Basic training program in multi-level marketing for participants in Vietnam

Basic training program in multi-level marketing for participants in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Basic training program in multi-level marketing for participants in Vietnam

Regulations on basic training program in multi-marketing for participants in Vietnam according to Article 32 of Decree 40/2018/ND-CP are as follows:

- The MLM company is responsible for providing participants in its MLM network with training courses according to the basic training program registered with a competent authority without requiring any training fees.

- Each participant is obliged to attend and acquire all contents of the basic training program.

- Only persons who are appointed by the MLM company as trainers may provide basic training programs for participants in the MLM network of such company.

- A basic training program may be provided in one of the following methods:

+ Direct training;

+ Distance training.

- The MLM company shall evaluate the completion of the basic training program of a participant and give a written certification of basic training contents and volume completed by such participant.

- The MLM company shall keep all documents concerning basic training programs provided for participants in its MLM network, including documents proving training duration, method, location (if any) and results.

- In case there are any changes in the contents prescribed in Clause 2 Article 31 of Decree 40/2018/ND-CP, the MLM company shall provide additional training in such contents for participants or publish such changes in its website or at its head office, branches, representative offices and business locations within 30 days from the occurrence of such changes.

2. Multi-level marketing contract in Vietnam

Multi-level marketing contract in Vietnam according to Article 29 of Decree 40/2018/ND-CP is as follows:

- The MLM company must enter into MLM contract with every participant.

- A MLM contract must include the following contents:

+ Name, legal representative and contract information of the MLM company;

+ Full name, date of birth, permanent residence (or registered residence of a foreigner), current residence (either permanent or temporary), telephone number, bank account number, number of ID card/ citizen’s identity card/ passport of the participant; number of work permit if the participant is a foreigner;

+ Full name and identity number of the introducer (or sponsor);

+ Information concerning the products sold through the MLM;

+ Information concerning the compensation plan and business rule;

+ Rights and obligations of the parties, which must conform to regulations herein and relevant laws;

+ The provision on payment of commissions and bonuses by bank transfer;

+ The provision on repurchase of products;

+ Cases where a MLM contract is terminated and obligations arising from such termination;

+ The policy for settlement of contract disputes.

- A MLM contract must meet the following format requirements:

+ The MLM contract must be made in Vietnamese with a font of at least 12-point size;

+ The text of the MLM contract must have sufficient color contrast against the background.

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