Decree 137/2026/ND-CP management of multi-level marketing activities

DECREE

On the management of multi-level marketing activities

Pursuant to the Law on Organization of the Government No. 63/2025/QH15;

Pursuant to the Law on Investment No. 143/2025/QH15;

Pursuant to the Law on Protection of Consumer Rights No. 19/2023/QH15;

At the request of Minister of Industry and Trade;

The Government promulgates the Decree on the management of multi-level marketing activities.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes registration of multi-level marketing activities, management of multi-level marketing activities in localities, management of multi-level marketing participants, multi-level marketing activities, escrow and responsibility for state management of multi-level marketing activities.

Article 2. Subject of application

1. Multi-level marketing enterprises.

2. Multi-level marketing participants.

3. Focal points at localities.

4. Trainers.

5. Other organizations and individuals related to multi-level marketing activities.

Article 3. Interpretation of terms

In this Decree, the following terms are construed as follows:

1. Multi-level marketing means a business using a multi-level and multi-branch network of participants who earn commissions, bonuses and other economic benefits derived from their own and other participants’ sales results.

2. Multi-level marketing enterprise means an enterprise that has been granted by a competent agency a multi-level marketing registration certificate to organize its business by the multi-level marketing mode in accordance with this Decree.

3. Multi-level marketing participant means a person who enters into a multi-level marketing contract with a multi-level marketing enterprise.

4. Senior distributors mean multi-level marketing participants holding the three highest ranks, positions, or titles in the network of multi-level marketing participants of the enterprise in Vietnam at a given time, or multi-level marketing participants receiving commissions, bonuses, and other economic benefits of VND 01 billion or more in the immediately preceding fiscal year.

5. Trainer means a person designated by a multi-level marketing enterprise to provide basic training for multi-level marketing participants of such enterprise. A trainer must satisfy the provisions of Article 34 of this Decree.

6. Focal point at a locality means an individual authorized by a multi-level marketing enterprise to work and provide information and documents related to the enterprise’s multi-level marketing activities in the locality at the request of state management agencies in cases where the multi-level marketing enterprise does not have a branch, representative office, or business location in such locality. A focal point at a locality must satisfy the provisions of Clause 2 Article 20 of this Decree.

7. Multi-level marketing contract means a written agreement on participation in a multi-level marketing network between a person and a multi-level marketing enterprise. A multi-level marketing contract is not a labor contract.

8. Rules of operation mean a set of rules developed by a multi-level marketing enterprise to regulate acts of multi-level marketing participants, and the process and procedures for carrying out multi-level marketing activities.

9. Compensation plan means a plan used by a multi-level marketing enterprise to calculate commissions, bonuses and other economic benefits earned by multi-level marketing participants from their own and other network participants’ sales results.

10. Multi-level marketing position or identification number means the position or identification number of a multi-level marketing participant arranged in a network to be used for calculation of commissions, bonuses and other economic benefits to be paid to such participant.

11. Conferences, seminars or training courses on multi-level marketing activities mean activities containing contents of introduction, commendation, provision of information, guidance, training, and sharing related to multi-level marketing activities.

Article 4. Objects of multi-level marketing

1. Multi-level marketing activities may only be carried out for goods. Multi-level marketing of objects other than goods is prohibited, unless otherwise provided by law.

2. The following goods may not be traded by the mode of multi-level marketing:

a) Medicines; medical equipment; veterinary drugs (including aquatic veterinary drugs); pesticides; chemicals, insecticidal and germicidal preparations restricted or banned from domestic and medical use; and dangerous chemicals;

b) Digital content products.

Article 5. Development of a multi-level marketing network not based on goods purchase and sale transactions

Development of multi-level marketing networks not based on goods purchase and sale transactions defined at Point dd Clause 2 Article 10 of the Law on Protection of Consumer Rights includes the following forms:

1. Permitting a multi-level marketing participant to receive money or other economic benefits from luring another person into participating in multi-level marketing but not from buying goods from or selling goods to such person.

2. Maintaining more than one contract on participation in multi-level marketing, multi-level marketing position or identification number or other similar forms for the same multi-level marketing participant.

3. Conducting sales promotion using a multiple-level and multiple-branch network in which a sales promotion program participant has more than one position, identification number or other similar forms.

4. Organizing commercial intermediation activities in accordance with the commercial law to serve the maintenance, expansion and development of the multi-level marketing network.

5. Buying, selling or transferring the network of multi-level marketing participants to another enterprise, except the case of enterprise acquisition, consolidation or merger.

Article 6. Methods of carrying out administrative procedures

1. Dossiers for administrative procedures under this Decree may be submitted directly, via postal services, or via the national public service portal.

2. For documents in administrative procedures prescribed in this Decree for which certified copies are required, enterprises may submit copies and present originals for comparison at the time of dossier receipt.

3. For dossiers submitted via the national public service portal, enterprises shall use electronic signatures to certify documents in the dossier components. Results of procedures shall be returned on the national public service portal.

4. Enterprises may suspend the implementation of administrative procedures in accordance with the law regulations.

5. Persons competent to receive and resolve administrative procedures shall exploit and use information already available in databases for handling of administrative procedures. In cases where such information cannot be exploited or the exploited information is incomplete or inaccurate:

a) In case dossiers for administrative procedures are submitted online on the national public service portal, persons competent to receive and resolve administrative procedures shall issue notices requesting individuals or organizations to supplement and complete dossiers within the time limit prescribed in this Decree from the time the information systems for settlement of administrative procedures receives the dossiers. Notification shall be sent by one or more of the following methods: sending notices to the accounts of organizations or individuals on the national public service portal; sending text messages or contacting via telephone numbers or emails provided by individuals or organizations; and concurrently guiding individuals or organizations to contact competent agencies for updating and adjusting data;

b) In case dossiers for administrative procedures are submitted directly or via postal services, persons competent to receive and resolve administrative procedures shall send requests for supplementation and completion of dossiers to individuals or organizations within the time limit prescribed in this Decree; carry out digitization for serving the handling of administrative procedures; and concurrently guide individuals or organizations to contact competent agencies for updating and adjusting data.

Chapter II

REGISTRATION OF MULTI-LEVEL MARKETING ACTIVITIES

Article 7. Registration of multi-level marketing activities

Multi-level marketing activities shall be registered under this Decree.

Article 8. Conditions for registration of multi-level marketing activities

1. An organization wishing to register its multi-level marketing activities must satisfy the following conditions:

a) Being an enterprise lawfully established in Vietnam under law and having never had its multi-level marketing registration certificate revoked;

b) Partners, for a partnership; the owner, for a sole proprietorship or single-member limited liability company; members, for a limited liability company with two or more members; shareholders, for a joint-stock company, or the at-law representatives or managers of an enterprise haven’t held one of the above positions in a multi-level marketing enterprise which has had its multi-level marketing registration certificate or multi-level marketing organization registration revoked;

c) Opening an escrow account at a commercial bank or foreign bank branch in Vietnam in accordance with Clause 2, Article 50 of this Decree;

d) Having templates of multi-level marketing contract, rules of operation, compensation plan and basic training program that are clear, transparent, and compliant with the law on the management of multi-level marketing activities;

dd) Having an information technology system for managing the network of multi-level marketing participants and a website providing information about the enterprise and its multi-level marketing activities;

e) In case the organization registering its multi-level marketing activities is an enterprise having a foreign investor(s) or foreign-invested economic organization(s) being its owner(s) or member(s) or shareholder(s), such foreign investor(s) or foreign-invested economic organization(s) must have at least 3 consecutive years’ experience in multi-level marketing activities in any country or territory in the world.

2. An enterprise registering multi-level marketing activities shall make a dossier of application for a multi-level marketing registration certificate under Article 10 of this Decree and take responsibility for the legal validity of such dossier.

Article 9. Multi-level marketing registration certificates

1. A multi-level marketing registration certificate is valid for 5 years from the issuance date.

2. A multi-level marketing registration certificate shall be made in 2 originals, 1 to be handed to the registering enterprise and 1 to be kept at the Ministry of Industry and Trade, except for cases of dossier handling via the National public service portal.

3. Such a multi-level marketing registration certificate must contain the following details: name of the enterprise; information in the enterprise registration certificate/investment registration certificate (if any): business identification number, place and date of first-time issuance, date of latest modification; address of the head office, telephone and fax (if any), website and email; information about the at-law representative: his/her full name, citizenship, information of his/her identity card/citizen identity card or passport, position, current place of residence.

Article 10. Dossier of application for a multi-level marketing registration certificate

A dossier of application for a multi-level marketing registration certificate must comprise the following documents (bearing the enterprise’s certification seal):

1. An application for a multi-level marketing registration certificate, made according to Form No. 01 provided in the Appendix issued together with this Decree.

2. 01 copy of the enterprise charter.

3. 01 copy of the list of entities specified at Point b Clause 1 Article 8 of this Decree, including personal identification information (citizen identity card or identity card, identity certificate), information of passport, for individuals holding foreign citizenship; information on enterprise registration number and date, for enterprises, enclosed with copies of passport and lawful residence paper granted by a competent Vietnamese agency, for foreigners permanently residing in Vietnam; copies of passports for foreigners not permanently residing in Vietnam; copies of legal documents on establishment of organizations, for foreign organizations.

4. One set of documents related to multi-level marketing activities of the enterprise, including:

a) Model contract on participation in multi-level marketing;

b) Compensation plan;

c) Basic training program;

d) Rules of operation.

5. A list of goods to be traded by the enterprise by the multi-level marketing mode, indicating names, types, origin, packaging specifications, selling prices and convertible bonus scores corresponding to selling prices, and time of application.

6. 01 copy of the written certification of the escrow account.

7. 01 document providing technical explanations about the information technology system for management of the network of multi-level marketing participants satisfying the conditions prescribed in Article 44 of this Decree, with the following basic information:

a) IP address of the server and location of the physical server;

b) Operating mechanism for the system, including information describing the system structure, mechanisms for input, output, and storage of data, and methods of data administration;

c) Information defined in Article 44 of this Decree.

