The total number of investments - including existing investments - stood at 182, VIPA said.

Most of the projects approved in 2005 were in the tourism sector, and the largest source of foreign investment was Australia, followed by China and France.

The total amount of the proposed investments approved by VIPA Board in 2005 is approximately over Vt21.804 billion (US$195 million)

Most of the new investment projects will be located in the capital, Port Vila.

The government created VIPA as the first port of call for all foreign investors planning to invest in Vanuatu. VIPA's primary role is the promotion of direct foreign investment into the Republic of Vanuatu, and it aims to provide a service to all foreign investors from an initial inquiry to a project's operational stage and even beyond.

It provides general information packages and advice on investment opportunities, incentives and investment procedures in Vanuatu. VIPA is also empowered to facilitate business expansions and variations and to facilitate investors' requests for work permits, residence permits, business licences and other government approvals. No foreign investor is allowed to do any business in Vanuatu until an approval is given by the Vanuatu Government through the VIPA Board.

As there is no direct corporate taxation in Vanuatu, no formal investment incentive schemes exist to attract investors to the jurisdiction. However, there is legislation (the Import Duties Act and the Export Duties Act) which allows the Government to waive import and export duties for activities which bring benefit to the country's economy.