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MBA - Vanuatu - Business Environment Country Report for MBA 434 South Pacific Business Environment


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Business Environment Country Report - VANUATU (20%)
Groups will make a 20 minute presentation using PowerPoint on their assessment of the business environment in a Pacific Island Country assigned to their group.
Groups should analyze the business environment of the selected country and make a presentation using charts, maps, diagrams, photos and illustrations. Reports should cover:
Business environment and the World Bank ease of doing business survey findings for 2013
Country economic profile and private sector structure and performance
Economic outlook for sustainable development, green growth and investment
Review of the growth prospects of industries
Support for small business and entrepreneurship

Assessment Criteria for the Presentation
Quality of Oral and Visual Presentation
Logical structure of the presentation with table of content as second slide.
Clear presentation of the topic and the main issues
Quality of power-point slides
Use of graphs, charts, tables, photographs
Presenters engage audience with eye contact, confidence, enthusiasm, positive attitude, persuasive style
Timing and speed of presentation ( 20 minutes limit)
Evidence of thorough preparation
Collected information on the country from several websites, published reports and studies
Demonstrated a sound knowledge of the country business environment

MBA 434 South Pacific Business Environment @ The University of the South Pacific

This was to cover the required Case study (10%)
In groups of four or five people you will analyze a case study and apply tools presented during the lectures. From the 11 case studies we chose: Pure Fiji

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.

Stuart Gow
Archana Singh
Maxine Valentine

Date: January 2013

Published in: Business, Travel
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MBA - Vanuatu - Business Environment Country Report for MBA 434 South Pacific Business Environment

