Decree No. 18/2023/ND-CP Amending and supplementing a number of articles of Decree No. 40/2018/ND-CP dated March 12, 2018 of the Government on the management of direct selling activities

 

DECREE

AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE DECREE NO. 40/2018/NĐ-CP OF MARCH 12, 2018 ISSUED BY THE GOVERNMENT ON MANAGEMENT OF MULTILEVEL MARKETING BUSINESS ACTIVITIES

Pursuant to the Law on Government Organization dated June 19, 2015; and the Law Amending and Supplementing Certain Provisions of the Law on Government Organization and the Law on Local Administration dated November 22, 2019;

Pursuant to the Investment Law dated June 17, 2020;

At the proposal of the Minister of Industry and Trade;

The Government promulgates this Decree amending and supplementing certain provisions of the Decree No. 40/2018/NĐ-CP of March 12, 2018 issued by the Government on management of multilevel marketing business activities.

Article 1. Amending and supplementing certain provisions of the Decree No. 40/2018/NĐ-CP of March 12, 2018 issued by the Government on management of multilevel marketing business activities

1. Amend and supplement Clause 2, Article 3 as follows:

"2. A direct selling company is a business entity that has been granted a certificate of registration for direct selling activities by the competent authority to organize multilevel marketing business activities in accordance with the provisions of this Decree."

2. Supplement Clause 8 of Article 3 as follows:

"8. Direct selling meetings, seminars, and training are activities involving the introduction, recognition, information dissemination, guidance, training, and sharing related to direct selling activities."

3. Amending and supplementing Point c of Clause 1 of Article 7 as follows:

"c) Member for a limited liability partnership, owner for a sole proprietorship or a single-member limited liability company, member for a limited liability company with two or more members, shareholder for a joint-stock company, and legal representative of a business entity shall not include organizations or individuals who have held any of the aforementioned positions at a direct selling company that had its certificate of registration for direct selling activities revoked according to the provisions of the Government's Decree No. 42/2014/NĐ-CP of May 14, 2014 on management of direct selling activities and this Decree during the period when such company was engaged in direct selling activities;"

4. Supplementing Point h of Clause 1 of Article 7 as follows:

"h) In cases where the entity applying for registration of direct selling activities is a business with foreign investors or a foreign-invested economic organization as owner or member or shareholder, all foreign investors and foreign-invested economic organizations must have at least three consecutive years of actual experience in direct selling activities in a country or territory worldwide."

6. Replacing the phrase “Inspection Record Proposal” with the phrase “Application, Inspection Record” at Point b Clause 2 Article 10.

"3. One list accompanied by a copy of valid personal identification documents (ID card or citizen identity card or passport for Vietnamese citizens; passport and lawful residence permit issued by competent Vietnamese authorities for foreigners residing permanently in Vietnam; passport for foreigners not residing permanently in Vietnam) of those persons mentioned in Point c of Clause 1 of Article 7 of this Decree.

One copy of legal documents regarding the establishment of the organization in case it is an organization."

6. Amending and supplementing Clause 7 of Article 9 as follows:

"7. Technical documentation about the information technology system managing the network of participants in direct selling activities, which complies with the provisions of Article 44 of this Decree, including the following basic information:
a) IP address of the server and physical location of the server;
b) Operation mechanism of the system, including system description, data entry and storage methods, data management methods;

c) Information as stipulated in Article 44 of this Decree."

7. Supplementing Clause 10 of Article 9 as follows:

"10. A copy of audited financial statements or a document confirming tax or financial obligations over the last three fiscal years or equivalent documents issued by authorized agencies or organizations to prove compliance with the conditions stipulated in Point h of Clause 1 of Article 7 of this Decree, in cases where the business has foreign investors or foreign-invested economic organizations as owners or members or shareholders."

8. Supplementing Clause 11 of Article 9 as follows:

"11. Business license containing permission to conduct retail distribution activities, including retail activities through multilevel marketing, in cases where the business has foreign investors or foreign-invested economic organizations as owners or members or shareholders."

