| THE MINISTRY OF INDUSTRY AND TRADE OF VIETNAM | THE SOCIALIST REPUBLIC OF VIETNAM |
| No.: 14/VBHN-BCT | Hanoi, May 23, 2023 |
DECREE
ON REGULATORY FRAMEWORK FOR MULTI-LEVEL MARKETING
The Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from May 14, 2018, is amended by:
1. The Government’s Decree No. 03/2023/ND-CP dated February 10, 2023 defining functions, tasks, powers and organizational structure of Vietnam Competition Commission, coming into force from April 01, 2023.
2. The Government’s Decree No. 18/2023/ND-CP dated April 28, 2023 providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
Pursuant to the Law on Government Organization dated June 19, 2015;
Pursuant to the Competition Law dated December 03, 2004;
Pursuant to the Law on Investment dated November 26, 2014 and the Law dated November 22, 2016 on amendments to Article 6 and Appendix 4 - The list of conditional business lines under the Law on Investment;
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The Government promulgates a Decree providing the regulatory framework for multi-level marketing. [1]
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Decree deals with multi-level marketing and management of multi-level marketing activities.
Article 2. Regulated entities
This Decree applies to multi-level marketing enterprises, multi-level marketing salespeople and other organizations and individuals involved in multi-level marketing.
Article 3. Definitions
For the purposes of this Decree, the terms below are construed as follows:
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2. [2] “MLM enterprise” means an enterprise which has been granted a MLM registration certificate by a competent authority in order to run a MLM business in accordance with this Decree.
3. “participant” means a salesperson who participates in the MLM under the contract signed with the MLM enterprise.
4. "MLM contract” means a written agreement on participation in the MLM network entered into by and between a salesperson and a MLM enterprise.
5. “business rule” means a set of rules established by a MLM enterprise for governing activities of its MLM participants, process and procedures for performing MLM activities.
6. “compensation plan” means a plan used by a MLM enterprise to calculate and pay commissions, bonuses and other economic benefits to participants based on their own sales efforts and the sales made by their downline distributors.
7. “position and identity number in the MLM” means the position and identity number of a participant in the MLM network which are used as a basis for calculating commissions, bonuses and other economic benefits paid out to that participant.
8. [3] “MLM conferences, seminars and training” are activities that are meant to introduce, acclaim and provide information, instructions, training, knowledge that are relevant to MLM business.
Article 4. MLM subjects
1. The MLM business model is used to sell products only. Any business activities carried out in the form of MLM regarding a subject other than commodities are prohibited, unless otherwise prescribed by law.
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a) Medicines; medical equipment; veterinary drugs (including veterinary drugs used in aquaculture); pesticides; insecticidal and germicidal chemicals and preparations which are restricted or banned from household and medical use; other hazardous chemicals;
b) Digital content products.
Article 5. Prohibited acts in MLM business
1. MLM enterprises are prohibited from:
a) requesting a salesperson to deposit or pay a certain amount of money in any way to obtain eligibility to enter into a MLM contract;
b) requesting a prospective participant to buy a certain quantity of products in any way to obtain eligibility to enter into a MLM contract;
c) paying money or other economic benefits to a participant in compensation for his/her recruitment of new participants without consideration of his/her sale of products to such new participants;
d) refusing to pay, without legitimate reasons, commissions, bonuses or other economic benefits to eligible participants;
dd) providing false information concerning the compensation plan or benefits from participation in the MLM;
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g) maintaining more than one MLM contract, position, identity number or others of equivalent validity for a participant;
h) implementing sales promotion program using MLM model in which a participant has more than one position, identity number or others of equivalent validity;
i) providing commercial intermediary services as regulated by the Law on Commerce with the aims of maintaining, expanding and developing the MLM network;
k) receiving or accepting a participant's application or another document which states that the participant relinquishes a part or all of his/her rights as prescribed in this Decree or says that the MLM enterprise must not fulfill any obligations towards to the participant as prescribed in this Decree;
l) using the MLM strategy to trade or sell a subject other than the one permitted in Article 4 of this Decree;
m) failing to use the management system registered with the regulatory authority that issued the MLM registration certificate to manage MLM participants;
n) trading or transferring the network of MLM participants to another enterprise, except for acquisition, consolidation or merger of enterprises.
2. MLM participants are prohibited from:
a) committing the prohibited act specified in Point a Clause 1 of this Article;
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c) failing to obtain a written authorization from the MLM enterprise before organizing MLM conferences, seminars or training programs;
d) luring, enticing or bribing participants of another MLM enterprise to participate the MLM network of the MLM enterprise in which he/she is a participant;
dd) taking advantage of his/her position, power or social position to encourage, request, lure or entice other persons to participate in MLM network or buy products through the MLM model;
e) performing MLM activities in a province in which the MLM enterprise does not yet carry out registration of MLM activities.
3. Organizations and individuals performing business using the MLM model are prohibited from organizing conferences, seminars, training programs or introduction of their MLM activities or the MLM of the others without obtaining the MLM registration certificate, unless otherwise prescribed by law.
4. Individuals are prohibited from participating in the MLM network of an organization or individual that is not granted the MLM registration certificate, unless otherwise prescribed by law.
Chapter II
REGISTRATION OF MULTI-LEVEL MARKETING
Article 6. Registration of multi-level marketing
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Article 7. Eligibility requirements for MLM registration
1. An applicant for MLM registration is required to fulfill all of the following requirements:
a) It must be an enterprise that is duly established in the territory of Vietnam under the law of Vietnam and has never had a MLM registration certificate revoked;
b) It must have at least VND 10 billion of charter capital;
c) [4] Partners of partnerships, owners of sole proprietorships or single-member limited liability companies, members of multi-member limited liability companies, shareholders of joint stock companies, and legal representatives of companies must not include organizations or individuals that have held the same positions above of any MLM enterprises whose MLM registration certificate has been withdrawn according to the Government’s Decree No. 42/2014/ND-CP dated May 14, 2014 on management of MLM activities and this Decree while such enterprises are performing MLM activities;
d) It must deposit money at a commercial bank or a foreign bank branch (FBB) in Vietnam as prescribed in Clause 2 Article 50 of this Decree;
dd) Its MLM contract forms, business rules, compensation plan and training programs must be available, obvious, transparent and conformable with the provisions of this Decree;
e) It has an information technology system to manage participants in its MLM and a website to provide information about its profiles and MLM activities;
g) It has a communications system to receive and take actions against complaints or queries of MLM participants.
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2. The applicant shall prepare an application for MLM registration certificate as prescribed in Article 9 of this Decree and be legally responsible for the legitimacy of its submitted application.
Article 8. MLM registration certificate
1. A MLM registration certificate shall be effective for 05 years from its date of issue.
2. A MLM registration certificate is made into 02 originals, of which 01 original is delivered to the applicant and the other is kept by the Ministry of Industry and Trade of Vietnam.
3. A MLM registration certificate includes the following contents: The name of MLM enterprise; information concerning the enterprise registration certificate/ investment registration certificate (if any), including: enterprise ID number, issuing authority, date of initial issuance, date of the latest modification; head office’s address, telephone number, fax number, website and email address; information about the legal representative, including: full name, nationality, details of ID card/ citizen identity card/ passport, position, registered permanent residence/ temporary residence; scope of products sold through the MLM.
Article 9. Application for MLM registration certificate
An application for the MLM registration certificate includes the following documents (which must bear the applicant's stamp):
1. The application form for the MLM registration certificate made using Form No. 01 in the Appendix enclosed herewith.
2. 01 copy of the enterprise registration certificate or another document of equivalent legal effect.
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01 copy of the legal document about establishment of the organization (in case the applicant is an organization.
4. 02 sets of documents concerning the applicant’s MLM activities, including:
a) The MLM contract form;
b) The compensation plan;
c) The basic training program;
d) The business rule.
5. 01 list of products sold through the MLM, including: Name, type, origin, packaging specifications, warranty (if any), selling price, point volume calculated based upon the selling price, and time of application.
6. 01 original of the bank’s verification of deposit.
7. [7] Technical specifications towards information technology system to manage MLM networks under Article 44 of this Decree which contain the following basic information:
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b) Operating mechanism of the system, including system description, method for entering, storing and managing data;
c) The information specified in Article 44 of this Decree.
8. Documents proving that the applicant’s website meets the requirements laid down in Article 45 of this Decree.
9. Documents proving the applicant’s communications system capable of receiving and taking actions against complaints or queries of MLM participants.
10. [8] Copy of the audited financial statement or document confirming fulfillment of tax obligations or financial obligations of the last 03 fiscal years, or equivalent document issued or certified by a competent agency or organization proving fulfillment of the conditions specified in Point h Clause 1 Article 7 of this Decree in case the enterprise's owners, members or shareholders are foreign investors or foreign-invested business organizations.
11. [9] The business license that allows retail distribution, including retailing through MLM in case the enterprise's owners, members or shareholders are foreign investors or foreign-invested business organizations.
