Economic Development Zone in Vanuatu

What is Economic Development Zone?

 In 2016, the Government of Vanuatu approved the creation of Vanuatu Economic Development Zones (EDZ), including an Industrial Park.  This project was initiated by a private company who invested in this project together with the Vanuatu Gov’t in the framework of a Private Public Partnership (PPP) and will soon be launched at Luganville, Santo. The EDZ will be designed for offering world-class environment for attracting foreign investors, among others:

  • Appropriate infrastructure, including communication and internet access
  • Economic incentive, in addition to those already in force at Vanuatu
  • Qualified labour force
  • Access to regional and international markets

 What makes Vanuatu attractive for foreign investors to this EDZ? 

  • Initiative driven by a Private Public Partnership (PPP)
  • Macroeconomic climate marked by political stability
  • Free tax regime facilities
  • Large infrastructure projects (internet cable, cargo terminal wharf, urban roads improvement, air-ports upgrading)
  • New generation of young educated young people
  • Availability of Land (50Ha) able to host pro-cessing and service companies

 What is the Department of Industry’s role in this project? 

The Division of Industry under the Ministry of Tourism, Trade, Commerce, & Ni-Vanuatu Business is leading the process of the establishment of Vanuatu EDZ with the following mandate:

  • Coordinate, promote and facilitate EDZ investments focusing the regional and international markets
  • Ensure that the site design and planning, the infrastructure, including the utilities are in place
  • Provide incentive packages in coherence with national and international trade obligations
  • Set-up one stop services for the investors (Vanuatu Electronic Single Window - VeSW).
  • Facilitate the licence to the investors through the Vanuatu Investment Promotion Authority (VIPA).
  • Ensure a comprehensive legal framework for investors.
  • Ensure that EDZ labour laws is in line with the ILO standards.
  • Facilitate business development opportunities for SMEs meeting the logistical or outsourcing needs of EDZ investors.
  • Build a database/network of qualified human resources, which could be mobilised by investors. 

What are the expected benefits for the country and its people? 

  • Increase foreign investment
    • Because it is an export-based concept, it will attract many investors from many business sectors
  • Trade
    • E-commerce trade generated
    • Trade balance (Import/Export)
  • Employment
  • Employment is the main driving factor so there are substantial benefits to Ni-Vanuatu workers.
  • Advantage of EDZ that the workers do not have to travel overseas (RSE) and leave their family unit.
  • Revenues
  • Government will collect more VAT
  • And foreign exchange reserves 

The impact of Economic Development Zone will have a multiple effect on our economy in general in all our productive sectors.

 It is expected that EDZ in Vanuatu be operational in 2020.