Decree No. 137/2026/NĐ-CP On Management of Business Operations Using a Multi-Level Marketing Scheme

DECREE

ON THE MANAGEMENT OF BUSINESS ACTIVITIES USING A MULTILEVEL SYSTEM

BASED ON THE ORGANIZATION LAW OF THE COUNCIL OF MINISTRIES NO. 63/2025/QH15;

BASED ON THE INVESTMENT LAW NO. 143/2025/QH15;

BASED ON THE CONSUMER PROTECTION LAW NO. 19/2023/QH15;

ACCORDING TO THE RECOMMENDATION OF THE MINISTER OF INDUSTRY AND TRADE;

THE COUNCIL OF MINISTERS ISSUES THIS DECREE ON THE MANAGEMENT OF BUSINESS ACTIVITIES USING A MULTILEVEL SYSTEM.

CHAPTER I
GENERAL PROVISIONS

Article 1. Scope of Application

This Decree stipulates the registration of multilevel sales activities, management of multilevel sales activities at local levels, management of participants in multilevel sales activities, multilevel sales activities, deposit and responsibilities for managing business activities using a multilevel system.

Article 2. Applicability

1. Multilevel sales enterprises.

2. Participants in multilevel sales activities.

3. Local focal points.

4. Trainers.

5. Other organizations and individuals related to business activities using a multilevel system.

Article 3. Interpretation of Terms

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

1. Business activity using a multilevel system is a commercial activity that uses a network of participants comprising multiple levels and branches, where participants receive commissions, bonuses, and other economic benefits from their own business results and those of others in the network.

2. Multilevel sales enterprise is an enterprise that has been authorized by competent authorities to conduct multilevel commercial activities as prescribed in this Decree.

3. Participant in multilevel sales activity is an individual who enters into a contract with a multilevel sales enterprise to participate in the multilevel sales network.

4. Top-tier distributors are participants in multilevel sales activities at three levels, positions, and highest titles within the participant network of the enterprise in Vietnam at a specific point in time or participants in multilevel sales activities who receive commissions, bonuses, and other economic benefits of one billion Vietnamese dong or more in the previous financial year.

5. Trainer is an individual designated by a multilevel sales enterprise to provide basic training for participants in its own multilevel sales network. The trainer must comply with the provisions of Article 34 of this Decree.

6. Local focal point is an individual authorized by a multilevel sales enterprise to perform work, provide information and documents related to the multilevel sales activities of the enterprise at local levels as required by state management agencies in cases where the multilevel sales enterprise does not have a branch office, representative office, or business premises at the local level. The local focal point must comply with the provisions of paragraph 2 of Article 20 of this Decree.

7. Participation contract is a written agreement between an individual and a multilevel sales enterprise regarding participation in the multilevel sales network. A participation contract is not a labor contract.

8. Operational rules are the set of rules established by a multilevel sales enterprise to regulate the behavior of participants in multilevel sales activities, procedures, and processes for implementing multilevel sales activities.

9. Reward plan is a plan used by a multilevel sales enterprise to calculate commissions, bonuses, and other economic benefits that participants in multilevel sales activities receive from their own business results and those of others in the network.

10. Sales position, sales code are the positions and codes assigned to participants in multilevel sales activities within the network for calculating commissions, bonuses, and other economic benefits paid to participants in multilevel sales activities.

11. Seminars, conferences on multilevel sales are activities that involve introducing, honoring, informing, guiding, training, and sharing related to multilevel sales activities.

Article 4. Subjects of Business Operations through Multi-Level Marketing

1. Business operations through multi-level marketing shall be conducted only with goods. All business operations through multi-level marketing involving subjects that are not goods are prohibited, except where the law provides otherwise.

2. Goods sold through multi-level marketing do not include any of the following:

a) Goods such as medicines; medical devices; veterinary drugs (including aquatic animal veterinary drugs); plant protection products; chemicals, insecticides, and disinfectants with limited use and prohibited for household and medical purposes, and other hazardous chemicals;

b) Digital content products.

Article 5. Development of Multi-Level Marketing Sales Network Not Based on Goods Transactions

The development of a multi-level marketing sales network not based on goods transactions as provided in Point d, Clause 2, Article 10 of the Law on Protecting Consumers' Rights and Interests includes the following forms:

1. Allowing participants in multi-level marketing to receive money or other economic benefits from introducing others to participate in multi-level marketing activities without being based on the purchase and sale of goods by the introduced person.

2. Maintaining more than one participation contract, multi-level marketing business position, multi-level marketing business code, or equivalent forms for the same participant in multi-level marketing.

3. Implementing promotional activities using a network with multiple levels and branches where participants have more than one position, code, or equivalent form.

4. Organizing commercial intermediary activities as provided by commercial law to serve the maintenance, expansion, and development of the multi-level marketing sales network.

5. Buying, selling, or transferring a participant in multi-level marketing's network to another enterprise, except where purchasing, merging, or consolidating enterprises.

Article 6. Method of Administrative Procedure Implementation

1. Administrative procedures under this Decree may be submitted directly, through postal services, or via the National E-Government Portal.

2. For documents in administrative procedures as provided in this Decree where the form is a certified copy, enterprises may submit a copy and present the original for verification upon receipt of the application.

3. For applications submitted through the National E-Government Portal, enterprises use electronic signatures to confirm on the documents within the application package. The results of the administrative procedure are returned via the National E-Government Portal.

4. Enterprises may suspend the implementation of administrative procedures as provided by law.

5. Authorities responsible for receiving and processing administrative procedures utilize information from existing databases to resolve such procedures. In cases where information cannot be accessed or is incomplete, the following actions are taken:

a) For applications submitted online on the National E-Government Portal, authorities must notify applicants of any required additional or corrective documentation within the time limit specified in this Decree from when the Administrative Procedure Information System receives the application. Notifications can be sent to the organization's or individual's account on the National E-Government Portal; via text message or contact through a phone number, email address provided by the organization or individual; and guidance is given for contacting relevant authorities to update or adjust data.

b) For applications submitted directly or through postal services, authorities send requests for additional or corrective documentation within the time limit specified in this Decree; implement document digitization for administrative procedure resolution; and provide guidance for organizations or individuals to contact relevant authorities to update or adjust data.

Chapter II
REGISTRATION OF MULTILEVEL SALES ACTIVITY

Article 7. Registration of Multilevel Sales Activity

Multilevel sales activity must be registered in accordance with the provisions of this Decree.

Article 8. Conditions for Registration of Multilevel Sales Activity

1. An organization registering multilevel sales activity shall meet the following conditions:

a) A business entity established in Vietnam in accordance with the law and has not had its multilevel sales operation registration certificate revoked;

b) A member of a general partnership, owner of an individual or one-person limited liability company, member of a limited liability company with two or more members, shareholder of a joint stock company, legal representative, or business manager who has never held any of the aforementioned roles at a multilevel sales enterprise whose registration certificate was revoked;

c) A margin deposited in a commercial bank or branch of a foreign bank in Vietnam as prescribed under Clause 2 of Article 50 of this Decree;

d) A model contract for participating in multilevel sales, operating rules, reward plan, and basic training program that are clear, transparent, and comply with the provisions of the law on managing business operations through a multilevel system;

d) A system of information technology to manage the network of participants in multilevel sales, an electronic website to provide information about the enterprise and its multilevel sales activities;

e) In the case where the organization registering multilevel sales activity is a business entity with foreign investors or an economic organization with foreign capital as owner, shareholder, or member, all such foreign investors and foreign-capitalized organizations must have at least three consecutive years of practical experience in operating through a multilevel system in one country or region in the world.

2. A business registering multilevel sales activity shall prepare an application for issuance of a registration certificate for multilevel sales activity as prescribed under Article 10 of this Decree and bear responsibility for the legality of the application.

Article 9. Registration Certificate for Multilevel Sales Activity

1. The registration certificate for multilevel sales activity is effective for a period of five years from the date of issuance.

2. The registration certificate for multilevel sales activity shall be issued in two original copies, one copy to be given to the business registering multilevel sales activity and one copy to be retained by the Ministry of Industry and Trade, except where the application is processed through the National E-Government Service Portal.

3. The registration certificate for multilevel sales activity shall include the following contents: Name of the enterprise; information on business registration certificate/investment registration certificate (if applicable): Enterprise identification number, place of issuance, date of first issuance, most recent change date; principal office address, telephone number, fax number (if any), website, email; information on legal representative: full name, nationality, identity card/passport information, position, current residence.

Article 10. Application for Issuance of Registration Certificate for Multilevel Sales Activity

The application for issuance of a registration certificate for multilevel sales activity shall include the following documents (with seals affixed by the enterprise):

1. One application form for issuance of a registration certificate for multilevel sales activity in accordance with Form No. 01 attached as Appendix I to this Decree.

2. One copy of the articles of association of the business entity.

3. One list of subjects referred to in Point b, Clause 1, Article 8 of this Decree, including personal identification information (Identity card or Identity Card, Resident Identity Card), passport information for individuals with foreign nationality, business registration number in case of a business entity, copies of passports and legal documents of residence issued by competent authorities of Vietnam for foreigners residing in Vietnam; copies of passports for foreigners not residing in Vietnam; copies of legal documents on the establishment of an organization in case of an overseas organization.

4. One set of documents related to multilevel sales activities of the business entity, including:

a) Model contract for participating in multilevel sales;

b) Reward plan;

c) Basic training program;

d) Operating rules.

5. One list of goods sold through a multilevel system, including the following information: Name, type, origin, packaging specifications, selling price and corresponding reward points for conversion, effective date.

6. One copy of the margin confirmation document.

7. One technical explanation document on the information technology system managing participants in multilevel sales activities that complies with Article 44 of this Decree, including basic information as follows:

a) IP address and physical location of the server;

b) System operation mechanism, including structural description of the system, data import, export, and storage mechanisms, data management methods;

c) Information under Article 44 of this Decree.

