Knowing how to navigate Vietnam ' s cash- and gold-based system and understanding this custom ’ s history can be invaluable toward helping investor clients .
By Kristi Ngo , Catharine Yen , and Phuong Anh Tran
In the last few years , the U . S . has seen a significant increase in interest in EB-5 visas from Vietnam , resulting in more I-526 petitions filed by Vietnamese nationals . Many I-526 petitions from Vietnam involve the use of cash , gold , and / or the purchase and sale of real estate . This article explains the prevalent cash and gold culture that has permeated throughout Vietnam , and how to explain and document this cultural practice in an I-526 petition .
This article also explains the real estate system in Vietnam as it relates to filing an I-526 petition . There are various ways that Vietnamese nationals receive or purchase real estate and potential issues for which immigration attorneys should look out . With a more in-depth understanding of the history and background of this Vietnamese practice , immigration attorneys can prepare more successful I-526 petitions for their Vietnamese investor clients .
Vietnam ’ s steady economic development has made EB-5 investment feasible for an increasing number of its nationals . Vietnam ’ s GDP per capita growth has stabilized at an annual rate of 6.4 percent per year since 1990 and hit 6.81 percent in 2017 . 3 Vietnam is among the fastest growing of the world ’ s economies , and at this rate , Vietnam ’ s economy would become the 20th largest in the world by 2050 . 4
DOCUMENTING SOURCE OF FUNDS : OVERCOMING VIETNAM ’ S CASH AND GOLD-BASED SYSTEM
Despite the high demand for EB-5 visas by wealthy Vietnamese individuals , Vietnam has yet to reach China ’ s formalized structure for EB-5 filings . Documenting the lawful means of investment capital can be difficult for many Vietnamese investors and their immigration attorneys .
INCREASING DEMAND IN EB-5 VISAS FOR VIETNAMESE NATIONALS
Vietnamese demand for U . S . visas remains robust given Vietnam ’ s high regard for the educational opportunities , healthcare services , Social Security benefits and environmental safety in the United States . The ongoing political instability in Vietnam and growing financial resources of Vietnamese nationals have created a strong environment for U . S . immigration .
The growing population of Vietnamese-Americans in the U . S . also adds to the appeal of Vietnamese nationals desiring to immigrate to the U . S . 1
Thus , interest in the EB-5 program has substantially risen in last several years as more and more Vietnamese nationals become aware of the program ’ s existence .
" In 2017 , Vietnam had the second highest number of nationals who obtained permanent resident status ..."
Initially , misinformation and bad players involved with EB-5 created suspicion toward the program , but the recent wave of I-829 approvals for Vietnamese nationals has validated the program ’ s legitimacy and effectiveness . In 2017 , Vietnam had the second highest number of nationals who obtained permanent resident status in the U . S . through the EB-5 program . 2 Additionally , Vietnam and Brazil were among the top countries with the greatest increase in EB-5 visas issued between 2016 and 2017 .
Although real estate ownership is the most prevalent financial resource of wealthy Vietnamese investors , it is an underutilized SOF story . This is due to many investors ’ difficulty documenting their property ownership because of Vietnam ’ s long-stemming cash habit and lack of realty records .
Many Vietnamese investors use cash and / or gold in the purchase and construction of real estate . As USCIS adjudicators are generally unfamiliar with Vietnamese financial customs and practices , it is imperative to lay this groundwork in the I-526 petition by including newspaper and research articles that document this cultural practice .
Vietnam is widely a cash-based society , which occasionally turns the tracing of lawful funds into a Herculean task . According to 2014 study , only 30 percent of Vietnamese nationals have bank accounts , and even fewer are estimated to be using banking services regularly . 5 This is due to following facts : access to banks outside of major Vietnamese cities is limited , costs of banking services are high , and e-payment technology and infrastructure are underdeveloped .
There is consequently a lack of confidence in the banking and e-payment system among Vietnamese people . Therefore , as Vietnamese law does not require financial transactions to be performed through formal banking institutions , cash is used in the vast majority of financial transactions .
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