TRADE & FINANCE 25 way higher compared to some of its peers in the region .
The Vanuatu government recognizes the need to enhance and sustain private sector led economic growth with its benefits distributed equitably within Vanuatu .
Stable financial system
Vanuatu ’ s financial system is stable and sound . Fiscal finances are strong , the domestic financial sector players mainly the four commercial banks ( consisting of the subsidiaries and branches of the big names in the South Pacific region and Europe ) operate under a competitive and well regulated environment .
The country presents one of the wellknown offshore centers in the region that continue to attract legitimate and genuine investors . The Vanuatu government continues to cooperate and take important steps in ensuring that the Vanuatu Offshore center continues to fully comply with the international requirements on AML issues and other supervisory standards .
Banking sector offers many of the modern facilities that are comparable to many modern economies around the globe . The benefits that Vanuatu offer as a Tax Heaven are ( i ) Tax-friendly environment ( ii ) no income or company tax ( iii ) no capital gains tax ( iv ) no estate or death duties and ( V ) no foreign exchange controls .
Vanuatu has a strong supervisory regime
The Reserve Bank of Vanuatu ( RBV ) plays a very critical role in the safe and sound operation of the financial system of the country . The Bank regulates and supervises the business of the domestic banks and offshore banks under the provision of the RBV Act , the Financial Institution Act , International Banking Act and a number of other legislative requirements . In carrying out this important role , the Bank follows internationally recognized supervisory methods and standards ( licensing , offsite and on-site supervision ).
Failure measures by banks and insurance companies declaring bankruptcy in Vanuatu is zero or near nothing because of this stringent approach . Vanuatu is a member of the Asia / Pacific Group on money laundering and counter terrorist financing in the Asia / Pacific region and is committed to continue to improve its measures to combat money laundering and terrorist financing . Vanuatu is committed to its international obligations and has enter into 14 Tax information Exchange Agreement with other jurisdictions .
Financial institutions are taking a active role in addressing inequality and poverty
Vanuatu is embracing financial inclusion to address inequality and poverty , and simultaneously promote financial stability and inclusive economic growth . The Authorities are increasingly conscious of the importance of improving access to finance the unbanked population , including for the low income households so as to improve their welfare and enable them to engage in activities that will support economic growth . However , achieving financial inclusion in an island country like Vanuatu is a huge task given geographical challenges , underdeveloped infrastructures and low financial literacy levels but positive outcomes are already showing and the government is fully committed to this .
Vanuatu has modernized its Vatu currency note series
Reserve Bank of Vanuatu issued in June 2014 three new banknotes in polymer ( 200 , 1000 and 2000 Vatu banknotes ). This modernized the currency family series of the country after 30 years in paper note substrate – placing the country amongst the latest in the world to modernize its currency and improved its image globally .
The design style of these latest releases follows the 10,000 Vatu denomination that was issued in polymer in 2010 . The two last denominations that remain to be issued and complete the series in polymer are 5000 and 500 Vatu notes . ■
1
Vanuatu and Fiji successfully linked the submarine optical fi bre cable ( 1,250KM ) investment ( US $ 30 million ) between the two countries and Vanuatu to the world in January 2014 . The high speed internet connection opened the door for e-commerce , e-education , e-government etc improving the investment climate of the country .
2
Construction of the main wharf to accommodate the high infl ux of tourist cruise ships arrivals and wharfs around the islands for trading , the inter-island shipping , Port Vila roads , drainage and sanitation , Port Vila sea front face lift / beatifi cation , international airport upgrades , Malekula and Tanna Islands roads and more .