8. Documentation proving that the enterprise has an electronic website complying with the provisions of Article 45 of this Decree.

9. Documentation proving compliance with the conditions specified in Point e, Clause 1, Article 8 of this Decree, in case the business entity has foreign investors or economic organizations with foreign capital as owners, shareholders, or members.

10. Business license containing content authorizing the right to engage in retail distribution activities, including multilevel retail sales activities, in case the business entity has foreign investors or economic organizations with foreign capital as owners, shareholders, or members.

Article 11. Procedure for Issuance, Amendment and Extension of Registration Certificate for Multi-Level Marketing Activities

1. Receipt of Application

a) The enterprise shall submit one set of application documents as specified in Article 10 of this Decree (accompanied by an electronic document in the ".doc" or “.docx” format for documents specified in Clause 4, Article 10 of this Decree and in the ".xls" or “.xlsx” format for documents specified in Clause 5, Article 10 of this Decree) to the Ministry of Industry and Trade;

b) Within five working days from the date of receipt of the application, the Ministry of Industry and Trade shall be responsible for checking the completeness and validity of the application. In case the application is incomplete or invalid, the Ministry of Industry and Trade shall notify the enterprise in writing to amend and supplement the application;

c) If the enterprise fails to amend and supplement the application within thirty working days from the date the Ministry of Industry and Trade issues a notification for amendment and supplementation, the Ministry of Industry and Trade shall return the application to the enterprise.

2. Review of Application

a) After receiving a complete and valid application, the Ministry of Industry and Trade shall notify the enterprise to pay the fee for issuance, amendment and extension of the registration certificate for multi-level marketing activities. The Ministry of Industry and Trade shall return the application if the enterprise fails to pay the review fee within thirty working days from the date of notification;

b) The Ministry of Industry and Trade shall review the application within fifteen working days from the date of receiving the review fee;

c) Content of Review: Reviewing the contents of the documents in the application, ensuring compliance with legal provisions on the management of business operations through multi-level marketing.

In case the application is related to a guarantee confirmation document, the Ministry of Industry and Trade shall send a written confirmation to the bank where the enterprise has deposited funds regarding the authenticity of the guarantee confirmation document. The bank shall respond within five working days from the date it receives the document from the Ministry of Industry and Trade.

d) In case the application of the enterprise does not meet all the conditions specified in this Decree, the Ministry of Industry and Trade shall notify the enterprise in writing to amend and supplement the application. The enterprise may submit additional documents once within thirty working days from the date the Ministry of Industry and Trade issues a notification.

The review period for amendment and supplementation applications is ten working days from the date the Ministry of Industry and Trade receives the amended or supplemented application.

3. Return of Application

a) In case the enterprise fails to amend and supplement the application within the time limit specified in Clause d, Article 2, or if the application does not meet all the conditions specified in this Decree after amendment and supplementation, or if the bank has not responded as required, the Ministry of Industry and Trade shall return the application to the enterprise in writing, specifying the reasons for returning the application;

b) In case the enterprise withdraws the application during the receipt and processing of the application, the Ministry of Industry and Trade shall return the application to the enterprise.

4. Issuance, Amendment and Extension of Registration Certificate for Multi-Level Marketing Activities

If the application of the enterprise meets all the conditions specified in this Decree, the Ministry of Industry and Trade shall issue, amend or extend the registration certificate for multi-level marketing activities according to Form No. 02 and Form No. 04 attached as Appendix I to this Decree and deliver one copy of the documents specified in Clause 4, Article 10 of this Decree with the seal of the Ministry of Industry and Trade affixed or embossed to the enterprise.

5. Within five working days from the date of issuance, amendment or extension of the registration certificate for multi-level marketing activities, the Ministry of Industry and Trade shall be responsible for publishing on the website of the issuing authority of the registration certificate for multi-level marketing activities, notifying the bank where the enterprise has deposited funds, and providing a copy of the registration certificate for multi-level marketing activities along with copies of the documents specified in Clauses 4 and 5, Article 10 of this Decree to provincial people's committees nationwide by one of the following methods:

a) By postal service;

b) By email;

c) Through the Ministry of Industry and Trade’s multi-level marketing management information system.

6. For applications submitted through the National E-Government Portal, the enterprise shall use electronic signature to confirm on the documents in the application package. The result of the procedure will be returned through the National E-Government Portal.

Article 12. Amendment and Supplement of Multi-Level Marketing Operation Registration Certificate

1. A multi-level marketing enterprise shall be responsible for submitting the procedure to amend or supplement its multi-level marketing operation registration certificate in the following cases:

a) In case there is a change in registered information, information related to deposit, the enterprise shall submit the amendment and supplementation procedures of the multi-level marketing operation registration certificate within 30 working days from the date when such changes are confirmed by the business registration authority or the bank;

b) In case there is a change related to Clause 4, Clause 7, and Clause 8 of this Decree, the enterprise shall submit the amendment and supplementation procedures of the multi-level marketing operation registration certificate before applying.

2. Where information in the list of goods sold through the multi-level marketing method changes, the enterprise is responsible for publicly disclosing such information on its electronic information platform prior to application and bears responsibility for the content disclosed.

Article 13. Application, Procedure, and Process for Amendment and Supplement of Multi-Level Marketing Operation Registration Certificate

1. The application for amendment or supplementation of multi-level marketing operation registration certificate includes:

a) An application form for amendment or supplementation of multi-level marketing operation registration certificate in accordance with Form No. 03 attached as Appendix I to this Decree;

b) Information and documents prescribed by Article 10 of this Decree related to the contents of amendment or supplementation of the multi-level marketing operation registration certificate.

2. The procedure for amendment or supplementation of multi-level marketing operation registration certificate is carried out in accordance with the provisions of Article 11 of this Decree.

3. The enterprise shall publicly disclose the change in information on the list of goods sold through the multi-level marketing method at least five working days before implementation, including the following documents:

a) A notification of changes to the list of goods sold through the multi-level marketing method specifying the contents changed and the effective date;

b) The updated list of goods sold through the multi-level marketing method;

c) Product announcement forms or equivalent documents in accordance with legal provisions.

Article 14. Reissuance of Multi-Level Marketing Operation Registration Certificate

1. In case the multi-level marketing operation registration certificate is lost, torn, or destroyed, a multi-level marketing enterprise shall submit an application for reissuance of the multi-level marketing operation registration certificate in accordance with Form No. 05 attached as Appendix I to this Decree to the Ministry of Industry and Trade.

2. Within five working days from the date of receipt of a valid application for reissuance of the multi-level marketing operation registration certificate, the Ministry of Industry and Trade shall reissue the multi-level marketing operation registration certificate to the enterprise.

Article 15. Extension of Multi-Level Marketing Operation Registration Certificate

1. The multi-level marketing operation registration certificate may be extended multiple times, each time for a period of five years.

2. A multi-level marketing enterprise is entitled to extend its multi-level marketing operation registration certificate if it meets the conditions specified in Article 8 of this Decree.

3. At least three months before the expiration of the multi-level marketing operation registration certificate, the multi-level marketing enterprise shall be responsible for submitting the procedures for extending the multi-level marketing operation registration certificate.

4. The application for extension of multi-level marketing operation registration certificate includes:

a) An application form for extension of multi-level marketing operation registration certificate in accordance with Form No. 06 attached as Appendix I to this Decree;

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

5. The procedure for extension of multi-level marketing operation registration certificate is carried out in accordance with the provisions of Article 11 of this Decree.

In case the multi-level marketing operation registration certificate expires during the processing of the application, the Ministry of Industry and Trade shall notify the enterprise to return the application documents; no extension will be granted if the multi-level marketing operation registration certificate has expired.

Article 16. Revocation of Business Operation Registration Certificate for Multi-Level Marketing

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

a) Where the business operation registration certificate has been revoked or where the enterprise has dissolved or gone bankrupt in accordance with the provisions of the law;

b) Where the application file for issuing the business operation registration certificate contains false information;

c) Where the enterprise has been penalized for any of the acts of violation specified at Clause 1, Points b, d, e, g of Article 10 of the Law on Protection of Consumer Rights and Interests; Point 14 of Paragraph 40; Article 46; and Paragraph 3 of Article 47 of this Decree during the course of conducting multi-level marketing activities in accordance with the provisions of the law;

d) Where the enterprise fails to promptly rectify according to the requirements of the competent authority for managing multi-level marketing activities to meet all the conditions specified at Article 8 of this Decree during the course of conducting multi-level marketing activities.

2. The business operation registration certificate shall cease to be effective from the date on which a decision revoking the business operation registration certificate becomes legally effective.

3. Procedures and formalities for revocation of the business operation registration certificate:

a) The Ministry of Industry and Trade shall issue a decision revoking the business operation registration certificate when any of the cases specified in Clause 1 of this Article occur;

b) Within ten working days from the date on which the decision revoking the business operation registration certificate becomes effective, the Ministry of Industry and Trade shall be responsible for notifying the people's committee at provincial level throughout the country by one of the methods prescribed in Paragraph 5 of Article 11 of this Decree and announcing it on the website of the Ministry of Industry and Trade.

Article 17. Termination of Multi-Level Marketing Operations

1. Cases for termination of multi-level marketing operations:

a) Where the business operation registration certificate has ceased to be effective without being renewed in accordance with the provisions of Article 15 of this Decree;

b) Where the enterprise voluntarily terminates its multi-level marketing operations;

c) Where the business operation registration certificate is revoked by an authority competent therefor.

2. Upon termination of multi-level marketing operations, the multi-level marketing enterprise shall undertake the following responsibilities:

a) Notify in writing to the people's committee at provincial level, publicly display at its main office, branch offices, representative offices, and business premises, announce on the homepage of its website;

b) Terminate and liquidate contracts for participating in multi-level marketing and settle the rights and interests of participants in accordance with the provisions of the law governing management of multi-level marketing activities;

c) Fulfill all obligations according to a decision imposing penalties for violations related to business operations through a multi-level marketing scheme.

