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China and Vanuatu advance strategic partnership

The Republic of Vanuatu is an island nation in the southwestern Pacific Ocean, consisting of 13 major islands and numerous small islands, located 1750 kilometers east of northern Australia.
The country was established independently from Britain and France in 1980, with a population of about 300000. The capital and the largest city is Port Vila on the island of Effat.
Nowadays, Vanuatu is not only a member of the United Nations, but also a member of the Commonwealth, French speaking countries and regional international organizations, and the Pacific Islands Forum.
Vanuatu is not only beautiful in scenery and one of the most popular tourist destinations in the South Pacific region, but also a country full of investment and development potential. The government has specially introduced policies to encourage foreign direct investment and has a highly competitive labor force. The main areas of investment include agriculture, animal husbandry, fisheries, forestry, manufacturing, construction, and public utilities.

Image source: Port Vila - The Market House

The country's uniqueness lies in its open financial sector, continuously developing infrastructure, and favorable tax policies, making Vanuatu an ideal investment destination for Chinese companies.

In 2023, Vanuatu's main exports to China include oilseeds, miscellaneous grains, seeds and fruits, industrial or medicinal plants (8.49 million US dollars); Wood and wood products (4.22 million US dollars), and aquatic products (1.29 million US dollars), etc.

According to data from the Chinese Ministry of Foreign Affairs, Vanuatu exported $13.93 million to China in 2023, a year-on-year increase of 28.8%.

At present, cooperation between Vanuatu and China continues to strengthen, and the development momentum of bilateral relations is good, providing certain convenience for Chinese investors.

Image source: Ballfield International Airport, Port Vila, Vanuatu. Wikimedia Commons

According to the Vanuatu Daily Mail on July 11th, Vanuatu and China are expected to sign an Air Transport Agreement in September this year, enabling direct flights between the two countries. This agreement will greatly promote economic and trade exchanges between the two countries.

From July 7th to 12th, 2024, Vanuatu Prime Minister Charlotte Salvi made an official visit to China. The leaders of the two countries positively evaluated the achievements of the development of China Vanuatu relations, and both sides agreed to enhance the comprehensive strategic partnership in the new era and build a community with a shared future for China and Vanuatu in the new era.

The Chinese side expressed its willingness to strengthen the joint construction of the "the Belt and Road" initiative and Santo's "Economic Corridor" and other development strategies of the Vanuatu side. The Santo Economic Corridor is a strategic development initiative in Vanuatu that focuses on establishing comprehensive and sustainable infrastructure, including the construction of a $150 million international fishing port on Santo Island to support its economic growth and fisheries development.

This move is expected to expand cooperation between the two sides in areas such as land and sea infrastructure, trade and investment, green and low-carbon development, agriculture, forestry, and fisheries. It will provide business opportunities for Chinese companies interested in investing in Vanuatu or importing Vanuatu products from China, and help promote the growth of the country's job market.

Both sides also agreed to expand exchanges and cooperation in the fields of education, health, and human resources. China will continue to dispatch high-level medical teams to Vanuatu, provide scholarships and various training opportunities to Vanuatu, and offer support in Chinese language teaching.

In the face of global challenges such as climate change and the need for sustainable development, the two countries commit to working together to promote the comprehensive and effective implementation of the United Nations Framework Convention on Climate Change, the Paris Agreement, and the Blue Pacific 2050 Strategy.

This joint statement marks a new era of cooperation between China and Vanuatu, providing broad prospects for Chinese investors and businesses to seek opportunities in this Pacific island nation.

In addition, investing in Vanuatu also has many other advantages. With the government actively promoting various infrastructure projects, Vanuatu's transportation network and public service facilities will become increasingly perfect. In addition, Vanuatu provides tax exemptions and preferential policies for businesses and individuals. The "foreign direct investment" policy introduced by the government is a strong support for Chinese enterprises to invest in Vanuatu. In 2019, foreign direct investment accounted for about 4.2% of Vanuatu's gross domestic product.

These advantages make Vanuatu an ideal investment destination for savvy businessmen, providing them with vast business opportunities and potential for sustainable development. As a result, Vanuatu is rapidly emerging as an important market that investors cannot ignore.