The Vanuatu Foreign Investment Promotion Agency (VFIPA) has successfully held a validation workshop on 13th August 2025 to present the outcomes of the Review of the Reserved and Restricted (R&R) Investment Lists.

From a press release it states that the workshop brought together a wide range of participants, including government officials and private sector representatives, showing the collective interest in building an investment framework that supports local businesses while also attracting sustainable foreign investment. The review and validation process was made possible through financial support from PacerPlus.

During the session, consultant Ms. Sally Wyatt presented a consolidated consultation report on the Reserved and Restricted Lists, including key investment data and trends. Participants acknowledged the findings and expressed broad support, noting that the review was an important step toward strengthening Vanuatu’s investment environment.

Ms. Wyatt highlighted concerning trends in Vanuatu’s investment climate. While the number of registered foreign enterprises has grown since the pandemic, overall activity declined in 2024, with 898 registered foreign investment activities recorded. More critically, inbound Foreign Direct Investment (FDI) has fallen sharply—from VT 6,335,082,600 in 2019 to just VT 1,115,960,900 in 2023. Vanuatu’s share of Oceania’s FDI also dropped from 4.3% in 2016 to only 2.0% in 2023, while FDI inflows relative to GDP fell from 6.25% in 2016 to 0.82% in 2023.

“These figures are a wake-up call,” Ms. Wyatt stressed, explaining that reforms are urgently needed to make Vanuatu more competitive, open new opportunities, and ensure the Reserved and Restricted Lists balance both foreign investor confidence and local participation.

VFIPA Chief Executive Officer, Mr. Raymond Vuti, emphasized the policy importance of the review.

“It is time for government to step up with initiatives that strengthen Ni-Vanuatu businesses that fall under the Reserved List, enabling them to move into more formal spaces and contribute more meaningfully to the economy. This will complement foreign investment and ensure that both sides work together in driving growth,” he said.

With the workshop complete, VFIPA will now prepare a final report for its Board, including recommendations for changes to the lists. Once endorsed, the report will be submitted to the responsible Minister for approval and possible parliamentary consideration to formally amend the Reserved and Restricted Lists.

VFIPA also confirmed that the next review will be undertaken internally, building local capacity by applying the skills and knowledge shared by the consultant.

The agency reaffirmed its commitment to advancing reforms that open opportunities in key sectors, safeguard ni-Vanuatu participation, boost investor confidence, and support inclusive economic growth.