Republic of Vanuatu: Rapid e-trade readiness assessment

Summary

Vanuatu’s economy is poised for e-commerce growth, supported by public policies on sustainable development, trade, and ICT. However, opportunities are slow to materialize due to structural issues in financial regulations, knowledge gaps, and the country’s size and remoteness. An E-commerce readiness assessment highlights the interest in digital economy integration. Vanuatu faces obstacles like infrastructure challenges, skill gaps, and trust issues. The government’s economic and social policies aim to facilitate internet economy development, reducing market distance and overcoming physical trade barriers.

Vanuatu, classified as a Least Developed Country (LDC), has seen services contribute significantly to its GDP. ICT services are vital for financial inclusion, disaster response, and bridging the gender gap. The mobile phone industry has rapidly grown, expanding internet access.

Strengthening logistics and transport infrastructure, adopting universal address systems, and improving trade facilitation are crucial. The financial ecosystem is evolving with new payment systems, though e-banking and mobile banking adoption remain limited due to lack of trust and understanding. Collaborative efforts among mobile operators, banks, and merchants are essential for financial inclusiveness. Partnerships between development partners, investors, and the government are vital to establish Vanuatu as a significant e-commerce marketplace in the South Pacific.