By Peter Chen – Chairman of the Sabina Group
This little Vanuatu island nation has been voted several times the happiest place on the planet. Vanuatu is a peaceful country and has a deep-rooted cultural diversity that covers over a vast range of different village dialects. The total population is less than 300,000. In July 2020, Vanuatu celebrated its 40th independence anniversary and also on 4th December 2020 was elevated from Least Developed Countries (LDC) to the status of being the sixth to move up to the status to be a “Developing Country”. This is an exciting time for farsighted entrepreneurs to prosper and grow their business interests with this island nation.
Vanuatu’s geographical closeness to the neighboring Australia and New Zealand offers unique opportunities for enterprising entrepreneurs. Vanuatu is also a country where you will find many Australians and New Zealanders working in the white-collar sector and in the tourist / resort industry. The capital city of Vanuatu is Port Vila with a population of about 40,000 has a well-developed banking and financial infrastructure; with several banks serving the international financial industry and supported by a range of highly professional accountants and lawyers.
The Vanuatu Citizenship By Investment (CBI) and other related programs have in the last five (5) years played a significant role in generating national revenue from fees earned from CIP programs. The objective of the program is to create local jobs, stimulate the economy and keep the national budget balanced.
G8 Consultants Pty Ltd based in Brisbane, Australia (a Member of the Sabina Group in Australia, who’s Chairman & Founder is Mr. Peter Chen an Australian) has been assisting and encouraging new investments into Vanuatu. Mr. Chen has over 40 years of senior corporate management experience in Australia. In January 2017, APAC Magazine selected Peter Chen to be the CEO of the year, for Australia. Peter was selected for his tenacity, honesty, perseverance and good corporate governance – with a long track record in managing a listed public company and corporate governance.
Peter been associated with the Melanesian people for over 50 years from his early days when as Secretary he was based in Port Moresby for a large American construction Group. Mr. Chen who has recently concluded a Public Private Partnership between Port Vila City Council and his parent company in Australia, Sabina Corporation Limited. Under the partnership, a local joint venture company in Port Vila has been established in the name of MIS Investment Limited.
MIS Investment Limited’s objective is to assist Council in identifying and promoting new economic development opportunities, both for the local and new citizens in Port Vila, Vanuatu.
“I see many opportunities for overseas businessmen who have recently gained Vanuatu Citizenship under the CIP Program to help Port Vila to become a more prosperous City; especially new business innovations and value-adding processes to achieve better economic returns for agricultural produce & other local resources” said Mr. Chen.
“Below is a list of current opportunities I see available for new citizens & investors wishing to establish a small to medium enterprise in Port Vila” added Mr. Chen.
List of SME opportunities in Port Vila:
- Animal farming – quails, geese, rabbits, goats and cattle.
- Value adding – preserving, dehydration, and freeze drying of fruits & veggies.
- Making biscuits & confectionary – taro, sweet potato, yam, and cassava + fruits
- Making clothing – industrial hemp fiber
- Making souvenirs – upmarket jewelry, handbags, miniature woodcarvings, etc.
- Distillery – making vodka from sweet potatoes
- Fisheries – better boats to harvest the fish resources and process for export
- Foodstuffs – the development of local ingredients with new cooking techniques
- Fast-food outlets – introduce new local healthy fast food through creativeness
- Low –Cost Housing – introduce sound prefab building materials for housing
- Medical – wellness resorts, private hospitals, clinics & retirement care.
- Transportation – inter-island passenger & cargo boast and water taxis & buses
- Construction – new technologies and equipment
“G8 Consultants Pty Ltd together with Port Vila City Council would be pleased to assist and facilitate overseas investors and new citizens to find suitable local parties to work together under a joint venture or collaboration arrangement. It is important to have good and reliable business introductions to foster close integration in the local business communities”, said Mr. Chen.
Whilst at present there is no legal requirement for CIP citizens to live in Vanuatu or visit Vanuatu to keep your Vanuatu passport, Mr Chen strongly recommends that CIP Citizens should seriously considering setting up their businesses and residences in Vanuatu. This is a small country but it has big opportunities for entrepreneurs with the right vision. CIP passport holders are encouraged to be true good citizens by helping Vanuatu to develop its economic resources to its full potential
Below are some general notes provided by Mr. Chen together with his contact details: [email protected] Mobile WhatsApp: +61 418 748 588
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Vanuatu
The Republic of Vanuatu is located about 3 hours flying time east of Australia. The island nation comprised of roughly 80 islands, only about 15 are habited. The capital city, Port Vila, is located on one of the larger islands, Efate. With over 100 village dialects spoken, Vanuatu’s population is one of the most linguistically diverse in the world and the country is divided into six administrative provinces.