9. Amending and supplementing Point a of Clause 1 of Article 10 as follows:

"a) A direct selling company applying for registration of direct selling activities shall submit one set of documents as prescribed in Article 9 of this Decree (including an electronic version in ".doc" or ".docx" format for documents specified in Clause 4 of Article 9 of this Decree and in ".xls" or ".xlsx" format for documents specified in Clause 5 of Article 9 of this Decree) to the Ministry of Industry and Trade (submitting directly, online, or via postal service);"

10. Amending and supplementing Point b of Clause 3 of Article 12 as follows:

"b) In cases where information needs to be provided or amendments and supplements need to be made to the notification document of the business as stipulated in Point a of this clause, the Ministry of Industry and Trade will notify the business within fifteen working days from the date of receipt of the application. The deadline for making amendments and supplements is ten working days. If the business fails to provide information, make amendments, or supplement the application within the stipulated time or if the application does not meet the requirements, the Ministry of Industry and Trade will return the application to the business in writing, specifying the reasons for returning the application.

The business is permitted to apply the list of goods for multilevel marketing sales if the Ministry of Industry and Trade does not raise any objections to the notification document as stipulated in Point a of this clause within fifteen working days from the date of receipt of the application;"

11. Amending and supplementing Point c of Clause 4 of Article 14 as follows:

"c) Documents as prescribed in Clauses 4, 5, 6, 7, 8, 9, 10, and 11 of Article 9 of this Decree in cases where there are changes compared to the most recent amendment or supplementation of the certificate of registration for direct selling activities."

12. Amending and supplementing Point c of Clause 1 of Article 16 as follows:

"c) A business that has been penalized for any of the violations stipulated in Clause 1 of Article 5, Clause 14 of Article 40, or Clause 3 of Article 47 of this Decree during the process of organizing direct selling activities in accordance with the law;"

13. Amend and supplement Article 18 as follows:

Article 18. Procedures and formalities for terminating direct selling activities
1. In case a business voluntarily terminates its multi-level marketing activities:
a) The notification dossier for terminating multi-level marketing activities shall include:

Notification of termination of multi-level marketing activities according to Model No. 06 attached as an appendix to this Decree;

Report according to Model No. 06a attached as an appendix to this Decree;

One copy of the latest amended business registration certificate or equivalent legal document;

One original copy of the multi-level marketing activity registration certificate;

One copy of the decision on terminating multi-level marketing activities issued by the individual business owner or sole member of a limited liability company; the decision and minutes of the meeting on terminating multi-level marketing activities issued by the board of directors if it is a limited liability company with two or more members, by the general shareholders' meeting if it is a joint stock company, or by the general partners if it is a partnership.
b) Procedure and formalities for terminating multi-level marketing activities: The business submits the notification dossier for terminating multi-level marketing activities to the Ministry of Industry and Trade (submitting directly, online, or through postal service);

If the dossier does not comply with the provisions set out in point a of this clause, the Ministry of Industry and Trade issues a notice to amend and supplement within ten working days from the date of receipt of the dossier. The amendment and supplementation period is fifteen working days from the date of receipt of the notice.

If the business fails to amend and supplement the dossier within the prescribed time limit or if the business's dossier does not meet the requirements, the Ministry of Industry and Trade will notify the business in writing to return the dossier, specifying the reasons for returning the dossier.

