Letter from MLMA Chairwoman

Ladies and Gentlemen

In the trend of competition and integration with the world economy in Vietnam, multi-level marketing is considered a particular in comparison with other traditional trading activities because it is a mode of direct marketing to retail goods to consumers through the network of Distributors who take part in multi-level marketing.

Due to the characteristic and nature of multi-level marketing, consumers may be the next business partner, have condition to be consulted on features and effect of products and guided carefully on how to use products correctly in accordance with regulations of manufacturers, guaranteed to get the stable price, felt secure about the quality of products through inspection and censor of authorities such as Ministry of Health, Ministry of Industry and Trade…. Nevertheless, this is also a sensitive business and due to the nature of working in network that include many separate individuals who directly get in touch with customers, so if MLM enterprises do not have training programs on law, professional ethics and business culture as well as have strictly fining sanction for violation or lack of supervise and control, it is easy leading to the status of some Distributors may tell incorrectly about products use or commission policy due to their own benefits, which leading to tricking consumers or even their downlines into obedience, bring about dissatisfactory in society and effect the image of multi level marketing industry.

Since the National Assembly issued Competition Law (March 12, 2004) and Government issued Decree No. 110/2005/ND-CP (August 24, 2005) on administration of multi level selling activities, the MLM enterprises in Vietnam have had much advantages in operation and MLM activities gradually come into order and discipline. Actual evidences show that the developed enterprises are ones who follow closely to the guidelines and policies of Party and Law of the State. There, all activities and management works are institutionalized by internal rules and regulations, business good heart and ethics are esteemed, have politely and civilly behavior with customers, always connect closely their business operation with social work and community serving.

Effectiveness made by MLM have changed and enriched trading activities in Vietnam in the integration period together with the growth of Distributor force and MLM enterprises, which help Government decided to approve for establishing Vietnam Multi Level Marketing Association (MLMA) in order to create a link between State management authorities and MLM enterprises, standardize the MLM operations which are complicated naturally to become order in accordance with regulations of law. With the comprehensive training program for MLM participants, that include the knowledge on law, products, sales skill, communicated skill, MLM business ethical standard, tax policy as well as tax duty for company and personal etc, it is sure that MLM activities in Vietnam will be sound and develop in parallel with other professions in society. For over past 5 years, MLM operation has gained some remarkable advance with participation of more than 40 MLM Vietnamese and foreign companies, over 500,000 Distributors, getting over 1,000 billion dong turnover annually, paying corporate and personal income tax with over 500 billion dong.

With belief and happiness in the great day of MLMA’s Presentation Ceremony, on behalf of MLMA Executive Committee, I would like to express our deep gratitude to Party and Government, functional Ministries, Departments and Industries from the central to local for their great concern, guideline, support and assistance for the organization come out into society and have good condition for operation. We highly appreciate MLM enterprises for their cooperation and contribution to make MLM activities in Vietnam stronger and stronger and contribute to build the Association organization successfully. I wish we would continue to get your cooperation and contribution in the next time.  

Wish you healthy and success. Wish MLMA will develop incessantly.

Hanoi, March 15, 2010

MLMA Chairwoman


Truong Thi Nhi