8. Documents proving that the enterprise has a website satisfying the conditions prescribed in Article 45 of this Decree.

9. Documents proving that the satisfaction of the conditions prescribed at Point e Clause 1 Article 8 of this Decree, in cases where the enterprise has a foreign investor(s) or foreign-invested economic organization(s) being its owner(s) or member(s) or shareholder(s).

10. A business license with the content of licensing the exercise of the right to retail distribution, including retail activities by multi-level marketing mode, in case the enterprise has a foreign investor(s) or foreign-invested economic organization(s) being its owner(s) or member(s) or shareholder(s).

Article 11. Order and procedures for grant, amendment and supplementation, extension of multi-level marketing registration certificates

1. Receipt of dossiers

a) A registering enterprise shall submit 1 dossier specified in Article 10 of this Decree (enclosed with an electronic file in “.doc” or “.docx” format, for the documents specified in Clause 4, Article 10 of this Decree, or in “.xls” or “.xlsx” format, for the documents specified in Clause 5, Article 10 of this Decree) to the Ministry of Industry and Trade;

b) Within 5 working days after receiving the dossier, the Ministry of Industry and Trade shall examine its completeness and validity. In case the dossier is incomplete and invalid, the Ministry of Industry and Trade shall notify such in writing to the enterprise for modification and/or supplementation of the dossier;

c) In case the registering enterprise fails to modify and/or supplement its dossier at the request of the Ministry of Industry and Trade within 30 working days after the Ministry of Industry and Trade issues the notice on modification of the dossier, the Ministry of Industry and Trade shall return the dossier to the enterprise.

2. Appraisal of dossiers

a) After receiving a complete and valid dossier, the Ministry of Industry and Trade shall notify such to the registering enterprise for paying an appraisal charge for grant, amendment and supplementation, extension of multi-level marketing registration certificates. The Ministry of Industry and Trade shall return the dossier if the registering enterprise fails to pay the appraisal charge within 30 working days after being notified to pay;

b) The Ministry of Industry and Trade shall appraise the dossier within 15 working days after receiving the appraisal charge;

c) Contents of appraisal: Appraising contents of documents in dossiers, ensuring conformity with the law on the management of multi-level marketing activities.

For dossiers related to the written certification of the escrow account, the Ministry of Industry and Trade shall send a written certification of the authenticity of the written certification of the escrow account to the bank where the enterprise opens such account. Banks shall reply within 05 working days from the date of receipt of written requests from the Ministry of Industry and Trade.

d) In case the dossier does not fully satisfy the conditions prescribed in this Decree, the Ministry of Industry and Trade shall notify such in writing to the registering enterprise, requesting modification and/or supplementation of the dossier. The enterprise may submit documents to complete the dossier only once within 30 working days after the Ministry of Industry and Trade issues the notice.

The time limit for appraising a modified and/or supplemented dossier is 10 working days after the Ministry of Industry and Trade receives it.

3. Return of dossiers

a) In case an enterprise fails to modify and/or supplement its dossier within the time limit prescribed at Point d, Clause 2 of this Article or its dossier does not satisfy the conditions prescribed in this Decree after being modified and/or supplemented, or it does not receive confirmations from banks within the required time limit, the Ministry of Industry and Trade shall notify in writing the enterprise of the return of its dossier, clearly stating the reason for return.

b) In cases where an enterprise withdraws its dossier during the process of receipt and handling of dossier, the Ministry of Industry and Trade shall return it to the enterprise.

4. Grant, modification and supplementation, extension of multi-level marketing registration certificates

In case the dossier of an enterprise fully satisfies the conditions prescribed in this Decree, the Ministry of Industry and Trade shall grant, modify and supplement, or extend a multi-level marketing registration certificate, made according to Form No. 02, Form No. 04 provided in the Appendix I issued together with this Decree, and return the enterprise one copy of each of the documents specified in Clause 4 Article 10 of this Decree which bears the Ministry of Industry and Trade's seal on top of every page or appended on the edges of adjoining pages.

5. Within 05 working days after the date of grant, modification and supplementation or extension of a multi-level marketing registration certificate, the Ministry of Industry and Trade shall announce such on the website of the agency granting the multi-level marketing registration certificate, notify to the bank where the enterprise opens the escrow account, and provide a copy of the certificate enclosed with copies of the documents specified in Clauses 4 and 5, Article 10 of this Decree to the provincial-level People's Committees nationwide by one the following modes:

a) Via postal service;

b) Via email;

c) Via the Ministry of Industry and Trade's information technology system for multi-level marketing management.

6. For dossiers submitted via the national public service portal, enterprises shall use electronic signatures to certify documents in the dossier components. Results of procedures shall be returned on the national public service portal.

Article 12. Modification and supplementation of multi-level marketing registration certificates

1. A multi-level marketing enterprise shall carry out the procedures to request modification and supplementation of its multi-level marketing registration certificate in the following cases:

a) There is a change in information about the enterprise, and the escrow, it shall carry out the procedures for modification and supplementation of its multi-level marketing registration certificate within 30 working days after the change is certified by a business registration agency or bank;

b) With regard to a change in the documents specified in Clause 4, 7 or 8 Article 10 of this Decree, it shall carry out the procedures for modification and supplementation of its multi-level marketing registration certificate before effecting the change.

2. With regard to a change in information in the list of goods traded by the multi-level marketing mode, an enterprise shall publicize the change on its website before application thereof and shall take responsibility for the announced contents.

Article 13. Dossiers, order and procedures for modification and supplementation of multi-level marketing registration certificates

1. A dossier of request for modification and supplementation of a multi-level marketing registration certificate must comprise:

a) A written request for modification and supplementation of the multi-level marketing registration certificate, made according to Form No. 03 provided in the Appendix I issued together with this Decree;

b) The information and documents specified in Article 10 of this Decree related to the modified and supplemented contents of the multi-level marketing registration certificate.

2. The order and procedures for modification and supplementation of a multi-level marketing registration certificate shall comply with Article 11 of this Decree.

3. The enterprise shall publicly post the change to information in the list of goods traded by the multi-level marketing mode at least 05 working days before the date of application, including the following documents:

a) Notice of change to information in the list of goods traded by the multi-level marketing mode, clearly stating changed contents and the date of application;

b) The amended list of goods traded by the multi-level marketing mode;

c) Product declaration forms or documents of equivalent validity in accordance with the law regulations.

Article 14. Re-grant of multi-level marketing registration certificates

1. In case its multi-level marketing registration certificate is lost, torn or destroyed, a multi-level marketing enterprise shall submit the Ministry of Industry and Trade a request for re-grant of the multi-level marketing registration certificate, made according to Form No. 05 provided in the Appendix I issued together with this Decree.

2. Within 05 working days after receiving a valid request for re-grant of a multi-level marketing registration certificate, the Ministry of Industry and Trade shall re-grant such certificate to the enterprise.

Article 15. Extension of multi-level marketing registration certificates

1. A multi-level marketing registration certificate may be extended multiple times, with each extension lasting 5 years.

2. A multi-level marketing enterprise may have its multi-level marketing registration certificate extended when it satisfies the conditions prescribed in Article 8 of this Decree.

3. At least 3 months before its multi-level marketing registration certificate expires, the multi-level marketing enterprise shall carry out the procedures for extension of such certificate.

4. A dossier of request for extension of a multi-level marketing registration certificate must comprise:

a) A written request for extension of the multi-level marketing registration certificate, made according to Form No. 06 provided in the Appendix I issued together with this Decree;

b) Information and documents prescribed at Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7, Clause 8, and Clause 10 Article 10 of this Decree.

5. The order and procedures for extension of multi-level marketing registration certificates must comply with Article 11 of this Decree.

In cases the multi-level marketing registration certificate expires during the process of dossier settlement, the Ministry of Industry and Trade shall notify the enterprise of the return of dossier and shall not carry out extension when the multi-level marketing registration certificate has expired.

Article 16. Revocation of multi-level marketing registration certificates

1. The Ministry of Industry and Trade shall revoke a multi-level marketing registration certificate in the following cases:

a) The enterprise registration certificate is revoked or the concerned enterprise is dissolved or falls bankrupt in accordance with law regulations;

b) The dossier of application for the certificate contains untruthful information;

c) The enterprise is sanctioned in accordance with law for one of the acts of violation specified Point b, Point d, Point e, Point g Clause 1; Point a, Point b, Point c, Point d, Point dd Clause 2 Article 10 of the Law on Protection of Consumer Rights; Clause 14 Article 40; Article 46; Clause 3 Article 47 of this Decree in the course of organizing its multi-level marketing activities;

d) The enterprise fails to fully satisfy the conditions prescribed in Article 8 of this Decree when carrying out multi-level marketing activities at the request of a competent agency in charge of multi-level marketing management.

2. A multi-level marketing registration certificate is invalidated after the decision on revocation of such certificate takes legal effect.

3. Order and procedures for revocation of a multi-level marketing registration certificate:

a) The Ministry of Industry and Trade shall issue a decision to revoke a multi-level marketing registration certificate in one of the cases specified in Clause 1 of this Article;

b) Within 10 working days after a decision on revocation of a multi-level marketing registration certificate takes effect, the Ministry of Industry and Trade shall notify such to the provincial-level People's Committees nationwide by one of the modes specified in Clause 5, Article 11 of this Decree and announce it on its website.

Article 17. Termination of multi-level marketing activities

1. Cases of termination of multi-level marketing activities:

a) The multi-level marketing registration certificate expires without being extended under Article 15 of this Decree;

b) The enterprise voluntarily terminates its multi-level marketing activities;

c) The multi-level marketing registration certificate is revoked by a competent agency.

2. When terminating its multi-level marketing activities, an enterprise shall:

a) Notify such in writing to the provincial-level People's Committees, post up the termination at its head office, branches, representative offices and business locations, and announce it on its website;

b) Terminate and liquidate contracts on multi-level marketing participation and guarantee benefits of multi-level marketing participants in accordance with the law on management of multi-level marketing activities;

c) Fulfill its obligations under decisions on sanctioning of acts of violation in multi-level marketing activities.

