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Manufacturing

One of the most thriving sectors within Fiji's growing economy is manufacturing. This includes the manufacture of textiles, garments, footwear, sugar, tobacco, food processing, beverages (including mineral water) and wood based industries. The sector employs approximately 26,000 workers and is one of the nation's growing sector. Fijian-made products has made substantial progress in the international trading arena such as Pure Fiji, Fiji Water, Pacific Green Furniture and FMF Foods Ltd to name a few.

Manufacturing relates to the physical or chemical transformation of materials or components into new 
products, whether the work is performed by power driven machines or by hand, whether it is done in a factory, or in the workers' home, and whether the products are sold at wholesale or retail. Assemble of the component parts of manufactured products are considered manufacturing also.

Fiji offers a highly trained and skilled labour force that is both cost effective and productive. Our utilities 
that support the manufacturing Industry is both sound and efficient making Fiji one of the cheapest countries in which to do business. With its sound infrastructure and ports facilities Fiji again offers a distinct advantage to the Asia Pacific region in comparison to other Pacific Countries.

Fiji's natural advantage in the manufacturing sector mainly lies in the raw natural proximity in terms of 
sourcing:
  • Timber/Wood for furniture;
  • Agri processing (sugarcane, pawpaw, taro, cassava, coconut, ginger, tobacco, herbals);
  • Marine;
  • Mining;
  • Mineral and Water; and
  • Dairy, meat and poultry processing.
Other advantage relevant to this sector can be Fiji perceived as a pure and unspoiled destination.

INVESTMENT OPPORTUNITIES
Textile, clothing and footwear have become a major export industry following its establishment in 1988.The agrobased food processing industries, which include canned fish, beef, fruits and vegetables and furniture making have huge potential to be developed further, for exports. The effective implementation of the National Export Strategy using the opportunities available from currency devaluation will assist in export growth. Incentives are available to domestic producers in manufacturing and agriculture to exploit opportunities provided by the numerous bilateral and multilateral trade agreements.

FIJIAN MADE & BUY FIJIAN CAMPAIGN
To boost manufacturing, the “Fijian Made and Buy Fijian Campaign” was mooted 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 'brand' is categorized with different representations, each having to meet a certain compliance criteria as endorsed by Cabinet in 2011 and reflected in the Industry Emblem Decree and Regulations 2011 being: 'Fijian Made', 'Fijian Product', 'Fijian Packed', 'Fijian Crafted', 'Fijian Grown', 'Fijian Assembled', 'Fijian Designed' and 'Fijian Sewn'.

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. Fiji is well capable of cultivating and processing produce such as rice, potato, honey, pawpaw, pineapple, bananas, to name a few. At the same time, it has a good mix of skilled crafters who make authentic handicrafts depicting the fine culture and heritage of the country; and established manufacturers who make fine products to supply to the local as well as overseas markets. The small and medium enterprises (SME's) also have comparative advantage in producing some lucrative niche products which have pharmaceutical and health advantages such as coconut virgin oil, noni juice and honey.

INCENTIVES IN THE MANUFACTURING SECTOR
Food Processing & Forestry
100% of the amount of investment as a deduction for investing in food processing as well as forestry. Reinvestment will also be allowed for expansion purposes. In order to qualify, the investor should utilize 50% of local produce in its production process.

Renewable Energy Projects and Power Cogeneration
  • A 5 year tax holiday is available to a taxpayer undertaking a new activity in renewable energy projects and power co-generation as approved by the Commissioner; and
  • Duty free importation of renewable energy goods is also available.
FOREIGN INVESTMENT REGULATIONS FOR THE MANUFACTURING SECTOR IN FIJI
Under the 2009 Foreign Investment Regulations (FIR) and Foreign Investment (Amendment) Regulation 2013 the following activities in the Manufacturing Sector are Restricted as follows:

Tobacco Production:
A foreign investor must use at least 75% locally grown and processed tobacco in all domestic cigarette production and must have at least $500,000 in owner's contribution or paid-up capital for companies in the form of cash from the operational date, to be fully brought into Fiji within the implementation period.

In addition all other Manufacturing activities does not have a minimum investment requirement.