Iolu Johnson Abbil, Vanuatu's president, addresses the ceremony.

Vanuatu celebrates its National Pavilion Day on October 8 with a performance of traditional singing and dancing.

Vanuatu was listed as "the happiest nation on the planet" in the 178-nation "Happy Planet Index" conducted by the New Economics Foundation (nef).

The country, consisting of about 80 islands, boasts a low-emission and natural lifestyle, Iolu Johnson Abbil, Vanuatu's president, said at the ceremony this morning.

Vanuatu and China have witnessed frequent economic, trade and cultural exchange since diplomatic ties were established and the Expo provided a new opportunity in furthering their cooperation, he said.

Ji Yunshi, director of China's State Administration of Foreign Experts Affairs, said the Vanuatu Pavilion showcased the happy country's beautiful landscape, unique customs and splendid culture, reflecting its people's harmonious relationship with nature and quality life as well as the Expo 2010 theme "Better City, Better Life."

Vanuatu Pavilion is within the Pacific Pavilion in Zone B, which also hosts 13 other countries as well as the South Pacific Tourism Organization and the Pacific Islands Forum.

Themed "Pacific - An Inspiration to Cities," the pavilion showcases the beauty of the Pacific countries, their unique cultures and a sustainable lifestyle.

Vanuatu is an island archipelago consisting of approximately 82 relatively small, geologically newer islands of volcanic origin.