Article 18. Procedures and Formalities for Termination of Multi-Level Marketing Operations

1. In the case where an enterprise voluntarily terminates its multi-level marketing operations:

a) The notification file for terminating multi-level marketing activities shall include: Notification to terminate multi-level marketing activities according to Form No. 07 in Appendix I attached hereto;

b) Procedures and formalities for terminating multi-level marketing activities:

The enterprise shall submit the notification file for terminating multi-level marketing activities to the people's committee at provincial level;

If the file does not meet the requirements specified at point a of this clause, the people's committee at provincial level shall issue a notice amending and supplementing within five working days from the date on which it receives the file. The amendment and supplementation period is fifteen working days from the date on which it receives the notice.

If the enterprise fails to amend or supplement the file in time, or if the file does not meet the requirements, the people's committee at provincial level shall notify the enterprise in writing of returning the file, specifying the reasons for returning the file.

Within five working days from the date on which it receives a valid notification file for terminating multi-level marketing activities, the people's committee at provincial level shall issue a written confirmation of receipt of the notification file for terminating multi-level marketing activities, notify the Ministry of Industry and Trade and the people's committees at provincial level throughout the country by one of the methods prescribed in Paragraph 5 of Article 11 of this Decree, and announce it on the website of the people's committee at provincial level.

If complaints are received from organizations or individuals regarding the enterprise’s failure to fulfill its responsibilities as specified in paragraph 2 of Article 17 of this Decree, the people's committee at provincial level shall notify the enterprise to resolve the issue, and notify the people's committee at provincial level where the file was submitted and the Ministry of Industry and Trade.

2. In the case where an enterprise terminates its multi-level marketing operations due to the business operation registration certificate for multi-level marketing ceasing to be effective or being revoked:

a) The notification file for terminating multi-level marketing activities shall include: Notification to terminate multi-level marketing activities according to Form No. 07 in Appendix I attached hereto;

b) Procedures and formalities for terminating multi-level marketing activities:

Within seven working days from the date on which the business operation registration certificate for multi-level marketing ceases to be effective or is revoked, the enterprise shall submit the notification file for terminating multi-level marketing activities to the people's committee at provincial level;

If the file does not meet the requirements specified at point a of this clause, the people's committee at provincial level shall issue a notice amending and supplementing within five working days from the date on which it receives the file. The amendment and supplementation period is fifteen working days from the date on which it receives the notice.

If the enterprise fails to amend or supplement the file in time, or if the file does not meet the requirements, the people's committee at provincial level shall notify the enterprise in writing of returning the file, specifying the reasons for returning the file.

Within five working days from the date on which it receives a valid notification file for terminating multi-level marketing activities, the people's committee at provincial level shall issue a written confirmation of receipt of the notification file for terminating multi-level marketing activities, notify the Ministry of Industry and Trade and the people's committees at provincial level throughout the country by one of the methods prescribed in Paragraph 5 of Article 11 of this Decree, and announce it on the website of the people's committee at provincial level.

In the event of receiving a complaint from an organization or individual regarding a direct selling enterprise failing to fulfill its obligations as stipulated in Clause 2, Article 17 of this Decree concerning activities conducted at the local level, the People's Committee of the province shall notify the enterprise to address the issue and inform the People's Committee of the province where the complaint was received and the Ministry of Industry and Trade.

Chapter III
LOCAL REGULATION OF DIRECT SELLING ACTIVITIES

Article 19. Direct Selling Activities at the Local Level

A direct selling enterprise is considered to have conducted direct selling activities at the local level if it falls under any of the following circumstances:

1. The enterprise has its headquarters, branch office, representative office, or business premises that perform functions related to direct selling activities at the local level.

2. The enterprise organizes a seminar, workshop, or training on direct selling at the local level.

3. A person engaged in direct selling by the enterprise has their current place of residence within the locality or conducts marketing and direct selling activities at the local level.

Article 20. Registration of Direct Selling Activities at the Local Level

1. The direct selling enterprise is responsible for completing the registration procedures with the People's Committee of the province, and may only commence direct selling activities after receiving a written confirmation of registration from that People's Committee.

2. In cases where there are no headquarters, branch offices, or business premises at the local level, the direct selling enterprise is responsible for designating an individual as a liaison to work with local state management agencies. The local liaison of the direct selling enterprise must meet the following conditions:

a) Has their current place of residence within the locality;

b) Does not fall under the circumstances specified in Point a, Clause 2, Article 28 of this Decree;

c) Has passed the knowledge test as required by Article 39 of this Decree;

d) Is authorized by the enterprise to provide information and relevant documents related to direct selling activities at the local level in response to requests from state management agencies for business operations conducted under a multi-level marketing scheme.

3. The direct selling enterprise is responsible for maintaining and producing records and documents related to direct selling activities at the local level upon request by competent regulatory authorities.

Article 21. Registration Documents, Procedures, and Processes for Direct Selling Activities at the Local Level

1. The registration document for direct selling activities at the local level includes:

a) A registration application form for direct selling activities at the local level as specified in Form No. 08 attached to this Decree;

b) In cases where there are no headquarters, branch offices, or business premises at the local level, the enterprise shall provide relevant information and documents concerning the liaison, including: personal identification information or a copy of their passport if they are an individual from abroad; criminal history records; documentation proving that they have passed the knowledge test as required by Article 39 of this Decree; and one written authorization specifying the scope of work, rights, and obligations of all parties.

2. The enterprise shall submit the registration document for direct selling activities at the local level to the People's Committee of the province where it plans to operate (submit directly, via postal service, or through the National E-Government Portal).

3. If the submitted documents are not fully complete and compliant with the provisions in paragraph 1 within five working days from receipt of the application, the People's Committee of the province shall notify the enterprise to make corrections or supplements. The period for making corrections or supplements does not exceed fifteen working days from the date of issuance of the notification by the People's Committee of the province. If the enterprise fails to correct or supplement the documents within the specified time, the People's Committee of the province will return the application.

Within five working days from receipt of a fully complete and compliant document, the People's Committee of the province shall issue a written confirmation of registration for direct selling activities at the local level as per Form No. 09 attached to this Decree. In case of refusal, the People's Committee of the province is responsible for responding in writing, specifying the reasons for refusal.

4. Within three working days from issuance of the written confirmation of registration for direct selling activities at the local level, the People's Committee of the province shall publish on its official website and send a copy of the confirmed document to the Ministry of Industry and Trade in accordance with the methods specified in Paragraph 5, Article 11 of this Decree.

Article 22. Registration of Amendments and Supplementations to Multi-Level Marketing Activities at the Local Level

1. During the operation of multi-level marketing activities in provinces, municipalities directly under the Central Government, the multi-level marketing enterprise shall, upon any change affecting its operations at the local level, register such amendments or supplements with the People's Committee of the province concerned:

a) Headquarters, branch offices, representative offices, business premises;

b) Local contact points.

2. Within fifteen working days from the date of information changes as provided in paragraph 1 of this Article, the enterprise shall submit such amendments or supplements according to Form No. 10 attached hereto and relevant documents specified at point (b) of paragraph 1 of Article 21 of this Decree pertaining to the content of amendments or supplements to the People's Committee of the province.

3. In case the application is incomplete or invalid, within five working days from the date of receipt of the application, the People's Committee of the province shall notify in writing for the enterprise to make corrections or supplements. The enterprise may submit one additional set of documents within fifteen working days from the date on which the People's Committee issues such notification. In case the enterprise fails to correct or supplement the application within the aforementioned period, the People's Committee shall return the application.

4. Upon receipt of a complete and valid application, within five working days from the date of receiving the application, the People's Committee of the province shall issue a written confirmation of registration for amendments or supplements to multi-level marketing activities at the local level according to Form No. 11 attached hereto. In case of refusal to confirm, the People's Committee of the province shall respond in writing with reasons.

5. The People's Committee of the province shall publish on its official website and notify the Ministry of Industry and Trade within five working days from the date of issuance of the confirmation document regarding the registration for amendments or supplements to multi-level marketing activities at the local level of the multi-level marketing enterprise, in accordance with one of the methods specified in paragraph 5 of Article 11 of this Decree.

Article 23. Revocation of Confirmation of Registration of Multi-Level Marketing Activities at the Local Level

1. The People's Committee of the province shall revoke the confirmation of registration for multi-level marketing activities at the local level in any of the following cases:

a) The application for registration of multi-level marketing activities contains false information;

b) The enterprise fails to conduct multi-level marketing activities at the local level for twelve consecutive months;

c) Failure to comply with the responsibilities specified in paragraph 11 of Article 40 of this Decree;

d) The business license for registration of multi-level marketing activities has been revoked by a competent authority or expired without renewal;

d) The enterprise fails to meet the conditions for conducting multi-level marketing activities at the local level as specified in paragraphs 2 and 3 of Article 20 of this Decree, or does not maintain its presence at the local level as registered.

2. Within five working days from the date of issuance of the decision to revoke the confirmation of registration for multi-level marketing activities at the local level, the People's Committee of the province shall publish on its official website and notify the Ministry of Industry and Trade in accordance with one of the methods specified in paragraph 5 of Article 11 of this Decree.

3. The confirmation of registration for multi-level marketing activities ceases to have legal effect from the date such revocation decision becomes effective.

4. Within thirty working days from the date such revocation decision becomes effective, the enterprise shall complete the procedures for termination of multi-level marketing activities at the local level in accordance with Article 24 of this Decree.

5. The People's Committee of the province shall not reissue a confirmation of registration for multi-level marketing activities at the local level to the multi-level marketing enterprise within six months from the date such revocation decision becomes effective for cases specified in point (b) of paragraph 1, and twelve months for other cases specified in points (a) and (c) of paragraph 1.

