Introduction
The Republic of Vanuatu, formerly known as the New Hebrides, is an island nation in the Southwest Pacific Ocean with about a dozen significant islands and many smaller islands extending between the Equator and the Tropic of Capricorn. Independence was obtained in 1980 after some 74 years of joint rule by Britain and France.

Melanesians were the first people to settle in Vanuatu and were joined later by small numbers of Polynesians. Permanent settlement by Europeans didn't happen until the 19th century. The population count in the 1999 census was approximately 195,000. About 95% are the indigenous people, known as 'Ni-Vanuatu'. Over 20% of the population lives in the urban centres of Port Vila and Luganville.

English, French and Bislama are the official languages and there are over 100 indigenous languages. Business is conducted mainly in English, although there are many French companies who conduct their business in both French and English.

Vanuatu's climate ranges from tropical in the north to sub tropical in the south. The surrounding ocean moderates temperature and trade winds provide a cooling sea breeze.

Vanuatu is eleven hours ahead of Greenwich Mean Time (GMT +11:00).

Government
The Republic of Vanuatu is a parliamentary democracy. The head of state is the President of the Republic, who is elected for a period of five years by an electoral college consisting of Members of Parliament and the Presidents of the Regional Council. The Prime Minister and the 12 co-members of the Council of Ministers oversee the administration of Vanuatu's 13 government ministries. There are 52 Members of Parliament for which general elections are held every 4 years. The judiciary consists of the Supreme Court and a Magistrates Court.

Vanuatu is a full member of the British Commonwealth, the French League of Nations, the United Nations, Agence de Co-operation Culturelle et Technique, the South Pacific Bureau for Economic Co-operation (SPEC), the South Pacific Commission, the World Bank and the Asian Development Bank (which has its regional headquarters in Port Vila).

Economy
Agriculture, tourism and the financial centre are the leading forces in the country's economy. The Gross Domestic Product (GDP) was estimated in 1997 to be VT 15,223 million or VT 85,812 per capita. Growth averaged 3 percent annually in the decade following Independence in 1980, with 3.8 percent in 1997.

The lack of manufacturing capacity obliges Vanuatu to import almost all the consumer capital goods it needs. Vanuatu's prices are largely determined by the price of imports. This means that the rate of inflation in Australia, where most imports are sourced, is a crucial influence on our inflation rate.

The local currency is the Vatu (VT). The Vatu is the official currency although other currencies such as the US dollar and Australian dollar are accepted in some tourist shops and restaurants.

Government revenue is primarily obtained from indirect taxation. Value Added Tax (VAT) is a tax on consumption (Goods and Services Tax), introduced in 1999. It is charged and accounted for at a rate of 12.5%. New investment is particularly welcomed by the Government in the foreign exchange earning areas of industry, tourism and agriculture and these types of projects can attract reductions of customs import duty rates down to the minimum of 5%.

For more information see the Vanuatu Investment Promotion Authority site.