Gov’t moves to protect Ni-Vanuatu ship owners

May 13, 2025 9:55 pm | Posted in Business News | Share now TwitterFacebook

By Doddy Morris.

The Ministry of Trade and Commerce (MOTC), following a meeting held yesterday with ni-Vanuatu ship owners and the Vanuatu Foreign Investment Promotion Agency (VFIPA), has announced a review of both the VFIPA’s reserved and restricted lists.

One of the key changes under consideration is a major increase to the tonnage threshold on the reserved list, raising it from 80 tonnes to 2,000 tonnes.

This noteworthy policy shift comes after ni-Vanuatu ship owners raised serious concerns that foreign investors were being approved by VFIPA to operate vessels below the current 80-tonne limit, which is meant to be protected for local ownership only.

They also alleged that the Maritime Authority had failed to properly verify the actual tonnage of the foreign-owned vessels, allowing them to enter the restricted domestic market.

To clarify, tonnage refers to the size or cargo-carrying capacity of a ship. Under the current VFIPA reserved list, ships under 80 tonnes are reserved for ni-Vanuatu citizens. These are typically small to medium-sized vessels used for inter-island shipping. Foreign investors are only permitted to operate vessels above this threshold.

With the proposed change, the Ministry plans to raise this limit to 2,000 tonnes, considerably expanding the protected space for local operators and pushing foreign-owned ships into the large-scale commercial category.

VFIPA confirmed that it had received similar complaints about the same foreign investor and has committed to working with the MOTC to resolve the matter.

According to Trade Minister Samson Samsen, the review of the reserved and restricted lists will help close regulatory loopholes and ensure better enforcement of laws designed to protect indigenous business interests.

The Minister also stressed that in joint ventures between ni-Vanuatu citizens and foreign investors, the local partner must hold the majority shareholding. He said this requirement must be clearly reflected in key legal frameworks such as the VFIPA Act, the Vanuatu Financial Services Commission Act, and the Vanuatu Maritime Safety Authority (VMSA) Act. He urged the relevant agencies to enforce these laws without compromise.

In addition to regulatory concerns, Minister Samsen called on local ship owners to help identify suitable sites across the islands where the government could support the development of warehouses and storage facilities.

These would serve as collection and distribution points, helping rural producers move goods more efficiently to market hubs. He said such infrastructure would align with the government’s value-addition policy and support the establishment of packhouses throughout Vanuatu.

Minister Samsen encouraged ni-Vanuatu ship owners to work together in strengthening the shipping industry and ensuring it remains in the hands of locals for the long term.