QTREND
www.investvanuatu.org :: E-mail: investment@vipa.org.vu

QUARTER 1 – 2019

QUARTERLY FDI TRENDUPDATE

Release Date: Monday,13th May 2019_________________________________________________________________________NUMBER OF NEW FOREIGN INVESTMENT PROJECT APPROVALS IN Q1 2019 INCREASES. CHINA CONTINUESTO DOMINATE.

New FDI Approvals Trend; Vanuatu Leading FDI Source Market- Q3-2017-Q12019
302520151050Q3-2017

Q4-2017

Q1-2018

Q2-2018

Q3-2018

AustraliaChinaQ4-2018

Q1-2019

During the 1st quarter of 2019, the VIPA Board and Management have facilitated theapproval of 95 Foreign Investment Certificates (FIC) of which 51 are new and 44 arevariation projects.



The 1st quarter of 2019 saw fourteen more application compare to the previous quarter.

Of the total number of approvals, China accounts for the majority of investment coming
into the country.

China continues to maintain its lead as the number one source of FDI in Vanuatu.

Total proposed investment value for approved projects during the quarter reached VT2 Billion. Accommodation and Food Services Industry (AFSA) and Wholesale & RetailTrade (WRT) claim the majority of total proposed investment with a combine value of600 Million.

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A. APPROVED FDI PROJECTS BY INDUSTRY CLASSIFIED BY(ISIC)

Number of Approvals by leading business activities (ISIC); Q1:2017-Q1: 201920181614121086420
Q1-2017

Q2-2017

Q3-2017

Q4-2017

Q1-2018

Q2-2018

Q3-2018

Q4-2018

Q1-2019

Wholesale & Retail Trade (WRT)
Accommodadtion & Food Service Activities (ASSA)
Professional, Scientific & Technical Activities (PSTA)

The Wholesale and Retail Trade (WRT) and Accommodation & Food Service Activities(AFSA) continuous to dominate strong economic growth due to high demand in theTourism industry.

Wholesale and Retail Trade (WRT) and Accommodation & Food Service Activities(AFSA) accounted to 600 Million worth of investment value. Combine of 123 proposed
employment opportunity for Ni-Vanuatu.

While Professional, Scientific & Technical Activities (PSTA) or F4 according to theBusiness Licenses Classification has been a growing industry, however, this particularindustry has experience 4 quarters of consecutive declines.

Professional, Scientific & Technical Activities (PSTA) investment value account to 69
Million during this quarter.

Page | 2B. APPROVED PROJECTS BY SOURCE MARKET &PROPOSED VALUE
Proposed Investment Values by FDI Source Markets: Q1-2019:Millions of Vatu

India

5Serbia

62

Fiji

5

Joint Venture Other

60

Joint Venture Local

336

Canada5Germany

2

France595

New Zealand27

Australia

661

China

667
0



100

200

300

400

500

600

700

800

China records the biggest investment with a proposed value of VT667 Million during the quarter andAustralia and France as second biggest investors with investment values of VT 661 Million and VT
595 Million respectively.

China’s biggest investment during the quarter was Accommodation and Food Services Industry (AFSA)
followed with Wholesale & Retail Trade (WRT). Australia’s comes in second, showing an increase inTransport & Storage (TS).

France’s comes in third during the quarter, investing in Arts, Entertainment & Recreation (AER).

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C. PROPOSED LOCAL EMPLOYMENT BY INDUSTRY

Proposed employment to locals from approved projects: Q1- 2019

Arts, Entertainment & Recreation (AER)15

Agriculture, Forestry and Fishery (AFF)

115

Accommodation & Food Service Activities (Tourism) (AFSA)

57

Construction ( C )35

Human Health and Social Activities (HHSA)

1Education ( E )15Internet and Communication (IC)15

Professional, Scientific and Techical Activities(PSTA)

19

Wholesale & Retail Trade (WRT)

66

Manufacturing (M)30

Administrative and Support Service Activities (ASSA)

280



20

40

60

80

100

Agriculture, Forestry and Fishery (AFF) provide for the majority of proposed jobs to beoffered to the locals accounting for 29% of the proposed employment.

Wholesale and Retail Trade (WRT) as a single industry comes in second and havebecome significant activities during the quarter accounting 17% of total proposedemployment.

Accommodation & Food Service Activities (AFSA) comes in third during the quarteraccounting 14 % of total proposed employment. Page | 4120

140

D. NUMBER OF NEW APPROVED PROJECTS BYGEOGRAPHICAL LOCATION

Number of New Approved Applications by location: Q1-2019
4% 2% 3%

91%

LuganvillePort VilaSanmaShefa

Port Vila continues to claim the majority share of all new approved FDI Projects accounting for
91 percent of all approvals with a total value of investment reaches VT 2,234,786,481. WhileSanma and Luganville accounted for the remaining.

Total proposed value of investment for Luganville and Sanma province reached VT 184 Millionand 123 proposed employment opportunity for Ni- Vanuatu were recorded.

It is very interesting to take note that Sanma and Luganville are located in the samegeographical area with numbers of investment conducted. With the supports of theGovernment, there are major infrastructure development projects focused in the area. This
includes other outer Islands throughout Vanuatu, particularly Malekula and Tanna.

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E. REVENUE COLLECTED DURING THE QUARTER

Total revenue collected by type of foreign investment certificate in % : Q12019

16%

14%
70%
New Application
Variation
Renewal

Total revenue collected during the quarter totalled VT14, 010,000. Application fees collected from newand renewal applications contributed the biggest portion of the total revenue.

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F.APPROVED WORK PERMITS DURING THE QUARTER
Approved work permits trend;Q3-2017-Q1-2019
160151140120100938072604020443735310Q3-2017



Q4-2017

Q1-2018

Q2-2018

Q3-2018

Q4-2018

Q1-2019

China records the highest number with 26 proposed foreign work permit during thequarter.

Australia and Joint Venture Local comes in second with a total of 6 proposed foreign
work permit each during the quarter.

While Serbia comes in third with a total of 5 proposed foreign work permit. JointVenture Other only account to 1 proposed foreign work permit during the quarter.

A total of 44 proposed foreign work permit recorded this quarter compare to theprevious quarter which record the highest number of proposed foreign work permit.

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This report is published in accordance with the Vanuatu Investment Promotion Authority Act CAP 248,
section 23 (3) with a focus on (a) the number of applications received by the Board; (b) the number ofapproval certificates granted by the Board together with an analysis of the capital investments to beundertaken; (c) the number of persons granted work and residence permits; (d) the number of citizensof Vanuatu employed or to be employed as a consequence of the approval granted.

CONTACT US FOR FURTHER INFORMATIONOther reports on foreign direct investment (FDI) trends are also available on our website atwww.investvanuatu.org
Email: investment@vipa.org.vu
Telephone: +678 24096 / 24441

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