Vanuatu

What are the regulations for market access for foreign investment?

1 Investment regulatory department
The Vanuatu Investment Promotion Agency (VIPA, www.investvanuatu. org) is a government agency responsible for promoting foreign investment, formulating foreign investment regulations, and providing services to investors.

2 Regulations for the Investment Industry
Vanuatu welcomes foreign investment in Vanuatu and only implements prohibitions or restrictions on a small number of industries. The industries that are not allowed for investment include nuclear weapons, nuclear waste, chemical weapons, gun manufacturing, etc. The industries that are restricted from investment include some tourism, sandalwood import and export, public transportation, residential construction, etc. Please refer to the VANUATU FOREIGN Investment Promotion for specific details. At the same time, in order to protect the interests of domestic investors, the economic feasibility of foreign investment applications and the creditworthiness of investors should be evaluated.

[Tourism industry]
Vanuatu has a unique ethnic culture and beautiful natural environment, and over the past 25 years, the tourism industry has developed rapidly. There are many opportunities to invest in the tourism industry, including some traditional projects and new fields.
The development goal of the tourism industry is to protect the unique culture, historical relics, and natural environment of Vanuatu; Attracting more tourists who appreciate Vanuatu's culture and natural environment; Expand relevant government agencies to ensure efficient services in tourism planning, development, and marketization; Attracting larger scale investments, such as building theme parks, dolphin parks, and underwater worlds.
The Vanuatu government encourages foreign enterprises to invest in the tourism industry, but the following activities are limited to domestic investors in Vanuatu:
(1) Local travel agencies with an annual revenue of less than 20 million watts (approximately 160000 US dollars);
(2) Local tourism companies with an investment of less than 20 million watts (approximately 160000 US dollars);
(3) Commercial cultural festivals (such as Melanesian and Polynesian cultural festivals);
(4) Less than 50 beds, less than 10 rooms, or an annual revenue of less than 20 million watts (approximately 16
A hotel worth ten thousand US dollars;
(5) Resorts with an annual revenue of less than 30 million watts (approximately 240000 US dollars);
(6) Hotels and motels with an investment of less than 10 million watts (approximately $80000) or an annual turnover of less than 20 million watts ($160000).

The relevant institutions established by the Vanuatu government include the Vanuatu National Tourism Office (VTO) and the National Tourism Development Office (NTDO), whose functions are to provide assistance to investors in the planning, development, training, and other aspects of tourism products, and to be responsible for applying for trade tax reductions for approved tourism projects. Investing in the tourism industry does not require an industry license.

[Service Industry]
The Vanuatu government welcomes and encourages investment in the Vanuatu service industry, but there are no special preferential policies for investment in other service industries, except for inter island shipping services that can be exempted from trade taxes. The following service industries are limited to domestic investors in Vanuatu: Kava Tavern; Outdoor vendors; Mobile phone store; Second hand clothing sales; On site sales; Taxi and buses; Private security personnel; Retail stores with a turnover of less than 30 million watts (240000 US dollars); Coastal shipping with a ship weight of less than 80 tons; Electricians, electronic technicians, construction workers.

[Fisheries]
The Vanuatu government attaches great importance to the development of fisheries and related industries, allowing foreign investors to engage in fishing and aquaculture in the country by purchasing fishing permits. With the help of the Pacific Islands Fisheries Forum (FFA), the Tuna Management Plan 2014 was developed and implemented.
The Vanuatu Fisheries Agency is responsible for fisheries management and revised the Fisheries Law in 2014 to ensure the sustainable development of marine resources, protect fisheries resources, and achieve maximum social and economic benefits.
The Fisheries Law stipulates that all fishing activities must obtain a fishing license issued by the Fisheries Bureau (regardless of domestic and foreign vessels). The license is issued annually/quarterly, and currently, the fishing license fee for foreign vessels is around 18000-30000 US dollars per year (usually paid in US dollars). The Fisheries Law also stipulates that fishing operations within 6 nautical miles of territorial waters are limited to domestic citizens. Fishery investment projects can apply for trade tax reduction and exemption, which includes ships and shipbuilding raw materials, fuel, machinery, equipment (including onboard and offshore engines and refrigeration equipment).

[Mining]
According to the Mineral Law of Vanuatu issued in 1986, the exploration, exploration, and mining of minerals require a license or permit. The government is currently considering revising this law to strengthen environmental protection. The factory buildings, machinery, materials, equipment, and fuel of mineral investment projects can apply for trade tax reduction and exemption.

[Industry]
Due to the small domestic market and limited industrial investment opportunities in Vanuatu, the government will provide tariff incentives for investors to increase employment opportunities. Raw materials and machinery used for production and processing can apply for exemption from trade tax, and product exports can be exempted from trade tax.

3 Regulations on Investment Methods
In addition to prohibiting and restricting industries, the Vanuatu government allows foreign investors to make various investments. Foreign investment is generally from overseas self owned funds, and the investment method is usually through the establishment of companies, which can be divided into three types: private companies, public companies, and community companies. The total number of shareholders of a private company cannot exceed 50 (if there is only one shareholder, it is called a single shareholder company), and it cannot be open to the public; There is no limit on the number of shareholders in public companies. Regardless of the form, there is no restriction on the nature of shareholders, and they can be legal persons or natural persons (see COMPANIES ACT for details).

There are no regulations in Vanuatu regarding foreign investment in the construction of development zones or industrial parks, and investment cooperation through second-hand equipment; There are no specialized laws and regulations on corporate mergers and acquisitions, anti-monopoly, etc; When foreign capital conducts corporate mergers and acquisitions, it follows international standards and entrusts professional institutions to conduct due diligence, asset evaluation, auditing, etc. In the past three years, there have been no cases of Chinese enterprises being hindered in conducting mergers and acquisitions locally.

4 BOT/PPP method
There are no regulations in Vanuatu regarding foreign investment in BOT/PPP.