in Quebec or Australia, which require substantially more money.
Some Vietnamese agents market investor migration to Cyprus
or Portugal, but these programs have barely made a ripple in the
Vietnamese market. Large Vietnamese communities in Orange
County, California, San Jose, and the Houston areas facilitate the
acclimatization process for Vietnamese immigrants to the United
States. Similar communities do not exist in Cyprus or Portugal.
For Vietnamese investors, EB-5 is not primarily about the
investment. Similar to the Chinese market, the lure of U.S.
permanent residence for spouses and children is much stronger.
Vietnamese investors are really looking for educational opportunities for their children. According to ICEF Monitor, in 2013
there were about 125,000 Vietnamese students pursuing studies
o verseas. Out of 125,000 students, there were approximately
19,500 students studying at U.S. Colleges and Universities that
increased by 25.8 percent compared to 2012.12 This number
shows that there is very high demand for study abroad in general,
studying in America in particular.
Continued from page 71
in China are also present in Vietnam. The United States tends
to be unaware of the internal social and economic dynamics
within Vietnam, a hangover from U.S. involvement in the
Vietnamese civil war of the 1950’s, 1960’s and early 1970’s. While
Vietnam has been a single political entity for the past 40 years,
a sharp divide remains between north and south. Southerners
still largely distrust northerners, who are now seen as economic
carpetbaggers as opposed to being an invading force. By contrast,
northerners, who are more cognizant of Vietnam’s geopolitical
realities, cite fear of another invasion from China as an EB-5
“push factor.”10 In essence, southern Vietnamese are afraid of the
northern Vietnamese, while northern Vietnamese are afraid of the
Chinese.11 As uncomfortable as both of these points may be, these
twin factors are important “back of the mind” considerations for
EB-5 investors from Vietnam.
A subsidiary legacy of post-war Vietnam’s reliance on the
Soviet Union is the presence of sizeable Vietnamese communities
throughout Russia and the former Soviet Union. These communities have largely become prosperous through commerce and
import/export activities. However, many of these communities
are feeling pushed or crowded out in the Age of Putinism and are
looking for an exit. Since many of these Russia and former Soviet
Union-based communities have weak ties back to Vietnam, EB-5
becomes a viable escape option.
In sum, all of the necessary negative push factors exist in order
to expand demand for EB-5 from Vietnam.
What Do Vietnamese Investors Look For Out of
Their EB-5 Investment?
The EB-5 program’s investment amount is the cheapest (a
minimum of $500,000 to invest in a regional center, although this
may change) compared to the investment immigration programs
72
Due to many limitations of student visas, the EB-5 program
is catching Vietnamese investors’ attention. At the end of the
day, investors can obtain green card for their children to live and
study, and earn interest from investment. “The EB-5 program
is extremely beneficial to families that have elementary and/or
secondary school-aged children,” IIM Group’s president said in
the interview broadcasting on VTC8, June 14, 2015.
EB-5 Vietnamese Investor’s Concerns and Issues
A major hurdle for Vietnamese investors is to prove the
origin of $500,000. Many people could spend dozen times this
amount, but they cannot demonstrate where their funds are from.
Difficulty with source of funds has led some have to give up the
program. The second hurdle for investors is transferring money
out of the country. According to Vietnam regulations, investors
need to get approved by Ministry of Planning and Investment
(MPI) in order to be able to transfer money abroad via the
banking system. The process will involve different government
agencies such as the Embassy of the U.S., Department of Foreign
Affairs, and take about six months to a year or more to obtain
all required documents. It is not a feasible and favorable path for
Vietnamese investors. Therefore, Vietnamese investors often need
to seek “alternative methods” for transferring their funds outside
the United States to effectuate their EB-5 investment.
Current EB-5 Market in Vietnam
Recently, the EB-5 program has become a phenomenon among
wealthy Vietnamese investors. Because of its rapid growth, many
consulting companies have jumped into the market, making it
promising and competitive. At the same time, because of fraud
and scams, the majority of Vietnamese people don’t understand
the nature of the EB-5 program, which correctly deters them
from joining the program. Demand is surplus, but the short
supply of information makes it hard for investors to find a reliable
source/agency in Vietnam (relatives in Orange County or San
EB5 INVESTORS MAGAZINE