Article 18. Order and procedures for termination of multi-level marketing activities

1. In case an enterprise terminates its multi-level marketing activities at its own will:

a) A dossier for notification of termination of multi-level marketing activities must comprise: A notice of termination of multi-level marketing activities, made according to Form No. 07 provided in the Appendix I issued together with this Decree;

b) Order and procedures for termination of multi-level marketing activities:

The enterprise shall submit a dossier for notification of termination of multi-level marketing activities to the provincial-level People’s Committee;

In cases where the dossier does not comply with Point a of this Clause, the provincial-level People’s Committee shall issue notices to request modification and/or supplementation within 05 working days from the date of receipt of the dossier. The time limit for modification and/or supplementation of the dossier is 15 working days from the date of receipt of notices.

In case an enterprise fails to modify and/or supplement its dossier within the defined time limit or its dossier does not satisfy the prescribed conditions, the provincial-level People's Committee shall notify in writing the enterprise of the return of its dossier, clearly stating the reason for return.

Within 05 working days after receiving a valid dossier for notification of termination of multi-level marketing activities, the provincial-level People’s Committee shall issue a written document on receipt of the dossier, and notify such to the Ministry of Industry and Trade and provincial-level People's Committees nationwide by one of the modes specified in Clause 5, Article 11 of this Decree, and announce it on its website.

In cases of receiving a feedback from an organization or individual that the multi-level marketing enterprise have not yet fulfilled responsibilities prescribed at Clause 2 Article 17 of this Decree, a provincial-level People’s Committee shall notify the enterprise for settlement and notify the provincial-level People’s Committee receiving the dossier and the Ministry of Industry and Trade.

2. In case an enterprise terminates its multi-level marketing activities because its multi-level marketing registration certificate is invalided or revoked:

a) A dossier for notification of termination of multi-level marketing activities must comprise: A notice of termination of multi-level marketing activities, made according to Form No. 07 provided in the Appendix I issued together with this Decree;

b) Order and procedures for termination of multi-level marketing activities:

Within 07 working days after having its multi-level marketing registration certificate invalided or revoked, the enterprise shall submit a dossier for notification of termination of multi-level marketing activities to the provincial-level People’s Committee;

In cases where the dossier does not comply with Point a of this Clause, the provincial-level People’s Committee shall issue notices to request modification and/or supplementation within 05 working days from the date of receipt of the dossier. The time limit for modification and/or supplementation of the dossier is 15 working days from the date of receipt of notices.

In case an enterprise fails to modify and/or supplement its dossier within the defined time limit or its dossier does not satisfy the prescribed conditions, the provincial-level People's Committee shall notify in writing the enterprise of the return of its dossier, clearly stating the reason for return.

Within 05 working days after receiving a valid dossier for notification of termination of multi-level marketing activities, the provincial-level People’s Committee shall issue a written document on receipt of the dossier, and notify such to the Ministry of Industry and Trade and provincial-level People's Committees nationwide by one of the modes specified in Clause 5, Article 11 of this Decree, and announce it on its website.

In cases of receiving a feedback from an organization or individual that the multi-level marketing enterprise have not yet fulfilled responsibilities prescribed at Clause 2 Article 17 of this Decree, a provincial-level People’s Committee shall notify the enterprise for settlement and notify the provincial-level People’s Committee receiving the dossier and the Ministry of Industry and Trade.

Chapter III

MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES IN LOCALITIES

Article 19. Multi-level marketing activities in localities

A multi-level marketing enterprise may be regarded as having conducted multi-level marketing activities in a locality if:

1. It has its head office, a branch, representative office or business location performing functions related to multi-level marketing activities in the locality.

2. It organizes conferences, seminars or training courses on multi-level marketing activities in the locality.

3. It has its multi-level marketing participants having current places of residence or conducting out marketing or selling activities by the multi-level marketing mode in the locality.

Article 20. Registration of multi-level marketing activities in localities

1. A multi-level marketing enterprise shall carry out the registration procedures at the provincial-level People's Committee and may only organize its multi-level marketing activities after obtaining a written certification of registration of multi-level marketing activities from this provincial-level People's Committee.

2. In case of having no office, branch, representative office, or business location in a locality, the multi-level marketing enterprise shall be responsible for designating an individual acting as the focal point to work on its behalf with local state management agencies. Such focal point at the locality of the multi-level marketing enterprise must satisfy the following conditions:

a) Having a current place of residence at the locality;

b) Not falling into the case prescribed at Point a Clause 2 Article 28 of this Decree;

c) Having satisfactory results of legal knowledge examination as defined in Article 39 of this Decree;

d) Being authorized by the enterprise to work and provide information and documents related to the enterprise’s multi-level marketing activities at the locality at the request of state management agency in charge of multi-level marketing activities.

3. A multi-level marketing enterprise shall archive and produce dossiers and documents related to its multi-level marketing activities in a locality at the request of a competent management agency.

Article 21. Dossiers, order and procedures for registration of multi-level marketing activities in localities

1. A dossier for registration of multi-level marketing activities in a locality must comprise:

a) A written request for registration of multi-level marketing activities in the locality, made according to Form No. 08 provided in the Appendix I issued together with this Decree;

b) In case of having no office, branch, representative office, or business location in a locality, the multi-level marketing enterprise shall be responsible for providing information and documents related to its focal point at the locality, including: personal identification information or information enclosed with a copy of passport in cases of a foreigner; information on judicial records; documents proving satisfactory results of legal knowledge examination; 01 document of designation clearly specifying scope of work, rights, and obligations of the parties.

2. The enterprise shall submit a dossier for registration of multi-level marketing activities in the locality to the provincial-level People’s Committee of the locality where the enterprise intends to conduct operations (directly, via postal services, or via the national public service portal).

3. In case a dossier is incomplete or invalid as defined in Clause 1 of this Article, the provincial-level People's Committee shall, within 5 working days after receiving it, notify such to the enterprise for dossier modification and/or supplementation. The time limit for dossier modification and/or supplementation is 15 working days after the provincial-level People's Committee issues a notice. The provincial-level People's Committee shall return the dossier in case the enterprise fails to modify and/or supplement it within the above time limit.

Within 05 working days after receiving a complete and valid dossier, the provincial-level People's Committee shall send to the enterprise a written certification of the registration of multi-level marketing activities in the locality, made according to Form No. 09 in the Appendix I issued together with this Decree. In case of refusal to give certification, the provincial-level People's Committee shall reply in writing clearly stating the reason.

4. Within 03 working days after issuing a written certification of registration of multi-level marketing activities in the locality, the provincial-level People's Committee shall announce it on its website and send a copy thereof to the Ministry of Industry and Trade by one of the modes specified in Clause 5, Article 11 of this Decree.

Article 22. Registration of change or addition of multi-level marketing activities in localities

1. In the course of multi-level marketing activities in a province or centrally run city, a multi-level marketing enterprise shall register change or addition of its multi-level marketing activities in the locality with the provincial-level People's Committee when there is a change related to the enterprise in such locality:

a) Its head office, branch, representative office or business location;

b) Focal point at the locality.

2. Within 15 working days after a change in information specified in Clause 1 of this Article occurs, an enterprise shall send its registration of change or addition, made according to Form No. 10 in the Appendix I issued together with this Decree and the documents specified at Point b Clause 1 Article 21 of this Decree related to the changed or added contents to the provincial-level People's Committee.

3. In case of an incomplete and invalid dossier, within 5 working days after receiving it, the provincial-level People's Committee shall notify such in writing to the enterprise for modification and/or supplementation of the dossier. The enterprise may modify and/or supplement its dossier only once within 15 working days after the provincial-level People's Committee issues the notice. The provincial-level People's Committee shall return the dossier in case the enterprise fails to modify and/or supplement it within the above time limit.

4. In case of a complete and valid dossier, within 05 working days after receiving it, the provincial-level People's Committee shall send to the enterprise a written certification of the registration of change or addition of multi-level marketing activities in the locality, made according to Form No. 11 in the Appendix I issued together with this Decree. In case of refusal to certify the registration, the provincial-level People's Committee shall reply in writing, clearly stating the reason.

5. Within 05 working days from the date of issuing the written certification, the provincial-level People's Committee shall announce on its website and notify to the Ministry of Industry and Trade by one of the modes specified in Clause 5, Article 11 of this Decree the certification of registration of change or addition of multi-level marketing activities of the multi-level marketing enterprise in its locality.

Article 23. Revocation of certification of registration of multi-level marketing activities in localities

1. A provincial-level People's Committee shall revoke a certification of registration of multi-level marketing activities in its locality in the following cases:

a) The dossier for registration of multi-level marketing activities in the locality contains untruthful information;

b) The enterprise fails to carry out multi-level marketing activities in the locality for 12 consecutive months;

c) The enterprise fails to fulfill the responsibility specified in Clause 11, Article 40 of this Decree;

d) The multi-level marketing registration certificate of the enterprise is revoked by a competent agency or expires without extension;

dd) The enterprise fails to satisfy fully the conditions for conducting multi-level marketing activities at localities prescribed at Clause 2 and Clause 3 Article 20 of this Decree or fails to maintain regular operation of its presence at the locality as registered.

2. Within 05 working days after issuing a decision on revocation of a certification of registration of multi-level marketing activities in its locality, a provincial-level People's Committee shall announce it on its website and notify it to the Ministry of Industry and Trade by one of the modes specified in Clause 5, Article 11 of this Decree.

3. A certification of registration of multi-level marketing activities is invalidated from the date the revocation decision takes legal effect.

4. Within 30 working days after its revocation decision takes legal effect, the enterprise shall carry out the procedures for terminating its multi-level marketing activities in the concerned locality in accordance with Article 24 of this Decree.

5. The provincial-level People's Committee shall refuse to re-grant a certification of registration of multi-level marketing activities in the locality to the multi-level marketing enterprise within 6 months after the revocation decision takes effect, for the case specified at Point b, Clause 1 of this Article, within 12 months for the cases specified at Points a and c, Clause 1 of this Article.

