s share of Oceania’s FDI has also fallen, from 4.3% in 2016 to 2.0% in 2023. Similarly, FDI inflows relative to Gross Domestic Product (GDP) dropped from 6.25% in 2016 and 5.64% in 2019 to just 0.82% in 2023. Ms Wyatt stressed that this downward trend underscores the urgent need for reforms to strengthen competitiveness, unlock new investment opportunities, and ensure the R&R Lists effectively support both local participation and foreign investor confidence.
“It is time for government to step up with initiatives that strengthen Ni-Vanuatu businesses that fall under the Reserved List, enabling them to move into more formal spaces and contribute more meaningfully to the economy. This will complement foreign investment and ensure that both sides work together in driving growth,” he said.
Following the validation workshop, a final report will be prepared and presented to the VFIPA Board with recommendations. Once endorsed, the report will be submitted to the responsible Minister for approval and, if necessary, referred to Parliament to formally amend the R&R Investment Lists.
VFIPA also confirmed that the next review will be undertaken internally, drawing on the expertise and knowledge transferred during this process to build greater local capacity in investment policy management.
It reaffirmed its commitment to advancing reforms that strike a balance between empowering Ni-Vanuatu participation and boosting foreign investor confidence. The agency expressed its appreciation to all stakeholders who contributed to this important process.
