Vanuatu Business Overview

Business and Economic Overview

Vanuatu is the 174th largest export economy in the world. The top exports of Vanuatu are Non-fillet Frozen Fish ($70.5m), Tug Boats ($70m), Copra ($17.2m), Molluscs ($8.18m) and Perfume Plants ($7.97m). Its top imports are Refined Petroleum ($38.8m), Poultry Meat ($6.83m), Baked Goods ($6.72m), Broadcasting Equipment ($6.13m) and Delivery Trucks ($5.4m).

The top export destinations of Vanuatu are Mauritania ($70m), Japan ($66m), Philippines ($18.4m), China ($13.7m) and South Korea ($8.5m). The top import origins are China ($64.9m), Australia($42.5m), Fiji ($30.6m), Malaysia ($22.9m) and New Zealand ($19.3m).

Vanuatu ranks 94th in the ease of doing business index 2019 and ranks 116th in the economic freedom index 2019. Vanuatu’s inadequate enforcement of the law, vulnerability to natural disasters and long distances to major markets makes it hard to conduct business in the country. Business activity is limited due to the widespread of corruption in the country.

In 2015 Cyclone Pam wiped out most the infrastructure, agriculture industry and tourism industry. It has taken the coffee industry 4 years to bounce back from devastation caused by the cyclone.

Enforcement of property rights is very slow and prone to corruption. Administrative procedures are complex and costly. Governmental reforms are needed to be made in the private sector to stimulate development as the government seem to focus more of their time and money on state-owned enterprises.

Challenges and Opportunities for Businesses in Vanuatu

Despite being a small island nation with limited resources, Vanuatu has potential for economic growth and development through its various industries such as agriculture, tourism, and fishing. However, businesses in Vanuatu face several challenges that can hinder their success.

One of the major challenges is the country’s inadequate enforcement of laws and regulations. This creates an environment where corruption

Vanuatu’s business sector faces challenges such as corruption, natural disasters and inadequate infrastructure, making it crucial to understand its economic landscape before investing. So, proper government reforms are needed to boost the private sector and stimulate development in the country.

By understanding the top exports and imports, as well as rankings in ease of doing business and economic freedom index, potential investors can make informed decisions about conducting business in Vanuatu. Despite facing setbacks like Cyclone Pam, the country’s economy has shown resilience with industries like coffee bouncing back after years of recovery efforts. With a focus on addressing issues like corruption and improving infrastructure