Another multi-level marketing company in Hanoi has stopped operating.

The National Competition Commission ( Ministry of Industry and Trade ) has just announced its confirmation of receiving the notification dossier to terminate multi-level sales activities of Royal Distribution Company Limited (formerly Hoang Dat Trading and Service Company Limited).

According to the announcement, this multi-level marketing company has its headquarters at Green Diamond Building, 93 Lang Ha (Dong Da District, Hanoi ). The legal representative and General Director is Ms. Tran Thi Huyen. Royal Distribution was granted a certificate of registration for multi-level marketing activities on February 14, 2015.

The management agency said that this company requested to voluntarily terminate its multi-level marketing activities. The time started from February 12. The National Competition Commission required the company to publicly post a notice of termination of multi-level marketing activities at its headquarters and branches.

Previously, at the end of 2022, Hoang Dat Trading and Service Company Limited was fined VND 85 million for many violations. According to the inspection conclusion of the Department of Competition and Consumer Protection (now the National Competition Commission), the enterprise did not properly follow the procedures for amending and supplementing the multi-level sales registration certificate with the competent authority.

Recently, many multi-level marketing businesses have voluntarily terminated their multi-level marketing activities (Photo: Sen Viet).

Enterprises also do not pay commissions, bonuses, promotions and other economic benefits in cash to multi-level sales participants in the form of bank transfers.

Regarding the management of multi-level marketing activities, the Ministry of Industry and Trade recently issued a document requesting the National Competition Commission to review, propose amendments and complete legal regulations on the management of multi-level marketing activities. Strengthen inspection and handling of violations of the law in multi-level marketing activities...

In addition, the Ministry of Industry and Trade also requested the Department of Industry and Trade of provinces and cities to strengthen inspection, examination and handling of violations of the law in multi-level sales activities; supervise conferences, seminars and training activities on multi-level sales in the area.

According to statistics, in 2024, the total number of people participating in multi-level marketing will reach nearly 700,000 people, a decrease of about 400,000 people compared to 2019. Although the number of people participating in multi-level marketing has decreased, the total revenue from multi-level marketing of businesses has still increased.

In 2024, multi-level marketing revenue will reach VND 16,206 billion, an increase of 28.9% compared to 2019 (VND 12,575 billion). The average commission and bonus will be about VND 951,000/month, equivalent to 12% of the country's average income per capita in 2024.

To date, there are only 16 enterprises nationwide with multi-level sales registration certificates (4 enterprises less than at the beginning of 2024).

Source: https://dantri.com.vn/kinh-doanh/them-mot-cong-ty-da-cap-o-ha-noi-dung-hoat-dong-20250512092807815.htm