Rectifying multi-level marketing: towards strict and sustainable management

Strengthening management and perfecting the law

The Ministry of Industry and Trade emphasized the need for its affiliated units and the Departments of Industry and Trade of provinces and centrally run cities to resolutely implement tasks to strictly manage multi-level marketing activities. In particular, the National Competition Commission is assigned the responsibility of reviewing and proposing amendments and improvements to legal regulations on multi-level marketing management. The goal is to build a legal framework that meets strict management requirements, especially for new licensing cases, to prevent the risk of violating security and order, and acts contrary to cultural traditions, ethical standards and customs.

The National Competition Commission also coordinated with agencies under the Ministry of Public Security to propose amendments and improvements to the provisions of the Penal Code related to crimes in multi-level marketing activities. At the same time, this unit increased inspection, examination and strict handling of violations of the law in this field. The work of monitoring law enforcement at the Departments of Industry and Trade was promoted, thereby advising the Ministry's leaders on timely corrective solutions at the local level.

In addition, the National Competition Commission actively coordinates with public security agencies to combat crimes related to multi-level marketing. Propaganda and dissemination of knowledge and laws are focused on raising public awareness of this business model...

Other units under the Ministry of Industry and Trade are also assigned specific tasks. The Department of Domestic Market Management and Development is in charge of advising on the development and completion of regulations on administrative sanctions for violations in multi-level marketing. The Legal Department supports the review, research and proposal of amendments and supplements to legal documents. The Ministry's Office is responsible for promulgating administrative procedures, proposing to reduce and simplify procedures and providing online public services in the field of multi-level marketing management. The Department of E-commerce and Digital Economy deploys administrative procedures on the Ministry's online public service portal. The Ministry's press and media units are responsible for disseminating and popularizing laws on multi-level marketing.

Strengthen inspection and raise awareness at local level

The Departments of Industry and Trade of provinces and centrally run cities are required to implement many specific measures to strengthen the management of multi-level marketing in their localities. Inspection, examination and handling of law violations in this activity are promoted, while conferences, seminars and training programs related to multi-level marketing are closely monitored. The Departments of Industry and Trade actively coordinate with the police and public security agencies to combat and prevent crimes in this field.

In addition, localities focus on disseminating knowledge and laws to raise people's awareness of multi-level marketing. Training programs for local officials and civil servants are also organized to improve their expertise and professionalism, thereby ensuring more effective management.

The synchronous implementation of solutions from the central to local levels demonstrates the determination of the Ministry of Industry and Trade in strictly managing multi-level marketing activities, preventing the maximum risk of exploiting this model for illegal profit. These efforts aim to build a transparent and healthy multi-level marketing market, protect the rights of participants and maintain security and order.

Currently, the whole country has only 16 enterprises with multi-level business registration certificates, a decrease of 4 enterprises compared to the beginning of 2024. Of which, Vietnam Diamond Lifestyle Company Limited had its certificate revoked; Sun Driver Company Limited proactively terminated its operations; Aloe Trading Company Limited and Hoang Dat Trading and Service Company Limited had their certificates expired. Multi-level business revenue in 2024 reached 16,206 billion VND, with nearly 700,000 participants. However, the average commission and bonus level is only about 951,000 VND/month, equivalent to 12% of the average income per capita nationwide in 2024, showing that the economic efficiency of this model is still limited.

With strict and synchronous management measures, the Ministry of Industry and Trade hopes to continue to rectify multi-level marketing activities, ensure compliance with the law, protect participants and contribute to building a healthy and sustainable business environment.

Source: https://thoibaonganhang.vn/chan-chinh-kinh-doanh-da-cap-huong-toi-quan-ly-chat-che-va-ben-vung-162923.html