  1. 1. Country Report to Vanuatu Cabinet ~ 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 Recommendations
  3. 3. Vanuatu Vanuatu 101
  4. 4. Vanuatu Location in South Pacific
  5. 5. Vanuatu Vanuatu Geography Land area 14,760 Km2 More than 80 islands Several active volcanoes Languages, over 112: English French Bislama Native languages
  6. 6. Vanuatu Population 2012 Total Population 250,000 Males 119,091 Females 114,932 Av. growth rate 2.3% Population density (per 21 49% 51% Females Males
  7. 7. Vanuatu Structure 2012 Age Dependency Ratio 71 Structure 2012 < 15 years 90,973 15 - 24 years 45,423 25 - 59 years 83,821 60+ years 13,806
  8. 8. Vanuatu Urbanisation Urban population 57,195 Urban growth rate 3.5% Percent urban (%) 24.4
  9. 9. Vanuatu
  10. 10. Vanuatu Dual Society “Have” & “Have nots” 65% Population Subsistence Living
  11. 11. Vanuatu The Happy People Index Vanuatu #1 !!!!
  12. 12. Vanuatu Political Political System Legal System Independence: July 1980 Republican system Political long term stability English common law Supreme Court Magistrates Court
  13. 13. Vanuatu Health Care Hospitals & Clinics Malaria Gov t health care system Not good enough for retirement investment Health Sector strategy 2010– 2016 Comprehensive Reform Program (CRP) Marked reduction since 2000 Drop of 75% incidence (WHO 2011)
  14. 14. Vanuatu Millennium Development Goals MDGS Goal 1: Eradicate extreme poverty and hunger Target 1: Halve between 1990 and 2015 the proportion of people whose income is less than one dollar a day. Target 2: Halve, between 1990 and 2015, the proportion of people who suffer from hunger
  15. 15. Vanuatu Millennium Development Goals MDGS Goal 2: Achieve universal primary education Target 3: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling 2012 Literacy Rate 81%
  16. 16. Vanuatu Roads Ports Airports Telecommunications Utilities
  17. 17. Vanuatu Infrastructure Roads Ports New tar sealed roads Efate Espiritu Santo Funding by Millennium Challenge Accounts (MCA) Upgraded wharf facility Port Vila 2012 2 new tug boats (ADB)
  18. 18. 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
  19. 19. 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?
  20. 20. Vanuatu Infrastructure Electricity Water/Sewerage Govt Supplied to only Main islands, only 28% population No Electricity in most villages Generators Limited Alternate Power Projects to date Potential for hydropower generation geothermal sites In city of Port Vila Piped in some villages Streams & rivers Video(1.40Min) showing women carrying water
  21. 21. Vanuatu
  22. 22. Vanuatu Vanuatu GDP Currency: Vanuatu vatu ($1.00 FJD = $51.00 VUV) Nominal GDP: $580 million Real GDP Growth Rate 1.1% Inflation Rate(consumer prices): 3.1% GDP per Capita purchasing power parity - $2,900 (20011 est.) Natural Resources: Forest Marine resources Agricultural Land
  23. 23. Vanuatu Performance of Government
  24. 24. Vanuatu Public Debt & Reserves
  25. 25. Vanuatu Credit to private Sector
  26. 26. Vanuatu Ease of doing business World Bank recent report
  27. 27. Vanuatu Economy Ease of Doing Business Rank Filtered Rank Tonga 57 1 Samoa 61 2 Fiji 62 3 Vanuatu 74 4 Solomons 97 5 PNG 113 6 Kiribati 122 7 Micronesia 156 8
  28. 28. Vanuatu Ease of Doing Business Ranking
  29. 29. Vanuatu Inflation
  30. 30. Vanuatu Prices Inflationary pressures Consumer price index inflationary pressures may materialize 2014 Average inflation rate to remain within the central bank’s 0%-4.0% target range June Qtr 2013 increase by 0.2% over the previous quarter Reflecting slight slowdown in economic activity
  31. 31. Vanuatu Foreign exchange reserve Dec 2012 VT17.5bn 7.4 months imports
  32. 32. Vanuatu Labour Force Statistics 2009 Employed 42,295 Subsistence workers 41,877 Males 21,942 Females 19,935 Labour Force Participation rate 70.9 Unemployment rate 4.6 Males 4.1 Females 5.2 Employment-population ratio 30.3 Literacy Rate 81%
  33. 33. Vanuatu International Memberships British Commonwealth French League of Nations United Nations Agence de Co-operation Culturelle et Technique South Pacific Bureau for Economic Co-operation (SPEC) Secretariat of the Pacific Community World Bank Asian Development Bank
  34. 34. Vanuatu Current Foreign Trade 2012
  35. 35. Vanuatu Imports • Food & live animals • beverages & tobacco • machinery & transport equipment • mineral fuels, lubricants & related
  36. 36. Vanuatu Exports Copra Agriculture (beans) Beef Cocoa Fisheries
  37. 37. 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
  38. 38. Vanuatu
  39. 39. Vanuatu Private Sector Structure and Growth
  40. 40. Vanuatu Tourism Tourism >40% GDP Concentrated on Efate Large growth in Cruise Sector Increase in tourist arrivals in 2012-13
  41. 41. Vanuatu Fisheries Tuna fisheries 2nd largest export
  42. 42. Vanuatu Agriculture Coffee Beef Tanna Coffee (premium) High quality organic beef
  43. 43. Vanuatu Agriculture cont. Copra Cocoa & Kava Latrge tracts of Plantations Volatile global prices Possible biodiesel Cocoa specialty
  44. 44. Vanuatu Forestry Sustainable promoted Timbers? Teak sandal wood High grade high price specialties Agro-forectry
  45. 45. Vanuatu Offshore financial services Currency: Vanuatu vatu NO TAXES! Major Banks present: ANZ WestPac Bred BSP
  46. 46. Vanuatu Vanuatu Investment Promotion Authority
  47. 47. Vanuatu Vanuatu Investment Promotion Authority Formed byVFIP Act Promoted Sectors Agriculture Fisheries Forestry Tourism Manufacturing
  48. 48. Vanuatu UN WAIPA Website Clear & smooth Up to date All info given Languages : French Chinese Japanese Korean
  49. 49. Vanuatu Forward for a Green Economy...
  50. 50. Vanuatu Green tourism Tourism Development Plan Possible Solutions Currently no Dev. Plan! Encourage sustainability Energy efficiency Low impact Building Codes Tax incentives Tax allowance Tax Holidays Eco-tourism Low footprint tourism
  51. 51. Vanuatu Energy Efficiency Policies & Regulations Framework Solutions No National Energy Policy Framework Chance to develop a renewable energy policy No indigenous sources of fossil fuels mini grid diesel generation coconut oil conversions Geothermal Solar PV systems Hydropower Wind Hybrid with mixed renewable energy
  52. 52. Vanuatu
  53. 53. Vanuatu Strengths Strong financial centre Tax Benefits Reasonable labor cost Duty exemptions in imports in Tourism Manufacturing/ Processing Mineral Exploration & Extraction Diesel fuel for generation of certain electric power Fishing Industry Equipment for village and rural fishing projects No income tax No withholding tax No capital gain tax No death duties No foreign exchange controls Easy repatriation of profits
  54. 54. Vanuatu Weaknesses Bad infrastructure Uneducated workforce Limited international flights Bad health levels and care Malaria Primitive culture Medical & Dental Costs highj
  55. 55. Vanuatu Opportunities Agriculture Tourism Investing in agriculture Export market Tanna Coffee Skin Care products (copycat ) Infrastructural development Income Tax (tax on consumption) Green Tourism
  56. 56. Vanuatu Threats Agriculture Tourism Global coffee prices (commodity) Copra volatile Tourism: small player Fiji Gold Coast PNG
  57. 57. Vanuatu
  58. 58. Vanuatu Sustainability Implement some form of Environmental Protection Laws Use ADB and AUSAid to assist with this (like Fiji did) Implement renewable energy in a National Energy Policy Framework Promote Green Tourism businesses
  59. 59. Vanuatu Improve Airports High cost economy Cost of infrastructure Spread tourism dollar Link outer islands
  60. 60. Vanuatu SME Support and Microfinancing Make microfinance available Encourage MSME development Sustainable businesses Possible ADB or AusAid assistance
  61. 61. Vanuatu Agricultural Business Incubator Start-up a agri-incubator Get banking/ microfinance support for SME agri-projects Tourism suppliers Export Organic?
  62. 62. Vanuatu Tourism Cruising Sector Green tourism P&O very heavily invested Further encourage by continuing support Large Govt income from Port Fees New Tourism Development Plan Focus on Green Tourism Development
  63. 63. Vanuatu
  64. 64. Vanuatu References Australia Broadcasting Cooperation Vanuatu Economic Report 2009 Vanuatu Economic Report 2012 Australian High Commission in Port Vila website. Updated April 2011 2011 Index of Economic Freedom Doing Business 2012 Vanuatu Government of Vanuatu website: AusAid Website :
  65. 65. Country Report to Vanuatu Cabinet ~ October 2013 Archana Singh S99000405 Maxine Valentine S97002304 Stuart Gow s11100919