Manufacturing Sector

Manufacturing has an immense potential in Fiji. The Fijian government is building a sustainable and globally competitive manufacturing sector through targeted assistance and a sound enabling environment for the private sector.

One of the most thriving sectors within Fiji’s growing economy is the manufacturing sector. This sector includes textiles, garments, footwear, sugar, tobacco, food processing, beverages (including mineral water) and wood based industries. Value addition opportunities are also being promoted by the Fijian Government all sector for export purposes. For this purpose, Government offers good geological potential, transparent fiscal policies, political stability and a sound regulatory environment.

Manufacturing is a major sector in the economy, having contributed an average of 12.7 percent of GDP in 2015 and 2016 respectively. The sector has been forecasted to contribute around 12.6% of GDP going into 2017, 2018 and 2019. Export earnings from manufactured products also increased in 2015 and 2016 after a period of decline. A few of the notable Fijian Made products contributing to this increase are Pure Fiji, Fiji Water, and Pacific Green Furniture. The Fijian Trade Policy Framework articulates measures to provide greater support to manufacturers of all industries by way of securing market access, value addition promotion, trade facilitation, trade promotion, information sharing and capacity building – all with the aim of ensuring that the manufacturing sector contribution to GDP reaches 20% by 2020. Government also recognises the importance of certifying Fiji timber produced from sustainably managed and legally operated operations in maintaining access to export markets. With assistance from Government, Fiji has registered its own “Fiji Pure Mahogany” brand in 22 countries and associated certification process for its unique and sustainable mahogany resource.

The “Fijian Made and Buy Fijian Campaign” was initiated by the Fijian Government in 2009 primarily to promote and raise the profile of Fijian made products and produce, both domestically and internationally through a national branding strategy. The focus has largely been on manufactured items, such as food (animal & vegetable products); clothing and wood made items such as furniture and handicrafts. This initiative supports Government’s import substitution policy aimed at promoting production of items which are heavily imported but can be easily produced or grown in the country.

OPPORTUNITIES IN THE MANUFACTURING SECTOR

  • Fiji offers a ‘near source’, cost effective alternative to Australia and New Zealand production and is also on a similar time zone to both countries.
  • Opportunities for creating premium products for niche markets.
  • Agricultural commodities make up 8.1% of GDP and account for around 3.8% of domestic exports. Major opportunities exist in this industry by way of manufacturing of organic certified products, including coconut and fruit products and nutraceuticals which are in high demand from overseas markets.
  • Fiji is also a flexible and local alternative to China and other volume sources.
  • Good English-speaking labour force as Fiji’s literacy rate is around 93%.
  • Duty exemption on all raw materials imported for manufacturing and later exported.
  • Fiji is the center of trade in the Pacific and has transformed into a hub for global communication and transportation routes.
  • Availability of factories, land and buildings at reasonable rates.
  • Fiji is signatory to various trade agreements which allows for better market access and provides a conducive investment climate and opportunities with other countries.

Incentives

(1) COMMERCIAL AGRICULTURE AND AGROPROCESSING

The income of any new activity in commercial agricultural farming and agro-processing approved and established from 1 January 2015 to 31 December 2018 shall be exempt from tax as follows:

  • Capital investment from $250,000 to $1,000,000, for a period of 5 consecutive fiscal years; or
  • Capital investment from $1,000,000 to $2,000,000, for a period of 7 consecutive fiscal years; or
  • Capital investment above $2,000,000 for a period of 13 consecutive fiscal years.

(2) FOOD PROCESSING & FORESTRY

100% of the amount of investment as a deduction for investing in food processing as well as forestry. Re-investment will also be allowed for expansion purposes. In order to qualify, the investor should utilize 50% of local produce in its production process.

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Contact Us

Fiji Trade Commission - PNG & MSG

PO. Box 883
Port Moresbey 121
National Capital District
Papua New Guinea

P: +675 320 2208/ E: info@fijitradecom.org

Fiji Trade Commission – Office 5, Level 5, Harbourside West Tower, Stanley Esplanade, Downtown, Port Moresby

© Fiji Trade Commission (PNG) 2019