Last week, on 31st March, the Opening of Vietnam Multi-level Marketing Association (MLMA) had successfully celebrated in Sheraton Hotel, Ha Noi city. The number of representatives of Ministries, localities and diplomatic agencies fully attended, including the leaders of Ministries: Interior Ministry, Ministry of Industry and Trade, Ministry of Health, …
The Directory Board’s representative of Interior Ministry awarded Decision of establishing MLMA for Mrs. Truong Thi Nhi -Chairwoman of MLMA
Legal operation – Bring the community many effects
Since the issuance of both Competition Law in the end of 2004 and Resolution No. 110/NĐ-CP in 2005, Multi-level Marketing operation was recognized as the legal business model in Viet Nam. Over the past 5 years, Multi-level Marketing operation had the outstanding steps of progress with the attendance of 45 Vietnamese and international Companies, as well as brought more effects to the society.
Only up to the end of 2009, the operation of 32 Multi-level Marketing Companies currently attracted about 700.000 Distributors, achieved the annual turnover of over 2.100 billion VND (increased 150% compared to 2008) as well as contributed about 660 billion VND of corporate income tax and personal income tax to the State Budget and over 5 billion VND to the society activities and the charity.
Mr. Le Danh Vinh – Deputy Minister of Ministry of Industry and Trade stated: “The products registered for organizing Multi-level Marketing till date are about 1.000 items which are mainly dietary supplements, cosmetics and consumer products which contribute to diversify the product market and serve the benefits of residents” .
However, there were still a few enterprises to join Multi-level Marketing Industry illegally and unlawfully among the legal ones. According to the reported information of Ministry of Industry and Trade, the last period had 13 Multi-level Marketing enterprises of suspension and termination in which comprised 01 enterprise permanently revoked its business license. A few enterprises in their operation did yet comply with the law’s stipulation in which typically was the illegal Multi-level Marketing that created the bad image for this business model and caused the influences for consumers as well.
Mrs. Truong Thi Nhi – General Director of ATC cum Head of MLMA establishment Campaign Board and now Chairwoman of MLMA affirmed: “From that practice, the enterprises legally operating in this model of Multi-level Marketing need an professional organization to represent and support them to develop sustainable as well as help support the functional authorities to administrate this operation better. The Association’s establishment is committed to campaign members to comply with the law, legally operate and serve consumers better” .
Members in Executive Board of MLMA with term from 2009 to 2014. Photo: T.Minh
Duty and obligation
The MLMA’s establishment in this situation was actually very meaningful, suitable with the trend of integration into the world economy of our country. In fact, the Multi-level Marketing operation in over the world has long been recognized. This was the business model which aimed at rejecting the mediate stages, economize maximum the cost of circulation and distribution of products and reduce the cost of machinery of administration.
Multi-level Marketing operation was actually the new management model to help companies invest more for the research to enhance the product quality, develop the new products, create the unique products with high quality and bring consumers a great number of benefits. This operation simultaneously limited the phenomenon of counterfeit or knockoff due to products was directly delivered from the factory to consumers’ hand.
Chairwoman Truong Thi Nhi stated: “The problem is that in any country, in order to Multi-level Marketing operation is actually legal, the administration of Government as well as the awareness of community about this field need to enhance properly.
In Viet Nam, the number of 700.000 persons working in Multi-level Marketing Industry was not actually big compared to the other fields but it obviously showed many issues. Mrs. Tran Dieu Huong – General Secretary of MLMA acknowledged that: “This is obviously the business model to mobilize leisured labour, solve employment, raise income, improve life quality, promote solidarity spirit and team spirit to mutually support and help together achieve success, increase input amount of State Budget, increase social welfare”.
The representative of Government Management Agency, Mr. Le Danh Vinh - Deputy Minister of Ministry of Industry and Trade expected: Looking forward that the MLMA’s establishment will mark the outstanding growth of this operation in the upcoming time. This Association is an organization which represents for Viet Nam Multi-level Marketing enterprises operating positively and effectively, create conditions for Multi-level Marketing enterprises associate and cooperative, support and protect the legal right of members, enhance the business morality, tackle timely the guidelines and the policies of State, hence legally operate as well as contribute to the socio-economic growth of the country.
The same conception with Deputy Minister Le Danh Vinh, Chief Department of Competition Administration Department – Ministry of Industry and Trade shared: Competition Administration Department will closely cooperate with MLMA in management, propaganda and popularization of legal policy for members, for those who joined Multi-level Marketing and for the society community. Mr. Bach Van Mung affirmed: “We properly acknowledge the role of legal Multi-level Marketing enterprises, but must strictly deal with the illegal Multi-level Marketing enterprises, especially enterprises which are not permitted to operate in Multi-level Marketing model but take advantage of this model to deceive consumers must be accused to aim at protecting the common prestige of enterprises’ community in this field”.
TUONG MINH
Quoted from Sai Gon Giai Phong Newspaper