US multi-level marketing company quits unnecessary Vietnamese market
US multi-level marketing company quits unnecessary Vietnamese market
Multi-level marketing (MLM) company Isagenix Vietnam Company Limited has announced to stop its operations and leave Vietnam because its Vietnamese business line is not necessary for its parent Isagenix International Company, according to a notice published by Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade on October 10.
The company officially stopped its MLM operations throughout the country on March 14, 2016.
VCA requested the company to complete all obligations towards members to its MLM activities within 90 days of issuing the notice.
Established in November 2014, Isagenix Vietnam specialises in trading nutrition and beauty products in an MLM model. Isagenix Vietnam’s products are distributed by independent distributors in the US, Canada, Australia, New Zealand, and Singapore.
Isagenix Vietnam is one of the US MLM companies in Vietnam, including Herbalife, Amway Vietnam, and Unicity Marketing Vietnam.
With the exception of Amway Vietnam, the other three were all detected to violate regulations.
Notably, in July, Isagenix Vietnam, along with six other MLM companies, were fined VND229.9 million ($10,248) for administrative violations.
In June, Unicity Marketing Vietnam was fined VND130 million ($5,795) for not renewing its business license after adjusting its business activities and conducting business in cities and provinces where it does not have offices, while not informing local Departments of Industry and Trade and not training agents to acceptable standards.
Herbalife Vietnam was fined VND50 million ($2,228) for conducting business in cities and provinces where they do not have offices and not informing the local Departments of Industry and Trade.
According to reports from local Departments of Industry and Trade, in the first seven months of this year, they issued altogether VND2.8 billion ($124,800) in fines to 42 MLM companies, registered and unregistered alike, for all sorts of administrative violations.
VCA, meanwhile, fined multiple MLM companies for 29 counts of violations for a total of VND4.6 billion ($205,055), suspended two, and stopped the operations of five. In the period, Thai im Star Network and US Genesis Pure both completed procedures to stop operations by their own initiative.
Currently, nearly half of the 61 MLM companies operating in Vietnam are wholly foreign-backed.