Forest covers around 75% of Vanuatu’s land and includes dense rainforest and plantation forests. Much of the natural forest is on steep inaccessible land. The population is largely rural and most people in rural areas rely on subsistence farming. Urbanisation is increasing mainly to the two main cities; Port Vila and Luganville. However, the overall national population growth is between 2% to 3% a year.
The climate is tropical with average rainfall of 2300mm. There is over 100 different local village dialects spoken in Vanuatu but only three officially recognized languages are used: English, French and Bislama (local). The population of Vanuatu is estimated at around 300,000 with an annual growth economic growth rate forecast at around 3% of GDP.
Apart from fees-revenue earned from Citizen Investment Program (CIP), Tourism has been the country’s main foreign currency earner. Activities in the primary sector which included agriculture, forestry, fishing with some minor activities taking place in the quarrying and mining industries were identified as secondary contributors to economic growth.
In Vanuatu, the majority of the population (76%) live in the rural areas and are engaged in rural subsistence agriculture. However, most of the agricultural activities are geared toward generating additional household income through sales in local markets as well as towards penetrating niche market for high value organically grown food products such as copra, beef, cocoa, kava and coffee.
There are numerous quality holiday resorts throughout Vanuatu. It pristine beaches and natural environment attract tourists from all over the world. Over 90 cruise ships called into Port Vila each year. Tourist numbers will be further increased once additional direct international flights reaches this “Pearl of the Pacific” island paradise.
Citizenship Investment Program (CIP)
In 2015, Vanuatu established Vanuatu Economic Rehabilitation Program (VERP), a fast track citizenship by investment scheme was introduced after Cyclone Pam (March 2015) to raise additional fund for recovery activities. Vanuatu had issued over 4000 passports under CIP by end of 2019. Today, Vanuatu’s CIP program is proving very popular to many people seeking a safe and beautiful country to call Vanuatu their new home. In 2020 year the revenue earned from sales of CIP citizenship and passports has become the principal revenue earner for the country, exceeding 40% of the total revenue; with tourism coming a poor second.
Developing Country.
On 4 December 2020, Vanuatu was removed from the official list of Least Developed Countries (LDC), becoming the sixth country to achieve the milestone status of a “Developing Country” since the development categorization was created in 1971. Vanuatu graduated despite severe setbacks due to accelerating climate change, natural disasters, and the COVID-19 pandemic, which hit remittances flowing back home hard, and the trade and tourism sector. The country has prepared a transition strategy, which will help navigate the next steps in its development path. Vanuatu’s economy is largely driven by its services sector, especially tourism, as well as its agriculture, fishing and industrial sectors. Vanuatu is one of the fastest-growing economies in the Pacific and offers many business and investment opportunities to investors and entrepreneurs with the right foresight.
Agriculture
Around 80 per cent of the population of Vanuatu relies on agriculture for livelihoods and food security. The sector also generates around 20 per cent of Vanuatu’s GDP. Vanuatu’s agricultural sector is divided into three sub-sectors: subsistence farming, semi-commercial farming and commercial farming. The subsistence sector accounts for 75% of agricultural production and is predominantly centred on root crops such as taro, yam, cassava and sweet potato. Bananas, breadfruit and leafy vegetables are grown. Many households also raise small livestock such as chickens, especially in rural areas. Subsistence farming is more common in rural areas and it is estimated that up to 30% of the urban population has no access to land for subsistence agriculture. As a result, rural dwellers are seven times more likely than their urban counterparts to consume local foods every day.
Animal Farming
Vanuatu has one of the most conducive environments in the world for raising beef cattle. Domestically the production of beef, pork, poultry and sheep/goat for local consumption forms an essential part of the economy. There are cattle farms in Vanuatu and they are producing top quality meat. However, these are at a premium and are mainly for the export market. Raised on the northern island of Espiritu Santo, the cattle enjoy a diet rich in nutrients and natural vitamins, and the beef that comes from them carries those flavours, garnering it a well-deserved reputation. The lean and tender meat is starting to gain international recognition at local fine dining restaurants in Port Vila.
As in most Melanesian countries in the South Pacific Island Region i.e. PNG, Fiji, Solomon Islands, Vanuatu, etc.… meat protein is expensive. A lot of the inferior meat (mutton flabs, offal, etc.) is imported from New Zealand and Australia. Chicken followed by pork is the most common form of meat protein consumed locally.