Article 24. Termination of Multilevel Marketing Activities in a Local Area

1. Cases for the termination of multilevel marketing activities in a local area:

a) The enterprise has its registration confirmation for multilevel marketing activities revoked by the local authority;

b) The enterprise voluntarily terminates multilevel marketing activities in a local area.

2. Upon the termination of multilevel marketing activities in a local area, the multilevel marketing enterprise shall fulfill the following responsibilities:

a) Publicly display at its principal office, branch offices, representative offices, and business premises (if any) within the local area for five working days from the date of termination of multilevel marketing activities, and announce on the main website of the enterprise; notify in writing to the provincial people's committee where the enterprise terminates its operations;

b) Terminate and liquidate contracts related to multilevel marketing activities and resolve the rights and interests of local participants in multilevel marketing activities in accordance with the provisions of the law governing the management of multilevel marketing activities;

c) Fulfill obligations under decisions on handling violations in multilevel marketing activities by the competent authority at the local level.

3. The enterprise is not required to perform the procedure for terminating multilevel marketing activities in a local area where such termination occurs nationwide.

Article 25. Procedure and Process for Terminating Multilevel Marketing Activities in a Local Area

1. In cases of voluntary termination of multilevel marketing activities in a local area, the enterprise shall be responsible for submitting a notification of the termination of multilevel marketing activities to the provincial people's committee according to Form No. 12 attached as Appendix I to this Decree (submitted directly, through postal services, or via the National E-Government Portal).

2. In cases where the registration confirmation for multilevel marketing activities is revoked, the enterprise shall submit the documents specified in paragraph 1 of this article to the provincial people's committee within thirty working days from the date of revocation of the registration confirmation for multilevel marketing activities.

3. Where an enterprise voluntarily terminates multilevel marketing activities in a local area, within five working days from receiving a valid notification of termination of multilevel marketing activities, the provincial people's committee shall issue a written confirmation of receipt of the notification of termination of multilevel marketing activities, announce it on the website of the provincial people's committee, and notify the Ministry of Industry and Trade in accordance with one of the methods specified in paragraph 5 of Article 11 of this Decree.

Article 26. Notification for Organizing Conferences, Seminars, and Training Programs on Multilevel Marketing

1. A multilevel marketing enterprise may only organize conferences, seminars, or training programs related to multilevel marketing in the provinces, municipalities directly under the Central Government where it has been granted a registration confirmation for multilevel marketing activities.

2. In cases where a conference, seminar, or training program involves fifty participants or more, or twenty or more participants in multilevel marketing who are not internal meetings or events, the multilevel marketing enterprise shall notify the provincial people's committee before implementation.

Where a conference, seminar, or training program is organized solely online, the enterprise shall inform the provincial people's committee where the organizer or chairperson of the conference, seminar, or training program is located.

3. The multilevel marketing enterprise shall cooperate with relevant authorities in fulfilling their responsibilities for monitoring, inspecting, and supervising conferences, seminars, and training programs organized by the enterprise to ensure compliance with legal provisions.

Article 27. Records, Procedures for Notifying Organized Meetings, Seminars, and Training Programs on Multi-Level Marketing

1. The record of notification to organize meetings, seminars, and training programs on multi-level marketing includes:

a) Notification of organizing the meeting, seminar, or training according to Form No. 13 in Appendix I attached hereto;

b) Detailed contents, presentation materials at the seminar, number of participants expected;

c) List of speakers for the conference, seminar, and training with an authorization document from the enterprise specifying the authority, responsibility, and content of the speaker's report;

d) One authorization document in case the enterprise authorizes a person to conduct training or organize meetings and seminars;

d) Information on account or access link for the meeting, seminar, or training if organized online.

2. A multi-level marketing enterprise may notify multiple meetings, seminars, and training programs within one notification document but not more than three months from the date of submitting the record of notification.

3. A multi-level marketing enterprise shall submit the record of notification to organize a meeting, seminar, or training program to the People's Committee at the provincial level no later than fifteen working days before the scheduled implementation.

In case the record does not fall within the jurisdiction for resolution, the People's Committee at the provincial level will refuse to accept the record.

If the record falls within the jurisdiction for resolution, the People's Committee at the provincial level shall issue a receipt of acceptance.

4. Where the record has not met the requirements set forth in Clause 1 of this Article, within five working days from the date of receiving the record, the People's Committee at the provincial level will notify in writing for the enterprise to amend and supplement. The enterprise shall be responsible for amending and supplementing the record no later than five working days before the scheduled organization of the meeting, seminar, or training.

Amending and resubmitting the record may be done multiple times within the time limits mentioned above. The enterprise may adjust the timing of organizing the meeting, seminar, or training in the amended record to ensure it is consistent with the processing period for the record.

5. A multi-level marketing enterprise is permitted to organize a meeting, seminar, or training as planned in the notification record if within five working days from the date the People's Committee at the provincial level receives the initial notification or three working days from the receipt of the supplementary record without any request for amendment and supplementation.

6. In case the time limit specified in Clause 5 of this Article has expired, before the scheduled implementation time, if a multi-level marketing enterprise wishes to change information in the notification record organizing the meeting, seminar, or training, it shall notify in writing to the People's Committee at the provincial level on the expected implementation date.

7. In case a multi-level marketing enterprise has notified and organized a meeting, seminar, or training with the People's Committee at the provincial level but did not implement it, the enterprise shall notify in writing or by email to the People's Committee at the provincial level before the scheduled implementation date as stated in the notification record.

Chapter IV
MANAGEMENT OF PARTICIPANTS IN MULTI-LEVEL MARKETING

Article 28. Conditions for Participants in Multi-Level Marketing

1. A participant in multi-level marketing is an individual who has full civil conduct capacity as stipulated by law and resides in Vietnam.

2. A multi-level marketing enterprise shall not enter into a contract to participate in multi-level marketing with individuals under the following circumstances:

a) Individuals currently serving a prison sentence or have a criminal record for offenses related to producing, selling counterfeit goods, producing, selling prohibited goods, false advertising, misleading customers, fraud, embezzlement, abuse of trust to obtain property, and violations concerning multi-level marketing business operations;

b) Foreign individuals without a labor permit issued by the competent authority attached to the enterprise in which they participate in multi-level marketing, except where such foreign individual is not required to have a labor permit under the law;

c) Participants in multi-level marketing who have been punished for violations of provisions at points b, d, e, g of paragraph 1; points a, b, c, d, and đ of paragraph 2 of the Consumer Protection Law and this Decree before the expiration of the period considered as not having been administratively penalized;

d) Individuals who have held any of the following positions at a multi-level marketing enterprise whose business operation registration certificate has been revoked: member in a general partnership, owner in an individual or limited liability company with one shareholder, member in a limited liability company with two or more shareholders, shareholder in a joint stock company, legal representative, or manager of the enterprise;

d) Civil servants as defined by the law on civil servants; officers and non-commissioned officers, professional soldiers, workers, and defense personnel in military organs and units; officers, non-commissioned officers, and soldiers serving under a professional system, and police workers in police organs and units.

Article 29. Contract for Participating in Multi-Level Marketing Sales

1. The multi-level marketing sales enterprise shall be responsible for entering into a written contract for participating in multi-level marketing sales and delivering the contract to the participant in multi-level marketing sales.

2. A contract for participating in multi-level marketing sales must include the following essential contents:

a) Name of the enterprise, legal representative, contact information of the multi-level marketing sales enterprise;

b) Full name, date and place of birth, current residence, telephone number, bank account number, national identity card or resident identity card number, or passport number of the participant in multi-level marketing sales; labor permit number if the participant is a foreigner except where exempted by law;

c) Full name, code of the introducer (sponsor);

d) Information about goods sold through the multi-level marketing method;

e) Information on reward payment plans and operational rules;

g) Provisions for payment by bank transfer for commission and rewards;

h) Provisions for repurchase of goods;

i) Circumstances leading to termination of participation in multi-level marketing sales contract and arising obligations;

k) Mechanism for resolving disputes under the contract.

3. A contract for participating in multi-level marketing sales must be written in Vietnamese, with a minimum font size of 12 and text color that contrasts with the background color.

4. In case of using an electronic contract, the multi-level marketing sales enterprise shall be responsible for:

a) Storing the electronic contract as a data message on the information technology system managing the network of participants in multi-level marketing sales;

b) Providing access to the storage system of the electronic contract upon written request by an authorized state agency with jurisdiction over multi-level marketing sales activities;

c) Ensuring that the participation in multi-level marketing sales contract meets the conditions as stipulated in this Decree and the law on electronic transactions.

Article 30. Termination of Participation in Multi-Level Marketing Sales Contract

1. The participant in multi-level marketing sales may unilaterally terminate the participation in multi-level marketing sales contract by sending a written notice to the multi-level marketing sales enterprise at least ten working days before terminating the contract.

2. The multi-level marketing sales enterprise may unilaterally terminate the contract with the participant in multi-level marketing sales when the participant violates the provisions of Article 41 of this Decree.

3. The multi-level marketing sales enterprise shall be responsible for unilaterally terminating the contract with the participant in multi-level marketing sales when the participant violates the provisions at point b, d, e, g of clause 1; points a, b, c, d, e of clause 2 of the Consumer Protection Law and point 2 of Article 32 of this Decree.

4. A contract for participating in multi-level marketing sales shall terminate when the multi-level marketing sales enterprise terminates its multi-level marketing sales activities as provided in paragraph 1 of Article 17 of this Decree, and according to other circumstances as provided by civil law.

5. Within thirty working days from the date of contract termination, the multi-level marketing sales enterprise shall be responsible for settling with the participant in multi-level marketing sales any commission, rewards, and economic benefits that the participant is entitled to receive during participation in the enterprise's multi-level marketing network.

