Tonga: Investir

FDI in Figures

The South Pacific island nation of Tonga is one of the smallest and most isolated on the planet, and attracts very little FDI. According to UNCTAD's World Investment Report 2023, FDI inflows stood at USD 3 million in 2022, while the FDI stock was estimated at USD 472 million, around 94.9% of the country’s GDP. Agriculture and tourism remain two of the main sectors attracting foreign investment, mainly from China, Japan and the United States. Renewable energy and deep-sea mining also offer investment opportunities. China and Tonga have deepened political mutual trust and achieved fruitful exchanges and cooperation in various fields since the establishment of diplomatic ties, and China is ready to expand cooperation with Tonga in various fields within the framework of the Belt and Road Initiative.

In spite of reforms taken by the Government aiming to attract investors, the country presents many discouraging factors. The archipelago remains extremely vulnerable to external shocks and foreign investors cannot buy land in the territory. Moreover, the general lack of infrastructure development, unpredictable government policies and difficult access to certain regions of the country tend to discourage foreign investors. Foreign investment in several sectors of the economy is restricted. Property rights are uncertain, and their enforcement is weak. The judicial system is generally independent but inadequately resourced. The state's oversized role in the economy crowds out private-sector development. In 2019, the parliament passed the Foreign Investment Bill 2019, which includes amendments to the legal framework of FDIs. The country’s performance is particularly low in resolving insolvencies and registering a property indexes. Tonga ranks 85th out of 184 countries on the latest Index of Economic Freedom.

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Latest Update: May 2024