Ministry proposes tightened regulations on multi-level marketing operations

Ministry proposes tightened regulations on multi-level marketing operations

The Ministry of Industry and Trade said that the draft aimed to enhance protection for consumers and ensure public order amid increasingly sophisticated MLM-related frauds.

The Ministry of Industry and Trade is amending regulations on multi-level marketing to enhance protection for consumers and ensure public order amid increasingly sophisticated MLM related frauds. — File Photo

The Ministry of Industry and Trade has proposed a mandatory deposit for multi-level marketing (MLM) companies from VNĐ10 billion (US$393,000) to VNĐ20 billion or VNĐ50 billion as part of a draft decree aimed at tightening management of the MLM model.

According to the National Competition Commission, the draft decree is expected to improve the legal framework for MLMs in line with the country’s digital transformation and the 2023 Law on Consumer Protection.

The draft includes clarifying the definition of MLM based on networks and adjusting contract formats to reduce administrative burdens, enhancing the quality of basic training, as well as imposing stricter requirements for companies operating at the local level.

The Ministry of Industry and Trade said that the draft aimed to enhance protection for consumers and ensure public order amid increasingly sophisticated MLM-related frauds.

The ministry’s statistics showed that around 700,000 people participated in MLM in 2024, dropping by around 400,000 from 2019.

However, MLM sales revenue reached VNĐ16.2 trillion in 2024, up 28.9 per cent over 2019.

Commission averaged VNĐ951,000 per month.

As of April 2025, there are 16 licensed MLM companies in Việt Nam, down from 20 at the beginning of 2024. 

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