Article 24. Termination of multi-level marketing activities in localities

1. Cases of termination of multi-level marketing activities in a locality:

a) A multi-level marketing enterprise has the certification of multi-level marketing activities in the locality revoked;

b) A multi-level marketing enterprise voluntarily terminates its multi-level marketing activities in the locality.

2. When terminating its multi-level marketing activities in a locality, a multi-level marketing enterprise shall:

a) Publicly post a notice of termination at its head office, branches, representative offices and business locations in the locality (if any), and post the notice on its website within 5 working days from the date of termination of multi-level marketing activities in the locality; and send the notice to the provincial-level People's Committee at the locality where the enterprise terminates its multi-level marketing activities;

b) Terminate and liquidate contracts on multi-level marketing participation and settle interests of multi-level marketing participants in the locality in accordance with law regulations on management of multi-level marketing activities;

c) Fulfill its obligations under a competent local agency’s decision on handling of violations in multi-level marketing activities.

3. Enterprises are not required to carry out procedures for termination of multi-level marketing activities in localities in case of termination of their multi-level marketing activities nationwide.

Article 25. Order and procedures for termination of multi-level marketing activities in localities

1. In case of voluntarily terminating its multi-level marketing activities in a locality, an enterprise shall submit a notice of such termination in the locality, made according to Form No. 12 in the Appendix I issued together with this Decree to the provincial-level People's Committee (directly, via postal services, or via the national public service portal).

2. In case an enterprise terminates its multi-level marketing activities due to the revocation of the certification of registration of multi-level marketing activities in the locality, it shall submit the documents specified in Clause 1 of this Article to the provincial-level People's Committee within 30 working days from the date of such revocation.

3. In case an enterprise voluntarily terminates its multi-level marketing activities in a locality, within 05 working days after receiving a valid dossier for notification of termination of multi-level marketing activities, the provincial-level People's Committee shall issue a document on receipt of the dossier, announce it on its website, and notify it to the Ministry of Industry and Trade by one of the modes specified in Clause 5, Article 11 of this Decree.

 

Article 26. Notification of organization of conferences, seminars and training courses on multi-level marketing

1. A multi-level marketing enterprise may organize conferences, seminars or training courses on multi-level marketing in the province or centrally run city where it has been granted a certification of registration of multi-level marketing activities in the locality.

2. In case a conference, seminar or training course on multi-level marketing is expected to be attended by 50 or more people or by 20 or more multi-level marketing participants and is not an internal meeting or event, the multi-level marketing enterprise shall notify such conference, seminar or training course to the provincial-level People's Committee before organizing it.

In cases where a conference, seminar or training course on multi-level marketing is organized solely in online form, the enterprise shall notify such conference, seminar or training course to the provincial-level People’s Committee where the organizer or chairperson of such conference, seminar or training course are present.

3. A multi-level marketing enterprise shall coordinate with functional agencies in the course of performing the responsibility to monitor, inspect and supervise its conferences, seminars or training courses on multi-level marketing, ensuring compliance with law regulations.

Article 27. Dossiers, order and procedures for notification of organization of conferences, seminars and training courses on multi-level marketing

1. A dossier for notification of organization of a conference, seminar or training course on multi-level marketing must comprise:

a) A notice of organization of a conference, seminar or training course on multi-level marketing, made according to Form No. 13 in the Appendix I issued together with this Decree;

b) Detailed contents and documents to be presented at the seminar and projected number of participants;

c) A list of presenters at the conference, seminar or training course, enclosed with authorization contracts of the enterprise, clearly stating the rights and responsibilities of presenters and contents to be presented;

d) One the power of attorney, in case the enterprise authorizes an individual to conduct the training or organize the conference or seminar;

dd) Information on the account or link for the participants to access the conference, seminar or training course, in case the conference, seminar or training course is organized online.

2. A multi-level marketing enterprise may notify the organization of more than one conference, seminar or training course on multi-level marketing in the same notice, provided that such conference, seminar or training course is organized within 3 months from the date of submission of the dossier of notification.

3. A multi-level marketing enterprise shall submit a dossier for notification of organization of a conference, seminar or training course on multi-level marketing to the provincial-level People's Committee at least 15 working days before the expected date of organization of such conference, seminar or training course.

In cases where the dossier does not fall within its settlement competence, provincial-level People’s Committee shall refuse receipt of dossiers.

In cases where the dossier falls within its settlement competence, provincial-level People’s Committees shall issue a dossier receipt slip.

4. In cases where the dossier does not yet satisfy Clause 1 of this Article, within 5 working days after receiving it, the provincial-level People's Committee shall notify such in writing to the enterprise for modification and/or supplementation of the dossier. The enterprise shall be responsible for modifying and/or supplementing its dossier at least 05 working days before the expected date of organization of the conference, seminar, or training course.

Notification of modification and/or supplementation and submission of the modified and/or supplemented dossier may be carried out multiple times within the above-mentioned time limit. The enterprise may adjust the time for organization of the conference, seminar, or training course in its amended and supplemented dossier to ensure conformity with the time limit for dossier settlement.

5. The enterprise may organize the conference, seminar or training course according to the plan in the notification dossier if the provincial-level People’s Committee makes no request for modification/supplementation of the dossier within 05 working days from the date the provincial-level People’s Committee receives the initial notice or within 03 working days from the date the provincial-level People’s Committee receives supplemented dossiers.

6. In cases where the time limit prescribed at Clause 5 of this Article has expired and the expected organization time has not yet arrived, if wishing to make a change in information in its dossier for notification of organization of a conference, seminar or training course, the enterprise shall issue a notice thereof to the provincial-level People's Committee before the expected organization date.

7. In case the enterprise has notified the organization of a conference, seminar or training course to the provincial-level People's Committee but does not organize such conference, seminar or training course, it shall send a notice thereof in paper form or via email to the provincial-level People's Committee before the expected date of organization of such conference, seminar or training course as stated in the dossier for notification.

Chapter IV

MANAGEMENT OF MULTI-LEVEL MARKETING PARTICIPANTS

Article 28. Conditions on multi-level marketing participants

1. A multi-level marketing participant must be a person having the full civil act capacity in accordance with law regulations and residing in Vietnam.

2. A multi-level marketing enterprise shall not enter into a multi-level marketing contract with a person falling into one of the following cases:

a) He/she is serving an imprisonment sentence or has previous convictions for producing or trading in counterfeit goods or banned goods, making deceitful advertisement, deceiving customers, appropriating property through swindling, abusing trust for appropriation of property, illegally seizuring property or violating regulations on multi-level marketing activities;

b) He/she is a foreigner who has no permit to work in Vietnam granted by a competent agency, which is related to the multi-level marketing enterprise employing him/her, unless he/she is not subject to work permit requirements in accordance with law regulations;

c) He/she has been sanctioned for a violation of the provisions of Points b, d, e and g Clause 1; Points a, b, c, d and dd Clause 2 Article 10 of the Law on Protection of Consumer Rights and Article 5 of this Decree and the period upon the expiration of which he/she will be regarded as having never been sanctioned for an administrative violation has not yet expired;

d) He/she has been previously held one of the following positions in the multi-level marketing enterprise whose multi-level marketing registration certificate or multi-level marketing organization registration has been revoked: Partners, for a partnership; the owner, for a sole proprietorship or single-member limited liability company; members, for a limited liability company with two or more members; shareholders, for a joint-stock company, or the at-law representatives or managers of an enterprise;

dd) Cadres and civil servants in accordance with the law on cadres and civil servants; officers, professional army men or defense workers or public employees in agencies and units of the People’s Army; officers, non-commissioned officers, soldiers serving under the professional regime or public security workers in agencies and units of the People’s Public Security forces.

Article 29. Contracts on multi-level marketing participation

1. A multi-level marketing enterprise shall enter into written contracts on multi-level marketing participation with, and deliver such contracts to, multi-level marketing participants.

2. A contract on multi-level marketing participation must have the following principal contents:

a) Names of the multi-level marketing enterprise and its at-law representative and its contact information;

b) Full name, date of birth, current place of residence, telephone number, bank account number, identity card/citizen identity card number or passport number of the multi-level marketing participant; work permit number in cases where the multi-level marketing participant is a foreigner, except for cases in which he/she is exempted from such a permit in accordance with the law regulations;

c) Full name and code number of the introducer (surety);

d) Information about goods traded by the multi-level marketing mode;

dd) Information about the compensation plan and rules of operation;

e) Rights and obligations of the parties in compliance with this Decree and relevant law regulations;

g) Regulations on payment of commissions and bonuses by the mode of via-bank account transfer;

h) Regulations on redemption of goods;

i) Cases of termination of the contract and related obligations;

k) Mechanism of settlement of contractual disputes.

3. A contract on multi-level marketing participation must be written in Vietnamese, with letters of a font size of at least 12; the color of paper sheets of the contract must be in contrast to the ink color.

4. In cases of use of electronic contracts, a multi-level marketing enterprise shall be responsible for:

a) Storing electronic contracts in the form of a data message on information technology system managing the network of multi-level marketing participants of the enterprise;

b) Providing the right to access to the system storing electronic contracts at the written request of competent state management agencies in charge of multi-level marketing activities;

c) Ensuring that contracts on multi-level marketing participation satisfy the conditions prescribed in this Decree and the law on electronic transactions.

Article 30. Termination of contracts on multi-level marketing participation

1. A multi-level marketing participant may unilaterally terminate the performance of his/her contract on multi-level marketing participation by sending a written notice to the multi-level marketing enterprise at least 10 working days before the termination.

2. A multi-level marketing enterprise may unilaterally terminate the performance of a contract with a multi-level marketing participant when the latter violates the provisions of Article 41 of this Decree.

3. Multi-level marketing enterprises shall be responsible for unilaterally terminating performance of contracts with multi-level marketing participants when such participants violate the provisions at Points b, d, e and g Clause 1; Points a, b, c, d and dd Clause 2 Article 10 of the Law on Protection of Consumer Rights and Clause 2 Article 32 of this Decree.

4. A contract on multi-level marketing participation shall terminate when the concerned multi-level marketing enterprise terminates its multi-level marketing activities under Clause 1 Article 17 of this Decree and in other cases of termination in accordance with the civil law.

