Business Environment Country Report - VANUATU (20%)
Groups will make a 20 minute presentation using PowerPoint on their assessment of the business environment in a Pacific Island Country assigned to their group.
Groups should analyze the business environment of the selected country and make a presentation using charts, maps, diagrams, photos and illustrations. Reports should cover:
Business environment and the World Bank ease of doing business survey findings for 2013
Country economic profile and private sector structure and performance
Economic outlook for sustainable development, green growth and investment
Review of the growth prospects of industries
Support for small business and entrepreneurship
Assessment Criteria for the Presentation
Quality of Oral and Visual Presentation
Logical structure of the presentation with table of content as second slide.
Clear presentation of the topic and the main issues
Quality of power-point slides
Use of graphs, charts, tables, photographs
Presenters engage audience with eye contact, confidence, enthusiasm, positive attitude, persuasive style
Timing and speed of presentation ( 20 minutes limit)
Evidence of thorough preparation
Collected information on the country from several websites, published reports and studies
Demonstrated a sound knowledge of the country business environment
MBA 434 South Pacific Business Environment @ The University of the South Pacific
http://www.usp.ac.fj/index.php?id=mba434
This was to cover the required Case study (10%)
In groups of four or five people you will analyze a case study and apply tools presented during the lectures. From the 11 case studies we chose: Pure Fiji
The course covers key issues relating to the South Pacific business environment. Corporate social responsibility, regionalism, utilisation of natural resources, impacts of culture on business problems, labour relations, government support for business privatisation and the consequences of foreign investment will be considered. The relationships of business, culture and the natural environment, commercial law, as well as the ethics of various viewpoints and practices constitute major themes.
Students:
Stuart Gow
Archana Singh
Maxine Valentine
Date: January 2013
5. Vanuatu
Vanuatu Geography
Land area 14,760 Km2
More than 80 islands
Several active volcanoes
Languages, over 112:
English
French
Bislama
Native languages
12. Vanuatu
Political
Political System Legal System
Independence: July 1980
Republican system
Political long term stability
English common law
Supreme Court
Magistrates Court
13. Vanuatu
Health Care
Hospitals & Clinics Malaria
Gov t health care system
Not good enough for retirement
investment
Health Sector strategy 2010– 2016
Comprehensive Reform Program
(CRP)
Marked reduction since 2000
Drop of 75% incidence
(WHO 2011)
14. Vanuatu
Millennium Development Goals MDGS
Goal 1: Eradicate extreme poverty and hunger
Target 1: Halve between
1990 and 2015 the
proportion of people
whose income is less
than one dollar a day.
Target 2: Halve, between
1990 and 2015, the
proportion of people who
suffer from hunger
15. Vanuatu
Millennium Development Goals MDGS
Goal 2: Achieve universal
primary education
Target 3: Ensure that,
by 2015, children
everywhere, boys and
girls alike, will be able
to complete a full
course of primary
schooling
2012 Literacy Rate 81%
17. Vanuatu
Infrastructure
Roads Ports
New tar sealed roads
Efate
Espiritu Santo
Funding by Millennium
Challenge Accounts (MCA)
Upgraded wharf facility
Port Vila 2012
2 new tug boats (ADB)
18. Vanuatu
Global Connectivity
Air Sea
Good air connections
Airlines:
Air Vanuatu
Fiji Airways
Pacific Blue
Air Calin
International port: Port
Vila
Regular shipping from:
Australia
New Zealand
20. Vanuatu
Infrastructure
Electricity Water/Sewerage
Govt Supplied to only Main
islands, only 28% population
No Electricity in most villages
Generators
Limited Alternate Power
Projects to date
Potential for
hydropower generation
geothermal sites
In city of Port Vila
Piped in some villages
Streams & rivers
Video(1.40Min) showing
women carrying water
30. Vanuatu
Prices
Inflationary pressures Consumer price index
inflationary pressures may
materialize 2014
Average inflation rate to
remain within the central
bank’s 0%-4.0% target
range
June Qtr 2013 increase by
0.2% over the previous
quarter
Reflecting slight slowdown
in economic activity
32. Vanuatu
Labour Force Statistics 2009
Employed 42,295
Subsistence workers 41,877
Males 21,942
Females 19,935
Labour Force Participation
rate 70.9
Unemployment rate 4.6
Males 4.1
Females 5.2
Employment-population
ratio 30.3
Literacy Rate 81%
33. Vanuatu
International Memberships
British Commonwealth
French League of Nations
United Nations
Agence de Co-operation Culturelle et
Technique
South Pacific Bureau for Economic
Co-operation (SPEC)
Secretariat of the Pacific Community
World Bank
Asian Development Bank
37. Vanuatu
2012 Balance of Payments
Growth Rate of Merchandise Exports (%) 24.6
Growth Rate of Merchandise Imports (%) 1.0
Trade Balance (% of GDP) -24.4
Current Account Balance (% of GDP) -6.0
ADB Economics and Research
Department Development Indicators
50. Vanuatu
Green tourism
Tourism Development Plan Possible Solutions
Currently no Dev. Plan!