Article 10. Procedures for issuance of MLM registration certificate
1. Receipt of application:
a) [10] Enterprises who register MLM activities shall submit 01 set of application in accordance with Article 9 of this Decree (and a set of electronic version under “.doc” or ".docx" for the documents specified in Clause 4 Article 9 of this Decree, and “.xls” or ".xlsx" format for the documents specified in Clause 5 Article 9 of this Decree) to the Ministry of Industry and Trade of Vietnam (submitted in person, online or by post);
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c) Within 30 days from the receipt of the written request from Ministry of Industry and Trade of Vietnam, if the applicant fails to modify its application as requested, the Ministry of Industry and Trade of Vietnam shall return the application.
2. Processing of application:
a) Upon the receipt of an adequate and valid application, the Ministry of Industry and Trade of Vietnam shall notify the applicant of the application processing fees. The Ministry of Industry and Trade of Vietnam shall return the application if the applicant fails to fully pay the application processing fees within 30 days from the notification date;
b) The Ministry of Industry and Trade of Vietnam shall process the received application within 20 working days from the receipt of application processing fees in full;
c) Application processing steps:
- Obtain a written verification of the accuracy of the deposit confirmation from the bank where the applicant deposits money;
- Consider the conformity of the documents included in the application for the MLM registration certificate with the provisions of this Decree.
d) If the application fails to meet the requirements laid down in this Decree, the Ministry of Industry and Trade of Vietnam shall request the applicant in writing to modify its application. The applicant may only modify its application once within 30 days from the receipt of the written request from the Ministry of Industry and Trade of Vietnam.
The Ministry of Industry and Trade of Vietnam shall consider the modified application within 15 working days after its receipt.
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If the applicant fails to modify the application within the time limit specified in Point d Clause 2 of this Article or the application still fails to meet the requirements laid down in this Decree after it has been modified, the Ministry of Industry and Trade of Vietnam shall give a written notification of application return in which reasons for such return shall be indicated.
4. Issuance of a MLM registration certificate:
If the application meets all of requirements laid down in this Decree, the Ministry of Industry and Trade of Vietnam shall issue the MLM registration certificate using Form No. 02 in the Appendix enclosed herewith and return 01 set of the documents specified in Clause 4 Article 9 of this Decree to the applicant after they are sealed by the Ministry of Industry and Trade of Vietnam.
5. Within 10 working days from the date of issue of the MLM registration certificate, the Ministry of Industry and Trade of Vietnam shall publish relevant information on its website, notify the bank where the MLM enterprise deposits money and provide the copy of the MLM registration certificate and copies of the documents specified in Clause 4 and Clause 5 Article 9 of this Decree to Provincial Departments of Industry and Trade nationwide adopting one of the following methods:
a) By post [11];
b) By email;
c) Via the MLM management system of the Ministry of Industry and Trade of Vietnam.
Article 11. Modification of MLM registration certificates
1. The MLM enterprise is liable to carry out procedures for modification of the MLM registration certificate in the following cases:
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b) In case there are changes in contents specified in Clause 4, Clause 7, Clause 8 and Clause 9 Article 9 of this Decree, the MLM enterprise shall carry out procedures for modification of its MLM registration certificate before application.
2. In case there are changes in the list of products sold through the MLM, the MLM enterprise shall inform the Ministry of Industry and Trade of Vietnam in writing of such changes before application.
Article 12. Application and procedures for modification of MLM registration certificates
1. An application for modification of a MLM registration certificate includes:
a) The application form for modification of the MLM registration certificate made using Form No. 03 in the Appendix enclosed herewith;
b) 01 original of the MLM registration certificate issued by the Ministry of Industry and Trade of Vietnam;
c) The documents specified in Article 9 of this Decree in connection with the modified contents of the MLM registration certificate.
2. Procedures for modification of a MLM registration certificate are performed according to Article 10 this Decree.
3. Procedures for notification of changes in the list of products sold through the MLM:
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b) [13] In case the MLM enterprise’s notification mentioned in Point a of this Clause needs to be modified, the Ministry of Industry and Trade of Vietnam shall send a notice to the enterprise within 15 working days from the receipt of MLM enterprise’s notification. Modification must be completed within 10 working days. In case the MLM enterprise fails to make modification within the prescribed time limit or its modification is not satisfactory, the Ministry of Industry and Trade of Vietnam shall give a written notice of return of its notification to the MLM enterprise, in which reasons for such return must be indicated.
The MLM enterprise is allowed to sell products specified in the new list of products sold through the MLM if no notice of modification is sent by the Ministry of Industry and Trade of Vietnam within 15 working days after receipt of the MLM enterprise’s notification;
c) The Ministry of Industry and Trade of Vietnam shall notify Provincial Departments of Industry and Trade nationwide adopting one of the methods specified in Clause 5 Article 10 of this Decree of the MLM enterprise’s notification of changes in its list of products sold through the MLM.
Article 13. Re-issuance of MLM registration certificates
1. In case a MLM registration certificate is lost, torn or destroyed, the MLM enterprise shall submit an application for re-issuance of the MLM registration certificate using Form No. 04 in the Appendix enclosed herewith to the Ministry of Industry and Trade of Vietnam (either in person, online or by post [14]).
2. Within 10 working days from the receipt of a valid application, the Ministry of Industry and Trade of Vietnam shall re-issue the MLM registration certificate to the applicant.
Article 14. Extension of MLM registration certificates
1. A MLM registration certificate may be extended several times and for up to 5 years each.
2. A MLM enterprise is allowed to apply for extension of its MLM registration certificate if meeting all of the requirements laid down in Article 7 of this Decree.
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4. An application for extension of MLM registration certificate includes:
a) The application form for extension of the MLM registration certificate made using Form No. 05 in the Appendix enclosed herewith;
b) The documents specified in Clause 2 and Clause 3 Article 9 of this Decree;
c) [15] The documents specified in Clause 4 through 11 Article 9 of this Decree if there are any changes in the contents of the latest MLM registration certificate.
5. Procedures for extension of a MLM registration certificate are performed in accordance with the provisions of Article 10 of this Decree.
Article 15. Fees for processing of applications for MLM registration certificate
1. Fees for processing of applications for MLM registration certificate include fees for processing of applications for issuance, modification and extension of MLM registration certificate.
2. Fees for processing of applications for MLM registration certificate, collection, transfer, management and use thereof shall comply with regulations of law.
Article 16. Revocation of MLM registration certificates
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a) The enterprise registration certificate or another document of equivalent legal effect is revoked or the MLM enterprise is dissolved or declared bankrupt in accordance with regulations of law;
b) The submitted application for MLM registration certificate is found to contain false information;
c) [16] The MLM enterprise incurs penalties for committing one of the prohibited acts in Clause 1 Article 5, Clause 14 Article 40 or Clause 3 Article 47 of this Decree in the program of selling products through the MLM as regulated by law;
d) The MLM enterprise fails to implement remedial measures as requested by the competent authority in charge of managing MLM activities in order to maintain its satisfaction of the requirements in Article 7 of this Decree during its operation.
2. A MLM registration certificate ceases to have effect from the effective date of the decision on revocation of the MLM registration certificate.
3. Procedures for revocation of a MLM registration certificate:
a) The Ministry of Industry and Trade of Vietnam issues a decision on revocation of the MLM registration certificate upon the occurrence of one of the events specified in Clause 1 of this Article;
b) Within 10 working days from the effective date of the decision on revocation of the MLM registration certificate, the Ministry of Industry and Trade of Vietnam shall inform Provincial Departments of Industry and Trade nationwide of the revocation adopting one of the methods specified in Clause 5 Article 10 of this Decree, and also publish information on the revocation on its website.
Article 17. Termination of MLM activities
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a) The MLM registration certificate expires without extension made as prescribed in Article 14 of this Decree;
b) The MLM enterprise terminates MLM activities at its own will;
c) The MLM registration certificate is revoked by a competent authority.
2. When terminating its MLM activities, the MLM enterprise shall:
a) Send a written notification of termination of MLM activities to the Ministry of Industry and Trade of Vietnam, post up the notice thereof at its head office, branches, representative offices and business locations, and on its website;
b) Terminate or finalize MLM contracts and settle benefits for MLM participants in accordance with law regulations on MLM management;
c) Fulfill obligations under decisions on imposition of penalties for violations against regulations on MLM activities issued by competent authorities.
Article 18. Procedures for termination of MLM activities[17]
1. In case a MLM enterprise terminates MLM activities at its own will:
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The notice of termination of MLM activities made using Form No. 06 in the Appendix enclosed herewith;
A report made using Form No. 06a in the Appendix enclosed herewith;
01 copy of the enterprise registration certificate of the latest modification or another document of equivalent legal effect;
01 original of the MLM registration certificate;
01 copy of the decision on termination of MLM activities issued by the owner of a sole proprietorship or a single-member limited liability company; the decision and the minutes of the meeting on termination of MLM activities issued by the Board of Members of a multi-member limited liability company, or the General Shareholders’ Meeting of a joint-stock company, or general partners of a partnership.
b) Procedures for termination of MLM activities:
The MLM enterprise shall send its notification of termination of MLM activities to the Ministry of Industry and Trade of Vietnam (either in person, online or by post);
If the notification fails to meet the requirements in Point a of this Clause, the Ministry of Industry and Trade of Vietnam shall send a request for modification to the MLM enterprise within 10 working days from the receipt of the MLM enterprise’s notification. The MLM enterprise must modify its notification within 15 working days from the receipt of the request for modification.
