The Investment Promotion Act governs foreign direct investment in the country. Under Art. 27, certain activities are reserved for national citizens and companies. These reserved activities are specified in the Investment Promotion Regulation 1992 and, following the amendment introduced by the Investment Promotion (Amendment) Regulation 2021, include the repair of consumer electronics goods when this activity is not carried out in conjunction with the manufacture, wholesale or retail sale of such goods.

According to Art. 128 of the Companies Act, at least one director of the company shall be ordinarily resident in the country.

According to Art. 25 of the Investment Promotion Act, the Investment Promotion Authority (IPA) may grant a certificate authorising a foreign enterprise to carry on business in the country, and, subject to Art. 26, a foreign enterprise may not operate without such a certificate. Pursuant to Art. 28, a foreign company applies for an investment certificate by submitting, in the prescribed form, an application to the IPA together with copies of any agreements or documents relating to the management or proposed management of the company. The IPA must verify the accuracy of the information provided, assess whether the proposed activity is likely to contribute to the objectives of the Act, evaluate the applicant’s capacity to finance, establish and operate the enterprise, and review the applicant and any associated owners, directors or partners before granting the certificate on appropriate terms. The IPA must notify the applicant in writing of its decision to grant or refuse the certificate within 35 working days of receiving a complete and correct application.
It is reported that, although the country does not apply a formal minimum investment threshold, the IPA may, pursuant to Section 28(7) of the Investment Promotion Act, require a potential investor to deposit a prescribed amount prior to approval. The screening mechanism is understood to focus on assessing the net economic benefit of the investment and its consistency with the national interest.

Papua New Guinea is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).

According to Art. 48 of the National Procurement Act 2018, procurements up to PGK 10 million (approx. USD 2.4 million) are reserved for national companies and citizens with the capacity to supply the goods, works or services. For procurements above PGK 10 million and below PGK 50 million (approx. USD 12.1 million), at least 50% national participation is required, either through execution of at least half of the contract value by national firms or citizens, or through partnerships in which nationals hold at least 50% ownership. Procurements of PGK 50 million or more are open to all companies and persons.
For procurements in the first two value bands, if the lowest evaluated bid exceeds the Commission’s estimate by 10% or more, or if all bidders fail to meet the national participation requirement, the procedure must be cancelled and retendered without participation restrictions. The Board may also waive these limitations where restricting competition would not be in the State’s interest due to insufficient national capacity.

According to Art. 48 of the National Procurement Act 2018, all procurements that relate, in whole or in part, to activities reserved for citizens under the Regulations of the Investment Promotion Act 1992 must be restricted. These reserved activities are specified in the Investment Promotion Regulation 1992 and, following the amendment introduced by the Investment Promotion (Amendment) Regulation 2021, include the repair of consumer electronics goods when this activity is not carried out in conjunction with the manufacture, wholesale or retail sale of such goods.

Vanuatu applies a limited de minimis threshold, that is, the minimum value of goods below which customs do not charge duties. Pursuant to Art. 23 of the Import Duties (Consolidation) Act (CAP 91), goods imported by post or airfreight for the recipient’s exclusive personal use may be admitted duty-free where the FOB value does not exceed VUV 10,000 (approx. USD 83), while no de minimis applies to other goods.

Vanuatu lacks a comprehensive framework for consumer protection that applies to online transactions.

Vanuatu has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

Vanuatu enacted the Electronic Transactions Act No 24 of 2000, drawing upon the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

Vanuatu has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.

It is reported that the conformity assessment system in Vanuatu accepts the European documentation and test reports for market access. The homologation procedure in Vanuatu requires neither local laboratory testing nor a local representative. There are also no additional requirements concerning product labelling.

Section 15 of the Data Protection and Privacy Act No. 13 of 2024 prohibits the transfer of personal data generated or collected in Vanuatu to another country without prior authorisation from the Minister, unless the destination is listed by Ministerial Order, on the recommendation of the Deputy Commissioner, as providing an appropriate level of data protection. Section 16 allows the Minister to prescribe additional safeguard procedures for transfers to approved countries or organisations when the data is considered urgent and sensitive. Section 17 permits transfers to non-approved destinations only under specific conditions: if the data subject gives explicit, informed, and freely given consent; if the transfer is necessary to serve the specific interests of the data subject; or if it is required for a purpose approved by the Commission.