IM Yearbook 2020/21

Ho Chi Minh City, Vietnam
Nigeria: Window to West Africa
Henley & Partners’ office in Nigeria opened
its doors in May 2020 and is headed by
Stuart Wakeling. Thus far the vast majority
of interest is coming from Nigerians, but the
idea is that Nigeria will serve as the Group’s
West Africa hub. “Because of the uncertain Stuart Wakeling
outlook for the Nigerian economy, which has
been exacerbated by Covid-19 and civil unrest in 2020, Nigerian
clients are predominantly seeking alternative citizenship options
to secure their wealth and their families’ future,” says Wakeling.
According to him, there is currently significant interest in the
Caribbean CBI programmes as for Nigerian high-net-worth
individuals these programmes are the most cost-effective
way to achieve global access, plan-b alternatives, investment
diversification and advantageous opportunities for their families.
China: A Competitive Market
Denise Ng is the Head of Henley & Partners’
Hong Kong office and responsible for the
firm’s North Asian business, which also covers
China, Japan, South Korea and Taiwan.
However, the majority of clients are Chinese
nationals, and the firm also has a presence
in Guangzhou, China, while a representative
office in China’s capital, Beijing, is due to Denise Ng
open in late 2020. “Competition is very
fierce in China, with over 20,000 immigration agencies,” says
Ng. The agencies offer very competitive pricing and include
flexi-options and ‘after sale’ services such as assistance with
opening of bank accounts. While real estate-linked investment
migration options are favoured by many Hong Kong and Chinese
clients, Ng reports that in recent years clients have also been
looking more carefully at investment risk, exit strategy, resale
market, and rental yield. Hence, Ng explains, the firm is seeing
a small percentage of clients enquiring about security options
and investment funds. However, it is paramount that these are
well-structured, organised, clear and transparent, with processes
that are uncomplicated and that include an exit strategy. The
Chinese market still holds great potential for Henley & Partners,
especially since investment migration has become popular among
China’s middle class too due to the growing number of residence
programmes with relatively low investment requirements.
Vietnam: Rapid Growth
In 2019, Vietnam accounted for 20% of Henley & Partners’
business in Southeast Asia. “The pool of wealthy people in
Vietnam is expanding rapidly, and this segment of society cares
about global travel and welfare policies. As a firm, we consider
Vietnam to be a fertile market for growth, similarly to India and
Nigeria,” says Alexis Tan, Senior Manager of
Henley & Partners Vietnam. Travel freedom,
rather than relocation, is a main motivation
for many of her clients, which is why they are
keen on CBI programmes that provide them
with more powerful travel documents. If they
do have plans to relocate, Tan explains, they
eye the more traditional RBI options such Alexis Tan
as Australia, Canada and the US, although
there is a long waitlist for the latter. “Interestingly, in the last
year we’ve also been seeing a growing trend of Vietnamese
high-net-worth individuals enquiring about residence options
in Europe, namely Portugal, Switzerland, Malta and Austria.”
Tan’s typical clients are successful businesspeople between
the ages of 40 and 60, but she also sees younger entrepreneurs
who have succeeded early in life. She notes that today plenty of
the world’s wealthy are young, astute entrepreneurs interested in
increasingly varied and sophisticated investment options. “It’s only
fitting that we see many countries adapting their programmes
to suit the new global citizen. For example, in Singapore the
Global Investor Program introduced some changes earlier this
year to include a new category of applicant – next-gen business
owners – and a refined family office investment option.”
A Maturing Industry
In tandem with its clients, the investment migration industry
has matured significantly, which has made it easier to recruit
individuals to join the industry. “In the past, it was more
challenging because the industry wasn’t very well-known,”
says COO Kraus. Nonetheless, other challenges remain such as
scepticism towards investment migration as well as the lack of
regulation. “We are painfully aware that at times industry players
do not adhere to the best practice or corporate governance that
are in place.” Kraus points to some smaller players undercutting
on price because they cut corners on due diligence.
Where Do We Really Want to Live?
Henley & Partners, likes others in the industry, is predicting
a surge in demand for investment migration products in the
aftermath of Covid-19 as more states seek to tap into their unique
ability to expand their “sovereign equity by increasing the
number of citizens who actively contribute to the country’s future
well-being,” says Steffen. The firm wants to maintain a strong
presence in its existing markets while growing its footprint in
its new markets in Africa, India and South America. However,
where do people really want to live in the post-Covid-19 era?
“As the curtain lifts,” says the CEO, “people will seek to move
from poorly governed and ill-prepared places to more proactive
countries with greater resilience and better standards of medical
care.” This heightened level of awareness in terms of health and
security, he anticipates, will continue for the foreseeable future.
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Investment Migration Yearbook 2O2O/2O21