Fri. Jul 12th, 2024

Millions of Vietnamese people participate in multi-level marketing

Millions of Vietnamese people participate in multi-level marketing 3
Millions of Vietnamese people participate in multi-level marketing 3

Network Marketing or multi-level marketing is a method of marketing business products, selling directly to consumers.

Appearing in the world around the 70s of the last century with a lot of controversy, it was not until 1998 that this business model appeared in Vietnam.

By 2000, Sinh Loi Company appeared, operating in the form of multi-level business, but without any legal management, because at that time Vietnam did not have a legal corridor for this type of activity.

Multi-level marketing has appeared in Vietnam for nearly 20 years, attracting more than a million participants.

Tens of thousands of people have joined Sinh Loi’s network.

Not long after that, in response to many customer complaints about the product’s origin, in mid-2006, the Department of Planning and Investment of Ho Chi Minh City issued a decision to revoke Sinh Loi Company’s multi-level marketing license.

After Sinh Loi Company’s license was revoked, some leaders of this unit went to Hanoi to apply for a license with a new name Thien Ngoc Minh Uy Company and set up branches in many provinces and cities.

However, the past 5-6 years are considered a recovery period for multi-level business in Vietnam, when a series of multi-level business organizations were born and gradually increased sales.

According to the Competition Management Department, after nearly 20 years of presence in Vietnam, the business products of multi-level companies have developed very widely from functional foods, cosmetics, household appliances, fashion goods,

Also according to this agency, the majority of businesses sell products imported from abroad.

Revenue in this field also increased 10 times within 8 years, from 614 billion VND in 2006 to 6,447 billion VND in 2013. In the first 6 months of 2015 alone, the total revenue of the industry was 3,200 billion VND.

According to estimates by the Competition Management Department, multi-level businesses currently register about over 7,000 items.

Multi-level marketing companies can apply different compensation structures such as¬†pyramid models, binary and matrix models… However, besides regular multi-level marketing businesses, within the framework

In addition, businesses make false advertisements about the nature and uses of goods and products… Even many companies do not have real products, do not organize real sales, and only invite people.

Recently, the leader of the Viet Link multi-level business system was prosecuted by the police for allegedly impersonating a company belonging to the Ministry of Defense, luring and defrauding 45,000 people to participate in the multi-level business of functional foods.

This is not the first time leaders of multi-level businesses have been caught up in legal trouble.

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