Within ten working days from the date of receipt of a valid notification dossier for terminating multi-level marketing activities, the Ministry of Industry and Trade issues a document confirming the receipt of the notification dossier for terminating multi-level marketing activities, notifies all provincial Departments of Industry and Trade according to one of the methods stipulated in Clause 5, Article 10 of this Decree, and publishes it on the Ministry of Industry and Trade’s electronic information website.
2. In case a business terminates its multi-level marketing activities due to the expiration or revocation of the multi-level marketing activity registration certificate:
a) The notification dossier for terminating multi-level marketing activities shall include:

Notification of termination of multi-level marketing activities according to Model No. 06 attached as an appendix to this Decree;

Report according to Model No. 06a attached as an appendix to this Decree;

One copy of the latest amended business registration certificate or equivalent legal document;

One original copy of the multi-level marketing activity registration certificate.
b) Procedure and formalities for terminating multi-level marketing activities:

Within thirty working days from the date of expiration or revocation of the multi-level marketing activity registration certificate, the business is responsible for submitting the notification dossier for terminating multi-level marketing activities to the Ministry of Industry and Trade (submitting directly, online, or through postal service);

If the dossier does not comply with the provisions set out in point a of this clause, the Ministry of Industry and Trade issues a notice to amend and supplement within ten working days from the date of receipt of the dossier. The amendment and supplementation period is fifteen working days from the date of receipt of the notice.

If the business fails to amend and supplement the dossier within the prescribed time limit or if the business's dossier does not meet the requirements, the Ministry of Industry and Trade will notify the business in writing to return the dossier, specifying the reasons for returning the dossier.

Within ten working days from the date of receipt of a valid notification dossier for terminating multi-level marketing activities, the Ministry of Industry and Trade issues a document confirming the receipt of the notification dossier for terminating multi-level marketing activities, notifies all provincial Departments of Industry and Trade according to one of the methods stipulated in Clause 5, Article 10 of this Decree, and publishes it on the Ministry of Industry and Trade’s electronic information website."

14. Amend and supplement Clause 2 of Article 20 as follows:

"2. In cases where there is no headquarters, branch, representative office, or business location in the locality, the multi-level marketing business must designate an individual residing in the locality to serve as the contact person for working with state management agencies in that locality. The contact person for the multi-level marketing business in the locality must meet the following conditions:
a) Not falling under the circumstances specified in point a of Clause 2 of Article 28 of this Decree;

b) Having been granted knowledge certification in accordance with Article 38 of this Decree;

c) Being authorized by the business to handle matters, provide information, and documents related to the multi-level marketing activities of the business in the locality at the request of state management agencies on direct selling."

15. Amend and supplement Clause 1 of Article 21 as follows:

"1. The dossier for registering multi-level marketing activities in the locality includes:
a) Application for registering multi-level marketing activities in the locality according to Model No. 07 attached as an appendix to this Decree;
b) One copy of the business registration certificate or equivalent legal document;
c) One copy of the multi-level marketing activity registration certificate;
d) One copy of the registration certificate for branches, representative offices, or business locations (if applicable).

In cases where there is no headquarters, branch, representative office, or business location in the locality, the business provides relevant documents related to the contact person in the locality, including: one certified copy of the identity card or citizen identification card or passport; one original or certified copy of the criminal record certificate; one certified copy of the knowledge certification for the contact person in the locality; one document designating the scope of work, rights, and obligations of the parties."

16. Amend and supplement Clause 3 of Article 21 as follows:

"3. If the dossier does not ensure completeness and validity as required in Clause 1 of this Article, within five working days from the date of receiving the dossier, the Department of Industry and Trade will notify the business to amend and supplement the dossier. The amendment and supplementation period shall not exceed fifteen working days from the date the Department of Industry and Trade issues the notice. The Department of Industry and Trade will return the dossier if the business fails to amend and supplement the dossier within the aforementioned period.

Within ten working days from the date of receiving a complete and valid dossier, the Department of Industry and Trade sends the business a confirmation document for registering multi-level marketing activities in the locality according to Model No. 08 attached as an appendix to this Decree. If the confirmation is denied, the Department of Industry and Trade has the responsibility to reply in writing, specifying the reasons for denial."

17. Add point D of Clause 1 of Article 23 as follows:

"D) The business does not meet the conditions for operating multi-level marketing activities in the locality as prescribed in Clause 2 of Article 20 of this Decree."

