Vanuatu has benefited from Enhanced Integrated Framework (EIF) Phase 2 funding totalling approximately USD 6.7 million and support covering the full suite of EIF project support windows. Previous highlights include tourism infrastructure support where USD 3.15 million from the EIF was able to mobilize a further USD 15 million from the Government of New Zealand. As a result of the combined support, the seafront infrastructure created at Port Vila in 2017 helped Vanuatu to attract tourists visiting the country by cruise ships and this will hopefully pay further dividends as international travel resumes post-COVID.

Vanuatu's trade capacity development and institutional strengthening project launched in 2013 (Phase 1 & 2 completed) has helped to develop capacities for the formulation, implementation and assessing of trade related strategies. Through the project's support, Vanuatu has mainstreamed trade in its National Sustainable Development Plan (NSDP 2016-2030) and updated its National Trade Policy Framework. Also, an EIF funded Vanuatu eTrade Readiness Assessment was completed with the support of the United Nations Conference on Trade and Development (UNCTAD) in 2018.

More recently, the EIF provided support to Vanuatu for the Graduation process on not only logistics and communication support but also detailed analytical work such as the Graduation Strategy for the Ministry of Tourism, Trade, Industry, Commerce and Ni-Vanuatu Business and the World Trade Organization (WTO) and EIF publication entitled “Trade impacts of Least Developed Countries (LDC) graduation”.

There are three ongoing projects in Vanuatu, the Electronic Single Window System (ESWS) Project, UNCTAD Automated System for Customs Data (ASYCUDA) & Universal Postal Union (UPU) CDS Platform and a Sustainability Support Project as well as two ongoing relevant regional projects with World Association of Investment Promotion Agencies (WAIPA) and Pacific Islands Forum Secretariat (PIFS).

EIF support to Vanuatu for the installation of an electronic single window, which is co-funded by Australia, has been extremely beneficial. Having successfully strengthened its customs management process, including through the installation of bio-security systems earlier in 2020, Vanuatu has already had 4,535 Sustainability Support Project (SPS) applications lodged and processed online, collected approx. USD 325,000 in fees (approx. 35.5 million Vanuatu Vatus) with over 100 users trained of which 53% are women.

Recently, the project marked an important milestone as it celebrated the first year of implementation of the ASYCUDA Sanitary and Phytosanitary Module (ASYSPS) in Port Vila in March 2021. The implementation of the automated application and payment process was timely as it allowed businesses to continue at the beginning of the COVID-19 pandemic when the government adopted movement restrictions and social distancing to prevent the introduction and transmission of the virus. In addition to allowing online submissions, the automation of the SPS application process enhanced the approval turnaround time, particularly in dealing with perishable products.

The SSP project started in November 2020 and is timely given the compounded challenges that are currently affecting Vanuatu (COVID-19 and the impact of 2020’s cyclone Harold). Beyond strengthening trade mainstreaming mechanisms, this SSP project is also needed to assist Vanuatu to recover by focusing on a number of areas, namely; 1. The Capacity of Vanuatu Chamber of Commerce (VCCI) to be able to provide cost effective and transformative support services to existing and emerging business in the country; 2. Trade negotiation support for Vanuatu to trade with New Caledonia, Japan and other associations in the region and forum islands; 3. Investment promotion strategies for Tourism, Coconut, Beef, Kava, Fruit and Vegetables, Cocoa, Timber and Fishery Products; 4. Improve productivity and value addition particularly in products to be traded domestically and globally as well as product development and quality standards training for women, youths and those with special needs.

Although these two projects are not managed by VAMU, they are worth sharing.

In 2021, a new innovative project has commenced with UNCTAD as the main implementer that seeks to strengthen the ability of Vanuatu to participate in and benefit from e-commerce by increasing border efficiency and reducing red tape and friction in the cross-border shipment of postal items. The project will provide Vanuatu with a universal data communication and processing platform between Customs and Post to support growing cross-border e-commerce flows. This will strengthen and harmonise automated clearance processes, to apply advanced risk management techniques, and adhere to international practices and procedures. This project responds to new legislation brought in by the United Stated, the European Union, China, Russia and others that seeks to address the fast-growing volumes of cross-border e-commerce shipments and the challenges this presents such as illicit trade, security risks, efficient revenue collection and statistical analysis.

EIF has partnered with WAIPA to support a project to build the capacity of Investment Promotion Agencies and Ministries of Commerce to attract both domestic investment and Foreign Direct Investment (FDI). The project targets eight Asia-Pacific LDCs on the path of graduation from the LDC status: Bangladesh, Bhutan, Cambodia, Nepal, Myanmar, Lao People's Democratic Republic, Solomon Island and Vanuatu. It is hoped that the project will be able to build and strengthen Vanuatu's capacity to attract more FDI, for example the Vanuatu Investment Promotion Authority (VIPA) will be supported with the necessary tools, information systems and staff training to succeed in a dynamic and competitive global environment in the field of attracting FDI.

 The EIF support to the PIFS to assist the Quality Infrastructure (QI) of LDCs in the region, including Vanuatu, will help the country to further strengthen its standards and certification systems. The PIFS QI expert has already come on board and has been in contact with all four target countries, including colleagues in Vanuatu.