Loughman said the situation in Tanna would be reviewed this week.
The move comes after the 17 close contacts and 12 others with potential exposure to the country's first confirmed case of Covid-19, tested negative twice for the coronavirus.
The 23 year old man, who tested positive in quarantine afer arriving from the US via Sydney and Auckland, remained in isolation.
The government also decided to take the general quarantine period back down to 14 days after initially increasing it to 28 days when the case was announced.
However, people from countries deemed as "high-risk" are still not allowed to enter Vanuatu until further notice.