5. Within 30 working days after a contract is terminated, the concerned multi-level marketing enterprise shall pay to the multi-level marketing participant commissions, bonuses and other economic benefits which the latter is entitled to during the participation in the multi-level marketing network of the enterprise.

Article 31. Basic training program

1. A basic training program is a mandatory training program for multi-level marketing participants.

2. Basic training covers the following:

a) The law on multi-level marketing; law on protection of consumer rights;

b) Code of ethics in multi-level marketing activities;

c) Basic contents of a contract on multi-level marketing participation, rules of operation and compensation plan;

3. The training duration is at least 6 hours.

Article 32. Basic training for multi-level marketing participants

1. A multi-level marketing enterprise shall be responsible for providing basic training to multi-level marketing participants within 30 working days from the date of signing contracts on multi-level marketing participation nd may not collect any charge in any form.

2. Multi-level marketing participants shall be responsible for attending and completing basic training programs within 30 working days from the date of signing contracts on multi-level marketing participation.

3. Only persons designated by a multi-level marketing enterprise to act as trainers may provide basic training for multi-level marketing participants of such enterprise.

The multi-level marketing enterprise shall not provide basic training to participants when there are no trainers satisfying the conditions prescribed at Clause 2 Article 34 of this Decree.

4. A basic training program may be implemented by the methods of direct training or distance training.

5. For the distance training, the training system must ensure:

a) Provision of information on trainers;

b) Capability for interaction between trainees and trainers;

c) Having mechanisms for authentication of trainee identity from the time of logging into the training system and maintaining such authentication throughout the duration of basic training;

d) Recording and storing all learning logs of trainees, including: login and logout times; duration and completion progress of each module; interaction contents and assessment results;

dd) Ensuring that data of basic training program is retrievable for inspection and examination activities of competent state agencies.

6. A multi-level marketing enterprise shall evaluate how well a multi-level marketing participant has completed the basic training program and grant a written certification on his/her completion of the basic training program in both content and duration to participants, ensuring that its trainees receive such written certifications.

7. A multi-level marketing enterprise shall preserve documents related to basic training of multi-level marketing participants, including those indicating the training duration, methods, places (if any), trainers and results.

8. When there is a change related to the contents specified in Clause 2, Article 31 of this Decree, a multi-level marketing enterprise shall additionally train or notify such change to multi-level marketing participants on its website or publicly post up such change at its head office, branches, representative offices and business locations within 30 working days after such change occurs.

Article 33. Member cards

1. A multi-level marketing enterprise may only grant member cards to persons who have gone through the basic training program and submitted written commitments containing complete and accurate information according to Form No. 14 in the Appendix I issued together with this Decree.

2. A multi-level marketing enterprise shall grant free of charge member cards to multi-level marketing participants.

3. Such a member card must consist of the following contents:

a) Name of the enterprise;

b) Contact information of the enterprise;

c) Photo of the multi-level marketing participant;

d) Information about the multi-level marketing participant, including: full name, number of the identity card/citizen identity card or passport, member code or card number, date and place of issuance.

4. A member card is invalidated when the card holder’s contract on multi-level marketing participation is terminated.

5. A multi-level marketing enterprise shall publicly announce the invalidation of member cards on its website.

Article 34. Trainers

1. A multi-level marketing enterprise shall designate trainers to provide basic training for its multi-level marketing participants.

2. Conditions for a trainer:

a) Having satisfactory examination results of legal knowledge about multi-level marketing as defined in Article 39 of this Decree;

b) Having a labor contract or training cooperation contract with a multi-level marketing enterprise.

3. A multi-level marketing enterprise shall not designate the following persons to act as trainers:

a) He/she is serving an imprisonment sentence or has previous convictions for producing or trading in counterfeit goods or banned goods, making deceitful advertisement, deceiving customers, appropriating property through swindling, abusing trust for appropriation of property, illegally seizuring property or violating regulations on multi-level marketing activities;

b) He/she is a foreigner who has no permit to work in Vietnam granted by a competent agency, unless he/she is not subject to work permit requirements in accordance with law regulations;

c) He/she has been sanctioned for a violation of the provisions of Points b, d, e and g Clause 1 and Points a, b, c, d and dd Clause 2 Article 10 of the Law on Protection of Consumer Rights and Article 5 of this Decree and the period upon the expiration of which he/she will be regarded as having never been sanctioned for an administrative violation has not yet expired;

d) He/she is a person specified at Point d, Clause 2, Article 28 of this Decree;

dd) Cadres and civil servants in accordance with the law on cadres and civil servants; officers, professional army men or defense workers or public employees in agencies and units of the People’s Army; officers, non-commissioned officers, soldiers serving under the professional regime or public security workers in agencies and units of the People’s Public Security forces.

4. A multi-level marketing enterprise shall make a list of trainers and retain their enclosed personal files, and announce such list on its website and notify it to the Ministry of Industry and Trade.

5. A multi-level marketing enterprise shall update the list of trainers on its website and notify updates to the Ministry of Industry and Trade within 10 working days after a change in the list is updated.

6. A multi-level marketing enterprise shall take responsibility for all activities of its trainers during the basic training course.

Article 35. Provision of legal knowledge about multi-level marketing

1. Legal knowledge about multi-level marketing to be provided during training includes:

a) Law regulations on multi-level marketing, advertising and protection of consumer rights;

b) Ethical standards in multi-level marketing.

2. 2. Programs on provision of legal knowledge about multi-level marketing must be recognized by the provincial-level People's Committees.

Article 36. Dossiers, order and procedures for recognition of programs on provision of legal knowledge about multi-level marketing

1. A dossier of request for recognition must comprise:

a) A written request for recognition, made according to Form No. 15 in the Appendix I issued together with this Decree;

b) A copy of the decision on the founding of the training establishment or a paper of equivalent legal validity;

c) The training program on provision on legal knowledge about multi-level marketing;

d) A list of at least 2 lecturers.

2. Within 04 working days after receiving a dossier of request for recognition, the provincial-level People's Committee shall examine its completeness and validity. In case the dossier is incomplete and invalid, the provincial-level People's Committee shall issue a written request for modification and/or supplementation of the dossier to the training establishment. The time limit for modification and/or supplementation of dossiers is 10 working days.

3. Within 15 working days after receiving a complete and valid dossier of request for recognition, the provincial-level People's Committee shall appraise the dossier and issue a decision of recognition based on the following criteria:

a) Institutions having training function established in accordance with the law regulations;

b) Programs on provision of legal knowledge about multi-level marketing conforming to the framework training program on provision of legal knowledge about multi-level marketing prescribed in Clause 7 of this Article;

c) Lecturers possessing a university or higher degree, and experience in training legal knowledge.

4. In cases where the appraised dossier fails to satisfy conditions, the provincial-level People's Committee shall issue a written request for modification and/or supplementation of the dossier to the training establishment. The time limit for modification and/or supplementation of dossiers is 15 working days. The training establishment may modify and/or supplement dossiers once. In cases where the dossier is not modified or supplemented, or the dossier is modified or supplemented beyond the prescribed time limit, or the amended dossier fails to satisfy conditions, the provincial-level People’s Committee shall issue a notice on return of dossier.

5. A decision on recognition of a training program on provision of legal knowledge about multi-level marketing is valid for 3 years from the date of its signing.

6. In case of a change in information in its dossier of request for recognition of a training program on provision of legal knowledge about multi-level marketing, the training establishment shall notify such change in writing to the provincial-level People’s Committee.

Within 30 working days after receiving a dossier of request for recognition, the provincial-level People's Committee shall appraise the dossier and issue a notice of recognition of the changed information. In case the changed information has a content(s) that is/are illegal or incompliant with this Decree, the provincial-level People's Committee shall notify its non-recognition of the changed information.

7. The framework training program on provision of legal knowledge about multi-level marketing shall comply with Appendix II issued together with this Decree.

Article 37. Activities of establishments providing training in legal knowledge about multi-level marketing

1. Organizing training:

a) An establishment providing training in legal knowledge about multi-level marketing shall carry out training activities according to the recognized contents and program and grant certificates of completion of a training course in legal knowledge about multi-level marketing, made according to Form No. 16 in the Appendix I issued together with this Decree;

b) An establishment providing training in legal knowledge about multi-level marketing shall report in writing to the provincial-level People’s Committee recognizing the training program on results of training activities which it has carried out within 10 working days after a training course is finished.

2. Archive of files:

An establishment providing training in legal knowledge about multi-level marketing shall archive files of training courses in accordance with the law on archive. Files to be archived include:

a) Files of trainees for admission to training courses, lists of trainees of each training course who have been granted certificates of completion of the training course;

b) Lists of lecturers of training courses;

c) Files for management of the grant of certificates of completion of a training course in legal knowledge about multi-level marketing.

3. Inspection and supervision of activities of an establishment providing training in legal knowledge about multi-level marketing:

a) Before January 31 every year, a training establishment shall send a report on the provision of legal knowledge about multi-level marketing in the preceding year, made according to Form No. 17 provided in the Appendix I issued together with this Decree, to the provincial-level People's Committee recognizing the training program;

b) Every year, the provincial-level People's Committee recognizing the training program shall inspect the training and grant of certificates of completion of a training course in legal knowledge about multi-level marketing by training establishments.

Based on inspection results, depending on the seriousness of violations, the provincial-level People's Committee shall request a training establishment to remedy its violations or suspend the decision on recognition of a training program on provision of legal knowledge about multi-level marketing.

c) The provincial-level People's Committee recognizing the training program shall revoke or cancel a decision on recognition of a training program on provision of legal knowledge about multi-level marketing in the following cases: The training establishment is dissolved or fails to remedy its violations during the period of suspension or its violations are irremediable; or the training establishment fails to conduct training for 12 consecutive months.

Article 38. Examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities

1. Persons having completed training courses on legal knowledge of multi-level marketing shall be registered by multi-level marketing enterprises for participation in examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities organized by provincial-level People’s Committees.

