Economic Outlook for Entrepreneurs in Vanuatu

Published on September 30, 2025 and written by Cyril Jarnias

Vanuatu, a tropical archipelago in the South Pacific, is positioning itself as an increasingly attractive destination for entrepreneurs seeking new opportunities. With its idyllic setting and rapidly evolving economy, this small nation offers fertile ground for the development of innovative businesses. Let’s explore together the promising economic prospects available to bold entrepreneurs ready to embark on the Vanuatu adventure.

An Island Economic Boom

Vanuatu has experienced remarkable economic growth for several years, making it one of the most dynamic countries in the Pacific region. After an economic contraction in 2020-2021 due to the pandemic and natural disasters, the country has rebounded spectacularly. In 2023, GDP recorded growth of 2.7%, and forecasts for 2025-2026 are even more encouraging with an expected increase of 4%.

This vigorous recovery can be explained by several factors. First, the tourism sector, the backbone of Vanuatu’s economy, has regained its pre-crisis dynamism. White sand beaches and crystal-clear waters are once again attracting visitors from around the world, stimulating the entire local economy. Additionally, the government has implemented proactive policies to diversify the economy and attract foreign investment, which are bearing fruit.

Agriculture, another key sector of the economy, is also experiencing significant growth. The production of copra, cocoa, and kava, traditional crops of Vanuatu, is steadily increasing. Moreover, new high-value-added agricultural sectors, such as vanilla and pepper, are developing rapidly, offering excellent prospects for entrepreneurs in the agri-food sector.

A Pro-Business Government at the Helm

The Vanuatu government is fully aware of the archipelago’s economic potential and is doing everything possible to create a favorable environment for businesses. The country’s economic policy is resolutely focused on attracting foreign investment and supporting local entrepreneurs.

Among the flagship measures implemented are:

• Simplified administrative procedures for business creation
• Attractive tax incentives for foreign investors
• Establishment of free zones to stimulate certain strategic sectors
• Training and support programs for local entrepreneurs

The government has also launched an ambitious infrastructure development plan. Massive investments are planned in the coming years to modernize ports, airports, and the road network. These projects will not only improve the country’s connectivity but also create numerous opportunities for businesses in the construction sector and related services.

Another strong focus of government policy is digital development. Vanuatu aims to become a regional technology hub and is creating the necessary conditions to attract startups and innovative companies. Significant investments are being made to improve internet coverage and connection quality throughout the archipelago.

Emerging Sectors with Future Potential

While tourism and agriculture remain the pillars of Vanuatu’s economy, new sectors are emerging and offer promising prospects for visionary entrepreneurs.

Renewable Energy: An Untapped Potential

Vanuatu has considerable potential in renewable energy, particularly in solar and geothermal power. The government has set the ambitious goal of achieving 100% renewable electricity by 2030. This energy transition opens up numerous opportunities for companies specializing in green technologies, the installation and maintenance of solar systems, or energy storage.

The Blue Economy: Harnessing Ocean Riches

Surrounded by the Pacific Ocean, Vanuatu is increasingly focusing on the blue economy to diversify its activities. Aquaculture, sustainable fishing, and marine biotechnology are rapidly developing sectors. Innovative projects are emerging, such as seaweed cultivation for biofuel production or the extraction of high-value molecules for the pharmaceutical industry.

Sustainable Tourism and Ecotourism

The tourism sector is reinventing itself to meet the new expectations of travelers seeking authentic and environmentally friendly experiences. Many opportunities exist to develop eco-friendly accommodations, nature discovery activities, or community-based tourism circuits. Vanuatu, with its exceptional biodiversity and preserved cultural traditions, has all the assets to become a leading ecotourism destination in the Pacific.

Navigating Between Risks and Opportunities

Like any emerging destination, Vanuatu presents both risks and opportunities for entrepreneurs. It is essential to have a clear vision of these challenges to succeed in establishing a presence in the archipelago.

Challenges to Overcome

The insularity and geographical remoteness of Vanuatu can pose a logistical challenge for some businesses. Transportation and supply costs can be high, requiring meticulous planning and optimized inventory management.

The country is also exposed to natural hazards, including cyclones and earthquakes. Entrepreneurs must integrate these risks into their strategy and implement appropriate business continuity plans.

Finally, the local market remains relatively limited, with a population of about 300,000. Businesses must therefore often think about their development on a regional or even international scale to reach a critical size.

Assets to Leverage

Despite these challenges, Vanuatu offers many advantages to entrepreneurs:

• A very advantageous tax regime, with some of the lowest tax rates in the region
• A young and dynamic workforce, with competitive labor costs
• An exceptional quality of life, conducive to personal and professional fulfillment
• A strategic position in the heart of the Pacific, enabling influence across the entire region

Vanuatu’s status as an offshore financial center can also be an asset for some businesses, particularly in the financial services sector. However, it is crucial to strictly comply with international financial transparency regulations to avoid any reputational risk.

Heading Towards 2030: Long-Term Prospects

The economic prospects for Vanuatu by 2030 are decidedly positive. The government has developed an ambitious development plan, “Vanuatu 2030: The People’s Plan,” which aims to make the country a prosperous, sustainable, and inclusive nation.

This plan is structured around three pillars:

• Economic development, with an emphasis on diversifying the economy and increasing local value-added
• Social development, to improve education, health, and the well-being of the population
• Environmental protection and resilience to climate change

For entrepreneurs, these directions open up many long-term prospects. The development of infrastructure, the upgrading of the tourism offering, and the transition to a green economy will create multiple business opportunities in the coming years.

Vanuatu also aims to strengthen its regional integration, particularly within the Pacific Islands Forum. This openness will facilitate access to new markets for businesses based in the archipelago.

Finally, the country is betting on innovation and new technologies to accelerate its development. Initiatives are underway to make Vanuatu an innovation hub in the Pacific, with the creation of business incubators and the development of international partnerships. Entrepreneurs in digital and green technologies will be particularly well-positioned to take advantage of this momentum.

Conclusion: Vanuatu, Land of Opportunities for Bold Entrepreneurs

Vanuatu is establishing itself as a destination of choice for entrepreneurs seeking new opportunities. With a rapidly growing economy, a pro-business government, and promising emerging sectors, the archipelago offers fertile ground for developing innovative and value-creating projects.

Admittedly, establishing a presence in Vanuatu requires good preparation and a thorough understanding of local issues. But for entrepreneurs ready to take on the challenge, the rewards can be considerable. Beyond the tax benefits and exceptional quality of life, Vanuatu offers the opportunity to actively participate in the development of a nation in transformation.

Whether you want to launch a startup in green technologies, develop an innovative ecotourism concept, or create a financial services company, Vanuatu offers an environment conducive to success. The entrepreneurial adventure in this Pacific paradise promises to be as rewarding as it is exciting.