From April, the so-called 'Tamtam Bubble' will allow easier travel between the covid-free Melanesian neighbours.
Travel will be restricted to Vanuatu's main island of Efate.
Launching the bubble on Friday, Bob Loughman said it would allow a resumption of business activities in the capital Port Vila and for Vanuatu students to resume studies in New Caledonia while others will be able to return home.
New Caledonia and Vanuatu's borders remain closed to travellers from other countries.