The beef cattle industry in Vanuatu has great potential, both for the domestic and export markets. Although land for pasture is not limiting, the poor quality of pasture grasses results in small weight gains, late turnoff of steers, and low weight carcasses of only moderate finish. Present knowledge of the industry throughout Vanuatu is sketchy. Better cattle management expertise is required to take advantage of this potential. Other farming opportunities of smaller animals that have been identified as excellent include: Quails, Geese, Rabbits, and Boer Goats
Semi-commercial farming, in contrast, is mostly concentrated around urban areas, where high population growth and a developing tourism industry have created a growing market for food crops. Favoured crops include cabbages, tomatoes, capsicum and aubergines. Herbs and spices are also becoming increasingly popular crops in this sector. Commercial farming is dominated by cocoa, coffee, coconut and kava. Vanilla and pepper are also gaining popularity as cash crops. The coconut sector is particularly significant to foreign exchange earnings. However, there are many other value-adding techniques in processing i.e. making coconut sugar, coconut chips, household products, timber and charcoal, that can further improve the economic return on coconut resource.
Fisheries
Nearly all households in coastal communities engage in fishing to some degree, which amounts to nearly 72% of all rural households. Artisanal and subsistence fishing helps provide rural populations in Vanuatu with better food security. The sub-sector also provides economic opportunities to rural communities, although this is hard to accurately measure as catches are rarely sold in the formal market. Estimates suggest that 60-80% of these catches are consumed and the rest is sold in informal markets. Coastal finfish and tuna are the two main sources of fish and seafood, accounting for roughly 77% of consumption.
Vanuatu’s commercial fishing sector is among the least developed in the Pacific region and its contribution to GDP is correspondingly low (although this contribution has steadily grown). Growth in the commercial fishing sector is largely constrained by a lack of infrastructure, such as ports and processing plants. A lack of infrastructure increases costs for fishers to access markets. The fishing industry is yet to be fully developed and also offers many processing opportunities as well.
Nutrition
Like many other countries in the southwest Pacific, Vanuatu suffers from obesity and poor nutrition. In a region where obesity rates regularly exceeds 60% of the population, Vanuatu records a relatively low rate of obesity –around 32% – though combined rates of overweight and obesity are 64.1%. While these rates are lower than in other Pacific countries, obesity rates have grown rapidly in Vanuatu over the last several decades. Increasing rates of overweight and obesity have contributed to elevated rates of non-communicable disease (such as cardiovascular disease and diabetes), which is now estimated to be responsible for 74% of all deaths in Vanuatu. Many additional medical facilities are required throughout Vanuatu and there is a shortage of qualified medical doctors and nurses.
Food
Vanuatu is situated in the southwest Pacific Ocean. While the rural population follows a predominantly subsistence lifestyle, the urban population has adopted a more westernised lifestyle.
Vanuatu’s traditional staple foods are root crops, such as yam and taro, although starchy fruits such as plantain and breadfruit are also seasonally important. The consumption of traditional foods was highest in the rural and lowest in the urban areas. The traditional cooking method however is very time consuming and is limited in its presentation, taste, and flavour. The Government of Vanuatu has a vision for an educated, healthy and wealthy Vanuatu. Ensuring a food secure Vanuatu can contribute significantly towards achieving this vision. This needs to be supported by a stable and consistent policy environment, appropriate rules and regulations and adequate funding of programmes to support and promote development. There is considerable scope for strengthening the primary production sector through increasing domestic market to strengthen national food security and reduce dependence on food imports.
Consumption of imports such as rice, fat / oils, canned and fresh meat/fish, milk and bread was highest in the urban and lowest in the rural areas. The rise in non-communicable diseases has been attributed, in part, to this transition away from traditional foods in favour of imported ones. The other reason is that more and more village people become transformed into western lifestyle.
The Vanuatu Government is keen to reverse this trend by encouraging creative entrepreneurs to use more of the locally grown ingredients. Using the vast range of local nutritious ingredients with Asian cooking techniques to create new and exciting tastes for the tourists and local citizens. Everyone appreciates good food; especially if it also counters obesity and diabetes.
Restaurants
The local restaurants serve up an eclectic range of cooking styles that reflect the combined influences from Europe, Asia and Melanesia. The diverse multicultural flavours mean you’ll be spoilt for choice when eating in Vanuatu, even the fussiest of eaters. At its heart, Vanuatu’s cuisine is simple and wholesome, with plenty of fresh produce and organic meat. The future of Vanuatu food is wide open for creative young chefs to come up with new recipes using local ingredients, new cooking techniques to create exotic tastes, and new & exciting plate presentation. Yes, it opens up a new chapter for Vanuatu cuisine.
Some exotic Vanuatu food experiences include: fruit bats, poulet fish, coconut crab, and lap-lap – Vanuatu’s national dish is a simple “pizza-style” meal and consists of yams, banana or manioc soaked in coconut cream and cooked in an earth oven. Sometimes fish or chicken is added.
