Vanuatu Country Brief 2013


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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.

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  • Vanuatu is an island nation located in the South Pacific Ocean. The archipelago is about 1,750 km east of Australia, 500 km north east of New Caledonia, west of Fiji and south of the Solomon islands
  • It consists of a group of more than 80 islands with a land area of 14,760 square kilometers. Most of the islands are mountainous and volcanic origin, and have a tropical or sub-tropical climate. There are several active volcanoes, including Yasur on the island of Tanna - one of the world’s most accessible volcanoes - as well as several underwater ones
  • Vanuatu’s total population grew by an annual average rate of 2.3 percent per year since the last census in 1999. The country’s population is largely rural (76%) and a young age structure with 39% of the population aged under 15 years . Strong population growths are observed in the two urban centers of Port Vila and Luganville with population increasing by 42 percent since the last census.
  • On 30 July 2010, Vanuatu celebrated 30 years of independence. The country has a republican political system headed by a President who has primarily ceremonial powers. The President is elected for a five-year term by a two-thirds majority in the Electoral College, consisting of Members of Parliament and the presidents of regional councils. The Prime Minister, who is the head of the Government, is elected by a majority vote by a three-fourths quorum of Parliament. The Prime Minister appoints the Council of Ministers, whose number may not exceed one-fourth of parliamentary representatives. The Prime Minister and the Council of Ministers constitute the Executive Government. The Parliament has 52 members who are elected every four years by popular vote. The legal system of the country is based on English common law. Vanuatu has had a relatively prolonged period of political stability. Prime Minister Edward NipakeNatapei has been in office since September 2008. Moses Kahu has been Minister of Health since July 2009
  • By Air.Vanuatu’s national airline “Air Vanuatu” operates regular flights between Australia (10 time a week) and New Zealand (four times a week). The majority of overseas visitors may enter Vanuatu via Sydney.Visitors may also enter Vanuatu via Fiji and New Caledonia. Air Calin operates two flights per week to Port Vila.By Sea.If you are intending to send materials by sea, international vessels enter Vanuatu via Australia, New Zealand and Fiji.
  • RoadsRecent developments has seen the completion of tar-sealed road around the island of Efate, where Port Vila is located and the 57 km tar-sealed road of the east coast Highway on island of Espiritu Santo. This improvement was made possible by the Millennium Challenge Accounts (MCA)PortsPort Vila’s ongoing congestion problem has been greatly improved with upgrade in wharf facilities including the provision of two tugboats.
  • AirportsWith its new cargo terminal and extension of run-way underway, Bauerfield is set to accept larger aircraft.Santo’s Pekoa’s Airport was also upgraded and now handles international flights. Improving domestic airports in the outer islands remains a key priority activity for the Government.TelecommunicationsThe most dramatic recent development has been in the area of mobile phones. The arrival of Digi-cel has seen very strong competition between the Vanuatu TVL - leading to affordable prices in mobile phones. Communication is now easy nation-wide and with good signals. Internet has also improved significantly. A new development which will further boost communication services within the country has been the E-Govt Network.Once the network and databases and software have been configured, it will revolutionalise the way the way government operates and the speedof communication nation-wide.
  • Vanuatu relies heavily on imported goods and services . In 2010 the country imported 27,519 million vatu worth of goods while its value of export stood at 4,504 million vatu.
  • Vanuatu’s principal export products were copra products, beef,cocoa and kava.
  • Foreign investors intending to do business in Vanuatu must operate within the country’s laws and regulations governing commercial activities and practices. Any investor found operating a business in Vanuatu without complying with the regulatory requirements is considered an 'offence' and will face penalty charges as stated in the VIPA act N). 15 of 1989. Business startup’ in Vanuatu comprises of about 7 steps as shown on the fact sheet on the right.After successful completion of the start-up process, all businesses must then comply with various operational requirements. VIPA staff can help you identify the operational requirements relevant to your business.
  • Vanuatu is a very high cost economy, at least partly because of the very high cost of infrastructure services. Some of these are fully or partially government owned, while others are concessions to manage and operate state owned assets. In defense of all private operators, and even the state owned ones, some service is high quality for a country with the per capita GDP of Vanuatu.\local business people complained about high interest rates, our view is that access is a far more pressing problem and is hindering the development of rural areas and the expansion of specialist agriculture, which is an area where Vanuatu has substantial comparative advantage
  • Vanuatu Country Brief 2013

    1. 1. Country Report ~ October 2013 Archana Singh S99000405 Maxine Valentine S97002304 Stuart Gow s11100919
    2. 2. Vanuatu Scope  Country Basics  Infrastructure  Business Environment  Foreign Trade  Business Sectors  Investment Promotion  Sustainability  Business Requirements????  Conclusion
    3. 3. Vanuatu
    4. 4. Vanuatu Location in South Pacific
    5. 5. Vanuatu Vanuatu Geography  Land area 14,760 Km2  More than 80 islands  several active volcanoes
    6. 6. Vanuatu Population 2012  Total Population 250,000  Males 119,091  Females 114,932  Av. growth rate 2.3%  Population density (per 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. 7. Vanuatu Political situation  Independence: July 1980
    8. 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. 9. Vanuatu Roads Ports Airports Telecommunications Utilities
    10. 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. 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. 12. Vanuatu Infrastructure Electricity Water/Sewerage  Hows this work?  Only in city of Port Vila???
    13. 13. Vanuatu All the Historical $$$ and GDP stuff
    14. 14. Vanuatu Ease of doing business  World Bank recent report
    15. 15. Vanuatu Vanuatu GDP  -per capita (PPP) (US$)  GRAPH?
    16. 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. 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. 18. Vanuatu
    19. 19. Vanuatu Imports
    20. 20. Vanuatu Exports
    21. 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. 22. Vanuatu Private Sector Structure
    23. 23. Vanuatu Tourism  (>40%!)
    24. 24. Vanuatu  Coffee  Beef  Copra  Tourism  Financial  Manufacturing (approx 14%)
    25. 25. Vanuatu Vanuatu Investment Promotion Authority
    26. 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. 27. Vanuatu Sector Opportunities  Vanuatu is endowed with a vast array of non mineral resources and its productive sectors have significant untapped potential
    28. 28. Vanuatu National Investment Policy  Government of Vanuatu  March 2005
    29. 29. Vanuatu Froward for a Green Economy?
    30. 30. Vanuatu
    31. 31. Vanuatu
    32. 32. Vanuatu Business Requirements  Foreign Investment Approval Certificate (FIAC)  VIPA act N). 15 of 1989  7 steps
    33. 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. 34. Vanuatu
    35. 35. Vanuatu  high cost economy
    36. 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   vanuatu-status.html     