02 new proposals on managing multi-level marketing activities in Vietnam

02 new proposals on managing multi-level marketing activities in Vietnam (Illustrative photo)

1. Additional regulations regarding Procedures for knowledges of multi-level marketing for Representatives in Vietnam

In Clause 3, Article 1 of the Draft Circular supplementing the procedure for organizing multi-level sales knowledge tests for local representatives with 2 options:

- Option 1 (Department organizes and certifies legal knowledge for local representatives): The Competition and Consumer Protection Department organizes a knowledge test for local representatives.

- Option 2 (Department and Department of Industry and Trade have the authority to organize and certify legal knowledge for local representatives): The Competition and Consumer Protection Department and the Department of Industry and Trade organize a knowledge test for local representatives.

The procedure includes the following steps:

+ Checking the completeness and validity of the registration dossier for knowledge verification for local representatives as per regulations;

+ Planning the time, location, and method of testing and notifying in writing to the Competition and Consumer Protection Department about organizing the test period in case the provincial or centrally-governed city Department of Industry and Trade organizes the test;

+ Announcing the test plan;

+ Organizing the test;

+ Evaluating the test results;

+ Announcing the test results and issuing certification.

2. Reduction in Requirements for Test Result Evaluation in Vietnam

In Clause 4 of the Draft amendment, supplementing the regulations on the form of test and evaluation of test results, it is stated that:

- The multi-level sales law knowledge test for local representatives is conducted in the form of either essay or multiple-choice within a minimum duration of 60 minutes.

(Compared to current regulations, adding the knowledge test for local representatives)

- Test scores are graded on a 100-point scale, with specific requirements as follows:

+ For the multi-level sales law knowledge test, tests scoring below 80 for multiple-choice and below 65 for essay form are not considered passing.

+ For the local representatives' knowledge test, tests scoring below 70 for multiple-choice and below 50 for essay form are not considered passing.

(Currently, the law does not distinctly specify separate tests for multi-level sales law knowledge and local representatives' knowledge. It only states that tests scoring below 90 for multiple-choice and below 75 for essay form are not considered passing).

Thus, the new proposal has reduced the requirements for evaluating the knowledge test results for multi-level sales.

Bao Ngoc

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