In case the MLM enterprise fails to make modification within the prescribed time limit or its notification is not satisfactory, the Ministry of Industry and Trade of Vietnam shall give a written notice of return of notification to the MLM enterprise, in which reasons for such return must be indicated.
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2. In case of termination of MLM activities due to expiration or revocation of MLM registration certificate:
a) Notification of termination of MLM activities includes:
The notice of termination of MLM activities made using Form No. 06 in the Appendix enclosed herewith;
A report made using Form No. 06a in the Appendix enclosed herewith;
01 copy of the enterprise registration certificate of the latest modification or another document of equivalent legal effect;
01 original of the MLM registration certificate.
b) Procedures for termination of MLM activities:
Within 30 working days after the MLM registration certificate expires or is revoked, the MLM enterprise shall send its notification of termination of MLM activities to the Ministry of Industry and Trade of Vietnam (either in person, online or by post);
If the notification fails to meet the requirements in Point a of this Clause, the Ministry of Industry and Trade of Vietnam shall send a request for modification to the MLM enterprise within 10 working days from the receipt of the MLM enterprise’s notification. The MLM enterprise must modify its notification within 15 working days from the receipt of the request for modification.
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Within 10 working days from the receipt of a valid notification, the Ministry of Industry and Trade of Vietnam shall issue a written certification of receipt of the notification of termination of MLM activities, inform Provincial Departments of Industry and Trade nationwide of such termination adopting one of the methods specified in Clause 5 Article 10 of this Decree, and publish the termination-related information on its website.
Chapter III
MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES IN PROVINCES
Article 19. MLM activities in provinces
A MLM enterprise is considered to have MLM activities in a province if:
1. Its head office, branch or representative office carries out MLM activities in such province.
2. It organizes conferences, seminars or training programs in MLM contents in such province.
3. A participant in its MLM network resides (either permanently or temporarily) or carries out marketing activities or sells products through the MLM in such province.
Article 20. Registration of MLM activities in a province
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2. [18] In case its head office, branch, representative office or business location is not located in a province, the MLM enterprise shall authorize an individual who resides in such province to act as its contact point in charge of working with competent authorities in such province. In order to act as a MLM enterprise’s contact point in a province, an individual is required to meet the following requirements:
a) He/she does not fall into any of the cases in Point a Clause 2 Article 28 of this Decree;
b) He/she has obtained a certificate of proficiency in MLM laws as prescribed in Article 38 of this Decree;
c) He/she is authorized by the MLM enterprise to work and provide information/documents relating the MLM enterprise’s activities in the province at the request of MLM authorities.
3. The MLM enterprise is obliged to keep documents concerning its MLM activities carried out in the province and present them at the request of competent authorities.
Article 21. Application and procedures for registration of MLM activities in a province
1. [19] An application for registration of MLM activities in a province includes:
a) The application form for registration of MLM activities in a province made using Form No. 07 in the Appendix enclosed herewith;
b) 01 copy of the enterprise registration certificate or another document of equivalent legal effect;
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d) 01 copy of certificate of registration of branch, representative office or business location (if any).
In case its head office, branch, representative office or business location is not located in a province, the MLM enterprise shall provide documents about its contact point in that province, including: 01 certified true copy of ID card, citizen identity card or passport; 01 original or certified true copy of the criminal record; 01 certified true copy of certificate of proficiency in MLM laws for the contact point; 01 letter of appointment indicating the scope of works, rights and obligations of the parties.
2. The MLM enterprise shall submit an application for registration of MLM activities in the province, accompanied with the list of participants who reside in such province and are participating in its MLM network at the time of application submission if its MLM activities have been performed in such province before the effective date of this Decree (such list must specify: full name, date of birth, residence (either permanent or temporary), number of ID card/ citizen identity card/ passport, number of the MLM contract, participant’s identity number, and telephone number), to the Department of Industry and Trade of the province where its MLM activities will be carried out (either in person, online or by post [20]).
3. [21] If the application is inadequate or invalid as prescribed in Clause 1 of this Article, within 05 working days from the receipt of the application, the Provincial Department of Industry and Trade shall request the MLM enterprise in writing to modify its application. The MLM enterprise shall modify its application within 15 working days from the receipt of the written request from the Provincial Department of Industry and Trade. The Provincial Department of Industry and Trade shall return the application to the MLM enterprise that fails to modify its application within the prescribed time limit.
Within 10 working days from the receipt of an adequate and valid application, the Provincial Department of Industry and Trade shall issue a written certification of registration of MLM activities in the province which is made using the Form No. 08 in the Appendix enclosed herewith to the MLM enterprise. If an application is refused, the Provincial Department of Industry and Trade shall give a written response indicating reasons for refusal to the MLM enterprise.
4. Within 05 working days from the issue of the written certification of registration of MLM activities, the Provincial Department of Industry and Trade shall publish information on such certification on its website and send a copy thereof to the Ministry of Industry and Trade of Vietnam adopting one of the methods specified in Clause 5 Article 10 of this Decree.
Article 22. Registration of modification of MLM activities in a province
1. The MLM enterprise is responsible for carrying out procedures for registration of modification of its MLM activities carried out in a province with the Provincial Department of Industry and Trade when there are any changes in:
a) Its head office, branch, representative office or business location in such province;
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2. Within 15 working days from the occurrence of any of the changes specified in Clause 1 of this Article, the MLM enterprise must submit an application for registration of modification of MLM activities, made using Form No. 09 in the Appendix enclosed herewith, and the documents specified in Point b, Point d Clause 1 Article 21 of this Decree to the Provincial Department of Industry and Trade (either in person, online or by post [23]).
3. If the application is inadequate or invalid, within 05 working days from the receipt of the application, the Provincial Department of Industry and Trade shall request the MLM enterprise in writing to modify its application. The MLM enterprise may only modify its application once within 15 days from the receipt of the written request from the Provincial Department of Industry and Trade. The Provincial Department of Industry and Trade shall return the application to the MLM enterprise that fails to modify its application within the prescribed time limit.
4. Within 07 working days from the receipt of an adequate and valid application, the Provincial Department of Industry and Trade shall issue a written certification of registration of modification of MLM activities in the province, made using Form No. 10 in the Appendix enclosed herewith, to the MLM enterprise. If an application is refused, the Provincial Department of Industry and Trade shall give a written response indicating reasons for refusal to the MLM enterprise.
5. The Provincial Department of Industry and Trade shall publish information concerning the MLM enterprise’s registration of modification of MLM activities in the province on its website and inform it to the Ministry of Industry and Trade of Vietnam adopting one of the methods specified in Clause 5 Article 10 of this Decree.
Article 23. Revocation of certificate of registration of MLM activities in a province
1. The Provincial Department of Industry and Trade shall revoke the certificate of registration of MLM activities in a province in the following cases:
a) The application for registration of MLM activities in a province is found to contain false information;
b) The MLM enterprise has not carried out MLM activities in the registered province for a period of 12 consecutive months;
c) The MLM enterprise fails to fulfill its responsibility as prescribed in Clause 11 Article 40 of this Decree;
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dd) [24] The MLM enterprise fails to meet the requirements for carrying out MLM activities in the province as prescribed in Clause 2 Article 20 of this Decree.
2. Within 10 working days after the issuance of the decision on revocation of the certificate of registration of MLM activities in a province, the Provincial Department of Industry and Trade shall publish information concerning such revocation on its website and inform the Ministry of Industry and Trade of Vietnam of the same adopting one of the methods specified in Clause 5 Article 10 of this Decree.
3. The certificate of registration of MLM activities in a province shall cease to have effect from the effective date of the revocation decision.
4. Within 30 days from the effective date of the revocation decision, the MLM enterprise shall carry out procedures for termination of MLM activities in such province according to the provisions of Article 24 of this Decree.
5. The Provincial Department of Industry and Trade shall not re-issue the certificate of registration of MLM activities in a province to the MLM enterprise within 06 months from the effective date of the revocation decision in the case specified in Point b Clause 1 of this Article, or within 12 months from the effective date of the revocation decision in the case specified in Point a or Point c Clause 1 of this Article.
Article 24. Termination of MLM activities in a province
1. Cases where MLM activities in a province are terminated:
a) The MLM enterprise has its certificate of registration of MLM activities in a province revoked;
b) The MLM enterprise terminates MLM activities in such province at its own will.
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a) [25] Put up a notice of termination at its head office, branch, representative office or business location located in that province (if any), and on its website within 05 working days from the date on which its MLM activities in that province are terminated; send a written notification of termination to the Provincial Department of Industry and Trade;
b) Terminate or finalize MLM contracts and solve benefits for participants in the MLM network in such province in accordance with law regulations on MLM management;
c) Fulfill obligations under decisions on imposition of penalties for violations against regulations on MLM activities committed in the province issued by competent authorities.