18. Amend and supplement point a of Clause 2 of Article 24 as follows:

"a) Post publicly at the main office, branch, representative office, business location of the enterprise in the locality (if any), and announce on the homepage of the enterprise's electronic information website within five working days from the date of ceasing multi-level marketing activities in the locality; notify in writing to the Department of Industry and Trade;"

19. Supplement Clause 3 of Article 24 as follows:

"3. The enterprise is not required to complete the procedures for ceasing multi-level marketing activities in the locality in cases where it ceases such activities nationwide."

20. Amend and supplement Clause 2 of Article 26 as follows:

"2. In cases where a conference, seminar, or training session on multi-level marketing has the participation of thirty or more people, or ten or more participants in multi-level marketing who are not internal meetings or events, the multi-level marketing enterprise shall be responsible for notifying the Department of Industry and Trade of the province or centrally-administered city before implementation.

In cases where a conference, seminar, or training session on multi-level marketing is organized online with the participation of multi-level marketing participants in a province or centrally-administered city, the enterprise shall notify the Department of Industry and Trade of that province or centrally-administered city.

In cases where a conference, seminar, or training session on multi-level marketing is organized online with the participation of multi-level marketing participants in multiple provinces or centrally-administered cities, the enterprise shall notify the Department of Industry and Trade where the enterprise has its main office."

21. Amend and supplement Article 27 as follows:

"Article 27. Documents, procedures, and notification process for organizing conferences, seminars, and training sessions on multi-level marketing
1. The notification documents for organizing conferences, seminars, and training sessions on multi-level marketing include:
a) Notification of organizing conferences, seminars, and training sessions according to Model No. 12 attached to this Decree;
b) Detailed contents and materials presented at the seminar, the number of expected participants;
c) List of speakers at the conference, seminar, and training session accompanied by the contract of engagement of the enterprise, specifying clearly the rights, responsibilities, and content of the report of the speaker;
d) One original copy of the power of attorney in case the enterprise authorizes an individual to conduct training or organize conferences, seminars;
đ) Information about the account or access link to the conference, seminar, and training session in case it is organized online.
2. A multi-level marketing enterprise may notify the organization of multiple conferences, seminars, and training sessions on multi-level marketing in the same notification document but not exceeding three months from the date of submitting the notification document.
3. A multi-level marketing enterprise must submit the notification document for organizing conferences, seminars, and training sessions on multi-level marketing to the Department of Industry and Trade (submitting directly, online, or through postal service) at least fifteen working days before the planned implementation date.
4. In cases where the submitted documents do not meet the requirements stipulated in Clause 1 of this Article, within seven working days from the date of receiving the documents, the Department of Industry and Trade will notify in writing for the enterprise to amend and supplement. The amendment and supplementation period is ten working days from the date the Department of Industry and Trade issues the notification.
5. The enterprise is permitted to organize conferences, seminars, and training sessions if within seven working days from the date the Department of Industry and Trade receives the notification, the Department of Industry and Trade does not request amendments or supplements.
6. In cases where the deadline specified in Clause 5 of this Article has expired, when wishing to change information in the notification document for organizing conferences, seminars, and training sessions, the enterprise is responsible for notifying in writing to the Department of Industry and Trade at least seven working days before the planned implementation date.

The enterprise is permitted to organize conferences, seminars, and training sessions if within seven working days from the date the Department of Industry and Trade receives the notification, the Department of Industry and Trade does not request amendments or supplements.

7. In cases where the enterprise has notified the organization of conferences, seminars, and training sessions to the Department of Industry and Trade but does not implement them, the enterprise is responsible for notifying in writing or via email to the Department of Industry and Trade before the planned organization date stated in the notification document."

22. Amend and supplement Clause 1 of Article 28 as follows:

"1. Participants in multi-level marketing are individuals with full civil capacity under the provisions of the law and residing in Vietnam."

