Vanuatu strives to attract more Chinese investment

The Vanuatuan government is keen to attract more overseas investors and visitors, especially those from China, officials of Vanuatu said Wednesday.

"Vanuatu is business-friendly and welcomes investors from all over the world," said Director General of Internal Affairs George Bogiri, who is paying a visit in Hong Kong, in an interview with Xinhua that the island nation is adopting "zero tax" policy and has a good banking system, making it a favorable place for investors.

Located in the South Pacific Ocean, Vanuatu enjoys beautiful ocean and beach landscapes.

Bogiri said that Vanuatu, labeled as the "Happiest Nation in the World", is an ideal tourism destination, which has zero pollution, fresh air, clean ocean, and friendly people.

"Currently, our tourists are mainly from Australia and New Zealand". Bogiri said, there is no direct flight between China and Vanuatu, therefore, the number of tourists from China only reaches 200 to 300 a year.

"Vanuatu government is interested in working with China to establish a direct flight between China and Vanuatu, and the negotiation is undergoing," he said.

Bogiri said, Vanuatu's major industries include tourism, agriculture, finance and manufacturing.

Chairman of Vanuatu Financial Services Commission Bill Bani said to Xinhua that the Vanuatu government has been keen on attracting Chinese individuals and companies through the PR Visa Program to visit Vanuatu and consider investing in a variety of programs including hospitality, financial products which will contribute to the economic development of Vanuatu. Vanuatu can provide many financial products which are competitive compared to other offshore centers.

Bani said that Vanuatu is an archipelago country consisting of 83 islands. The geographic position poses a few difficulties to the economic growth.

"The bulk of Vanuatu's population depends on agriculture for subsistence, but given its isolation, trade in agricultural products is an expensive exercise", he said.

Bani noted that Vanuatu does not have direct taxation and raises its revenues through indirect taxes such as Value Added Tax. Its foreign exchange earnings are derived from tourism and donor funding. Through some initiatives, the government raises extra revenue to provide necessary services to its people.

Bani said, over the past three years or so, Vanuatu has been affected by the global meltdown, "we have seen the slowdown in economic growth".

"The financial crisis has been affecting Vanuatu's neighbors such as Australia and New Zealand, which have seen a drop in visitors and investment into the country", Bani said, "Whereas, Vanuatu is moving on as what the rest of the world are doing, and try to see the bright side of things".

As for bilateral relations, both the officials said that they wish the two countries a long-term friendship.

"Vanuatu and China have a diplomatic relationship over 30 years. Many Chinese companies have started businesses in Vanuatu. I foresee that relationship with China would be closer and closer," Bogiri said.

"Vanuatu government attaches great importance to our relationship based on mutual understanding. Our ties of friendship and cooperation will be strengthened and both of the nations and people will benefit from it," Bani said at the end of the interview.