2. Based on practical demands, provincial-level People’s Committees shall announce their plans for organization of examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in the localities for enterprises to register.

3. Examination of legal knowledge about multi-level marketing and examination of knowledge for persons acting as focal points in localities may be organized in the same session or in different sessions.

Article 39. Order and procedures for examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities

1. A multi-level marketing enterprise shall submit a dossier of application for examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points to the concerned provincial-level People's Committee. Such a dossier must comprise:

a) Application for registration for examination of legal knowledge about multi-level marketing, made according to Form No. 19 in Appendix I issued together with this Decree, or application for registration for examination of knowledge for persons acting as focal points in localities, made according to Form No. 20 in Appendix I issued together with this Decree;

b) A list of persons registering to take an examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points, which must have the following information: full name, gender, date of birth, number and date and place of issue of identity card/citizen identity card or passport of each of the persons on the list;

c) One copy of the certificate of completion of a training course in legal knowledge about multi-level marketing.

2. A provincial-level People’s Committee shall organize the examination of legal knowledge about multi-level marketing or knowledge for a person acting as the focal point in the locality according to the following process:

a) Examining the completeness and validity of the dossier;

b) Formulating a plan on time, location, and methods of examination;

c) Announcing the examination plan;

d) Organization of examination;

dd) Assessing examination results;

e) Announcing the examination results.

3. An examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities shall be conducted in essay or multiple-choice questions for a minimum duration of 60 minutes.

4. Scores shall be graded according to the 100-point scale, with the following specific requirements:

a) An examination of legal knowledge about multi-level marketing scoring below 80 points (for multiple-choice exams) or below 65 points (for essay exams) shall be deemed unsatisfactory;

b) An examination of knowledge for persons acting as focal points in localities scoring below 70 points (for multiple-choice exams) or below 50 points (for essay exams) shall be deemed unsatisfactory.

5. Within 15 working days from the date of examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities, provincial-level People’s Committees shall publish results of examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities.

6. Results of examination of legal knowledge about multi-level marketing or knowledge for persons acting as focal points in localities published by provincial-level People’s Committees shall be valid nationwide.

CHAPTER V

MULTI-LEVEL MARKETING ACTIVITIES

Article 40. Responsibilities of a multi-level marketing enterprise

1. To post up at its head office, branches, representative offices and business locations the documents specified in Clauses 4 and 5, Article 10 of this Decree.

2. To strictly implement the registered rules of operation and compensation plan.

3. To announce and update information about selling prices of goods traded by the mode of multi-level marketing and sell goods at announced prices.

4. To organize annual training on legal knowledge of multi-level marketing for senior distributors.

5. To supervise activities of multi-level marketing participants to ensure their strict performance of contracts on multi-level marketing participation and strict compliance with its rules of operation and compensation plan.

6. To take responsibility for multi-level marketing participants’ multi-level marketing activities which are carried out at its head office, branches, representative offices or business locations or at its conferences, seminars or training courses or according to its policy.

7. To withhold, declare and pay personal income tax of multi-level marketing participants for remittance into the state budget before paying commissions, bonuses or other economic benefits to them, unless otherwise provided by law regulations.

8. To operate the information technology system for management of multi-level marketing participants under Article 44 of this Decree and according to the technical explanations made upon registration of multi-level marketing activities, ensuring multi-level marketing participants are able to access and retrieve basic information about their multi-level marketing activities.

9. To operate and regularly update its website in Vietnamese to provide information about it and its multi-level marketing activities under Article 45 of this Decree.

10. To operate an information and communication system, including telephone, email and its office address, to receive and answer inquiries and settle complaints of multi-level marketing participants.

11. To provide the right to access to the account for management of the information technology system for management of its multi-level marketing activities when so requested in writing by a competent state management agency in charge of multi-level marketing activities.

12. To comply with relevant law regulations on conditions for trading and circulation of goods traded by the mode of multi-level marketing.

13. To make sure that at least 20% of turnover from multi-level marketing sales by the enterprise or its multi-level marketing participants in a fiscal year come from customers who are not multi-level marketing participants of the enterprise.

Turnover prescribed in this Clause means revenue generated by participants from sales to consumers or revenue generated by multi-level marketing enterprises from sales to consumers through referral codes of participants.

14. To refrain from providing information on food by using images, equipment, costumes, names or mails of medical units or facilities, doctors, pharmacists or medical staffs, thank-you letters or thank-you notes of patients, or articles of doctors, pharmacists or medical staffs; to refrain from providing information on food by posting, quoting or citing patients’ opinions describing that the food has curative effects.

Article 41. Responsibilities of a multi-level marketing participant

1. Multi-level marketing participants shall have the following responsibilities:

a) To retain his/her contract on multi-level marketing participation;

b) To carry out activities of marketing and selling goods and developing the multi-level marketing network only after being granted a member card;

c) To produce his/her member card before introducing or marketing goods for sale;

d) To comply with the contract on multi-level marketing participation and rules of operation of his/her enterprise.

dd) To provide sufficient and truthful information about the multi-level marketing enterprise and its goods traded by the mode of multi-level marketing, compensation plan and rules of operation;

e) To refrain from providing information on food by using images, equipment, costumes, names or mails of medical units or facilities, doctors, pharmacists or medical staffs, thank-you letters or thank-you notes of patients, or articles of doctors, pharmacists or medical staffs; to refrain from providing information on food by posting, quoting or citing patients’ opinions describing that the food has curative effects.

2. In addition to the responsibilities prescribed in Clause 1 of this Article, multi-level marketing participants being senior distributors shall have the following responsibilities:

a) To train, support, and guide participants of the downline to comply with rules of operation, compensation plans, contracts on multi-level marketing participation, and law on management of multi-level marketing activities;

b) To participate in annual training programs on legal knowledge of multi-level marketing organized by multi-level marketing enterprises in addition to basic training programs;

c) To supervise and detect acts of violation of law on management of multi-level marketing activities, violations of rules of operation and compensation plans by participants of the downline, and notify them multi-level marketing enterprises for consideration and handling in accordance with regulations;

d) Bearing responsibility in cases where they knew or must have known that participants of the downline violate rules of operation, compensation plans, or law on management of multi-level marketing activities but fail to take timely preventive measures and notify multi-level marketing enterprises for handling in accordance with regulations.

Article 42. Rules of operation

Rules of operation must clearly specify the process and procedures for entering into contracts on multi-level marketing participation, basic training for multi-level marketing participants, grant of member cards, placement of orders for goods, payment, delivery and receipt of goods, return of goods (if any), warranty (if any), exchange, return, repurchase of goods and refund of money to multi-level marketing participants, settlement of complaints of multi-level marketing participants, termination and liquidation of contracts, ethical rules, and rules governing conduct of multi-level marketing participants.

Article 43. Compensation plans

1. A compensation plan must clearly state ranks and titles of multi-level marketing participants, conditions satisfied by such participants, commissions, bonuses and other economic benefits payable to multi-level marketing participants of each rank or title.

2. Compensation plans shall only apply to multi-level marketing participants of Vietnam-based enterprises. Turnover, ranks and titles, commissions, bonuses, and economic benefits of multi-level marketing participants in Vietnam shall not be calculated based on sales turnover of overseas downlines.

Article 44. Information technology system for management of the network of multi-level marketing participants

1. An information technology system for management of the network of multi-level marketing participants of a multi-level marketing enterprise must ensure storage of data on servers located in Vietnam and ensure the capability to restore original data when such data are lost or damaged.

2. An information technology system for management of a network of multi-level marketing participants must provide these participants with the following basic information:

a) Basic information about multi-level marketing participants as specified at Point b, Clause 2, Article 29 of this Decree;

b) Information about contracts on multi-level marketing participation, and archived copies of electronic contracts;

c) Information about codes, positions, ranks and titles of multi-level marketing participants, uplines and downlines of multi-level marketing participants;

d) Information about the buying history of multi-level marketing participants and customers introduced by such participants;

dd) Information on commissions, bonuses and other economic benefits of multi-level marketing participants.

3. Any malfunction of the information technology system shall be promptly reported to the Ministry of Industry and Trade.

Article 45. Websites of multi-level marketing enterprises

1. A website of a multi-level marketing enterprise must have the following basic contents:

a) Documents on multi-level marketing activities of the enterprise, including the multi-level marketing registration certificate, model contract on multi-level marketing participation, rules of operation, compensation plan, basic training program and other necessary documents;

b) Information about goods traded by the mode of multi-level marketing, including names, selling prices, ingredients, effects, usage, origins, certificates and certifications of product standards (if any);

c) Information about the enterprise registration, head office, branches, representative offices and business locations of the enterprise;

d) Process and procedures for entering into contracts on multi-level marketing participation, basic training for multi-level marketing participants, grant of member cards, placement of orders for goods, payment, delivery and receipt of goods, return of goods (if any), repurchase of goods and refund of money to multi-level marketing participants, settlement of complaints of multi-level marketing participants, termination and liquidation of contracts;

dd) Process and place of warranty for, exchange or return of goods and post-sale services (if any);

e) Contact information for receipt and settlement of inquiries and complaints of multi-level marketing participants, including telephone numbers, emails, and receiving addresses;

g) Information on multi-level marketing activities of the enterprise, including: address of the current place of operation; the highest income, average income and lowest income of multi-level marketing participants in the preceding fiscal year; lists of senior distributors;

h) The handling of violations, termination of contracts and invalidation of member cards of multi-level marketing participants;

i) Sales promotion programs of the enterprise.

2. The information specified in Clause 1 of this Article must appear on the homepage of or be directly linked to from the website of the enterprise.

3. A multi-level marketing enterprise shall comply with other relevant law regulations when operating its website.

Article 46. Delivery, receipt and consignment of goods

1. Within 30 days after a multi-level marketing participant pays a money amount for goods purchase, a multi-level marketing enterprise shall fully deliver goods purchased with such money amount while the multi-level marketing participant shall receive all goods delivered from the enterprise.