Within thirty working days from the date of termination of the contract, the direct selling enterprise shall be responsible for settling with the direct seller any commissions, rewards, and other economic benefits to which the direct seller is entitled during their participation in the direct selling network of the enterprise.

Article 31. Basic Training Program

1. The basic training program is a mandatory training program for persons participating in multi-level marketing.

2. The content of the basic training includes the following:

a) Laws on multi-level marketing, laws on protecting consumer rights and interests;

b) Ethical standards in multi-level marketing activities;

c) Basic contents of the multi-level marketing participation contract, operational rules and reward plan.

3. The minimum duration of training is six hours.

Article 32. Basic Training for Persons Participating in Multi-Level Marketing

1. A multi-level marketing enterprise shall be responsible for providing basic training to persons participating in multi-level marketing within thirty working days from the date of signing the participation contract and shall not charge any fees under any form.

2. The person participating in multi-level marketing shall be responsible for attending and completing the basic training program within thirty working days from the date of signing the participation contract.

3. Only those designated as trainers by a multi-level marketing enterprise may conduct the basic training for persons participating in that enterprise's activities.

A multi-level marketing enterprise shall not provide basic training to participants when there is no trainer meeting the conditions specified in Clause 2 of Article 34 of this Decree.

4. The basic training program may be conducted through direct or remote methods.

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

a) Provision of information about trainers;

b) Interaction capability between trainees and trainers;

c) Mechanism for authenticating trainee identity from login to throughout the basic training duration;

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

d) Ensuring that data related to the basic training program can be accessed for inspection by competent state authorities.

6. A multi-level marketing enterprise shall evaluate the level of completion of the basic training program by participants and issue a written confirmation for each participant regarding the completion of the content and duration of the basic training program, ensuring that trainees receive the written confirmation.

7. A multi-level marketing enterprise shall retain relevant documents related to the basic training activities for participants, including time, method, location (if any), trainers, and training results.

8. When changes occur in the content specified in Clause 2 of Article 31 of this Decree, a multi-level marketing enterprise shall be responsible for providing additional training or notifying participants through the company's electronic information platform or public display at its main office, branch offices, representative offices, and business locations within thirty working days from the date of change.

Article 33. Member Card

1. A multi-level marketing enterprise may only issue a member card to persons who have completed the basic training program and submitted a written declaration with complete and accurate information according to Form No. 14 in Appendix I attached to this Decree.

2. A multi-level marketing enterprise shall be responsible for issuing member cards free of charge to participants.

3. The member card includes the following:

a) Name of the enterprise;

b) Contact information of the enterprise;

c) Photo of the participant in multi-level marketing;

d) Information of the participant, including: name, identity card number or passport number, member code or card number, date and place of issue.

4. The member card becomes invalid upon termination of the participation contract.

5. A multi-level marketing enterprise shall publicly announce the invalidation of the member card on its electronic information platform.

Article 34. Training Officer

1. A multi-level marketing company shall have the responsibility to appoint a Training Officer to conduct basic training for its multi-level marketing participants.

2. Conditions for a Training Officer:

a) Possessing satisfactory results from legal knowledge examination on multi-level marketing as stipulated in Article 39 of this Decree;

b) Having a labor contract or a cooperative training agreement with the multi-level marketing company.

3. A multi-level marketing company shall not appoint persons under any of the following circumstances as Training Officers:

a) Persons who are serving a prison sentence or have a criminal record for producing, selling counterfeit goods, producing and selling prohibited goods, false advertising, deceiving customers, fraud, misappropriation of property, abuse of trust to appropriate property, or violating regulations on multi-level marketing business;

b) Foreign nationals without a work permit issued by the competent authority in Vietnam, except where they are not required to obtain a work permit under the law;

c) Multi-level marketing participants who have been punished for violations of points (b), (d), (e), and (g) of paragraph 1 and points (a), (b), (c), (d), and (j) of paragraph 2 of the Consumer Protection Law and this Decree, and whose administrative penalty period has not expired;

d) Persons specified in point (d) of paragraph 2 of this Decree;

d) Civil servants as provided by the law on civil servants; professional officers, military personnel, workers, or defense staff within military agencies; professional officers and soldiers serving under a professional system, or police workers within public security agencies.

4. A multi-level marketing company shall be responsible for all activities of the Training Officer during the basic training process.

Article 35. Training on Legal Knowledge Regarding Multi-Level Marketing

1. The content of legal knowledge training regarding multi-level marketing includes:

a) Legal provisions governing multi-level marketing operations, advertising laws, and consumer protection laws;

b) Ethical standards in multi-level marketing activities.

2. The training program on legal knowledge regarding multi-level marketing must be recognized by the People's Committee of the province.

Article 36. Procedures for Recognizing Training Programs on Legal Knowledge Regarding Multi-Level Marketing

The application package includes:

a) An application form according to Form No. 15 in Appendix I attached hereto;

b) A copy of the decision establishing the training institution or equivalent legal documents;

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

d) A list including at least two instructors.

2. Within four working days from receipt of the application package, the People's Committee of the province shall examine the completeness and validity of the application. If the application is incomplete or invalid, the People's Committee of the province shall issue a written request for the training institution to amend and supplement the application. The period for amendment and supplementation is ten working days.

3. Within fifteen working days from receipt of a complete and valid application package, the People's Committee of the province shall conduct an examination of the application and issue a recognition decision based on the following criteria:

a) The training institution has been established in accordance with legal provisions;

b) The training program on legal knowledge regarding multi-level marketing is consistent with the framework for such training programs as stipulated in paragraph 7 hereof;

c) Instructors have at least a university degree and experience in teaching legal knowledge.

4. If the examination does not meet the conditions, the People's Committee of the province shall issue a written request to the training institution to amend and supplement the application. The period for amendment and supplementation is fifteen working days. The training institution may only amend and supplement the application once. If no amendments or supplements are made, if they exceed the deadline, or if the amended or supplemented application does not meet the conditions, the People's Committee of the province shall issue a notice to return the application.

5. The decision recognizing the training program on legal knowledge regarding multi-level marketing is valid for three years from the date of signing.

6. In case there are changes in information within the application package for the recognized training program on legal knowledge regarding multi-level marketing, the training institution must notify the People's Committee of the province in writing.

Within thirty working days from receipt of the application package for recognition, the People's Committee of the province shall conduct an examination and issue a notice recognizing the changed information. If the changed information is contrary to the law or does not comply with the provisions of this Decree, the People's Committee of the province shall notify that the change will not be recognized.

7. The framework for training programs on legal knowledge regarding multi-level marketing is implemented according to Appendix II attached hereto.

Within thirty working days from the receipt of the application for recognition, the People's Committee of the province shall conduct an examination of the file and issue a notification recognizing the changed content. In case the changed content contravenes the law or does not comply with the provisions of this Decree, the People's Committee of the province shall notify non-recognition of the changed content.

Paragraph 7. The framework for the training program on legal knowledge related to direct selling is implemented in accordance with Appendix II attached hereto.

Article 37. Activities of the Training Institution for Legal Knowledge on Multi-Level Marketing Sales

1. Training Organization:

a) The training institution for legal knowledge on multi-level marketing sales shall conduct training in accordance with the content and program that has been recognized and certified, issuing a certificate of completion of the legal knowledge training course on multi-level marketing sales as per Form No. 16 attached to this Decree;

b) The training institution for legal knowledge on multi-level marketing sales is responsible for reporting in writing to the People's Committee of the province where the training program has been recognized, about the results of the training at the institution within ten working days after the completion of the training course.

2. Record Keeping:

The training institution for legal knowledge on multi-level marketing sales is responsible for keeping records of each training course in accordance with the law on record-keeping. Records to be kept include:

a) Admission files of trainees, lists of trainees who have been issued certificates of completion for each training course;

b) Lists of instructors participating in teaching for each training course;

c) Files managing the issuance of certificates of completion of legal knowledge training on multi-level marketing sales.

3. Supervision and Monitoring of Training Institution Activities:

a) By January 31st of each year, the training institution is responsible for submitting an annual summary report on the training activities in legal knowledge on multi-level marketing sales of the previous year as per Form No. 17 attached to this Decree to the People's Committee of the province where the training program has been recognized;

b) Annually, the People's Committee of the province where the training program has been recognized shall conduct inspections and supervision on the training activities and issuance of certificates of completion for legal knowledge training on multi-level marketing sales at each training institution.

Based on the inspection results, depending on the severity of any violations, the People's Committee of the province may require the training institution to rectify the violations or temporarily suspend the recognition decision for the legal knowledge training program on multi-level marketing sales;

c) The People's Committee of the province where the training program has been recognized shall revoke and suspend the recognition decision for the legal knowledge training program on multi-level marketing sales in the following cases: the training institution is dissolved; the training institution fails to rectify violations within the suspension period or the violations cannot be rectified; the training institution does not conduct training for a continuous period of 12 months.

Article 38. Legal Knowledge and Local Head's Knowledge Testing

1. Individuals who have completed the legal knowledge training course on multi-level marketing sales may register with the multi-level marketing enterprise to participate in the legal knowledge testing on multi-level marketing sales, local head's knowledge testing organized by the People's Committee of the province.

2. Based on practical needs, the People's Committee of the province shall announce the plan for organizing the legal knowledge testing on multi-level marketing sales and local head's knowledge testing to allow enterprises to register.

3. The legal knowledge testing on multi-level marketing sales and the local head's knowledge testing may be organized in a single session or at different sessions.

Article 39. Procedure and Process for Legal Knowledge Examination on Multi-Level Marketing and Local Lead Knowledge

1. The enterprise shall submit an application for legal knowledge examination on multi-level marketing and local lead knowledge to the People's Committee of the province. The application includes:

a) An application form for legal knowledge examination on multi-level marketing or an application form for local lead knowledge according to Model No. 19 in Appendix I attached hereto pursuant to this Decree, or Model No. 20 in Appendix I attached hereto;

b) A list of persons registered for the legal knowledge examination on multi-level marketing and local lead knowledge, including information such as full name, gender, date of birth, identification number, issuance date, and place of issue of identity card/citizen's identity card or passport;

c) One copy of a certificate of completion of legal knowledge training on multi-level marketing.