23. Amend and supplement Point b of Clause 2 of Article 28 as follows:

"b) Foreigners without a labor permit issued by the competent authority attached to the enterprise in which they participate in multi-level marketing, except in cases exempted under the law."

24. Amend and supplement Point a of Clause 1 of Article 36 as follows:

"a) Application for recognition according to Model No. 13a promulgated together with this Decree;"

25. Supplement Clause 3a of Article 36 as follows:

"3a. In cases where there are changes in the information in the application for recognition of the training program on legal knowledge about multi-level marketing that has been recognized, the training institution must notify the Ministry of Industry and Trade in writing.

Within thirty working days from the date of receipt of the application for recognition, the Ministry of Industry and Trade will organize the review of the documents and issue a notification recognizing the changed information. In cases where the changed information contravenes the law or is inconsistent with the provisions of this Decree, the Ministry of Industry and Trade will notify non-recognition of the changed information."

26. Amend and supplement Point a of Clause 3 of Article 37 as follows:

"a) Before January 31 each year, the training institution is responsible for sending the annual summary report on the training activities on legal knowledge about multi-level marketing of the previous year according to Model No. 14a promulgated together with this Decree to the Ministry of Industry and Trade;"

27. Amend and supplement Article 38 as follows:

"Article 38. Confirmation of knowledge of laws on multi-level marketing and local contact points
1. Persons who have completed the training course on laws on multi-level marketing shall be registered by multi-level marketing enterprises to participate in the examination of knowledge of laws on multi-level marketing and local contact points organized by the Ministry of Industry and Trade.
2. The Ministry of Industry and Trade shall issue confirmation of knowledge of laws on multi-level marketing and local contact points to those persons who achieve satisfactory results in the examination.

3. The Ministry of Industry and Trade shall specify in detail the procedures for examination, issuance, and revocation of confirmation of knowledge of laws on multi-level marketing and local contact points.

28. Amend and supplement Article 39 as follows:

"Article 39. Procedures and formalities for issuing confirmation of knowledge of laws on multi-level marketing and local contact points
1. Enterprises submit application files for examination and confirmation of knowledge of laws on multi-level marketing and local contact points to the Ministry of Industry and Trade (either directly or through postal services). The file includes:
a) An application form for examination and confirmation of knowledge of laws on multi-level marketing according to Form No. 20a issued together with this Decree, or an application form for examination and confirmation of knowledge of local contact points according to Form No. 20b issued together with this Decree;
b) A list of persons proposed for examination and confirmation of knowledge of laws on multi-level marketing and local contact points, including the following information: full name, gender, date of birth, ID card number, date of issuance, place of issuance of the ID card/citizen identification card;
c) Two photographs measuring 3 x 4 cm of the persons listed in point b of Clause 1 of this Article;
d) One copy of the certificate confirming completion of the training course on laws on multi-level marketing.
2. Within fifteen working days from the date of conducting the examination of knowledge of laws on multi-level marketing and local contact points, the Ministry of Industry and Trade shall issue confirmation of knowledge of laws on multi-level marketing according to Form No. 21a issued together with this Decree, and confirmation of knowledge of local contact points according to Form No. 21b issued together with this Decree to those persons who achieve satisfactory results.

3. In case the confirmation of knowledge of laws on multi-level marketing and local contact points is lost, torn, or destroyed, the agency that organized the examination shall reissue the confirmation already issued, and the person requesting reissuance does not need to complete the training course on laws on multi-level marketing again."

29. Supplement Clause 13 of Article 40 as follows:

"13. Ensure that at least twenty percent of the annual revenue from multi-level marketing sales comes from customers who are not participants in the multi-level marketing activities of the enterprise."