2. In case a multi-level marketing enterprise fails to deliver goods or a multi-level marketing participant refuses to receive delivered goods within the time limit prescribed in Clause 1 of this Article, the enterprise shall cancel the transaction and return the whole paid money amount to the participant.

3. In case a multi-level marketing participant consigns goods at a multi-level marketing enterprise and refuses to receive such goods within the time limit prescribed in Clause 1 of this Article, the enterprise shall cancel the transaction and return the whole paid money amount to the participant within 15 days from the date of expiry of the time limit prescribed at Clause 1 of this Article.

Article 47. Return and repurchase of goods

1. A multi-level marketing participant may return goods he/she has purchased from a multi-level marketing enterprise, including also goods purchased under a sales promotion program, within 30 days from the date of receipt.

2. To be returned, a goods item must satisfy the following conditions:

a) Its package, stamp and label remain intact;

b) It is accompanied by the purchase invoice;

c) Goods remain within expiry dates.

3. Within 30 days after a multi-level marketing participant makes a valid request for return of goods, a multi-level marketing enterprise shall repurchase such goods, provided the conditions prescribed in Clause 2 of this Article are satisfied, and refund the paid money amount at a level agreed upon with the participant which must not be lower than 90% of the money amount paid by the participant to receive such goods.

4. When refunding the paid money amount to a multi-level marketing participant, a multi-level marketing enterprise may deduct commissions, bonuses and other economic benefits already received by such participant for the purchase of the goods under this Article.

5. A multi-level marketing enterprise may re-collect from other multi-level marketing participants commissions, bonuses and other economic benefits they have received in relation to the returned goods under this Article.

6. In case a contract on multi-level marketing participation is terminated, a multi-level marketing enterprise shall re-purchase goods sold to the multi-level marketing participant under Clauses 1 thru 5 of this Article.

Article 48. Commissions, bonuses and other economic benefits

1. A multi-level marketing enterprise shall pay commissions, bonuses and other economic benefits to multi-level marketing participants under a compensation plan registered with a competent agency.

2. The total value of monetized commissions, bonuses and other economic benefits, including benefits earned under sales promotion programs payable by a multi-level marketing enterprise to its multi-level marketing participants in a year must not exceed 40% of multi-level marketing sale turnover in that year of such enterprise.

3. Multi-level marketing sale turnover mentioned in Clause 2 of this Article means sales of multi-level marketing activities of an enterprise, exclusive of value-added tax.

4. The total value of commissions, bonuses and other economic benefits mentioned in Clause 2 of this Article excludes the difference between prices at which the enterprise sells goods to multi-level marketing participants and prices at which multi-level marketing participants sell goods to customers.

5. A multi-level marketing enterprise shall pay via bank monetized commissions, bonuses, promotions, and other economic benefits to its multi-level marketing participants.

Article 49. Reports of multi-level marketing enterprises

1. On an annual basis, a multi-level marketing enterprise shall report on its multi-level marketing activities to the Ministry of Industry and Trade.

2. Periodic reports to be submitted before January 31 every year to the Ministry of Industry and Trade shall be made according to Form No. 18 in the Appendix I issued together with this Decree. The Ministry of Industry and Trade shall be responsible for providing information on report contents related to multi-level marketing activities in each province, centrally run city to provincial-level People’s Committees.

3. A multi-level marketing enterprise shall report at the request of a competent agency in charge of multi-level marketing activities.

Chapter VI

ESCROW

Article 50. Escrow amount

1. Escrow means a money amount which secures the fulfillment by a multi-level marketing enterprise of its obligations toward multi-level marketing participants and the State in the cases specified in Clause 1, Article 53 of this Decree.

The obligations of multi-level marketing enterprises toward multi-level marketing participants mean obligations arising from lawful multi-level marketing activities, including the obligation to make compensation according to compensation plans, the obligation to repurchase goods in case participants return goods in accordance with Article 47 of this Decree, and the obligation to return money in the cases specified in Article 46 of this Decree.

2. A multi-level marketing enterprise shall open an escrow account to deposit a money amount equal to 5% of its charter capital, which, however, must not be lower than VND 20 (twenty) billion, at a commercial bank or foreign bank branch in Vietnam. The multi-level marketing enterprise and the escrow-receiving bank shall enter into escrow contracts with contents complying with the law regulations.

3. The bank where a multi-level marketing enterprise opens its escrow account shall give a written certification of the escrow, made according to Form No. 21 in the Appendix I issued together with to this Decree and coordinate with the Ministry of Industry and Trade in certifying the contents related to such written certification when so requested by the latter.

4. In case there is a change in information in a written certification of escrow, a multi-level marketing enterprise shall carry out the procedures for modification of such certification with the bank.

5. An escrow account shall be blocked by the bank throughout the operation of an enterprise and money may be withdrawn therefrom or used only when there is written approval of the Ministry of Industry and Trade, except the case specified at Point a, Clause 1, Article 51 of this Decree.

6. The bank where an enterprise opens its escrow account shall manage the escrow in accordance with law and notify the Ministry of Industry and Trade when there are changes to information in the written confirmation of escrow.

7. A multi-level marketing enterprise may enjoy interest on its escrow as agreed with the bank and withdraw such interest.

Article 51. Escrow withdrawal

1. A multi-level marketing enterprise may withdraw its escrow in the following cases:

a) The Ministry of Industry and Trade refuses to grant a multi-level marketing registration certificate to it;

b) It has terminated multi-level marketing activities under Clause 1, Article 17 of this Decree and fulfilled its responsibilities prescribed in Clause 2, Article 17 of this Decree;

c) It has opened an escrow account under Article 50 of this Decree at another bank or foreign bank branch.

2. When withdrawing its escrow under Point a, Clause 1 of this Article, an enterprise shall provide the bank with the Ministry of Industry and Trade’s original notice of the dossier return under Clause 3, Article 11 of this Decree.

3. When withdrawing its escrow under Point b or c, Clause 1 of this Article, an enterprise shall provide the bank with the original written consent of the Ministry of Industry and Trade under Clause 3 or 4, Article 52 of this Decree.

4. The bank where an enterprise opens its escrow account must obtain written confirmation from the Ministry of Industry and Trade before permitting the enterprise to withdraw the escrow.

Article 52. Dossiers, order and procedures for escrow withdrawal

1. Past the time limit of 60 working days from the date the provincial-level People's Committee issues a written receipt of a dossier for notification of termination of multi-level marketing activities or a decision on revocation of a multi-level marketing registration certificate takes effect, a multi-level marketing enterprise that has fulfilled the responsibilities prescribed in Clause 2, Article 17 of this Decree may submit to the Ministry of Industry and Trade a dossier of request for escrow withdrawal.

2. A dossier of request for escrow withdrawal must comprise:

a) A written request for escrow withdrawal, made according to Form No. 22 in the Appendix issued together with this Decree;

b) A list of multi-level marketing participants by the time of termination of multi-level marketing activities (their names, numbers of their identity cards/citizen identity cards or passports, addresses, telephones numbers, numbers of contracts on multi-level marketing participation, dates of contract entry, serial numbers of member cards).

3. Receipt of a dossier of request for escrow withdrawal:

a) Within 5 working days after receiving a dossier of request for escrow withdrawal, the Ministry of Industry and Trade shall examine the completeness and validity of the dossier.

In case the dossier is incomplete and invalid, the Ministry of Industry and Trade shall notify such in writing to the enterprise for modification and/or supplementation of the dossier. The time limit for dossier modification and/or supplementation is 10 working days after the Ministry of Industry and Trade issues the notice.

In case the dossier is complete and valid, the Ministry of Industry and Trade shall publicly announce on its website the enterprise’s termination of multi-level marketing activities and request for escrow withdrawal.

b) Within 30 working days after the Ministry of Industry and Trade publicizes the above information, multi-level marketing participants and the agencies competent to handle violations in multi-level marketing activities shall be responsible for notifying the Ministry of Industry and Trade that the multi-level marketing enterprise has not yet fulfilled the responsibilities prescribed in Clause 2, Article 17 of this Decree.

In case the multi-level marketing participants and the agencies competent to handle violations in multi-level marketing activities send no notice to the Ministry of Industry and Trade within the above time limit, the Ministry of Industry and Trade shall give a written permission for the enterprise to withdraw its escrow.

4. The procedures for withdrawing escrow in the case specified at Point c, Clause 1, Article 51 of this Decree:

a) A multi-level marketing enterprise shall send a written request for change of its escrow, enclosed with a copy of the written certification of escrow at a bank or another bank branch, to the Ministry of Industry and Trade;

b) Within 05 working days after receiving a dossier of request for change of escrow specified at Point a of this Clause, the Ministry of Industry and Trade shall send a written request to the bank or bank branch where the enterprise opens its new escrow account to certify the validity of the written certification of escrow;

c) Within 05 working days after receiving a written certification by the bank or bank branch where the enterprise opens its new escrow account, the Ministry of Industry and Trade shall give a written permission for the enterprise to withdraw money from the old escrow account.

Article 53. Handling of escrow

1. Escrow may be used in the following cases:

a) A multi-level marketing enterprise terminates its multi-level marketing activities without abiding by a legally effective decision of a competent agency on sanctioning of a violation in multi-level marketing activities.

b) A multi-level marketing enterprise terminates its multi-level marketing activities under Clause 1, Article 17 of this Decree but fails to fulfill all obligations related to multi-level marketing activities toward multi-level marketing participants, and there is a legally effective judgment of a court on the settlement of disputes between the multi-level marketing enterprise and multi-level marketing participants over such obligations.

2. Order and procedures for use of escrow in the case specified at Point a, Clause 1 of this Article:

a) In case an enterprise terminates its multi-level marketing activities but fails to abide by the effective decision of the competent agency on sanctioning of a violation in multi-level marketing activities, the agency issuing such sanctioning decision shall request in writing the Ministry of Industry and Trade to issue a document to request the bank where the enterprise opens its escrow account to deduct the escrow to execute the sanctioning decision;

b) Within 10 working days after receiving the written request, the Ministry of Industry and Trade shall issue a written request for the bank where the enterprise opens its escrow account to make deductions from such account for executing the sanctioning decision.

