Coastal flooding is also expected.
As a result, a red alert has been activated in Torba province and a yellow alert has been issued for Sanma province.
Locals are being urged to be prepared and to listen to radio broadcasts for regular updates and information.
A spokesman from the Ministry of Foreign Affairs said 116 New Zealanders are registered as being on island.
An advisory has been issued to them to monitor weather reports and to follow advice from authorities at all times, including evacuation orders, and to seek suitable shelter.
"Visitors and tourists staying in travel accommodation should follow the guidance of hotel/ resort management."
New Zealanders who require consular assistance should contact the New Zealand High Commission in Port Vila on +678 22 933 or +678 email: kiwi@vanuatu.com.vu +678 552 2933 (after-hours).
The Fiji Meteorological Service's latest update, about 6am (NZT), said the cyclone was slow-moving in a west-southwest direction towards Vanuatu.
"It is expected to affect Vanuatu directly,'' it said.
Morning Update
Tropical Cyclone Donna is slow moving in the west-southwest direction towards Vanuatu. It is expected to...
Posted by Fiji Meteorological Service on Thursday, 4 May 2017
The cyclone was sitting just off the Pacific nation and was still listed as a Category 2 strong event, but is expected to intensify, a MetService spokeswoman said.
New Zealand was safe from the tropical cyclone as it was to remain in the tropics this weekend.
Meanwhile, aid agencies including the Red Cross have started to arrive or are heading to Vanuatu as the cyclone is due to make landfall tomorrow.
Donna comes after Cyclone Pam devastated Vanuatu in 2015.
More than a dozen people were killed and crops badly damaged.
