Vanuatu Country Brief 2013 for MBA 434 South Pacific Business Environment (Core Course) The course covers key issues relating to the South Pacific business environment. Corporate social responsibility, regionalism, utilisation of natural resources, impacts of culture on business problems, labour relations, government support for business privatisation and the consequences of foreign investment will be considered. The relationships of business, culture and the natural environment, commercial law, as well as the ethics of various viewpoints and practices constitute major themes. The Graduate School of Business (GSB) is located at Statham Campus and currently Professor Raghuvar Dutt Pathak is the Head of the Graduate School of Business (GSB) and Director of MBA programme. The Master of Business Administration (MBA) was first offered in 1995 by The University of The South Pacific. It has since then established itself as a high quality, internationally recognised programme. As well as offering the MBA courses to both full-time and part-time students in Suva, we continued to deliver the programme to part-time students to other pacific island nation. Year after year has seen an increase in MBA student enrolments. http://www.usp.ac.fj/index.php?id=mba

1. Country Report ~ October 2013
Archana Singh
S99000405
Maxine Valentine
S97002304
Stuart Gow
s11100919

2. Vanuatu
Scope
 Country Basics
 Infrastructure
 Business Environment
 Foreign Trade
 Business Sectors
 Investment Promotion
 Sustainability
 Business Requirements????
 Conclusion

3. Vanuatu

4. Vanuatu
Location in South Pacific

5. Vanuatu
Vanuatu Geography
 Land area 14,760 Km2
 More than 80 islands
 several active volcanoes

6. Vanuatu
Population 2012
 Total Population 250,000
 Males 119,091
 Females 114,932
 Av. growth rate 2.3%
 Population density (per
sq.km) 21
 Urbanization
 Urban population 57,195
 Urban growth rate 3.5%
 Percent urban (%) 24.4
 Age Dependency Ratio 71
 Structure 2009
 < 15 years 90,973
 15 - 24 years 45,423
 25 - 59 years 83,821
 60+ years 13,806
 GRAPH OF SPREAD!!

7. Vanuatu
Political situation
 Independence: July 1980

8. Vanuatu
Global Connectivity
Air Sea
 Good air connections
 Airlines:
 Air Vanuatu
 Fiji Airways
 Pacific Blue
 Air Calin
 International port: Port
Vila
 Regular shipping from:
 Australia
 New Zealand

9. Vanuatu
Roads
Ports
Airports
Telecommunications
Utilities

10. Vanuatu
Infrastructure
Roads Ports
 New tar sealed roads
 Efate
 Espiritu Santo
 Funding Millennium
Challenge Accounts (MCA)
 Upgraded wharf facility Port
Vila
 2 new tug boats (ADB)

11. Vanuatu
Infrastructure
Airports Telecommunications
 Bauerfield (Efate)
 new cargo terminal
 extension of runway
 Pekoa’s (Santo)
 International flights
 Government priority:
 Improving domestic
airports
 Mobile networks increased
 Internet connection
 New Cable to Fiji?

12. Vanuatu
Infrastructure
Electricity Water/Sewerage
 Hows this work?  Only in city of Port Vila???

13. Vanuatu
All the Historical $$$ and GDP stuff

14. Vanuatu
Ease of doing business
 World Bank recent report

15. Vanuatu
Vanuatu GDP
 -per capita (PPP) (US$)
 GRAPH?

16. Vanuatu
2012 Balance of Payments
 Growth Rate of Merchandise Exports (%) 24.6
 Growth Rate of Merchandise Imports (%) 1.0
 Trade Balance (% of GDP) -24.4
 Current Account Balance (% of GDP) -6.0
ADB Economics and Research
Department Development Indicators

17. Vanuatu
Labour Force Statistics 2009
 Employed 42,295
 Subsistence workers 41,877
 Males 21,942
 Females 19,935
 Labor Force Participation
rate 70.9
 Unemployment rate 4.6
 Males 4.1
 Females 5.2
 Employment-population
ratio 30.3

18. Vanuatu

19. Vanuatu
Imports

20. Vanuatu
Exports

21. Vanuatu
Trade & Economic Organizations Membership
 SPARTECA – South Pacific Regional Trade and
 Economic Cooperation Agreement
 MSG-TA - Melanesian Spearhead Group – Trade
Agreement
 PICTA - 3) Pacific Island Countries Trade Agreement
 EU Economic Partnership Agreement
 Asian Development Bank (ADB)
 World Bank
 International Monetary Fund (IMF)
 WTO - World Trade Organization - in progress

22. Vanuatu
Private Sector Structure

23. Vanuatu
Tourism
 (>40%!)

24. Vanuatu
 Coffee
 Beef
 Copra
 Tourism
 Financial
 Manufacturing (approx 14%)

25. Vanuatu
Vanuatu Investment Promotion Authority

26. Vanuatu
Vanuatu Investment Promotion Authority
 How good is it ranked on
the ??
 UN WAIPA???
 Formed under Vanuatu
Foreign Investment
Promotion Act (VFIP
Act)

27. Vanuatu
Sector Opportunities
 Vanuatu is endowed with
a vast array of non
mineral resources and its
productive sectors have
significant untapped
potential

28. Vanuatu
National Investment Policy
 Government of
Vanuatu
 March 2005

29. Vanuatu
Froward for a Green Economy?

30. Vanuatu

31. Vanuatu

32. Vanuatu
Business Requirements
 Foreign Investment Approval Certificate (FIAC)
 VIPA act N). 15 of 1989
 7 steps

33. Vanuatu
Process
 The processing of FDI
application and other
requirements have been
stream-lined
 Faster, consistent and
transparent outcomes
 Simple flowchart
 IPA assistance
 ...

34. Vanuatu

35. Vanuatu
 high cost economy

36. Vanuatu
References
 Pacific Institute of Public Policy, social and Economic impact of introducing
telecommunications throughout Vanuatu
 Australia Broadcasting Cooperation
 Vanuatu Economic Report 2009
 Vanuatu Economic Report 2010
 Australian High Commission in Port Vila website. Updated April 2011
 2011 Index of Economic Freedom
 Doing Business 2012 Vanuatu
 en.wikipedia.org/wiki/Vanuatu
 http://www.governmentofvanuatu.gov.vu/component/content/article/78-
vanuatu-status.html
 http://www.heritage.org/
 www.investvanuatu.org/vanuatu/facts.html
 www.dfat.gov.au/geo/vanuatu/vanuatu_brief.html
 www.ausaid.gov.au/country/country.cfm?CountryId=17
 http://gcr.weforum.org/gcr2011/