2. The People's Committee of the province shall organize the examination for legal knowledge on multi-level marketing and local lead knowledge in accordance with the following procedures:

a) Check the completeness and validity of the application;

b) Plan the time, location, and method of the examination;

c) Notify the examination plan;

d) Conduct the examination;

e) Evaluate the examination results;

f) Announce the examination results.

3. The legal knowledge examination on multi-level marketing and local lead knowledge shall be conducted in a written or multiple-choice format within a minimum of 60 minutes.

4. Examination scores are graded out of 100 points, with specific requirements as follows:

a) For the legal knowledge examination on multi-level marketing, a score below 80 for the multiple-choice format or below 65 for the written format is considered not meeting the requirement;

b) For the local lead knowledge examination, a score below 70 for the multiple-choice format or below 50 for the written format is considered not meeting the requirement.

5. Within 15 working days from the date of conducting the legal knowledge examination on multi-level marketing and local lead knowledge, the People's Committee of the province shall announce the results of the legal knowledge examination on multi-level marketing and local lead knowledge.

6. The announced results of the legal knowledge examination on multi-level marketing and local lead knowledge are valid nationwide.

Chapter V
ACTIVITIES OF MULTI-LEVEL MARKETING

Article 40. Responsibilities of Multi-Level Marketing Enterprises

1. Publicly display at the headquarters, branches, representative offices, and business premises the documents specified in paragraph 4 and paragraph 5 of Article 10 of this Decree.

2. Operate according to the prescribed operating rules and remuneration plan registered.

3. Publicly disclose and update information on the prices of goods sold through multi-level marketing, and comply with the disclosed prices.

4. Organize annual legal knowledge training for senior distributors on multi-level marketing.

5. Monitor the activities of persons engaged in multi-level marketing to ensure that they comply with the sales contract, operating rules, and remuneration plan of the enterprise.

6. Bear responsibility for the activities of persons engaged in multi-level marketing conducted at the headquarters, branches, representative offices, business premises, or through meetings, seminars, training sessions, or policies of the enterprise.

7. Deduct and declare personal income tax of persons engaged in multi-level marketing before paying commissions, bonuses, or other economic benefits to them, except as otherwise provided by law.

8. Operate a technological information system for managing participants in multi-level marketing that complies with the provisions of Article 44 of this Decree and is consistent with the technical explanation when registering for multi-level marketing activities, ensuring that participants can access basic information about their sales activities.

9. Operate and update regularly a Vietnamese-language website to provide information on the enterprise and its multi-level marketing activities in accordance with the provisions of Article 45 of this Decree.

10. Operate a communication system for receiving, resolving complaints from persons engaged in multi-level marketing, including telephone, email, and address for receipt.

11. Provide access to the management system account for technological information managing sales activities of the enterprise upon written request by an authorized government agency responsible for managing multi-level marketing activities.

12. The multi-level marketing enterprise shall comply with relevant legal provisions concerning business conditions and circulation for goods sold through multi-level marketing.

13. Ensure that at least 20% of the sales revenue from one financial year is generated by customers who are not participants in the enterprise's multi-level marketing program.

The revenue referred to herein is the revenue from participants selling to consumers or the revenue from the enterprise selling goods through the referral code of a participant.

14. Do not provide information about food products using images, equipment, attire, names, letters, of medical institutions, doctors, pharmacists, healthcare staff, thank-you letters, patient gratitude messages, doctor, pharmacist, or healthcare staff articles; do not provide information about food products with content that is published, cited, quoted, or described by patients regarding the efficacy of such food in treating diseases.

Article 41. Responsibilities of Multi-Level Marketing Participants

1. A multi-level marketing participant shall have the following responsibilities:

a) Keep records of the multi-level marketing participation contract;

b) Engage in marketing, sales, and network development activities only after obtaining a Member Card;

c) Present the Member Card before introducing or marketing products;

d) Comply with the multi-level marketing participation contract and the operating rules of the enterprise;

d) Provide complete and truthful information when promoting the enterprise selling goods, multi-level sales method, reward plan, and operating rules of the enterprise;

e) Not provide information about food products using images, equipment, attire, names, letters, or testimonials from healthcare institutions, doctors, pharmacists, medical staff, thank-you notes from patients, articles by doctors, pharmacists, or medical staff; not provide information about food products containing content that is published, cited, or quoted from patient descriptions of the product's curative effects.

2. In addition to the responsibilities under paragraph 1 of this Article, a high-level distributor participant in multi-level marketing shall have the following responsibilities:

a) Train, support, and guide lower-tier participants in adhering to operating rules, reward plans, participation contracts, and legal regulations governing multi-level marketing;

b) Participate in annual legal knowledge training programs on multi-level marketing organized by the enterprise beyond basic training programs;

c) Monitor and identify violations of legal regulations governing multi-level marketing, breaches of operating rules or reward plans by lower-tier participants, report such violations to the enterprise for examination and handling according to regulations;

d) Bear responsibility if it is known or should have been known that a lower-tier participant has violated operating rules, reward plans, or legal regulations on multi-level marketing without taking timely preventive measures and reporting to the enterprise for handling according to regulations.

Article 42. Operating Rules

The operating rules must specify procedures and processes for signing participation contracts in multi-level marketing, basic training for multi-level marketing participants, issuing Member Cards, placing orders, payment, delivery and receipt of goods (if applicable), warranty (if applicable), exchanges, returns, repurchases of goods, and refunds to multi-level marketing participants, handling complaints from multi-level marketing participants, termination and liquidation of contracts, ethical codes, and behavioral adjustment rules for multi-level marketing participants.

Article 43. Reward Plan

1. The reward plan must specify the levels, titles, conditions for achievement, commissions, bonuses, and other economic benefits to be paid at each level and title of a multi-level marketing participant.

2. The reward plan shall apply only to participants in multi-level marketing from enterprises based in Vietnam. Sales volume, levels, commissions, bonuses, and economic benefits of Vietnamese participants shall not be calculated based on the sales performance of their subordinates abroad.

Article 44. Information Technology System for Managing the Network of Participants in Multi-Level Marketing

1. The information technology system managing the network of participants in multi-level marketing by a multi-level marketing business entity must ensure data storage on a server located in Vietnam, ensuring that original data can be restored when lost or damaged.

2. The information technology system managing the network of participants in multi-level marketing must provide basic information to the participants in multi-level marketing as follows:

a) Basic information about the participant in multi-level marketing prescribed at Point b Clause 2 Article 29 of this Decree;

b) Information on the multi-level marketing participation contract and its electronic storage copy;

c) Information on the participant's identification number, position, rank, title, superior, and subordinate network lines;

d) Information on the purchase history of the participant in multi-level marketing and customers introduced by such participant;

d) Statistics on commissions, bonuses, and other economic benefits for the participant in multi-level marketing.

3. In case of system malfunctions, timely notification must be given to the Ministry of Industry and Trade.

Article 45. Electronic Information Website of a Multi-Level Marketing Business Entity

1. The electronic information website of a multi-level marketing business entity must include the following basic contents:

a) Documents related to the operation of multi-level marketing activities, including the certificate of registration for multi-level marketing operations, sample participation contract forms, operating rules, reward plan, basic training programs and other necessary documents;

b) Information on goods sold through the multi-level marketing method, including names, selling prices, components, functions, usage methods, origins, certificates, and product standard certifications (if applicable);

c) Information on business registration, main office, branches, representative offices, and business locations;

d) Procedures and processes for signing the multi-level marketing participation contract, basic training for participants in multi-level marketing, issuing member cards, placing orders, payment, delivery and receipt of goods (if applicable), repurchase and refund procedures, handling complaints by participants in multi-level marketing, termination and liquidation of contracts;

d) Procedures and locations for warranty, exchange, return of goods and services after-sales support (if applicable);

e) Contact information to receive and resolve queries and complaints from participants in multi-level marketing, including telephone numbers, email addresses, and reception address;

g) Information on the operation of multi-level marketing by the business entity, including: current operational territory; highest, average, and lowest income of participants in multi-level marketing for the previous financial year; list of top distributors;

h) Handling of violations, termination of contracts, and revocation of member card effectiveness for participants in multi-level marketing;

i) Business promotional programs.

2. The information specified in Clause 1 of this Article must be provided on the homepage or directly linked from the homepage of the business entity's electronic information website.

3. A multi-level marketing business entity shall comply with relevant legal provisions when operating its electronic information website.

Article 46. Delivery, Receipt and Dispatch of Goods

1. Within thirty days from the date the participant in multi-level marketing pays for the goods purchased, the multi-level marketing sales enterprise shall be responsible for delivering all the goods corresponding to the amount paid by the participant in multi-level marketing, and the participant in multi-level marketing shall be responsible for receiving all the goods from the multi-level marketing sales enterprise.

2. In case the multi-level marketing sales enterprise fails to deliver the goods or the participant in multi-level marketing fails to receive the goods within the time limit specified in Clause 1 of this Article, the multi-level marketing sales enterprise shall be responsible for canceling the transaction and returning the entire amount paid by the participant in multi-level marketing.

3. In case the participant in multi-level marketing dispatches goods to the multi-level marketing sales enterprise without receiving the goods within the time limit specified in Clause 1 of this Article, the multi-level marketing sales enterprise shall be responsible for canceling the transaction and returning the entire amount paid by the participant in multi-level marketing within fifteen days from the end of the time limit specified in Clause 1 of this Article.

Article 47. Return and Repurchase of Goods

1. The participant in multi-level marketing has the right to return goods purchased from the multi-level marketing sales enterprise, including goods purchased under a promotional program, within thirty days from the date of receipt of the goods.

