Good Morning, Vietnam: Country is becoming a large EB-5 participant

About 20% of EB-5 investment in American real estate is from Vietnam

National /
Mar.March 05, 2019 11:35 AM

Hanoi, Vietnam with money and a photo from the movie Good Morning, Vietnam (Credit: iStock and BagoGames via Flickr)

Vietnam is boosting its presence in the EB-5 program, now trailing only China and India as the most active participant.

About 20 percent of EB-5 investment in American real estate now comes from Vietnam, putting it behind just India’s 25 percent and China’s 30 percent, the Wall Street Journal reported, citing statistics from the U.S. Immigration Fund. Vietnamese nationals received 693 EB-5 visas last fiscal year, an increase from 471 in 2017. The country made up barely 1 percent of all EB-5 visas four years ago.

Developers advertising their projects to Vietnamese investors include Related Companies, which is looking for $380 million for the third phase of its Hudson Yards development, and Extell Development, which is seeking investors for its Times Square Hard Rock Hotel project.

Vietnam’s increased interest in EB-5 comes as China has been pulling back from it. The country dominated the program for years but has become less interested as the wait time for a visa ballooned from months to years.

However, despite Vietnam’s growing interest in EB-5, overall investment volume has still dropped significantly, and the country’s estimated wait time of more than seven years for a visa could eventually become a problem.

For now, though, Vietnam is proving to be a solid player in the EB-5 market.

“In the past, any large-scale capital raise, anything over $50 million or $100 million, particularly in New York, you had to go to China,” immigration attorney Phuong Lee told the Journal, adding that “most of the big New York real estate developers who were in China before are certainly all in Vietnam now.” [WSJ] – Eddie Small


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Signature Bank president and chief executive officer Joseph DePaolo (iStock)
“It’s a good time to make loans:” Multifamily lender smashes earnings record
“It’s a good time to make loans:” Multifamily lender smashes earnings record
Brian Kingston, managing partner & CEO, Brookfield's Real Estate Group and Brookfield Property Partners, in front of Two Blue Slip in Greenpoint (Brookfield Property Partners, Two Blue Slip, iStock)
Brookfield scores $330M refi at Greenpoint Landing
Brookfield scores $330M refi at Greenpoint Landing
Sam Chandan will head NYU Stern’s real estate programs  (samchandan.com, iStock)
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
Renderings of 80 South Street (Oceanwide Holdings, iStock)
Chinese developer defaults on $175M loan for languishing Manhattan supertall site
Chinese developer defaults on $175M loan for languishing Manhattan supertall site
1009-1011 South Congress Avenue and Turnbridge's Andrew Joblon (Music Lane ATX, LinkedIn)
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Madison Realty Capital raises $2B for latest debt fund
Madison Realty Capital raises $2B for latest debt fund
Madison Realty Capital raises $2B for latest debt fund
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...