Fashion
Vietnam’s Ministry of Industry and Trade (MoIT) is investigating seven multi-level marketing companies, including Amway Vietnam.
With a focus on uncovering illegal pyramid schemes masquerading as business opportunities, the investigation is expected to be completed next month.
In late March, the MoIT assembled a team to look into Amway Vietnam, Unicity Marketing Vietnam, Thien Ngoc Minh Uy, Tap Doan Lien Ket Vietnam, Lien Ket Tri Thuc, Lien Minh Tieu Dung Thang Long and Nhuong Quyen Thang Long.
Amway Vietnam, Unicity Marketing Vietnam and Thien Ngoc Minh Uy have the largest revenues of multi-level marketing companies in Vietnam.
In the investigation team are representatives from MoIT’s Vietnam Competition Authority (the government’s management body for multi-level marketing businesses) and Market Management Department, which works in tandem with the Police Investigative Department on Economic and Corruption-related Crimes.
Since March 9, the Vietnam Competition Authority has revoked the registration certificates of five companies for fraudulent activities, and the Hanoi Department of Industry and Trade has punished several companies for violating regulations on multi-level marketing businesses in the capital city.
The investigations were launched after MoIT’s minister Vu Huy Hoang issued a directive requiring agencies to search out pyramid schemes falsely labelled as multi-level marketing companies.
In February, the Lien Kiet Viet company was caught after swindling about 60,000 people in more than 27 cities and provinces, appropriating a total of VND1.9 trillion ($87.15 million) since 2014.
Multi-level marketing firms were allowed into Vietnam at the request of foreign countries during Vietnam’s negotiations to join the World Trade Organization. Since 2009, foreign-owned companies have been permitted to run these businesses, and now nearly half of the 61 companies in this segment are wholly foreign-backed.
