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.