Street Food
Vanuatu is undergoing a slow transformation phrase in its street food. At the present time these street food stalls are located mainly within the local markets serving local style food. However, as the “transformation” of restaurant cuisine takes a new form, such new tastes and use of local ingredients will flow onto the style of street food as well. There is good opportunity to introduce more modern food stalls where the kitchen is of stainless steel hygiene standard; and food presentation and seating arrangement needs to be clean & comfortable. Good opportunities exist for small food vendors to offer exciting new food stall presentation and exciting & tasty local street food with a new twist.
Health
Cardiovascular diseases have been the leading cause of mortality for the past decade. Hypertension and diabetes are also of concern. Much effort is recommended to implement health awareness programmes to inform the population of these diseases and how to manage or control them. Good opportunities for developers to establish health clinics, hospitals and resorts using computer-aided technologies as well as traditional & holistic treatments.
As the local standard of living improves, demand for private health services would also increase, opening up numerous business opportunities; from restaurant serving healthy foods to the provision of non-surgery medical services
Housing
Vanuatu is located in a region, which is prone to cyclones. Two sever cyclones occurred within the last 5 years were Cyclone Pam and Cyclone Harold; both were Category 5 i.e. winds in excess of 250/kmh. In total, over 20,000 houses were damaged in one form or another. In December 2020, the New Zealand government provided A $10 million to assist in the rebuilding works for medical centres, water system, classrooms, and other buildings damaged by cyclones. This represents only funds for the more urgent repair works needed. There is a serious need for better standard of housing for the whole nation.
Better designs and better building standards are required. The building industry sector opens up huge opportunities for design expertise, production of pre-fab materials, and building system to provide low-cost cyclone sensitive houses throughout Vanuatu, a nation of 80 islands.
University Education
In addition to primary and secondary education in Vanuatu, tertiary education in Vanuatu advanced a further important step with the establishment of the National University after it had been unanimously adopted by the Parliament on the 17th of December 2019. The key figures of the National University of Vanuatu are to combine progressively existing training institutions within the University and to establish two faculties and 10 schools initially.
This included the Vanuatu Institute of Teacher Education, Vanuatu Institute of Technology, Nursing College, Maritime College, Vanuatu Agriculture College and Police College under the University. Careful attention will be given to meeting high quality tertiary education and training standards and accreditation requirements as required by the laws of Vanuatu. Indeed, Vanuatu needs to strengthen its elites and train its own bilingual managers. With the development of the university and the enrichment of the levels of qualifications, a dynamic conducive to social promotion is underway, which will affect all sectors. Vanuatu students frequently received government scholarships to also study postgraduate studies in various prestigious Universities in Australia and New Zealand.
Vanuatu 2030 – The People’s Plan
Under the caption “A vision for the Vanuatu we want” the report on Page 1 states:
Building a stable, sustainable and prosperous nation – our people and place are at the very heart of our development aspirations. Together we strive for a nation that is stable, sustainable and prosperous, so that all people have a just and equal opportunity to be well educated, healthy and wealthy. Just as we strive to progress in a way that protects and preserves our natural resources for our children and theirs.
Vanuatu 2030 is our National Sustainable Development Plan for the period 2016 to 2030, and serves as the country’s highest-level policy framework. It is founded on our culture, traditional knowledge and Christian principles, and builds on our development journey since Independence in 1980. We have already achieved a great deal, as we have encountered many difficulties and setbacks, some from natural disasters. Our most recent national plan, the Priorities and Action Agenda 2006-2015 sought to deliver a just, educated, healthy and wealthy Vanuatu. It was the first concerted attempt to link policy and planning to the limited resources of government. As we look ahead to the next 15 years, we now seek to further extend the linkages between resources, policy and planning to the people and place they exist to serve.
In effect our development journey remains on the same course, but we are upgrading the vehicle to get us there in a more holistic and inclusive way. Throughout the extensive public consultations that informed this plan, Ni-Vanuatu resoundingly called for a balance between the social, environmental and economic pillars of sustainable development, with our cultural heritage as the foundation of an inclusive society. In the consultations we discussed our biggest development challenges and their solutions. We did not come up with all the answers, but the national vision and policy framework described in these pages charts a pathway towards improved wellbeing and greater shared prosperity.
(A full copy of the Vanuatu 2030 – The People’s Plan is available on the Internet).
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Mr. Peter Chen is a distinguished guest to appear on our 2021 Magazine edition along with previous notable guests Mr. Jonathan Cardona of Malta IIP Agency and Dr. Les Khan of St Kitts and Nevis CIU
