What are procedures for notifying changes in the list of multi-level business goods in Vietnam?
Requirements and conditions for notifying changes in the list of multi-level business goods in Vietnam
Based on Subsection 3, Section A of the Administrative Procedures issued with Decision 1299/QD-BCT in 2023, the requirements and conditions for notifying changes in the list of multi-level business goods are regulated as follows:
- Enterprises must update their information in the list of multi-level business goods.
- The list of multi-level business goods includes information: name, type, origin, packaging specifications, warranty policies (if any), selling price, and reward points equivalent to the selling price, and the period of application.
- Goods should not belong to the categories prohibited from multi-level marketing:
+ Pharmaceutical products; medical equipment; veterinary drugs (including aquatic veterinary drugs); plant protection drugs; chemicals, insect, and germicidal preparations restricted and prohibited for use in household and healthcare, and other dangerous chemicals;
+ Digital content products.
What are procedures for notifying changes in the list of multi-level business goods in Vietnam?
What are procedures for notifying changes in the list of multi-level business goods in Vietnam?
Based on Subsection 3, Section A of the Administrative Procedures issued with Decision 1299/QD-BCT in 2023, the process of notifying changes in the list of multi-level business goods is as follows:
Step 1: The enterprise submits a written notification of changes in the list of multi-level business goods, detailing the changes along with one modified list to the Office of the National Competition Committee (5th floor, 25 Ngo Quyen - Hoan Kiem, Hanoi).
Step 2: Receive and review the document: The National Competition Committee will receive the notification and check its validity.
- In case additional information or modifications are required as per Point a, Clause 3, Article 12 of Decree 40/2018/ND-CP, the National Competition Committee will notify the enterprise within 15 working days from the receipt of the application.
The amendment or supplementation period is 10 working days.
- If the enterprise does not provide the necessary information, amend, or supplement the application within the stipulated time or if the application does not meet the regulations, the National Competition Committee will issue a written notification to return the application, stating the reasons for the return.
- The enterprise is allowed to apply the multi-level business goods list if the National Competition Committee does not have any requirements regarding the notification within 15 working days from the receipt of the application.
Step 3: The National Competition Committee is responsible for notifying the Departments of Industry and Trade nationwide about the enterprise's notification of changes in the list of multi-level business goods through one of the following methods:
- Postal services;- Email;- The information technology system for multi-level sales management of the National Competition Committee.
What is the application for notification for changes in the list of multi-level business goods in Vietnam?
Based on Subsection 3, Section A of the Administrative Procedures issued with Decision 1299/QD-BCT in 2023, the components and quantity of dossiers for notifying changes in the list of multi-level business goods are as follows:
The dossier components for notifying changes in the list of multi-level business goods include:
- A written notification of changes in the list of multi-level business goods detailing the changes;- One modified list of multi-level business goods.
Which actions are prohibited for multi-level marketing enterprises in Vietnam?
According to Clause 1, Article 5 of Decree 40/2018/ND-CP, the prohibited actions in multi-level marketing activities are stipulated as follows:
Prohibited actions in multi-level marketing activities
1. Multi-level marketing enterprises are prohibited from the following actions:
a) Requiring others to make a deposit or pay a certain amount of money to enter into a multi-level marketing contract;
b) Requiring others to buy a certain quantity of goods to enter into a multi-level marketing contract;
c) Allowing multi-level marketers to receive money or other economic benefits from introducing others to join the multi-level marketing network without deriving from the purchase or sale of goods by the referred person;
d) Unjustifiably refusing to pay commissions, bonuses, or other economic benefits that multi-level marketers are entitled to;
dd) Providing false information about the reward plan, the benefits of joining the multi-level marketing network;
e) Providing false or misleading information about the features and benefits of goods or the enterprise’s activities through trainers or training programs, conferences, or through the enterprise’s materials;
g) Maintaining more than one multi-level marketing contract, position, code, or other equivalent forms for the same multi-level marketer;
h) Conducting promotions using a network of many levels, many branches whereby participants in the promotion program have more than one position, code, or other equivalent forms;
i) Organizing intermediary commercial activities as prescribed by commercial law to maintain, expand, and develop the multi-level marketing network;
k) Accepting or having any other documentation from multi-level marketers whereby they renounce a part or all of their rights as stipulated by this Decree or allowing the enterprise to not fulfill its obligations towards the multi-level marketer as per this Decree;
l) Engaging in multi-level marketing activities for objects not permitted under Article 4 of this Decree;
m) Not using the registered multi-level marketer management system approved by the licensing agency for managing multi-level marketers;
n) Buying or transferring the multi-level marketing network to another enterprise, except in cases of acquisition, merger, or consolidation.
Multi-level marketing enterprises are prohibited from carrying out the actions stipulated above.
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