Adoption of Foreign Investment Act

On 15 January 2020 the new Foreign Investment Act no. 25 of 2019 was gazetted, repealing the Vanuatu Promotion Investment Act Cap [248]. The Act establishes the Foreign Investment Promotion Agency, which replaces the Vanuatu Investment Promotion Authority.

Among the other novelties, the Act introduces a range of investment treatment and protection guarantees, replaces FDI permitting with simple registration and annual investor surveys (foreign investments must be registered and provide an annual survey of their business by 28th February of each year, rather than submitting an application for their permit renewal), and introduces mechanisms for the review of administrative decisions. Finally, according to the Act, “If the business activities of a foreign investor are expanded more than 3 times in the form of a variation, the foreign investor must enter into joint partnership with a citizen of Vanuatu (Clause 45 (9))

• Type:

  • Entry and establishment (Approval and admission)
  • Treatment and operation (Non-discrimination, Operational conditions )
  • Promotion and facilitation (Investment facilitation )

• Industry:

  • Not industry specific

• Sources:

  • Vanuatu Business Review, Foreign Investment in Vanuatu and the new ‘VIPA’ Act, http://vbr.vu/feature/foreign-investment-in-vanuatu-and-the-new-vipa-act/, 29 Feb 2020
  • Government Portal , Foreign Investment Act no. 25 of 2019, https://tradeportal.gov.vu/media/Foreign%20Investment%20Act%20No%20%2025%20of%202019%20(2).pdf, 15 Jan 2020