Vanuatu is an independent republic and part of the chain of Melanesian islands lying to the north-east of Australia. Its capital, Port Vila, is only three and a half hours flying time from Sydney.
Most of Vanuatu's population lives in rural areas where subsistence farming, fishing and production of cash crops such as kava, coconut and cocoa are the main sources of livelihoods. Goods exports are dominated by agricultural products, particularly kava, coconut products, beef and cocoa.
Vanuatu's economic growth has been driven largely by tourism and construction. Prior to 2020, tourism and tourism-related services sectors (wholesale and retail trade, hotels and restaurants, and transport and communication) accounted for an estimated 40 per cent of GDP and one third of people in formal employment. Two-thirds of long stay tourists to Vanuatu and almost all cruise ship passengers were Australian. Two-way goods and services trade between Australia and Vanuatu in 2023 was valued at AUD476 million.
Australia is Vanuatu's largest bilateral development partner, with total Official Development Assistance (ODA) to Vanuatu for 2024-25 estimated at AUD83.2 million. The Australia-Vanuatu partnership aligns with the Government of Vanuatu's development priorities as outlined in Vanuatu's National Sustainable Development Plan 2016–2030. These include strengthening governance systems and institutions, improving service delivery to rural and remote communities, facilitating economic growth and supporting Vanuatu's resilience against the impacts of climate change and natural hazards. Specific sectors Australia supports include education and skills, health, justice, policing, infrastructure, governance, economic recovery, disability and social inclusion, climate change and humanitarian response and recovery. In 2025, Australia and Vanuatu celebrated 45 years of close diplomatic relations.
The AIFFP in Vanuatu
Australia’s investment in Vanuatu, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), includes:
Infrastructure sectors: off-grid renewable energy
Partners (A-Z): ActionAid Australia; Global Green Growth Institute; HELPR; PowerWells; Respond Global; University of New South Wales; Vanuatu Department of Energy; Vanuatu Disability Promotion Advocacy Association; Vanuatu Institute of Technology; and Vanuatu National Green Energy Fund
Projects (A-Z):
Empowering Vanuatu’s remote communities with clean energy and fresh water
From sea to clinic: HELPR-1 powering Vanuatu’s remote health centres
Harnessing the circular economy to tackle solar e-waste in Vanuatu
Strengthening women’s control and access to clean and affordable energy in Vanuatu
Australian High Commission, Port Vila
Winston Churchill Avenue
Port Vila
Phone: +678 22777
Email: australia_vanuatu@dfat.gov.au
For more information on Australia and Vanuatu’s diplomatic relations, see the DFAT website.