ABSTRACT
The Republic of Vanuatu, an archipelago of about 80 islands in the South Pacific, is located roughly 2,300 kilometres to the east of Australia (see Figure 6.1). Formerly known as the Anglo-French condominium of the New Hebrides, Vanuatu gained independence in 1980 and has come to be recognized for its wide range of services to offshore investors (Economist Intelligence Unit, 1987). The finance centre, comprising various types of offshore activities and supportive onshore institutions, was first established in 1971. Successive governments after independence continued their thrust on promotion of offshore finance centre (OFC) activities through provision of various incentives and enactment of legislative measures, including the latest International Companies Act, which was enacted in 1992.