3. [26] The MLM enterprise shall not be required to follow procedures for termination of MLM activities in a province if its MLM activities are terminated nationwide.
Article 25. Procedures for termination of MLM activities in a province
1. If a MLM enterprise voluntarily terminates its MLM activities in a province, it shall send a notice of termination of MLM activities in a province, made using Form No. 11 in the Appendix enclosed herewith, and the report made using Form No. 16 in the Appendix enclosed herewith to the Provincial Department of Industry and Trade (either in person, online or by post[27]).
2. If a MLM enterprise terminates its MLM activities in a province because its certificate of registration of MLM activities in such province is revoked, it shall submit the documents specified in Clause 1 of this Article to the Provincial Department of Industry and Trade (either in person, online or by post[28]) within 30 working days after its certificate of registration of MLM activities is revoked.
3. In case a MLM enterprise voluntarily terminates its MLM activities in a province, within 10 working days after the receipt of the valid notification thereof, the Provincial Department of Industry and Trade shall issue a written certification of receipt of the notification to the MLM enterprise, publish information on such termination on its website and report it to the Ministry of Industry and Trade of Vietnam adopting one of the methods prescribed in Clause 5 Article 10 of this Decree.
Article 26. Notification of MLM conferences, seminars and training programs
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2. [29] If a MLM conference, seminar or training program is intended to be organized with the attendance of at least 30 persons or at least 10 participants in its MLM network but is not an internal meeting or event of the MLM enterprise, the MLM enterprise shall be required to notify the Provincial Department of Industry and Trade before holding that conference or seminar or providing such training program.
In case of an online MLM conference, seminar or training program which is attended by MLM participants in a province, the MLM enterprise shall notify the Department of Industry and Trade of that province.
In case of an online MLM conference, seminar or training program which is attended by MLM participants in multiple provinces, the MLM enterprise shall notify the Department of Industry and Trade of the province or city where it is headquartered.
3. The MLM enterprise shall cooperate with relevant competent authorities in monitoring and supervising its MLM conferences, seminars and/or training programs in accordance with applicable law regulations.
Article 27. Required documents and procedures for notification of MLM conferences, seminars and training programs [30]
1. A notification of a MLM conference, seminar or training program includes:
a) The notice of MLM conference, seminar or training program, made using Form No. 12 in the Appendix enclosed herewith;
b) Contents and documents to be presented at such conference, seminar or training program, and estimated number of participants;
c) The list of speakers, enclosed with piecework agreements signed with the MLM enterprise, which specifies rights and responsibilities of each speaker;
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dd) Information on account or link to access the online conference, seminar or training program (if any).
2. A notice may cover several MLM conferences, seminars and/or training programs provided that they shall be held or provided within 03 months from the date of notice.
3. The MLM enterprise shall send notification of a MLM conference, seminar or training program to the relevant Provincial Department of Industry and Trade (either in person, online or by post) at least 15 days before the intended date of that conference, seminar or training program.
4. If the notification fails to meet the requirements in Clause 1 of this Article, within 07 working days from the receipt of the notification, the Provincial Department of Industry and Trade shall send a request for modification to the MLM enterprise. The MLM enterprise must modify its notification within 10 working days from the receipt of request from the Provincial Department of Industry and Trade.
5. The MLM enterprise may organize its MLM conference, seminar or training program if it receives no request for modification from the Provincial Department of Industry and Trade within 07 working days from the date of its notification.
6. In case the MLM enterprise wishes to make changes in its notification of a MLM conference, seminar or training program after expiration of the time limit specified in Clause 5 of this Article, it shall notify the Provincial Department of Industry and Trade in writing at least 07 working days before the intended date of such MLM conference, seminar or training program.
The MLM enterprise may organize its MLM conference, seminar or training program if it receives no request for modification from the Provincial Department of Industry and Trade within 07 working days from the date of its notification.
7. In case a MLM enterprise cancels its MLM conference, seminar or training program which has been notified to the Provincial Department of Industry and Trade, it shall notify the Provincial Department of Industry and Trade in writing or via email of such cancellation before the intended date of the notified MLM conference, seminar or training program.
Chapter IV
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Article 28. Eligibility requirements to be satisfied by participants
1. [31] MLM participants are individuals who have full legal capacity in accordance with regulations of laws and reside in Vietnam.
2. The following persons are prohibited from participation in the MLM network:
a) A person who is serving an imprisonment sentence or has previous convictions for manufacturing and trading of counterfeit or banned products, false advertising, deceiving consumers, obtaining property by fraud, abuse of trust to appropriate property, illegal impoundment of property or any violations against regulations on MLM;
b) [32] A foreigner who fails to possess a valid work permit granted by a competent authority to work in Vietnam for a MLM enterprise as a MLM participant, except for work permit exemption cases as prescribed by law;
c) A person who has participated in the MLM and incurred administrative penalties for violations against regulations in Clause 2, Clause 3 and Clause 4 Article 5 of this Decree but has not been treated as if he/she does not incur any administrative penalties;
d) The persons mentioned in Point c Clause 1 Article 7 of this Decree;
dd) Officials and public employees as prescribed in the law on officials and public employees.
Article 29. MLM contracts
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2. A MLM contract shall include the following contents:
a) Name, legal representative and contract information of the MLM enterprise;
b) Full name, date of birth, permanent residence (or registered residence of a foreigner), current residence (either permanent or temporary), telephone number, bank account number, number of ID card/ citizen identity card/ passport of the participant; number of work permit if the participant is a foreigner;
c) Full name and identity number of the introducer (or sponsor);
d) Information concerning the products sold through the MLM;
dd) Information on the compensation plan and business rule;
e) Rights and obligations of the parties, which must conform to this Decree and relevant laws;
g) The provisions on payment of commissions and bonuses by bank transfer;
h) The provisions on repurchase of products;
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k) The policies for settlement of contract disputes.
3. A MLM contract shall meet the following format requirements:
a) The MLM contract must be made in Vietnamese with a font size of at least 12 points;
b) The text of the MLM contract must have sufficient color contrast against the background.
Article 30. Termination of MLM contracts
1. A participant is entitled to terminate the MLM contract by sending a written notification to the MLM enterprise at least 10 working days before the expected date of termination.
2. The MLM enterprise is entitled to terminate the MLM contract signed with a participant if he/she commits any violations against regulations in Article 41 of this Decree.
3. The MLM enterprise must terminate the MLM contract signed with a participant if he/she commits violation against regulation in Clause 2 Article 5 of this Decree.
4. Within 30 days from the date on which the MLM contract is terminated, the MLM enterprise shall make full payments of commissions, bonuses and other economic benefits which the participant is entitled to receive during his/her participation in the company's MLM network.
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1. The basic training program is compulsory for participants in the MLM network.
2. A basic training program includes the following contents:
a) The law on multi-level marketing;
b) Ethic standards of a participant in the MLM;
c) Basic contents of a MLM contract, business rule and compensation plan;
d) The policies for assessment of a participant's completion of the basic training program in conformity with training contents and method.
3. The minimum duration of a basic training program is 08 hours.
Article 32. Provision of basic training program for participants
1. The MLM enterprise is responsible for providing participants in its MLM network with training courses according to the basic training program registered with competent authorities without collecting any training fees.
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3. Only persons who are appointed by the MLM enterprise as trainers may provide basic training programs for participants in the company’s MLM network.
4. A basic training program may be provided adopting one of the following methods:
a) Direct training;
b) Distance training.
5. The MLM enterprise shall evaluate the completion of the basic training program of a participant and give a written certification of basic training contents and volume completed by such participant.
6. The MLM enterprise shall keep all documents concerning basic training programs provided for participants in its MLM network, including documents proving training duration, method, location (if any) and results.
7. In case there are any changes in the contents prescribed in Clause 2 Article 31 of this Decree, the MLM enterprise shall provide additional training in such contents for participants or publish such changes in its website or at its head office, branches, representative offices and business locations within 30 days from the occurrence of such changes.
Article 33. Membership cards
1. The MLM enterprise shall only issue membership cards to participants who have successfully completed the basic training program and entered into written commitments made using Form No. 13 in the Appendix enclosed herewith.
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3. A membership card contains the following contents:
a) Name of the MLM enterprise;
b) Contact address of the MLM enterprise;
c) Photograph of the participant;
d) Details of the participant, including: Name, number of ID card/ citizen identity card or passport, participant's identity number or number, date and place of issue of membership card.
4. A membership card shall be no longer valid when the MLM contract is terminated.
5. The MLM enterprise shall publish the termination of validity of membership cards of participants on its website.
Article 34. Trainers
1. The MLM enterprise shall appoint qualified trainers to provide basic training programs for participants in its MLM network.
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a) Have a certificate of proficiency in MLM laws as prescribed in Article 38 of this Decree;
b) Maintain a valid employment contract or training contract signed with the MLM enterprise.
