Vietnam: What are the tasks of implementing activities in 2023 of the Project to improve the efficiency of state management in business in the multi-level mode?

Main Content

• What are the tasks and powers of the Ministry of Industry and Trade of Vietnam in competition and protection of consumer rights, multilevel marketing management?
• What are the tasks of implementing activities in 2023 of the Project to improve the efficiency of state management in business in the multi-level mode?
• What is a multilevel marketing company in Vietnam prohibited from?

What are the tasks and powers of the Ministry of Industry and Trade of Vietnam in competition and protection of consumer rights, multilevel marketing management?

Pursuant to Clause 20, Article 2 of Decree No. 96/2022/ND-CP defining the tasks and powers of the Ministry of Industry and Trade of Vietnam in competition and protection of consumer rights, multilevel marketing management as follows:

- Organize performance of state management tasks of competition; initiate competition-related proceedings, control economic concentrations, issue decisions to grant exemption from prohibited anti-competitive agreements, deal with complaints against decisions on competition cases in accordance with regulations of law;

- Perform state management of protection of consumer rights in accordance with regulations of law;

- Perform state management of multi-level marketing operations in accordance with regulations of law.

Vietnam: What are the tasks of implementing activities in 2023 of the Project to improve the efficiency of state management in business in the multi-level mode? (Image from the Internet)

What are the tasks of implementing activities in 2023 of the Project to improve the efficiency of state management in business in the multi-level mode?

Pursuant to the Appendix issued together with Decision No. 228/QD-BCT in 2023 stipulating the list of tasks to implement activities in 2023 of the Project to improve the efficiency of state management in business in the multi-level mode as follows:

- Raise public awareness of the law on business management in a multi-level manner

+ Develop and implement a communication plan on the management of business activities in a multi-level mode

++ Deployment of posting and promotion services to raise community awareness about the identification of perverted/nefarious multi-level selling acts

++ Compiling, translating, designing, printing Vietnam Multi-level Marketing Industry Report 2021 (Vietnamese and English versions)

++ Organizing a conference to summarize the management of multi-level sales activities

+ Organize a conference to propagate and disseminate new regulations in the Decree amending and supplementing Decree No. 40/2018/ND-CP on management of business activities by multi-level mode

+ Organize a propaganda conference to raise awareness for students about the law on managing business activities in a multi-level manner and identifying perverted/nefarious multi-level selling acts

- Improve the state management capacity for business activities by multi-level method for officials at the central level and at the provincial and city levels under the central government.

+ Organize training, retraining and training activities on knowledge, law, skills and qualifications for officials performing the state management of business activities by the multi-level mode (both in central level and provinces and cities directly under the Central Government)

What is a multilevel marketing company in Vietnam prohibited from?

In Clause 1, Article 5 of Decree No. 40/2018/ND-CP stipulating the prohibited acts of a multilevel marketing company in Vietnam as follows:

- requesting a prospective participant to deposit or pay a certain amount of money in any way to be eligible to enter into a multi-level marketing contract;

- requesting a prospective participant to buy a certain quantity of products in any way to be eligible to enter into a multi-level marketing contract;

- paying money or other economic benefits to a participant in compensation for his/her recruitment of new distributors without consideration of his/her sale of products to recruited distributors;

- refusing to pay, without legitimate reasons, commissions, bonuses or other economic benefits to eligible participants;

- providing false information concerning the compensation plan or benefits from participation in the multi-level marketing;

- providing false or misleading information about features or uses of products or operations of the multi-level marketing company through speakers or trainers at conferences, meetings, training courses or training materials of the multi-level marketing company;

- maintaining more than one multi-level marketing contract, position, identity number or others of equivalent validity for a participant;

- implementing sales promotion program using multi-level network in which a participant has more than one position, identity number or others of equivalent validity;

- providing commercial intermediary services as regulated by the Law on commerce with the aims of maintaining, expanding and developing its own multi-level marketing network;

- receiving or accepting a participant's application or other document which states that the participant relinquishes a part or all of his/her rights as defined herein or says that the multi-level marketing company must not fulfill obligations towards to the participant as regulated herein;

- using the multi-level marketing strategy to trade or sell a subject other than the one permitted in Article 4 of Decree No. 40/2018/ND-CP;

- failing to use the management system registered with the regulatory authority that issued the multi-level marketing registration certificate to manage its multi-level marketing participants; and

- trading or transferring the network of multi-level marketing participants to another enterprise, except for acquisition, amalgamation or merger of enterprises.