2. Returned goods must meet the following conditions:

a) Goods are still in their original packaging, labels, and tags;

b) Accompanied by an invoice for the quantity of goods to be returned;

c) Goods have remaining shelf life.

3. Within thirty days from the date the participant in multi-level marketing requests a return of valid goods, the multi-level marketing sales enterprise shall be responsible for repurchasing such goods that meet the conditions specified in Clause 2 of this Article and returning the amount according to the agreement with the participant in multi-level marketing but not less than ninety percent (90%) of the amount paid by the participant in multi-level marketing to receive such quantity of goods.

4. The multi-level marketing sales enterprise may deduct commissions, bonuses, and other economic benefits received by the participant in multi-level marketing from the purchase of returned goods as provided for in this Article.

5. The multi-level marketing sales enterprise may recover from other participants in multi-level marketing any commissions, bonuses, and other economic benefits received in connection with the returned goods as provided for in this Article.

6. In case the contract of participation in multi-level marketing terminates, the multi-level marketing sales enterprise shall be responsible for repurchasing the goods sold to the participant in multi-level marketing according to the provisions of Clauses 1, 2, 3, 4 and 5 of this Article.

Article 48. Commissions, Bonuses, and Other Economic Benefits

1. The multi-level marketing sales enterprise shall be responsible for paying commissions, bonuses, and other economic benefits to the participant in multi-level marketing according to the reward plan registered with the competent authority.

2. The total value of commissions, bonuses, and other economic benefits, including any benefits received under a promotional program, paid to the participant in multi-level marketing within one year shall be converted into money not exceeding forty percent (40%) of the sales revenue from multi-level marketing for the enterprise in that year.

3. The sales revenue from multi-level marketing specified in Clause 2 of this Article is the sales revenue from the multi-level marketing sales activities of the enterprise, excluding value-added tax.

4. The total value of commissions, bonuses, and other economic benefits specified in Clause 2 of this Article does not include the difference between the price at which the enterprise sells to the participant in multi-level marketing and the price at which the participant in multi-level marketing sells to customers.

5. The multi-level marketing sales enterprise shall be responsible for paying commissions, bonuses, promotions, and other economic benefits by transferring money through a bank account to the participant in multi-level marketing.

Article 49. Reporting by Multi-Level Marketing Enterprises

1. Within one year, the multi-level marketing enterprise shall be responsible for reporting to the Ministry of Industry and Trade regarding its multi-level marketing activities.

2. The annual report must be submitted before January 31st of each year to the Ministry of Industry and Trade in accordance with Form No. 18 attached as Appendix I to this Decree. The Ministry of Industry and Trade shall inform the provincial people's committees about the content of the reports related to multi-level marketing activities in their respective provinces.

3. The multi-level marketing enterprise shall be responsible for reporting upon request by the competent authority regulating multi-level marketing activities.

Chapter VI
DEPOSIT FUNDING

Article 50. Deposit Fund

1. A deposit fund is a sum of money that guarantees the fulfillment of obligations by the multi-level marketing enterprise to the participants in multi-level marketing and the State as provided for in paragraph 1 of Article 53 of this Decree.

The obligations of the multi-level marketing enterprise to the participants in multi-level marketing include liabilities arising from lawful multi-level marketing activities, such as the obligation to pay rewards according to the reward plan, the obligation to repurchase goods if a participant returns them in accordance with the provisions of Article 47 of this Decree, and the obligation to refund money under the circumstances specified in Article 46 of this Decree.

2. The multi-level marketing enterprise shall be responsible for opening a deposit account and depositing an amount equivalent to 5% of its registered capital but not less than 20 billion Vietnamese dong (twenty billion dong) with a commercial bank or foreign branch in Vietnam. The multi-level marketing enterprise and the bank receiving the deposit shall enter into a deposit agreement that complies with legal provisions.

3. The bank where the deposit is made shall confirm in writing the deposit of the multi-level marketing enterprise according to Form No. 21 attached as Appendix I to this Decree, and it shall be responsible for cooperating in confirming relevant contents of the confirmation document when requested by the Ministry of Industry and Trade.

4. In case there is a change in information on the confirmation document, the multi-level marketing enterprise shall be responsible for adjusting the confirmation document with the bank.

5. The deposit fund shall remain blocked during the operation period of the enterprise and may only be withdrawn or used upon written consent from the Ministry of Industry and Trade, except as provided in paragraph a of clause 1 of Article 51 of this Decree.

6. The bank where the deposit is made shall be responsible for managing the deposit fund according to legal provisions and notify the Ministry of Industry and Trade of any changes in information on the confirmation document.

7. The multi-level marketing enterprise may earn interest on the deposit fund according to an agreement with the bank and may withdraw the interest from the deposit fund.

Article 51. Withdrawal of Deposit Fund

1. The enterprise may withdraw the deposit fund in the following cases:

a) The Ministry of Industry and Trade refuses to issue a business registration certificate for multi-level marketing activities to the enterprise;

b) The enterprise ceases its multi-level marketing operations as provided in paragraph 1 of Article 17 of this Decree and has completed all responsibilities under paragraph 2 of Article 17 of this Decree;

c) The enterprise has already deposited funds according to the provisions of Article 50 of this Decree with another bank or foreign branch.

2. When withdrawing the deposit fund in accordance with point a of paragraph 1 of this article, the enterprise must provide the bank with one original copy of the notification from the Ministry of Industry and Trade returning the application file as provided in paragraph 3 of Article 11 of this Decree.

3. When withdrawing the deposit fund in accordance with points b and c of paragraph 1 of this article, the enterprise must provide the bank with one original copy of the approval document from the Ministry of Industry and Trade as provided in paragraphs 3 and 4 of Article 52 of this Decree.

4. The bank where the deposit is made shall confirm to the Ministry of Industry and Trade in writing before allowing the enterprise to withdraw the deposit fund.

Article 52. Procedures for Withdrawal of Deposit Money

1. After a period of sixty (60) working days from the date on which the People's Committee of the Province issues a document confirming receipt of the application notification terminating multi-level marketing activities, or from the date when the decision to revoke the registration certificate for multi-level marketing activities becomes effective and all responsibilities as provided in Clause 2, Article 17 of this Decree have been fulfilled, the multi-level marketing enterprise may submit an application for withdrawal of deposit money to the Ministry of Industry and Trade.

2. The application for withdrawal of deposit money includes:

a) A request form for withdrawal of deposit money in accordance with Form No. 22 attached as Appendix I to this Decree;

b) A list of multi-level marketing participants up to the time when the activities are terminated (name, identification card number or national identity card number or passport, address, telephone number, contract participation number for multi-level marketing, date of signing the contract, member card number).

3. Receipt and processing of the application for withdrawal of deposit money:

a) Within five (5) working days from the receipt of the application, the Ministry of Industry and Trade shall be responsible for checking the completeness and validity of the application for withdrawal of deposit money submitted by the multi-level marketing enterprise.

In case the application is incomplete or invalid, the Ministry of Industry and Trade shall notify in writing requesting the enterprise to make corrections and supplements. The period for making corrections and supplements does not exceed ten (10) working days from the date on which the notification is issued by the Ministry of Industry and Trade.

In case the application is complete and valid, the Ministry of Industry and Trade shall publicly announce on its official website about the termination of multi-level marketing activities and request withdrawal of deposit money of the enterprise.

b) Within thirty (30) working days from the date when the information is published by the Ministry of Industry and Trade, participants in multi-level marketing and relevant authorities responsible for handling violations in multi-level marketing shall notify the Ministry of Industry and Trade about the fact that the multi-level marketing enterprise has not fulfilled its obligations as provided in Clause 2, Article 17 of this Decree.

In case no notification is received from participants in multi-level marketing or relevant authorities responsible for handling violations in multi-level marketing within the aforementioned period, the Ministry of Industry and Trade shall issue a document approving the withdrawal of deposit money by the multi-level marketing enterprise.

4. Procedures for withdrawal of deposit money as provided in Point c, Clause 1, Article 51 of this Decree:

a) The enterprise submits a written request to change the deposit along with a copy of the document confirming the deposit at the bank or another branch of the bank to the Ministry of Industry and Trade;

b) Within five (5) working days from the receipt of the application for changing the deposit as provided in Point a, this Clause, the Ministry of Industry and Trade shall send a written request to the bank or branch where the enterprise has deposited funds to confirm the authenticity of the document confirming the deposit;

c) Within five (5) working days from the receipt of the confirmation by the bank or branch where the enterprise has deposited funds, the Ministry of Industry and Trade shall issue a document approving the withdrawal of the old deposit money for the multi-level marketing enterprise.

Article 53. Handling of Deposit Money

1. The deposit money is used in the following cases:

a) Where the enterprise terminates its multi-level marketing activities but fails to comply with an effective administrative penalty decision issued by an authorized body;

b) Where the enterprise terminates its multi-level marketing activities as provided in Clause 1, Article 17 of this Decree but does not fully fulfill obligations related to such activities towards participants and there is a final judgment from a court regarding disputes between the enterprise and participants concerning such obligations.

2. Procedures for using deposit money for cases provided in Point a, Clause 1, Article this:

a) Where an enterprise terminates its multi-level marketing activities but fails to comply with an effective administrative penalty decision issued by an authorized body, the issuing authority of the administrative penalty decision shall send a written request to the Ministry of Industry and Trade requesting it to issue a document requiring the bank where the enterprise has deposited funds to withdraw the deposit money for the purpose of implementing the administrative penalty decision;

b) Within ten (10) working days from receipt of the request, the Ministry of Industry and Trade shall issue a document requiring the bank where the enterprise has deposited funds to withdraw the deposit money for the purpose of implementing the administrative penalty decision.