3. The following persons are ineligible to act as trainers:
a) A person who is serving an imprisonment sentence or has previous convictions for manufacturing and trading of counterfeit or banned products, false advertising, deceiving consumers, obtaining property by fraud, abuse of trust to appropriate property, illegal impoundment of property or any violations against regulations on MLM;
b) A foreigner who fails to possess a valid work permit granted by a competent authority of Vietnam, except for work permit exemption cases as prescribed by law;
c) A person who has participated in the MLM and incurred administrative penalties for violations against regulations in Clause 2, Clause 3 and Clause 4 Article 5 of this Decree but has not been treated as if he/she does not incur any administrative penalties;
d) The persons mentioned in Point c Clause 1 Article 7 of this Decree;
dd) Officials and public employees as prescribed in the law on officials and public employees.
4. The MLM enterprise shall make and publish the list of trainers on its website, send it to the Ministry of Industry and Trade of Vietnam, and keep relevant documents.
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6. The MLM enterprise shall assume the full responsibility for its trainers’ provision of basic training programs.
Article 35. Training in MLM laws
1. A training program in MLM laws includes:
a) Law regulations governing MLM activities, advertising and consumer protection;
b) Ethic standards of participants in the MLM.
2. Training programs in MLM laws must be accredited by the Ministry of Industry and Trade of Vietnam.
Article 36. Application and procedures for accreditation of training programs in MLM laws
1. An application for accreditation includes:
a) [33] The application form made using Form No. 13a enclosed herewith;
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c) The training program in MLM laws;
d) A list of at least 02 lecturers who possess bachelor’s degree or higher.
2. Accreditation procedures:
a) Within 07 working days from the receipt of an application for accreditation of a training program, the Ministry of Industry and Trade of Vietnam shall consider the validity of the received application. If the application is invalid, the Ministry of Industry and Trade of Vietnam shall request the applicant in writing to modify its application;
b) Within 30 working days from the receipt of a valid application, the Ministry of Industry and Trade of Vietnam shall process the application and issue an accreditation decision.
3. A decision on accreditation of the training program in MLM laws shall be valid for 03 years from the date on which it is signed.
3a. [34] In case there are any changes in the application for accreditation of a training program in MLM laws which has been accredited, the training institution shall notify such changes to the Ministry of Industry and Trade of Vietnam in writing.
Within 30 working days from the receipt of the application, the Ministry of Industry and Trade of Vietnam shall organize the examination of the received application and issue a notice of approval of such changes. If such changes are found to be unlawful or unconformable with the provisions of this Decree, the Ministry of Industry and Trade of Vietnam shall issue a notice of refusal to approve such changes.
4. The Ministry of Industry and Trade of Vietnam shall stipulate the framework training program in MLM laws.
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1. a) Provision of training programs:
a) The training institution shall provide training programs in MLM laws according to the accredited training programs and contents, and grant certificates of completion of training programs to qualified participants, using Form No. 14 in the Appendix enclosed herewith;
b) The training institution shall send reports on training results to the Ministry of Industry and Trade of Vietnam within 10 working days after the completion of each training program in MLM laws.
2. Document retention:
The training institution shall retain all documents concerning training programs in MLM laws it has provided in accordance with regulations of law on archives. Documents to be retained:
a) Learners’ admission documents, and the list of learners granted certificates of completion of each training program;
b) The list of lecturers in charge of each training program;
c) Documentation on issuance of certificates of completion of training program in MLM laws.
3. Inspection of training institutions providing training programs in MLM laws:
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b) The Ministry of Industry and Trade of Vietnam shall carry out annual inspection of provision of training programs in MLM laws and issuance of certificates of completion thereof by training institutions.
The Ministry of Industry and Trade of Vietnam shall, based on inspection results and the severity of violation, request the violating training institution to implement remedial measures or suspend the decision on accreditation of training programs in MLM laws granted to such institution.
c) The Ministry of Industry and Trade of Vietnam shall revoke or suspend a decision on accreditation of training program in MLM laws in the following cases: A training institution is dissolved, or fails to implement remedial measures for violations within the prescribed period, or commits a violation which cannot be remedied.
Article 38. Certification of proficiency in MLM laws or local contact point’s competency [36]
1. Persons who have successfully completed training programs in MLM laws may be registered by the MLM enterprise to sit an exam for the certificate of proficiency in MLM laws or local contact point’s competency organized by the Ministry of Industry and Trade of Vietnam.
2. The Ministry of Industry and Trade of Vietnam shall issue certificate of proficiency in MLM laws or certificate of local contact point’s competency for those who pass the exam.
3. The Ministry of Industry and Trade of Vietnam shall provide specific regulations on organization of exams, issuance and revocation of certificates of proficiency in MLM laws and certificates of local contact point’s competency.
Article 39. Procedures for issuance of certificates of proficiency in MLM laws or local contact point’s competency [37]
1. The MLM enterprise shall submit an application to register for an exam for certificate of proficiency in MLM laws or local contact point’s competency to the Ministry of Industry and Trade of Vietnam (either in person or by post). Such an application includes:
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b) The list of candidates, indicating full name, sex, date of birth, number, date of issue and issuing authority of ID card/ citizen identity card of each candidate;
c) 02 photos of 3 x 4 cm size of each candidate in the list specified in Point b Clause 1 of this Article;
d) 01 copy of the certificate of completion of training program in MLM laws of each candidate.
2. Within 15 days after the exam date, the Ministry of Industry and Trade of Vietnam shall issue certificates of proficiency in MLM laws made using Form No. 21a enclosed herewith or certificates of local contact point’s competency made using Form No. 21b enclosed herewith to successful candidates.
3. In case a certificate of proficiency in MLM laws or certificate of local contact point’s competency is lost, torn or otherwise damaged, the authority that organized the exam shall consider reissuing the certificate. An applicant for reissuance of the certificate in this case shall not be required to complete another training program in MLM laws.
Chapter V
MULTI-LEVEL MARKETING ACTIVITIES
Article 40. Responsibilities of MLM enterprises
A MLM enterprise shall:
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2. Comply with the registered business rule and compensation plan.
3. Set and announce the prices of products sold through the MLM as well as sell products at the announced prices.
4. Issue invoices for each supply of products to a participant in its MLM network or to each client who buys products directly from the MLM enterprise.
5. Supervise participants in its MLM network so as to ensure their compliance with the signed MLM contracts, the company’s business rule and compensation plan.
6. Assume responsibility for the sale of products by participants if it is carried out at the MLM enterprise's head office, branches, representative offices, business locations or its conferences, meetings or training programs.
7. Deduct personal income tax amounts payable from participants’ commissions, bonuses or other economic benefits and pay them to state budget on their behalf, unless otherwise prescribed by law.
8. Operate the information technology system for managing participants, which must meet the requirements laid down in Article 44 of this Decree, in conformity with the technical explanation included in the application for registration of MLM activities and in a manner so as to enable participants to access the system and find out basic information about their MLM activities.
9. Operate and regularly update the MLM enterprise’s website in Vietnamese version, which must meet the requirements laid down in Article 45 of this Decree, in order to publish information concerning its profiles and MLM activities.
10. Operate a communications system to receive and take actions against complaints and queries of MLM participants, including telephone, email and contact address.
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12. Comply with law regulations on business conditions and sale of products through the MLM.
13. [38] Make sure that at least 20% of its revenue from MLM in a fiscal year is from clients who are not its participants.
14. [39] Not provide information about food using images, equipment, costumes, names, correspondences of health facilities, health units, physicians, pharmacists, health workers, testimonials of patients, articles written by physicians, pharmacists, health workers; not provide information about food that represents or quotes patients' opinions that the food has medicinal use.
Article 41. Responsibilities of participants in MLM network
Each participant in a MLM enterprise’s network shall:
1. Carry out marketing, sale and recruitment of downline distributors only after having been granted a membership card.
2. Present the membership card before introducing or selling products.
3. Comply with terms and conditions of the signed MLM contract and the MLM enterprise’s business rule.
4. Provide adequate and accurate information concerning the MLM enterprise, products sold through the MLM, the compensation plan and business rule of the MLM enterprise.
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Article 42. Business rule
The MLM enterprise’s business rule must include procedures for concluding MLM contracts, basic training program provided for participants, issuance of membership card, placing orders, payment, goods delivery, goods return (if any), warranty policy (if any), exchange, return and repurchase of products, and return of money to participants, resolution of complaints filed by participants, termination and liquidation of MLM contracts.
Article 43. Compensation plan [41]
1. Compensation plan must clearly define the levels and titles of MLM participants, qualification conditions, commissions, bonuses and other economic benefits paid for each level and title.
2. Compensation plan shall only apply to participants of a MLM enterprise in Vietnam.
Article 44. Information technology system for managing participants
1. The server used for operating the information technology system for managing participants must be located in Vietnam.
2. The following primary information must be available for participants on the information technology system for managing participants:
a) Basic information about participants as prescribed in Point b Clause 2 Article 29 of this Decree;
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c) Information concerning the order history of a participant and his/her clients;
d) [42] Statistics about commissions, bonuses and other economic benefits of participants.
3. Any failure in the information technology system must be promptly reported to the authority issuing the MLM registration certificate.
