Local business owners and community leaders are voicing growing concern over the sharp rise in Chinese-owned retail stores now operating in residential areas of Port Vila, especially in neighborhoods like Freswota and Ohlen.

The issue surfaced more prominently following the destructive earthquake on 17 December 2024, which left many buildings in the Central Business District (CBD) damaged and forced over 50% of foreign-owned businesses, many of them Chinese, to relocate temporarily into residential areas.

While the Port Vila City Council said this relocation is meant to be temporary while the CBD recovers, locals fear the long-term impact on indigenous entrepreneurship.

One local shop owner in Freswota, Joseph Talo, said the dominance of Chinese shops in his area is making it hard for small ni-Vanuatu businesses to survive.

“Everyone is running to Chinese shops. I try to operate small just to sustain my family. But at the end of the day, people cross the road to go to the Chinese store. I’m worried about the future for our children—if this continues, our kids may never get the chance to run a business. They will all end up shopping in Chinese-owned shops instead.”

Rebecca Batick, a local from Freswota said Chinese shops are cheaper than the locals. “We can only afford to shop in the local shops, if the minimum wage is increased,” she adde.

Freswota municipal councillor Joseph Lagoiala, revealed that a community constitution was already signed under the Indigenous Council of Chiefs in Freswota to safeguard business rights for locals. One clause reportedly reserves Freswota for indigenous ni-Vanuatu and requires investors to sign annual agreements to contribute to the local community.

“That resolution has been there since 2022, but the City Council administration hasn’t acted. Too many of our council’s resolutions are just sitting idle,” Lagoiala said.

The Vanuatu Broadcasting & Television Corporation also understands that part of the influx is due to land or property sales by locals struggling with loan repayments. In some cases, Chinese investors are stepping in to buy land from banks on behalf of locals who defaulted.

Seymour Zheng, a long-time Chinese businessman in Port Vila since 2009, said he has been approached by many locals seeking financial help.

“I bought one property from the bank because the ni-Vanuatu client couldn’t repay the loan. Now different community leaders approach me regularly to help them.”

As Port Vila continues its recovery from the earthquake, questions are being raised about the future of local business ownership, and whether stronger regulations or protective policies are needed to support and preserve indigenous economic participation.