Vietnam’s EB-5 Outlook: Will Demand Stay Strong?

The EB-5 Immigrant Investor Program remains a highly sought-after pathway for Vietnamese nationals seeking permanent residency in the United States. As global economic shifts occur and the program undergoes regulatory adjustments, understanding the sustained demand from this key market is crucial for stakeholders.

Factors Driving Continued Vietnamese Interest

Several intrinsic and extrinsic factors contribute to the robust interest from Vietnam in the EB-5 program:

• Desire for U.S. Education and Lifestyle: The primary driver remains the aspiration for children's education in top American universities and securing a stable, high-quality lifestyle abroad.
• Economic Uncertainty at Home: While Vietnam's economy is growing, geopolitical and domestic regulatory uncertainties often prompt high-net-worth individuals to seek diversification of assets and residency outside their home country.
• Perceived Stability of the EB-5 Route: Despite legislative changes, the EB-5 program is often viewed as a more predictable, albeit lengthy, path compared to employment-based visas.

Recent Regulatory Impacts

The implementation of the EB-5 Reform and Integrity Act of 2022 (RIA) introduced significant changes, particularly concerning visa set-asides and processing standards. How these changes affect Vietnamese applicants:

The RIA provided much-needed clarity on visa availability, especially for applicants filing under Direct Investment or Regional Center categories, potentially easing backlogs that previously deterred new applicants.

New due diligence requirements mandate stricter scrutiny of project sponsors, which, while increasing compliance costs, ultimately bolsters investor confidence in the long run. Investors are now paying closer attention to:

1. The source of funds documentation.
2. The project's compliance history under the new RIA standards.
3. The priority date retention mechanism.

Regional Center vs. Direct Investment Scenarios

Vietnamese investors must carefully weigh the benefits of utilizing a USCIS-approved Regional Center versus making a direct investment. For most, the Regional Center route remains preferable due to:

Regional Center Advantages

• Job Creation Flexibility: Ability to count indirect and induced job creation.
• Reduced Management Burden: Passive investment structure requires less active involvement from the investor, aligning better with the schedules of busy Vietnamese entrepreneurs.
• Visa Certainty: Historically, Regional Center projects have offered a clearer path to I-526/I-526E approval, though this is now being closely monitored.

Direct investments, requiring the investor to manage the enterprise actively (often necessitating a U.S. presence), appeal to a smaller subset of applicants who wish to establish a physical business presence immediately. The required minimum investment figures remain a key consideration, especially after inflation adjustments:

Minimum Investment Thresholds (Post-RIA): $1,050,000 generally, or $800,000 in a Targeted Employment Area (TEA).

Forecasting Future Demand

Demand from Vietnam is projected to remain strong over the next 3-5 years, provided the processing times for I-526E petitions filed under the new set-asides remain relatively efficient. Any significant slowdown in the processing of set-aside visas could temper enthusiasm temporarily.

Furthermore, the success rate of the first wave of RIA-compliant Regional Center projects will heavily influence future investor sentiment. Positive outcomes will reinforce the perception of the program’s stability.

Conclusion

Vietnam’s appetite for the EB-5 program is deeply rooted in long-term family planning and wealth preservation goals. While regulatory complexity has increased, the established infrastructure supporting Vietnamese EB-5 applications, combined with the unique benefits the green card offers, suggests that demand will continue to be a significant force in the EB-5 market for the foreseeable future.