Vanuatu aims to strengthen its relationship with Hong Kong to aid its goals in digital finance and economic expansion, as the South Pacific island country positions itself as a bridge for cooperation between the Global South and Asia.
The nation is stepping into a new phase of economic security, emphasizing renewed attention to infrastructure, digital evolution, and global business interactions, as stated by Deputy Prime Minister Johnny Koanapo Rasou.
For many years, we have experienced [political] instability, but now we have a government that is stable and committed," he stated in an interview with the Post in Hong Kong on Friday. "We aim to enhance our cooperation, particularly in digital finance. The objective is to establish a well-regulated framework that supports responsible innovation, and Hong Kong serves as a leading example in this area.
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He mentioned that the government was constructing airports, improving roads, and investing in new townships. More significantly, it had enacted laws to support its goals, including the nation's initial public-private partnership law and land reforms that permit investors to lease government-owned properties for as long as 99 years, he noted.
I have arrived in Hong Kong to state that Vanuatu is prepared," said Rasou, who also serves as the minister of finance and economic management. "I believe this is the right moment to invite businesses and investors from mainland China, Hong Kong, Singapore, throughout Asia, Europe, and other regions to come to Vanuatu and engage in significant commercial activities.
Vanuatu, home to roughly 330,000 residents scattered among 83 islands, has taken steps to establish a digital foundation by implementing the Virtual Assets Services Providers (VASP) Act, a regulatory framework designed to oversee companies dealing with blockchain-related assets and stablecoins.
Rasou also mentioned that the nation aimed to advance the legislation designed to establish an environment allowing investors from Hong Kong and other regions to participate in its economic development.
During his trip last week, Rasou met with Chief Executive John Lee Ka-chiu, along with senior officials from the Hong Kong Monetary Authority and the Financial Services and Treasury Bureau. He mentioned that he was aiming for more than just political discussion, but also "commercial diplomacy" to strengthen business connections between the two economies.
Rasou also advocated for establishing a Vanuatu-Hong Kong Business Association, which might involve entrepreneurs of Vanuatuan heritage residing in the Chinese financial center.
Many Hong Kong investors have already arrived in Vanuatu. We even have Cantonese restaurants there," he said. "We hope to have a more friendly, peaceful, and comfortable relationship.
Rasou mentioned that digital transformation was among his highest priorities, particularly due to the country's scattered geography consisting of 83 islands. Digital technologies were not only related to finance but served as intermediaries to link individuals in remote regions with crucial services like healthcare, banking, and markets, he noted.
That's the reason I'm here: we possess a digital transformation vision, and I need to examine locations with relevant expertise such as Hong Kong.
Besides finance, Rasou mentioned that Vanuatu is seeking collaboration in sectors like fisheries, tourism, and infrastructure. Vanuatu is also examining direct air routes with Chinese partners to connect mainland China with Vanuatu through Papua New Guinea and the Solomon Islands, he added.
The second-in-command of the government also mentioned that Vanuatu is contemplating opening its largely untapped mining industry to international investors, although any progress would be managed "in a sustainable and cautious manner."
When you travel to Vanuatu, I want you to seek out individuals who seem familiar via investments, hospitality, and friendship," he stated, relying on a more robust and complex partnership with Hong Kong that covers regulation, trade, and community. "I am doing everything I can to make this possible.
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This piece was first published in the South China Morning Post (www.scmp.com), a top news outlet covering China and Asia.
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