30. Supplement Clause 14 of Article 40 as follows:

"14. Do not provide information about food products using images, equipment, attire, names, correspondence of units, medical facilities, doctors, pharmacists, healthcare personnel, letters of thanks, thank-you messages from patients, articles by doctors, pharmacists, healthcare personnel; do not provide information about food products containing content posted, cited, quoted, or stating opinions of patients describing food products having therapeutic effects."

31. Supplement Clause 5 of Article 41 as follows:

"5. Do not provide information about food products using images, equipment, attire, names, correspondence of units, medical facilities, doctors, pharmacists, healthcare personnel, letters of thanks, thank-you messages from patients, articles by doctors, pharmacists, healthcare personnel; do not provide information about food products containing content posted, cited, quoted, or stating opinions of patients describing food products having therapeutic effects."

32. Amend and supplement Article 43 as follows:

"Article 43. Reward Plan
1. The reward plan must clearly define the levels, titles of multi-level marketing participants, conditions for achieving them, commissions, bonuses, and other economic benefits paid for each level and title of multi-level marketing participants.

2. The reward plan only applies to multi-level marketing participants of the enterprise operating in Vietnam."

33. Amend and supplement Point d of Clause 2 of Article 44 as follows:

"d) Statistics on commissions, bonuses, and other economic benefits of multi-level marketing participants."

34. Amend and supplement Clause 4 of Article 49 as follows:

"4. Before the tenth day of each month (except January and July), multi-level marketing enterprises shall send to the Department of Industry and Trade where the enterprise has registered its multi-level marketing activities (either directly, through postal services, or via email) a list of multi-level marketing participants residing in the locality of the previous month (including full name, date of birth, residential address (permanent residence or temporary residence if not residing at the permanent residence), ID card number or citizen identification card number or passport number, multi-level marketing participation contract number, contract signing date, participant code, contact phone number of the multi-level marketing participant)."

35. Supplement Article 49a as follows:
"Article 49a. Methods for Implementing Administrative Procedures
1. For documents in administrative procedures prescribed in this Decree which require certified copies, enterprises may submit copies and present the original for verification at the time of receiving the file.

2. In cases where administrative procedures are carried out online, multi-level marketing enterprises shall register an account on the Online Public Service Portal at the address: http://dichvucong.moit.gov.vn; use the registered account to declare and submit the online application file.

After receiving notification that the submitted file is complete and valid, the enterprise shall send the complete registration file (in paper form) to the Ministry of Industry and Trade.

If the paper file sent back does not match the documents and information declared online, the Ministry of Industry and Trade will notify the return of the file."

36. Amend and supplement Clause 1 of Article 50 as follows:

The obligations of a multi-level marketing business towards participants in multi-level marketing activities are those arising from lawful multi-level marketing operations, including the obligation to pay rewards according to the reward plan, the obligation to repurchase goods if participants return them in accordance with the provisions of Article 47 of this Decree, and the obligation to refund money in cases stipulated in Article 46 of this Decree.

37. Amend and supplement Article 53 as follows:

"Article 53. Handling of the pledged funds
1. The pledged funds shall be used in the following cases:
a) When a business ceases its multi-level marketing activities but does not comply with the effective administrative penalty decision issued by the competent authority for violations in multi-level marketing activities;
b) When a multi-level marketing business ceases its multi-level marketing activities in accordance with Clause 1 of Article 17 of this Decree but fails to fully fulfill its obligations related to multi-level marketing activities towards participants in multi-level marketing activities and there is an effective court judgment regarding disputes between the multi-level marketing business and participants in multi-level marketing activities concerning such obligations.
2. Procedures and formalities for using the pledged funds in the case provided for in Point a, Clause 1 of this Article:
a) In the case where a business ceases its multi-level marketing activities but does not comply with the effective administrative penalty decision issued by the competent authority, the authority issuing the penalty decision shall send a written request to the Ministry of Industry and Trade to issue a document requiring the bank where the business has deposited the pledge to deduct the pledged funds to enforce the penalty decision;
b) Within ten working days from the date of receipt of the request, the Ministry of Industry and Trade shall issue a document requiring the bank where the business has deposited the pledge to deduct the pledged funds to enforce the penalty decision.
3. Procedures and formalities for using the pledged funds in the case provided for in Point b, Clause 1 of this Article:
a) Based on the Judgment or Decision of the Court with legal effect, participants in multi-level marketing activities shall carry out the enforcement of the judgment in accordance with the law on civil enforcement;
b) In the case of using the pledged funds as prescribed in Clause 1 of Article 50 of this Decree, the enforcement agency shall send a written request to the Ministry of Industry and Trade along with a copy of the effective judgment, a copy of the enforcement decision, and the decision to deduct money from the pledged account of the business to enforce the judgment;