Encourage sustainability
Energy efficiency
Low impact
Building Codes
Tax incentives
Tax allowance
Tax Holidays
Eco-tourism
Low footprint tourism
51. Vanuatu
Energy Efficiency Policies & Regulations
Framework Solutions
No National Energy Policy
Framework
Chance to develop a
renewable energy policy
No indigenous sources of
fossil fuels
mini grid diesel generation
coconut oil conversions
Geothermal
Solar PV systems
Hydropower
Wind
Hybrid with mixed renewable
energy
53. Vanuatu
Strengths
Strong financial centre Tax Benefits
Reasonable labor cost
Duty exemptions in imports
in
Tourism
Manufacturing/ Processing
Mineral Exploration &
Extraction
Diesel fuel for generation of
certain electric power
Fishing Industry Equipment
for village and rural fishing
projects
No income tax
No withholding tax
No capital gain tax
No death duties
No foreign exchange
controls
Easy repatriation of profits
58. Vanuatu
Sustainability
Implement some form of
Environmental Protection
Laws
Use ADB and AUSAid to
assist with this (like Fiji did)
Implement renewable
energy in a National Energy
Policy Framework
Promote Green Tourism
businesses
60. Vanuatu
SME Support and Microfinancing
Make microfinance
available
Encourage MSME
development
Sustainable businesses
Possible ADB or
AusAid assistance
62. Vanuatu
Tourism
Cruising Sector Green tourism
P&O very heavily invested
Further encourage by
continuing support
Large Govt income from Port
Fees
New Tourism Development
Plan
Focus on Green Tourism
Development
64. Vanuatu
References
Australia Broadcasting Cooperation
Vanuatu Economic Report 2009
Vanuatu Economic Report 2012
Australian High Commission in Port Vila website. Updated April 2011
2011 Index of Economic Freedom
Doing Business 2012 Vanuatu
Government of Vanuatu website: governmentofvanuatu.gov.vu
http://www.heritage.org/
www.investvanuatu.org/vanuatu/facts.html
www.dfat.gov.au/geo/vanuatu/vanuatu_brief.html
AusAid Website :
www.ausaid.gov.au/country/country.cfm?CountryId=17
http://gcr.weforum.org/gcr2011/
65. Country Report to Vanuatu Cabinet ~ October 2013
Archana Singh
S99000405
Maxine Valentine
S97002304
Stuart Gow
s11100919
Notas del editor
Originally called the New Hebrides, on 30 July 2010, Vanuatu celebrated 30 years of independence.
Vanuatu has a republican political system which is currently headed by a President who is elected for 5-year terms by a two-thirds majority in an electoral college.
This Electoral College consists of members of Parliament and the presidents of Regional Councils.
The prime minister and the Council of Ministers constitute the executive government.
Vanuatu has had a relatively prolonged period of political stability.
Legal System
The legal system of the country is based on English common law.
The judiciary consists of the Supreme Court with a Chief Justice and a Magistrates Court. The highest court is the Court of Appeal.
Gov t health care system
Not good enough for retirement investment
Health Sector strategy 2010– 2016
Comprehensive Reform Program (CRP)
MALARIA
HUGE reduction since 2000
Drop of 75% incidence (WHO 2011)
This was done with a major program of mosquito nets throughout the country mostly, as well as better treatments and education of mosquito control
Roads
Recent developments has seen the completion of tar-sealed road around the island of Efate, where Port Vila is located and the 57 km tar-sealed road of the east coast Highway on island of Espiritu Santo. This improvement was made possible by the Millennium Challenge Accounts (MCA)
Ports
Port Vila’s ongoing congestion problem has been greatly improved with upgrade in wharf facilities including the provision of two tugboats.
By Air.
Vanuatu’s national airline “Air Vanuatu” operates regular flights between Australia (10 time a week) and New Zealand (four times a week).
The majority of overseas visitors may enter Vanuatu via Sydney.
Visitors may also enter Vanuatu via Fiji and New Caledonia. Air Calin operates two flights per
week to Port Vila.
By Sea.
If you are intending to send materials by sea, international vessels enter Vanuatu via Australia, New Zealand and Fiji.
Airports
With its new cargo terminal and extension of run-way underway,
Bauerfield is set to accept larger aircraft.
Santo’s Pekoa’s Airport was also upgraded and now handles international flights.
Improving domestic airports in the outer islands remains a key priority activity for the Government.
Telecommunications
The most dramatic recent development has been in the area of mobile phones. The arrival of Digi-cel has seen very strong competition between the Vanuatu TVL - leading to affordable prices in mobile phones. Communication is now easy nation-wide and with good signals.
Internet has also improved significantly. A new development which will further boost communication services within the country has been the E-Govt Network.
Once the network and databases and software have been configured, it will revolutionalise the way the way government operates and the speedof communication nation-wide.