Article 45. Websites of MLM enterprises
1. The website of a MLM enterprise must contain the following information:
a) Documents on its MLM activities, including the MLM registration certificate, the MLM contract form, business rule, compensation plan, basic training program and other necessary documents;
b) Information about products sold through the MLM, including name, selling price, ingredients, uses, usage, origin, and quality certificate (if any);
c) Information about the company registration, its head office, branches, representative offices and business locations;
d) Procedures for concluding MLM contracts, basic training program provided for participants, issuance of membership cards, placing orders, payment, goods delivery, goods return (if any), repurchase of products, and return of money to participants, resolution of complaints filed by participants, termination and liquidation of MLM contracts;
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e) Contact information for receiving and taking actions against complaints and queries of MLM participants, including: telephone number, email and mailing address;
g) Information concerning the enterprise’s MLM activities, including: Current business areas; highest, average and lowest income of participants in the previous fiscal year;
h) Actions against violations committed by participants, termination of MLM contracts and revocation of membership cards of violating participants;
i) The MLM enterprise’s promotion programs.
2. The information specified in Clause 1 of this Article must be published on the homepage or links from the homepage of the MLM enterprise’s website.
3. The MLM enterprise shall strictly comply with other law regulations on operation of its website.
Article 46. Delivery of products
1. Within 30 days from the date on which a participant makes payment for products, the MLM enterprise shall fully deliver products to that participant who shall also take charge of receiving his/her purchased products.
2. If the MLM enterprise fails to deliver products or the participant fails to receive his/her purchased products within the time limit specified in Clause 1 of this Article, the MLM enterprise shall cancel the transaction and fully return the received amount of money to that participant.
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Article 47. Return and repurchase of products
1. A participant is entitled to return the products purchased from the MLM enterprise, including products purchased through promotion programs, within 30 days from the receipt of such products.
2. Products to be returned must meet the following requirements:
a) Products returned must be in original package, stamp and label;
b) The invoice for purchase of products returned must be presented.
3. Within 30 days from the date on which a participant submits a valid request for return of products, the MLM enterprise shall repurchase the products, which meet the requirements laid down in Clause 2 of this Article, and make payment for such repurchased products at the price which is agreed upon with the participant and shall not be lower than 90% of the purchase price previously paid by that participant.
4. The MLM enterprise is entitled to deduct the amounts of commissions, bonuses and other economic benefits that the participant has received when purchasing products which are to be returned according to the provisions of this Article.
5. The MLM enterprise is entitled to request other participants to return the amounts of commissions, bonuses and other economic benefits that they have received in relation to the products to be returned according to the provisions of this Article.
6. In case of termination of a MLM contract signed with a participant, the MLM enterprise shall repurchase the products sold to that participant according to the provisions of Clauses 1 through 5 of this Article.
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1. A MLM enterprise shall pay commissions, bonuses and other economic benefits to participants according to the compensation plan registered with competent authorities.
2. The sum of commissions, bonuses and other economic benefits, including benefits received through promotion programs, paid to participants during a year shall not exceed 40% of the sales from products sold through the MLM earned by the MLM enterprise in that year.
3. The sales specified in Clause 2 of this Article are generated from the MLM enterprise’s MLM activities, exclusive of VAT.
4. The sum of commissions, bonuses and other economic benefits specified in Clause 2 of this Article excludes the difference between the announced retail price and the selling price at which the MLM enterprise sells products to participants.
5. The MLM enterprise shall make payment of commissions, bonuses and other economic benefits in cash to participants by bank transfer.
Article 49. Reporting by MLM enterprises
1. A MLM enterprise shall, on a basis of every six months, submit reports on its MLM activities to the Ministry of Industry and Trade of Vietnam and the Department of Industry and Trade of province where its MLM activities are performed.
2. Reports for the first six months shall be submitted by July 31 every year. To be specific:
a) The report for the first six months sent to the Ministry of Industry and Trade of Vietnam shall be made using Form No. 15 in the Appendix enclosed herewith, and accompanied with its financial statements of the previous year which bear certification given by competent authorities in accordance with regulations of law;
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4. [43] Before the 10th day of each month (except January and July), each MLM enterprise shall provide the Department of Industry and Trade of the province where its MLM activities are duly registered with the updated list of its participants operating in that province during the previous month (either in person, by post or email). The list shall indicate full name, date of birth, permanent/temporary residence, number of ID card/ citizen identity card/ passport, number and date of signing of the MLN contract, identity number and telephone number of each participant.
5. Each MLM enterprise shall also submit reports at the request of competent MLM authorities.
Article 49a. Methods for completion of administrative procedures[44]
1. Regarding the requirement for submission of certified true copies of documents for completion of administrative procedures prescribed by this Decree, MLM enterprises may submit copies and present originals for comparison upon the receipt of applications.
2. In case of online administrative procedures, MLM enterprises shall sign up at http://dichvucong.moit.gov.vn and use their accounts to make and send applications online.
After receiving a notification that the submitted application is complete and valid, the MLM enterprise shall send a physical application to the Ministry of Industry and Trade of Vietnam.
In case the documents or information in the physical application does not those submitted online, the Ministry of Industry and Trade of Vietnam shall issue a notification that the application is returned.
Chapter VI
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Article 50. Compulsory deposit
1. [45] Compulsory deposit is an amount of money which secures the MLM enterprise’s fulfillment of its obligations towards its participants and the State in cases prescribed in Clause 1 Article 53 of this Decree.
Obligations of an MLM enterprise to its participants are obligations that arise during the lawful processes of MLM activities, including the obligation to pay compensation under the compensation plan, the obligation to repurchase the products returned by its participants in accordance with Article 47 of this Decree, and the obligation to refund in the cases specified in Article 46 of this Decree.
2. A MLM enterprise is required to open a deposit account at a commercial bank or a FBB in Vietnam, and deposit an amount that is equal to 5% of its charter capital but shall not be lower than VND 10 billion.
3. The bank where the MLM enterprise deposits money shall give a written confirmation of compulsory deposit using Form No. 17 in the Appendix enclosed herewith, and cooperate in verification of the validity of such confirmation at the request of the Ministry of Industry and Trade of Vietnam.
4. If the MLM enterprise wishes to modify any contents in the bank's confirmation of compulsory deposit, it shall follow procedures for modification of the confirmation of compulsory deposit with the bank.
5. The deposited amounts shall be blockaded during the MLM enterprise’s operation and withdrawn or spent according to the written approval from the Ministry of Industry and Trade of Vietnam, except the case specified in Point a Clause 1 Article 51 of this Decree.
6. The bank where the MLM enterprise deposits money shall manage the deposited amounts in accordance with regulations of law.
7. The MLM enterprise shall receive interests on its deposited amount at the interest rate agreed upon with the bank and may withdraw such interests.
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1. A MLM enterprise may withdraw its compulsory deposit in the following cases:
a) Its application for MLM registration certificate is refused by the Ministry of Industry and Trade of Vietnam;
b) Its MLM activities are terminated as prescribed in Clause 1 Article 17 of this Decree and it has fulfilled all obligations specified in Clause 2 Article 17 of this Decree;
c) The MLM enterprise has made compulsory deposit as prescribed in Article 50 of this Decree at another commercial bank or FBB.
2. When withdrawing the deposited amounts as prescribed in Point a Clause 1 of this Article, the MLM enterprise shall provide the bank with the original notice of application return given by the Ministry of Industry and Trade of Vietnam as prescribed in Clause 3 Article 10 of this Decree.
3. When withdrawing the deposited amounts as prescribed in Point b or Point c Clause 1 of this Article, the MLM enterprise shall provide the bank with the original written approval given by the Ministry of Industry and Trade of Vietnam as prescribed in Clause 3 or Clause 4 Article 52 of this Decree.
4. The bank where the MLM enterprise deposits money shall verify in writing with the Ministry of Industry and Trade of Vietnam before approving any withdrawal of compulsory deposit.
Article 52. Application and procedures for withdrawal of compulsory deposit
1. The MLM enterprise may submit an application for withdrawal of compulsory deposit to the Ministry of Industry and Trade of Vietnam (either in person, online or by post[46]) after a period of 90 days from the date on which the Ministry of Industry and Trade of Vietnam issues a written certification of receipt of the notification of termination of MLM activities or from the effective date of the decision on revocation of the MLM registration certificate and after the MLM enterprise has fulfilled its obligations specified in Clause 2 Article 17 of this Decree.
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a) The application form made using Form No. 18 in the Appendix enclosed herewith;
b) The list of participants in its MLM network up to the time of termination of MLM activities (including name, number of ID card/ citizen identity card/ passport, address, telephone number, number and date of signing of the MLM contract, number of membership card).
3. Receipt of an application for withdrawal of compulsory deposit:
a) Within 05 working days from the receipt of an application for withdrawal of compulsory deposit from the MLM enterprise, the Ministry of Industry and Trade of Vietnam shall check its adequacy and validity.
If the application is inadequate or invalid, the Ministry of Industry and Trade of Vietnam shall request the MLM enterprise in writing to modify its application. The MLM enterprise shall modify its application within 10 working days from the receipt of written request from the Ministry of Industry and Trade of Vietnam.
