The veteran politician, Bob Loughman was voted in by fellow MPs Monday and will lead a coalition made of three larger parties and a handful of independent MPs and micro-parties.
Mr Loughman unveiled his new cabinet last night, with 12 ministers including Ishmael Kalsakau, who is the new deputy Prime Minister and also Minister for Internal Affairs.
Mark Ati has been handed the Foreign Affairs portfolio.
While Vanuatu has no confirmed COVID-19 cases, it's borders have been locked down, leaving thousands of people out of work in the valuable tourism sector.