The Economy

Vanuatu enjoys an above average standard of living for an emerging nation. Indeed, the national economy is considered a model for developing nations. The economy is not troubled by deep poverty or chronic unemployment. There are no personal or corporate income taxes, death duties or exchange controls.

Agricultural export industries (principally copra) still predominate in revenue, but the 2300 companies operating from the Republic of Vanuatu are estimated to represent approximately ten billion dollars in assets (1998 estimate). Government revenues from company and ship registration, as well as other fees, account for 1.5 million US dollars annually.

Tourism is the second leading source of income, with development closely controlled by the Government. The islands are a frequent port of call for cruise ships operating in the South Pacific and a package vacation destination for Australian and New Zealand tourists.

It is not surprising that the Government is using all means available to encourage these sectors of commercial activity to further increase employment opportunities and foreign-exchange earnings. All segments of the population, including over 350 ni-Vanuatu currently employed in the finance industry, are utilizing the experience and training obtained in both Government and private sector positions to further expand the economy of Vanuatu.

Currency and Exchange Controls

The local currency is the Vaut (Vt) which floats against a basket of international currencies. Currently the exchange rate is approximately 1 US$ = 115 Vatu. There are no exchange controls or restrictions. Bank accounts may be in Vatu or any major international currency which may be freely purchased and sold in Vanuatu. Funds may be readily transferred anywhere in the world without Vanuatu government approval.

Communications

Comprehensive 24-hour international telecommunications in the form of telephone, facsimile, email and telex services link Vanuatu by satellite, via its own earth satellite station in Port Vila, to the rest of the world. Reliable domestic and international postal and courier services are also available.

Transportation

Vanuatu's modern international airport, Bauerfield International Airport, provides easy access to the world. Direct flights to Australia, New Zealand, Fiji, New Caledonia, and the Solomon Islands, connect with flights to other major international destinations.

In Vanuatu, traffic drives on the right-hand side of the road. Local road transport is inexpensive and well-served by fleets of generally well-maintained  taxis and small buses.

Vanuatu has two main deep sea ports with a number of smaller wharves located in the outer islands. Regular cargo services from Australia, Europe, New Zealand, the United States and Japan are provided by a number of shipping lines. Passenger lines call on the average of twice a month, serving Vanuatu's beautiful resorts. Sport fishing in the waters around Vanuatu is internationally renowned.

World / Local Time

Vanuatu is 11 hours ahead of GMT and the indicated number of hours ahead of other major cities in the table below. All times are in Standard Time.

The normal business day in Port Vila begins at 7:30am. This allows for a 30 minute overlap with New York so that information on New York's closing markets is immediately available to Port Vila offices. Offices in Port Vila open three hours ahead of Hong Kong  and Singapore, enabling them to obtain information from these closing markets. In addition, local offices remain open until London and European markets open. In summary, Port Vila's business hours establish it as a link between Eastern and Western markets, as well as bridging the time gap between London and New York.