3. Order and procedures for use of escrow in the case specified at Point b, Clause 1 of this Article:

a) Based on the court’s legally effective judgment or ruling, a multi-level marketing participant shall fulfill the request for judgment enforcement in accordance with the law on enforcement of civil judgments;

b) In case it is allowed to use escrow under Clause 1, Article 50 of this Decree, the judgment enforcement agency shall send a proposal to the Ministry of Industry and Trade, enclosed with a copy of the legally effective judgment, a copy of the judgment enforcement decision, and the decision on deduction of money from the enterprise’s escrow account for judgment enforcement;

c) Within 10 working days after receiving the proposal from the judgment enforcement agency, the Ministry of Industry and Trade shall notify such to the judgment enforcement agency and the bank where the enterprise opens its escrow account for the latter to make deductions from such account for judgment enforcement.

In case it is determined that the dispute under the judgment does not fall into the cases eligible for use of escrow specified in Clause 1, Article 50 of this Decree, the Ministry of Industry and Trade shall notify such to the judgment enforcement agency for the latter to perform other judgment enforcement measures in accordance with law.

4. The Ministry of Industry and Trade shall permit the use of escrow as soon as it receives a valid request therefor.

5. After being used under Clauses 1, 2, 3 and 4 of this Article, if the escrow amount has not been used up but the enterprise has not yet fulfilled other obligations according to the court’s effective judgment, the remaining escrow amount shall be transferred to a competent judgment enforcement agency for judgment enforcement in accordance with law regulations.

Chapter VII

RESPONSIBILITY FOR STATE MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES

Article 54. Responsibilities of the Ministry of Finance

1. The Ministry of Industry and Trade shall take responsibility before the Government for performing the state management of multi-level marketing activities nationwide:

a) Grant, modification and supplementation, extension, re-grant and revocation of multi-level marketing registration certificates of enterprises;

b) To collect, manage and use appraisal charges for the grant of multi-level marketing registration certificates in accordance with law regulations;

c) To notify the grant, modification and supplementation, extension or revocation of multi-level marketing registration certificates to provincial-level People's Committees of localities where enterprises organize their multi-level marketing activities;

d) To examine and supervise multi-level marketing activities and handle violations according to its competence;

dd) To guide and coordinate with provincial-level People's Committees in the examination and handling of violations of the law regulations on management of multi-level marketing activities;

e) To notify and transfer to competent agencies for handling violations of the law regulations on management of multi-level marketing activities;

g) To organize professional training and refresher courses for cadres and civil servants directly performing the state management of multi-level marketing activities; to disseminate and popularize the law on management of multi-level marketing activities among multi-level marketing enterprises and participants;

h) To draft and submit to competent authorities for promulgation or revision of legal documents on management of multi-level marketing activities;

i) To develop and implement programs on dissemination and popularization in the mass media of the law on multi-level marketing activities;

k) To perform other responsibilities as prescribed in this Decree.

2. The Minister of Industry and Trade shall decentralize to specialized units under the Ministry the implementation of a number of management contents prescribed at Clause 1 of this Article.

Article 55. Responsibilities of ministries and ministerial-level agencies

1. The Ministry of Public Security:

a) To coordinate with the Ministry of Industry and Trade, provincial-level People’s Committees nationwide and other ministries and ministerial-level agencies in the state management of multi-level marketing activities;

b) To prevent and combat crimes and violations of law regulations on multi-level marketing activities;

c) To receive and process reports and denunciations against crimes related to multi-level marketing activities; to initiate criminal cases, investigate crimes and perform other judicial tasks as prescribed by law.

2. The Ministry of Health:

a) To examine and handle violations of multi-level marketing enterprises related to the conditions for trading in goods by the mode of multi-level marketing in the fields under its management in accordance with law regulations;

b) To examine and handle multi-level marketing enterprises’ violations of law regulations on the production, preliminary processing, processing, preservation, transportation, export, import or trading of foods, cosmetics and other products falling under its competence;

c) To examine and handle according to its competence activities of advertising, holding conferences and seminars, communicating and providing information about cosmetics, functional foods and other goods items of multi-level marketing enterprises under its management in accordance with law regulations.

3. The Ministry of Finance:

a) To perform the tax administration for multi-level marketing activities in accordance with the tax laws;

b) To promptly, accurately and objectively publicize information about multi-level marketing activities in accordance with the law on tax administration.

4. The Ministry of Science and Technology shall examine and handle multi-level marketing enterprises’ law violations in the fields of standardization, measurement and quality of products and goods and intellectual property falling under its competence.

5. The Ministry of Culture, Sports and Tourism shall direct and coordinate with press agencies in:

a) Formulating regular programs and thematic broadcasts to disseminate and popularize the law on multi-level marketing activities and warning people about disguised and illegal acts in multi-level marketing;

b) Reporting and providing prompt, accurate and objective information about practical operations of multi-level marketing enterprises.

6. The Ministry of Agriculture and Environment:

a) To examine and handle violations in the production and trading of and advertisement for products by multi-level marketing enterprises falling under its competence;

b) To examine and handle violations of multi-level marketing enterprises related to the conditions for trading in goods by the mode of multi-level marketing in the fields under its management in accordance with law regulations.

Article 56. Responsibilities of provincial-level People’s Committees

1. Provincial-level People’s Committees shall, within the ambit of their tasks and powers, perform the state management of multi-level marketing activities in their localities:

a) To issue regulations on coordination among related local agencies in inspecting, examining and supervising multi-level marketing activities in their localities;

b) To grant, modify and supplement, or revoke certifications of registration of multi-level marketing activities in their localities, certify the receipt of notices of termination of multi-level marketing activities in their localities; certify the receipt of notices of termination of multi-level marketing activities; recognize training programs on provision of legal knowledge about multi-level marketing; receive and resolve dossiers for notification of organization of conferences, seminars or training courses; conducting examinations of legal knowledge about multi-level marketing; conducting examinations of knowledge for persons acting as focal points in localities;

c) To inspect, examine and supervise multi-level marketing activities; activities of establishments providing training in legal knowledge about multi-level marketing;

d) To handle according to their competence or report to competent authorities for handling violations of the law regulations on management of multi-level marketing activities;

dd) To notify or transfer to competent agencies for handling violations of the law regulations on management of multi-level marketing activities;

e) To organize professional training and refresher courses for cadres and civil servants directly performing the state management of multi-level marketing; to disseminate and popularize the law on management of multi-level marketing activities among multi-level marketing enterprises and participants;

g) To submit annual reports before February 15 of the following year, made according to Form No. 23 in Appendix I issued together with this Decree or ad hoc reports at the request of the Ministry of Industry and Trade, regarding management of multi-level marketing activities in localities;

h) To perform other responsibilities as prescribed in this Decree.

2. Provincial-level People's Committees may authorize and decentralize to provincial-level specialized agencies in charge of industry and trade the implementation of management contents prescribed at Clause 1 of this Article.

Article 57. Handling of violations of multi-level marketing enterprises and participants

1. Multi-level marketing enterprises and participants that commit acts of violation prescribed in this Decree shall, depending on the nature and seriousness of their violations, be handled in accordance with the law on protection of consumer rights and law on handling of administrative violations or examined for penal liability in accordance with law regulations.

2. Multi-level marketing enterprises and participants that violate the provisions of this Decree, causing damage to other organizations and individuals, shall pay compensation in accordance with law regulations.

3. Results of handling of violations in multi-level marketing activities shall be publicized.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 58. Effect

1. This Decree takes effect on July 01, 2026.

2. This Decree replaces the Government's Decree No. 40/2018/ND-CP dated March 12, 2018, on the management of multi-level marketing activities; the Government's Decree No. 18/2023/ND-CP dated April 28, 2023, on amending and supplementing a number of articles of the Government’s Decree No. 40/2018/ND-CP of March 12, 2018, on the management of multi-level marketing activities.

3. Article 25 the Government's Decree No. 55/2024/ND-CP dated May 16, 2024 detailing a number of articles of the Law on Protection of Consumer Rights; Article 48 and Appendix XIV issued together with Decree No. 146/2025/ND-CP dated June 12, 2025 on the delegation of powers and decentralization in the field of industry and trade shall cease to be effective from the effective date of this Decree.

Article 59. Transitional provision

1. Enterprises granted multi-level marketing registration certificates before the effective date of this Decree may continue maintaining an escrow equal to 5% of its charter capital, which, however, must not be lower than VND 10 (ten) billion, at a commercial bank or foreign bank branch in Vietnam.

2. Within 12 months from the effective date of this Decree, multi-level marketing enterprises operating under Decree No. 40/2018/ND-CP (which was amended and supplemented by Decree No. 18/2023/ND-CP) shall be responsible for satisfying the conditions on multi-level marketing activities prescribed in this Decree.

3. Establishments providing training in legal knowledge about multi-level marketing whose training programs have been recognized shall be responsible for carrying out procedures for request for recognition of programs on provision of legal knowledge about multi-level marketing at provincial-level People’s Committees within 12 months from the effective date of this Decree.

4. Conditions, dossiers, order, and procedures for withdrawal and use of escrow of multi-level marketing enterprises possessing multi-level marketing registration certificates under the Government's Decree No. 40/2018/ND-CP dated March 12, 2018, on the management of multi-level marketing activities; the Government's Decree No. 18/2023/ND-CP dated April 28, 2023, on amending and supplementing a number of articles of the Government’s Decree No. 40/2018/ND-CP of March 12, 2018, on the management of multi-level marketing activities.

5. The withdrawal and use of escrow of multi-level marketing enterprises having multi-level marketing organization registrations granted under the Government’s Decree No. 110/2005/ND-CP of August 24, 2005, on management of multi-level marketing activities, shall be carried out at provincial-level People's Committees with relevant dossiers and according to the order and procedures prescribed in Clauses 2 and 3, Article 52, and Article 53, of this Decree.

Article 60. Responsibility of implementation

1. The Minister of Industry and Trade shall organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, chairpersons of provincial-level People’s Committees shall implement this Decree.

* All Appendices are not translated herein.