The powerful 7.5 magnitude quake hit the capital Port Vila. According to the US Geological survey, the quake hit about 25 miles (40 kilometers) northwest of Port Vila at a depth of 22 miles (35 kilometers).
Following the temblor, a 9-inch (22 centimeter) wave was observed off the capital.
"It was quite a significant earthquake, and we're still having a few aftershocks," Ben McKenzie of the New Zealand High Commission told an international news agency.
"We're trying to ensure everybody is safe and we're evacuating the building" to check that it's not "structurally damaged," he added.
Several buildings shook in the quake, power lines and communication lines have been hit. A four-story office building housing the New Zealand High Commission is also said to have suffered damage.