If the application is adequate and valid, the Ministry of Industry and Trade of Vietnam shall notify the MLM enterprise’s termination of its MLM activities and request for withdrawal of compulsory deposit on its website.
b) Within a period of 30 days from the date on which the Ministry of Industry and Trade of Vietnam publishes a notice on its website as specified above, participants and authorities competent to take actions against violations in MLM sector shall notify the Ministry of Industry and Trade of Vietnam of any obligations which are not yet fulfilled by the MLM enterprise as prescribed in Clause 2 Article 17 of this Decree.
If no notification is submitted within the abovementioned period, the Ministry of Industry and Trade of Vietnam shall issue a written approval for the MLM enterprise’s withdrawal of compulsory deposit.
4. Procedures for withdrawal of compulsory deposit in the case specified in Point c Clause 1 Article 51 of this Decree:
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b) Within 10 working days from the receipt of the request for changes in the compulsory deposit as specified in Point a of this Clause, the Ministry of Industry and Trade of Vietnam shall request the commercial bank or FBB where the MLM enterprise deposits money in writing to verify the authentication of its confirmation of compulsory deposit;
c) Within 10 working days from the receipt of a written verification from the commercial bank or FBB where the MLM enterprise deposits money, the Ministry of Industry and Trade of Vietnam shall give a written approval for the MLM enterprise’s withdrawal of the previously deposited amounts.
Article 53. Handling compulsory deposit[48]
1. The compulsory deposit may be used in the following cases:
a) A MLM enterprise terminates MLM activities but fails to implement effective sanctioning decisions in MLM activities issued by competent authorities;
b) A MLM enterprise terminates its MLM activities under clause 1 Article 17 of this Decree, but it fails to fulfill its obligations relating to MLM activities toward participants and there is a court's judgment on the settlement of disputes related to such obligations between the MLM enterprise and its participants;
2. Procedures for using compulsory deposit in the case specified in Point a Clause 1 of this Article:
a) If the MLM enterprise terminates its MLM activities, but it fails to perform the competent authority's effective sanctioning decisions in MLM activities, the competent authority shall send an official letter to request the Ministry of Industry and Trade of Vietnam for issuing an official letter requesting the bank where the MLM enterprise's deposit is held to withdraw money from the MLM enterprises' deposit to implement the sanctioning decisions;
b) Within 10 working days after receiving the written request, the Ministry of Industry and Trade of Vietnam shall issue the official letter requesting the bank where the enterprise's deposit is held to withdraw money from the enterprise's deposit to implement the sanctioning decisions.
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a) Pursuant to the effective judgment or decision of the court, MLM participants shall implement the judgment enforcement request in accordance with regulations of law on civil judgment enforcement;
b) In case the deposit may be used in accordance with Clause 1 Article 50 of this Decree, the judgment enforcement agency shall send the Ministry of Industry and Trade of Vietnam a written request enclosed with the effective judgment, copies of the decision on judgment enforcement and the decision on withdrawal of money from the MLM enterprise's deposit account;
c) Within 10 working days after receiving the written request from the judgment enforcement agency, the Ministry of Industry and Trade of Vietnam shall notify the judgment enforcement agency and the bank where the MLM enterprise's deposit is held to withdraw money from the MLM enterprises' deposit to enforce the judgment.
In case the deposit cannot be used for settlement of the dispute under the judgment according to Clause 1 Article 50 of this Decree, the Ministry of Industry and Trade of Vietnam shall request the judgment enforcement agency to implement other judgment enforcement measures as prescribed by law.
4. The Ministry of Industry and Trade of Vietnam shall process valid requests for permission to use deposits on a first-come, first-served basis.
5. If the deposit still remains after it has been used according to Clause 1, Clause 2, Clause 3 and Clause 4 of this Article and the MLM enterprise still has other obligations under the effective court judgment which has not been enforced, the remainder will be transferred to the competent judgment enforcement agency as prescribed by law.
Chapter VII
STATE MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES
Article 54. Responsibilities of Ministry of Industry and Trade of Vietnam
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a) Issue, modify, renew, re-issue and revoke MLM registration certificates and give certifications of receipt of notification of termination of MLM activities;
b) Collect, manage and use fees for processing of applications for the MLM registration certificate in accordance with applicable law regulations;
c) Give notification of issuance, modification, extension and revocation of the MLM registration certificate, and certification of receipt of notification of termination of MLM activities to Department of Industry and Trade of the province where the concerned MLM enterprise is located;
d) Inspect MLM activities and take actions against violations within its competence;
dd) Instruct and cooperate with Provincial Departments of Industry and Trade to inspect and take actions against violations in MLM sector;
e) Report or request competent authorities to take actions against violations against regulations on management of the MLM;
g) Organize training programs for officials and public employees in charge of exercising state management of the MLM activities; disseminate MLM laws to enterprises and participants;
h) Formulate and request competent authorities to promulgate or amend legislative documents on the MLM management;
i) Fulfill other responsibilities as regulated in this Decree.
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3. Vietnam Directorate of Market Surveillance affiliated to the Ministry of Industry and Trade of Vietnam shall assist the Minister of Industry and Trade of Vietnam in performing state management tasks specified in Point d, Point e and Point g Clause 1 of this Article.
Article 55. Responsibilities of ministries and ministerial agencies
1. Ministries and ministerial-level agencies shall, within the ambit of their assigned functions and powers, cooperate with the Ministry of Industry and Trade of Vietnam to perform the state management of the MLM.
2. The Ministry of Public Security of Vietnam shall:
a) Cooperate with the Ministry of Industry and Trade of Vietnam, the People’s Committees of provinces and central-affiliated cities, and relevant ministries and ministerial-level agencies in enhancing the efficiency of the state management of the MLM.
b) Prevent and combat crimes and violations against regulations on the MLM;
c) Receive and take actions against denunciation of crimes against regulations on the MLM; investigate crimes and perform other judicial duties as prescribed by law.
3. The Ministry of Health of Vietnam shall:
a) Inspect and take actions against violations against regulations on business conditions for products sold through the MLM under its management as regulated;
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c) Inspect and take actions against violations against regulations on advertising, conferences, meetings, dissemination, and provision of information concerning cosmetics, functional foods and other products sold by MLM enterprises within its competence.
4. [50] The Ministry of Finance of Vietnam shall:
a) Carry out administration of taxes on MLM activities in accordance with tax laws;
b) Promptly, accurately and objectively publish information about MLM activities in accordance with tax administration laws..
5. The Ministry of Science and Technology of Vietnam shall inspect and take actions against violations committed by MLM enterprises against standards and regulations on measurement and quality of products as well as intellectual property within its competence.
6. The Ministry of Agriculture and Rural Development of Vietnam shall:
a) Inspect and take actions against violations committed by MLM enterprises during their manufacturing, trading and advertising of products within its competence;
b) Inspect and take actions against violations against regulations on business conditions for products sold through the MLM under its management as regulated.
7. The Ministry of Information and Communications of Vietnam shall:
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b) Cooperate with press agencies in:
- Developing regular programs or specialized columns for disseminating laws on the MLM and warning people of disguised and illegal activities in the MLM;
- Reporting or providing accurate information concerning the status of MLM enterprises in a timely and objective manner.
8. The State Bank of Vietnam shall instruct credit institutions to comply with procedures for confirmation and management of compulsory deposits paid by MLM enterprises in accordance with regulations herein.
Article 56. Responsibilities of people’s committees of provinces and central-affiliated cities
1. Each People’s Committee of province or central-affiliated city shall, within the ambit of their assigned functions and powers, perform state management of the MLM in such province, including:
a) Promulgate the mechanism for cooperation between local regulatory authorities in conducting inspections of the MLM in such province;
b) Issue and revoke the certificates of registration of MLM activities in a province, and certify any receipt of notification of termination of MLM activities in such province;
c) Inspect the MLM activities;
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dd) Report or request competent authorities to take actions against violations against regulations on management of the MLM;
e) Organize training programs for officials and public employees in charge of exercising state management of the MLM; disseminate laws on the MLM to enterprises and participants;
g) [51] Submit annual reports before February 15 of the following year according to Form No. 19 enclosed herewith, or submit ad hoc reports at the request of the Ministry of Industry and Trade of Vietnam on the MLM activities performed in such province;
h) Fulfill other responsibilities as regulated in this Decree.
2. A Provincial Department of Industry and Trade shall assist the People’s Committee of such province to perform duties specified in Clause 1 of this Article.
3. Local market surveillance forces shall assist the People’s Committee of such province and the Vietnam Directorate of Market Surveillance in fulfilling duties specified in Point c, Point d, Point dd and Point e Clause 1 of this Article.
Article 57. Actions against violations committed by MLM enterprises and participants
1. Any MLM enterprises or participants that commit violations against regulations of this Decree shall, depending on the nature and severity of each violation, face penalties in accordance with the Law on competition and the Law on penalties for administrative violations, or face a criminal prosecution as regulated by law.
2. Any MLM enterprises or participants that commit violations against regulations of this Decree and cause damage to other organizations and/or individuals shall make compensation for such damage as regulated by law.