3. Procedures for using deposit money for cases provided in Point b, Clause 1, Article this:

a) Based on the judgment or decision from the court with legal effect, participants in multi-level marketing shall implement the request to enforce the judgment according to the provisions of civil enforcement law;

b) Where the use of deposit money is allowed as provided in Clause 1, Article 50 of this Decree, the enforcement authority sends a written request to the Ministry of Industry and Trade along with copies of the final judgment, decision for enforcement, and decision for deduction from the enterprise's deposit account;

c) Within ten (10) working days from receipt of the request from the enforcement authority, the Ministry of Industry and Trade shall notify the enforcement authority and the bank where the enterprise has deposited funds to carry out the withdrawal of deposit money for enforcement.

In case it is determined that disputes according to the judgment do not fall under cases where deposit money can be used as provided in Clause 1, Article 50 of this Decree, the Ministry of Industry and Trade shall notify the enforcement authority to implement other enforcement measures as prescribed by law.

4. The Ministry of Industry and Trade shall handle the use of deposit money according to the order of time when valid requests for using the deposit money are received.

5. After using in accordance with Clauses 1, 2, 3, and 4 of this Article, if there is any remaining deposit money after fulfilling all obligations as provided by a final judgment from the court that have not been enforced, the remaining deposit money shall be transferred to the enforcement authority with jurisdiction for enforcement according to the provisions of law.

Chapter VII
STATE RESPONSIBILITY OF THE NATIONAL GOVERNMENT FOR
MULTILEVEL MARKETING ACTIVITIES

Article 54. Responsibilities of the Ministry of Industry and Trade

1. The Ministry of Industry and Trade shall bear responsibility before the Government for performing state management functions over multilevel marketing activities throughout the country:

a) Issuing, amending, supplementing, renewing, reissuing, and revoking certificates of registration for multilevel marketing activities of enterprises;

b) Collecting, managing, and utilizing fees for certificate of registration issuance as prescribed by law;

c) Notifying the People's Committees at provincial level where the enterprise conducts multilevel marketing activities of the issuance, amendment, supplementation, renewal, or revocation of certificates of registration;

d) Inspecting, supervising multilevel marketing activities and handling them within its jurisdiction;

d) Guiding and coordinating with the People's Committees at provincial level to conduct inspections and handle violations of laws on state management of multilevel marketing activities;

e) Notifying and transferring competent authorities for handling acts that violate laws on state management of business operations conducted through a multi-level approach;

g) Organizing professional training and seminars for officials directly responsible for state management of multilevel marketing; disseminating and promoting legal provisions on state management of multilevel marketing activities to enterprises and participants in multilevel marketing;

h) Developing and submitting to competent authorities for promulgation or amendment of regulations governing the state management of multilevel marketing activities;

i) Developing and implementing programs for publicizing and disseminating legal provisions and business operations conducted through a multi-level approach via mass media;

k) Performing other responsibilities as prescribed by this Decree.

2. The Minister of Industry and Trade shall delegate certain management tasks specified in paragraph 1 to specialized units under the Ministry.

Article 55. Responsibilities of Ministries and Equivalent Authorities

1. Ministry of Public Security:

a) Coordinating with the Ministry of Industry and Trade, People's Committees at all levels nationwide, and ministries and equivalent authorities in state management over business operations conducted through a multi-level approach;

b) Performing preventive and combat measures against crimes and violations of law in multilevel marketing activities;

c) Receiving, processing reports and complaints related to criminal activities associated with multilevel marketing; initiating investigations into crimes and performing other judicial tasks as prescribed by law.

2. Ministry of Health:

a) Inspecting and handling violations concerning the business operation conditions for products of enterprises conducting business through a multi-level approach under the jurisdictional provisions of the law;

b) Inspecting and handling legal violations during the production, processing, preservation, transportation, export, import, and sale of foodstuffs, cosmetics, and other products of enterprises conducting business through a multi-level approach within its jurisdictional scope;

c) Inspecting and handling activities related to advertising, conferences, seminars, publicity, and information provision concerning cosmetic, health food, and other products of enterprises conducting business through a multi-level approach under the jurisdictional provisions of the law.

3. Ministry of Finance:

a) Managing taxes on multilevel marketing activities in accordance with tax laws;

b) Publicly disclosing timely, accurate, and objective information regarding multilevel marketing activities as prescribed by tax management laws.

4. Ministry of Science and Technology: Inspecting and handling legal violations for enterprises conducting business through a multi-level approach within the scope of authority over standards, metrology, product quality, and intellectual property rights;

5. Ministry of Culture, Sports and Tourism: Directing and coordinating with media agencies:

a) Implementing regular programs and specialized segments to publicize legal provisions on business operations conducted through a multi-level approach and warning the public about distorted or improper activities in multilevel marketing;

b) Providing timely, accurate, and objective information regarding the operational status of enterprises conducting business through a multi-level approach.

6. Ministry of Agriculture and Environment:

a) Inspecting and handling violations during production, sale, and advertising of products by enterprises conducting business through a multi-level approach within its jurisdictional scope;

b) Inspecting and handling legal violations concerning the business operation conditions for products of enterprises conducting business through a multi-level approach under the jurisdictional provisions of the law.

Article 56. Responsibilities of the People's Committee at the Provincial Level

1. The People's Committee at the provincial level, within its scope of duties and authority, shall be responsible for managing state affairs related to business operations through multi-level marketing in the province:

a) Issue regulations on cooperation between relevant agencies at the local level concerning supervision, inspection, and oversight of multi-level marketing activities within the jurisdiction;

b) Approve, amend, supplement, or revoke confirmation of registration for direct selling activities, confirmation of receipt of notifications of cessation of direct selling activities, confirmation of receipt of notifications of cessation of direct selling activities; recognize training programs on legal knowledge related to direct selling; receive and process notification files for meetings, seminars, and trainings; inspect legal knowledge related to direct selling; inspect the knowledge of key personnel at the local level;

c) Supervise, inspect, and oversee multi-level marketing operations and the activities of institutions providing legal knowledge training on direct selling;

d) Handle violations within its jurisdiction or report such violations to competent authorities for handling in accordance with laws governing the management of multi-level marketing business operations;

d) Notify and transfer competent authorities to handle acts that violate laws related to the management of multi-level marketing business operations;

e) Organize professional training and seminars for officials and civil servants directly responsible for state management of direct selling; disseminate and promote legal knowledge on managing direct selling activities to enterprises and participants in direct selling;

g) Report annually, by February 15th of the following year, according to Form No. 23 attached as Appendix I to this Decree or report urgently upon request from the Ministry of Industry and Trade regarding state management of direct selling operations within the jurisdiction;

h) Fulfill other responsibilities as prescribed in this Decree.

2. The People's Committee at the provincial level may delegate authority to the provincial specialized commerce agency for the implementation of management tasks specified in paragraph 1 of this Article.

Article 57. Handling of Violations by Direct Selling Enterprises and Participants

1. A direct selling enterprise or a participant in direct selling who commits acts that violate the provisions of this Decree shall be subject to administrative penalties as prescribed under consumer protection laws and regulations on administrative violations, or may be referred for criminal prosecution according to relevant laws.

2. A direct selling enterprise or a participant in direct selling who violates the provisions of this Decree causing damage to other organizations or individuals must compensate for such damages in accordance with applicable laws.

3. The results of handling violations in direct selling activities shall be made public.

Chapter VIII
CONDITIONS FOR IMPLEMENTATION

Article 58. Effective Date of Implementation

1. This Decree takes effect from July 1, 2026.

2. This Decree replaces Decree No. 40/2018/NĐ-CP dated March 12, 2018, of the Government on managing business operations through multi-level marketing; Decree No. 18/2023/NĐ-CP dated April 28, 2023, of the Government amending and supplementing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018, on managing business operations through multi-level marketing.

3. Article 25 of Decree No. 55/2024/NĐ-CP dated May 16, 2024, of the Government, which specifies detailed provisions for certain articles of the Law on Protecting Consumer Rights; Articles 48 and Annex XIV attached to Decree No. 146/2025/NĐ-CP dated June 12, 2025, concerning delegation of authority and responsibilities in the field of industry and commerce shall cease to be effective from the date this Decree takes effect.

Article 59. Transitional Provisions

1. Enterprises that have been issued a business registration certificate for direct selling activities prior to the effectiveness of this Decree may continue to maintain a deposit equivalent to 5% of their registered capital but not less than 10 billion Vietnamese dong (ten billion dong) in a commercial bank or branch of a foreign bank in Vietnam.

2. Within a period of twelve months from the date this Decree comes into effect, direct selling enterprises operating under the provisions of Decree No. 40/2018/NĐ-CP (as amended and supplemented by Decree No. 18/2023/NĐ-CP) shall be responsible for meeting the conditions for direct selling activities as provided in this Decree.

3. Training institutions that have been recognized for their training programs are required to submit an application for recognition of their legal knowledge training program for direct selling within a period of twelve months from the date this Decree comes into effect, to the People's Committee at the provincial level.

4. The conditions, procedures, process, and procedures for withdrawing and using the deposit of direct selling enterprises that have been issued a business registration certificate for direct selling activities in accordance with the provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018, of the Government on managing direct sales operations and Decree No. 18/2023/NĐ-CP dated April 28, 2023, of the Government amending and supplementing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018, on managing direct sales operations shall be implemented in accordance with the provisions of this Decree.

5. The withdrawal and use of deposits by direct selling enterprises that have been registered as organizations for direct selling activities under Decree No. 110/2005/NĐ-CP dated August 24, 2005, of the Government on managing direct sales operations shall be carried out at the provincial People's Committee in accordance with the procedures and processes specified in Clause 2 and Clause 3 of Article 52 and Article 53 of this Decree.

Article 60. Enforcement Responsibilities

1. The Minister of Industry and Trade is responsible for organizing the implementation of this Decree.

2. The Ministers, Heads of agencies at the same level as ministries, and Chairmen of provincial People's Committees are responsible for enforcing this Decree.