Ministry issues new directive to monitor direct sales businesses
Ministry issues new directive to monitor direct sales businesses
The Ministry of Industry and Commerce has issued a new decision on direct sales businesses to monitor their operations to make sure they comply with the nation's laws and regulations.
It aims to facilitate local and foreign individuals, legal entities or enterprises that have an interest in operating direct sales business in Laos.
Previously, a large number of direct sales businesses have been operating without specific regulations to govern the sector which caused difficulties and confusion for both the enterprises and authorities.
In order to guarantee the quality of governance, standardisation, equity, transparency and fairness in business competition, as well as consumer and contributor protection, the Ministry of Industry and Commerce issued its new decision which stipulates the rules, principles and conditions by which direct sales business must abide by.
It especially covers documentation requirements, considerations when issuing permits and measures to regulate direct sales business.
Individuals, legal entities or enterprises who wish to operate direct sales businesses shall submit their applications to the Industry and Commerce sector who governs direct sales business nationwide as the main agency to coordinate with other relevant agencies and local authorities.
In central level, business operators shall contact the Domestic Trade Department, while at local level the provincial or Vientiane Department of Industry and Commerce is the point of contact.
Operators running direct sales businesses without permission shall re-submit relevant documents within 90 days after the decision becomes effective (the date of its signing and 15 days after published in the Lao Official Gazette).
The decision aims to ease the running of direct sales business in Laos and specifies transparent, equitable and fair procedures for submitting documents and also protects consumers and contributors nationwide under principles, rules and measures set out in the decision.
