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United States: E-2 and EB-5 — and Why Vietnamese Nationals Need a Second Citizenship

Vietnam does NOT have an E-2 trade agreement with the United States, so a Vietnamese passport cannot be used to apply for this visa category. That is why Grenada and Turkey matter. Analysis of E-2 versus EB-5, global income taxation, and healthcare costs.

United States — illustration for article United States: E-2 and EB-5 — and Why Vietnamese Nationals Need a Second Citizenship
William Graham Sumner · Public domain · Wikimedia Commons
UNITED STATES · 38.9072°N 77.0369°W ◉ Washington D.C.
CapitalWashington D.C.
Population~335,000,000
CurrencyUSD
Passport rank#9 Global
Visa-free159 destinations

Overview

The United States does not have a "citizenship for sale" or "buy a green card" program. This needs to be said clearly upfront, because much Vietnamese-language consulting still uses these terms.

The US has visa categories for investors, each with distinct conditions, benefits, and limitations. Two categories directly relevant to Vietnamese applicants are E-2 and EB-5.

And here is the critical point many do not know:

Vietnam does NOT have an E-2 trade agreement with the United States. Vietnamese citizens cannot apply for an E-2 visa using a Vietnamese passport.

This is precisely why Grenadian and Turkish citizenship programs are significant for Vietnamese nationals: both countries do have E-2 treaties with the US, so after obtaining citizenship from either, you become eligible to apply for E-2.

In other words: Grenada is not the destination — Grenada is the bridge.

Geography & Climate

Area of 9.8 million square kilometers with a population exceeding 335 million. Climate varies so dramatically across regions that speaking of "US climate" is meaningless:

  • California — Mediterranean, dry and temperate to cool; home to the largest Vietnamese diaspora community
  • Texas — hot, low cost of living, no state income tax
  • Florida — subtropical, hot and humid, similar to southern Vietnam, no state income tax
  • Northeast (New York, Boston) — four distinct seasons, winter cold well below freezing, heavy snow
  • Midwest — continental climate, extreme seasonal swings

For Vietnamese families, the three most popular destinations are California, Texas, and Washington — because of established communities, employment, and affordability.

Historical Development

Declaration of Independence in 1776, Constitution in 1787 — the world's oldest still-functioning written constitution. Civil War 1861–1865 ended slavery. Two world wars established the US as the world's leading power.

For Vietnamese, the most significant milestone is 1975: the first wave of resettlement following the war, followed by successive programs (HO, ODP, family reunification) throughout the 1980s and 1990s.

The result: the Vietnamese community in the US now exceeds 2.2 million people — the largest outside Vietnam. Little Saigon in Orange County, California is the center; other major communities are in San Jose, Houston, Dallas, Seattle, and Atlanta.

This creates a real advantage no other country can match: Vietnamese groceries, Vietnamese-language schools, temples, churches, Vietnamese-speaking doctors, Vietnamese-speaking lawyers, and an established business network.

Culture & People

English is the dominant language, though not the official language at the federal level. In California and Texas, Vietnamese is one of the most common minority languages — many public services provide Vietnamese-language materials.

American society emphasizes individualism, initiative, and entrepreneurship. Life moves fast and competition is intense. This is both opportunity and pressure — those accustomed to relationship-based environments and stability may feel disoriented initially.

Notable cultural differences for Vietnamese families: children become independent early, multi-generational relationships are looser, and elderly care relies primarily on paid services rather than co-residence with adult children.

Economy & Opportunities

The world's largest and most diversified economy. For Vietnamese investors, common sectors include:

Food service and retail — restaurants, nail salons, Asian grocery stores. The nail salon industry in particular is closely linked to the Vietnamese community, with established supply chains and labor networks.

Rental real estate — many Vietnamese families build wealth through this channel.

Franchise business — this model suits the E-2 category well because of established operating systems and transparent financial records that are easier to prove to consular authorities.

Technology — if you have a technical background, visa categories for skilled workers may suit you better than investor categories.

US taxation is complex: federal + state + local. The critical point to understand: the United States taxes worldwide income of permanent residents and citizens, including income earned in Vietnam. This differs significantly from most other countries and requires a tax attorney's consultation before filing, not after.

Residency Programs

E-2 Visa — Treaty Investor

Nature: a non-immigrant visa, granted to citizens of countries with trade agreements with the US, to come operate a business in which you have invested.

Benefits: live and work in the US to operate your business. Spouse can obtain work authorization and work anywhere. Children under 21 can accompany you and attend public school tuition-free.

Renewals: multiple renewals without limit, as long as the business operates substantively.

Critical limitations to understand:

  • Does not lead to a green card. You can be on E-2 for 20 years and never become a permanent resident
  • Children reaching 21 lose dependent status — must secure their own visa, typically a student visa
  • The business must be real, operating substantively, and creating jobs — shell companies are not accepted
  • Depends on your maintaining citizenship of a treaty country

For Vietnamese nationals: you must have a second citizenship from a country with an E-2 treaty — Grenada or Turkey are the two most common choices.

EB-5 — Immigrant Investor

Nature: an immigrant visa, leading directly to a green card for the entire family.

Benefits: permanent residency in the US; after sufficient time, eligible for citizenship. Children attend university at in-state tuition rates. Not dependent on maintaining a business like E-2.

Core requirement: invest in a qualifying project and create a minimum of 10 full-time jobs for US workers. The investment amount is lower if the project is located in a Target Employment Area (TEA) — rural or high-unemployment regions.