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Article 58. Power and procedures for imposing penalties for violations
Procedures and power to impose penalties for violations against regulations of this Decree shall comply with regulations of the Law on penalties for administrative violations.
Chapter VIII
IMPLEMENTATION [52]
Article 59. Effect
1. This Decree comes into force from May 02, 2018.
2. This Decree supersedes the Government’s Decree No. 42/2014/ND-CP dated May 14, 2014 on management of multi-level marketing.
Article 60. Transition
1. Within a period of 09 months from the date of entry into force of this Decree, MLM enterprises operating under the Decree No. 42/2014/ND-CP shall be required to prove their satisfaction of eligibility requirements for the MLM as prescribed in this Decree.
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3. Certificates of trainers granted under the Decree No. 42/2014/ND-CP shall be used as substitutes for certificates of proficiency in MLM laws for a period of 09 months from the date of entry into force of this Decree.
4. Conditions, application and procedures for withdrawal and use of compulsory deposits paid by MLM enterprises granted MLM registration certificates under the Decree No. 42/2014/ND-CP shall comply with the provisions of this Decree.
5. Withdrawal and use of compulsory deposits paid by MLM enterprises granted MLM registration certificates under the Government’s Decree No. 110/2005/ND-CP dated August 24, 2005 shall be processed by Provincial Departments of Industry and Trade according to provisions on application and procedures thereof specified in Clause 2, Clause 3 Article 52 and Article 53 of this Decree.
Article 61. Responsibility for implementation
1. The Minister of Industry and Trade of Vietnam shall organize the implementation of this Decree.
2. Ministers, heads of ministerial agencies, heads of Governmental agencies, and Chairpersons of People’s Committees of provinces and central-affiliated cities shall implement this Decree./.
CERTIFIED BY
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[1] The Government’s Decree No. 03/2023/ND-CP defining the functions, tasks, powers and organizational structure of Viet Nam Competition Commission is promulgated pursuant to:
“The Law on Government Organization dated June 19, 2015; the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;
Pursuant to the Competition Law dated June 12, 2018;
Pursuant to the Law on Consumer Protection dated November 17, 2010;
And at the request of the Minister of Industry and Trade;”
The Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing is promulgated pursuant to:
“The Law on Government Organization dated June 19, 2015; the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;
The Law on Investment dated June 17, 2020;
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[2] This Clause is amended according to Clause 1 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[3] This Clause is added according to Clause 2 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[4] This Point is amended according to Clause 3 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[5] This Point is added according to Clause 4 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[6] This Clause is amended according to Clause 5 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[7] This Clause is amended according to Clause 6 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[8] This Clause is added according to Clause 7 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[9] This Clause is added according to Clause 8 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[10] This Point is amended according to Clause 9 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
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[12] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[13] This Point is amended according to Clause 10 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[14] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[15] This Point is amended according to Clause 11 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[16] This Point is amended according to Clause 12 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[17] This Article is amended according to Clause 13 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[18] This Clause is amended according to Clause 14 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[19] This Clause is amended according to Clause 15 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[20] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
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[22] The phrase “Người đại diện của doanh nghiệp bán hàng đa cấp” (“MLM enterprise’s representative”) is replaced with the phrase “đầu mối của doanh nghiệp” (“MLM enterprise’s contact point”) according to Clause 41 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[23] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[24] This Point is added according to Clause 17 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[25] This Point is amended according to Clause 18 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[26] This Clause is added according to Clause 19 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[27] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[28] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[29] This Clause is amended according to Clause 20 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[30] This Article is amended according to Clause 21 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
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[32] This Point is amended according to Clause 23 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[33] This Point is amended according to Clause 24 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[34] This Clause is added according to Clause 25 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[35] This Point is amended according to Clause 26 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[36] This Article is amended according to Clause 27 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[37] This Article is amended according to Clause 28 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[38] This Clause is added according to Clause 29 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[39] This Clause is added according to Clause 30 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[40] This Clause is added according to Clause 31 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
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[42] This Clause is amended according to Clause 33 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[43] This Clause is amended according to Clause 34 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[44] This Article is amended according to Clause 35 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[45] This Clause is amended according to Clause 36 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[46] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[47] The phrase “gửi trực tiếp hoặc qua đường bưu điện” (“in person or by post”) is replaced with the phrase “nộp trực tiếp, trực tuyến hoặc qua dịch vụ bưu chính” (“in person, online or by post”) according to Clause 40 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[48] This Article is amended according to Clause 37 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
[49] The phrase “Cục Cạnh tranh và Bảo vệ người tiêu dùng” (“Vietnam Competition Authority”) is replaced with the phrase “Ủy ban Cạnh tranh Quốc gia” (“Viet Nam Competition Commission” according to Clause 3 Article 6 of the Government’s Decree No. 03/2023/ND-CP defining the functions, tasks, powers and organizational structure of Viet Nam Competition Commission, coming into force from April 01, 2023.
[50] This Clause is amended according to Clause 38 Article 1 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
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[52] Article 6 and Article 7 of the Government’s Decree No. 03/2023/ND-CP defining functions, tasks, powers and organizational structure of Viet Nam Competition Commission, coming into force from April 01, 2023, stipulate as follows:
“Article 6. Effect
1. This Decree comes into force from April 01, 2023.
2. The following Decrees cease to have effect from the effective date of this Decree, including:
a) The Government’s Decree No. 07/2015/ND-CP dated January 16, 2015 defining functions, tasks, powers and organizational structure of Viet Nam Competition Council;
b) The Decision No. 24/2015/QD-TTg dated June 30, 2015 of the Prime Minister promulgating regulations on organization and operation of Viet Nam Competition Council.
3. The phrase “Cục Cạnh tranh và Bảo vệ người tiêu dùng” (“Vietnam Competition and Consumer Authority”) is replaced with the phrase “Ủy ban Cạnh tranh Quốc gia” (“Viet Nam Competition Commission”) in Clause 2 Article 54 and the Appendix enclosed with the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 on regulatory framework for multi-level marketing.
4. The phrase “Cục Quản lý cạnh tranh” (“Vietnam Competition Authority”) is replaced with the phrase “Ủy ban Cạnh tranh Quốc gia” (“Viet Nam Competition Commission”) in Clause 1 Article 34 of the Government’s Decree No. 99/2011/ND-CP dated October 27, 2011 providing guidelines for implementation of the Law on Consumer Protection.
5. The phrase “Cục Cạnh tranh và Bảo vệ người tiêu dùng” (“Vietnam Competition and Consumer Authority”) is replaced with the phrase “Ủy ban Cạnh tranh Quốc gia” (“Viet Nam Competition Commission”) in Clause 1 Article 1 of the Government’s Decree No. 54/2020/ND-CP dated May 18, 2020 providing amendments to the Government’s Decree No. 127/2015/ND-CP dated December 14, 2015 prescribing organization and operation of inspectorates in industrial and trade branch.”
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1. The Minister of Industry and Trade of Vietnam shall stipulate functions, tasks, powers and organizational structure of Viet Nam Competition Commission for performing the tasks of state management of competition, protection of consumer rights, and multi-level marketing operations.
2. The Ministry of Home Affairs of Vietnam shall provide guidelines on allowances of position holders of Viet Nam Competition Commission and holders of managerial positions of its affiliated units.
3. The Minister of Industry and Trade of Vietnam, Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and Chairperson of Viet Nam Competition Commission are responsible for the implementation of this Decree."
2. Article 2 and Article 3 of the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023, stipulate as follows:
“Article 2. Responsibility for implementation
1. The Minister of Industry and Trade of Vietnam shall organize the implementation of this Decree.
2. Ministers, heads of ministerial agencies, heads of Governmental agencies, and Chairpersons of provincial People’s Committees are responsible for the implementation of this Decree.
Article 3. Effect
1. This Decree comes into force from June 20, 2023.
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3. MLM enterprises that have been issued with MLM registration certificates in accordance with regulations of law may continue to operate until the expiration of their certificates. When applying for extension of the MLM registration certificates, MLM enterprises shall have the responsibility to fulfill the conditions for registration of MLM activities specified in Article 7 of this Decree."
[53] This Appendix is added according to the Appendix enclosed with the Government’s Decree No. 18/2023/ND-CP providing amendments to the Government’s Decree No. 40/2018/ND-CP dated March 12, 2018 providing regulatory framework for multi-level marketing, coming into force from June 20, 2023.
File gốc của Integrated document No. 14/VBHN-BCT dated May 23, 2023 Decree on regulatory framework for multi-level marketing đang được cập nhật.
Integrated document No. 14/VBHN-BCT dated May 23, 2023 Decree on regulatory framework for multi-level marketing
Tóm tắt
| Cơ quan ban hành | Bộ Công thương |
| Số hiệu | 14/VBHN-BCT |
| Loại văn bản | Văn bản hợp nhất |
| Người ký | Nguyễn Sinh Nhật Tân |
| Ngày ban hành | 2023-05-23 |
| Ngày hiệu lực | 2023-05-23 |
| Lĩnh vực | Thương mại |
| Tình trạng | Còn hiệu lực |