Two structures: direct investment in your own business, or capital contribution through a Regional Center — the more common structure because it does not require you to directly operate the business.

Risks to understand: this is an investment with the risk of total capital loss — by legal definition — USCIS requires capital to be "at risk". There have been failed Regional Center projects where investors lost both capital and their application. Due diligence on the project is as critical as due diligence on your immigration file.

On wait times: EB-5 has annual caps by country. Vietnam has experienced visa bulletin backlogs in the past — meaning applications approved but delayed waiting for visa availability. This situation changes by period and visa category; ask a specialist about the current visa bulletin when you file.

On specific numbers: the E-2 investment floor is not fixed by statute but assessed by reasonableness relative to the business sector; EB-5 thresholds and TEA definitions are set by statute and have been adjusted multiple times. Check the detailed figures on this site or consult a specialist.

Life in Practice

Cost of living varies enormously between states. Housing in California or New York costs several times more than Texas or Georgia. This factor should be considered before deciding where to establish your business.

Healthcare — the single largest weakness of the US for Vietnamese families: no universal healthcare system. Health insurance is provided by private companies, premiums are high, and a serious illness without adequate coverage can bankrupt a family. Budget for insurance costs from day one, especially if older family members are included.

Education: public schools are tuition-free, but quality varies dramatically by district — home prices typically reflect school quality. US universities rank among the world's best but tuition is very high; permanent residents pay in-state tuition, significantly cheaper than international student rates. This is a primary reason many Vietnamese families choose the US.

Travel: direct flights exist from Vietnam to the United States — Ho Chi Minh City to San Francisco and Los Angeles. Flight times approximately 13–16 hours. This is a major advantage over the Caribbean or Europe.

Time difference with Vietnam: 11–15 hours depending on coast and season.

Who Should Consider the United States

E-2 is suitable if you:

  • Want to bring your children to the US for secondary and university education at public school cost
  • Have business operation experience and are ready to operate substantively in the US
  • Accept this is a long-term visa, not permanent residency
  • Already have or will obtain a second citizenship from an E-2 treaty country

EB-5 is suitable if you:

  • Your ultimate goal is a green card and US citizenship for the entire family
  • You have sufficient capital and accept the risk of total capital loss as defined in the program
  • You accept potentially long wait times
  • You want your children to attend US universities at in-state tuition

May not be suitable if:

  • You expect to "buy a green card" quickly — no such program exists
  • You want to avoid worldwide income taxation, including Vietnam-source income
  • You lack budget for long-term health insurance
  • You only want a second passport for travel — the US does not grant citizenship through investor programs
  • You want to maintain your life in Vietnam — both E-2 and EB-5 require substantive US presence

This article provides foundational information for reference purposes. US immigration regulations are complex, subject to policy changes in each administration, and vary by individual case. You must work with a licensed US immigration attorney; Viking Global Group handles second citizenship matters and professional referrals.

Frequently asked questions

Can a Vietnamese national apply for an E-2 visa using a Vietnamese passport?

No. Vietnam does not have an E-2 trade agreement with the United States, so Vietnamese citizens are ineligible for this visa category. This is precisely why Grenadian and Turkish citizenship programs are meaningful for Vietnamese nationals — both countries have E-2 treaties with the US, so after obtaining citizenship from either country, you become eligible to apply for E-2. In other words, Grenada is not the final destination — Grenada is the bridge.

Does E-2 lead to a green card?

No. E-2 is a non-immigrant visa that can be renewed multiple times as long as your business operates substantively, but twenty years on E-2 will not make you a permanent resident. If your ultimate goal is a green card, you should consider EB-5 or family-based sponsorship.

Until what age can children accompany an E-2 visa holder?

Children under 21 can accompany you and attend public school tuition-free. Once they reach 21, they lose dependent status and must secure their own visa category — typically a student visa. This is a point many families overlook when planning long-term.

What are the risks of EB-5?

This is an investment with the risk of total capital loss — that is the legal requirement. The immigration authority requires capital to be at risk. There have been failed Regional Center projects where investors lost both capital and their application. Due diligence on the project is as critical as due diligence on your immigration file.

How long does EB-5 take?

EB-5 has annual caps allocated by country. Vietnam has experienced visa bulletin backlogs in the past — applications approved but delayed waiting for visa availability. This situation varies by period and visa category; you need to consult a specialist about the current visa bulletin.

As a US permanent resident, do I pay taxes on income earned in Vietnam?

Yes. The United States taxes permanent residents and citizens on worldwide income, including income earned in Vietnam. This is a major difference from most other countries. You must consult a tax attorney before filing your immigration application, not after.

How much does US health insurance cost?

The United States does not have universal healthcare. Insurance is provided by private companies, premiums are high, and a serious illness without adequate coverage can bankrupt a family. This is the single biggest weakness of the US for Vietnamese families, especially if older family members are included — budget for it from day one.

Are there direct flights from Vietnam to the United States?

Yes. Ho Chi Minh City has direct flights to San Francisco and Los Angeles, with flight times of approximately 13–16 hours. This is a significant advantage over the Caribbean or Europe. The time difference is 11–15 hours depending on the coast and season.

🇺🇸 Key figures United States Current investment thresholds, fees, processing times and requirements

Interested in United States?

A Viking Global Group adviser will advise on your case free of charge.

This content is for reference. Immigration rules change over time — please contact a Viking Global Group adviser about your specific case.