c) Within ten days from the date of receipt of the request from the enforcement agency, the Ministry of Industry and Trade shall notify the enforcement agency and the bank where the business has deposited the pledge to deduct the pledged funds for enforcement.

If it is determined that the dispute according to the judgment does not fall within the cases allowed to use the pledged funds as prescribed in Clause 1 of Article 50 of this Decree, the Ministry of Industry and Trade shall notify the enforcement agency to take other enforcement measures in accordance with the law.
4. The Ministry of Industry and Trade shall handle the use of the pledged funds in accordance with the chronological order of receiving valid requests to use the pledged funds.

5. After using the pledged funds as prescribed in Clauses 1, 2, 3, and 4 of this Article, if the remaining pledged funds have not been fully used and the business still has other obligations under the effective judgment of the court that have not been enforced, the remaining pledged funds shall be transferred to the competent enforcement agency to enforce the judgment in accordance with the law.

38. Amend and supplement Clause 4 of Article 55 as follows:

"4. The Ministry of Finance:
a) Manage taxes on multi-level marketing business activities in accordance with tax laws;

b) Publicize timely, accurate, and objective information on multi-level marketing business activities in accordance with laws on tax management."

39. Amend and supplement Point g of Clause 1 of Article 56 as follows:

"g) Report annually before February 15 of the following year in accordance with Form No. 19 promulgated together with this Decree or report promptly upon request of the Ministry of Industry and Trade on the management of multi-level marketing activities in the locality;"

40. Amend the phrase "sent directly or through postal service" at Point a of Clause 3 of Article 12, Clause 1 of Article 13, Clause 2 of Article 21, Clause 2 of Article 22, Clause 1 and Clause 2 of Article 25, Clause 1 of Article 52, and Point a of Clause 4 of Article 52 to "submit directly, online, or through postal services"; amend the phrase "postal service" at Point a of Clause 5 of Article 10 to "postal services."

41. Amend the phrase "Representative of the multi-level marketing business" at Point b of Clause 1 of Article 22 to "contact person of the business"; amend the phrase "local representative" at Form No. 7, Form No. 8, Form No. 11, Form No. 15, and Form No. 16 to "local contact person."

42. Supplement Forms No. 06a, No. 13a, No. 14a, No. 19, No. 20a, No. 20b, No. 21a, and No. 21b attached to this Decree.

Article 2. Responsibilities for Implementation

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

2. Ministers, Heads of ministerial-level agencies, Heads of governmental agencies, Chairmen of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

Article 3. Effectiveness

1. This Decree takes effect from June 20, 2023.

2. Within twelve months from the date this Decree takes effect, multi-level marketing businesses that have been granted registration confirmation for multi-level marketing activities at local levels shall be responsible for meeting the conditions for registering multi-level marketing activities at local levels as prescribed by this Decree.

3. Multi-level marketing businesses that have been granted certificates of registration for multi-level marketing activities in accordance with the law may continue their operations until the expiration date of the certificate. At the time of extending the registration certificate for multi-level marketing activities, the multi-level marketing business shall be responsible for meeting the conditions for registering multi-level marketing activities as prescribed in Article 7 of this Decree.

ANNEX

(Attached to Decree No. 18/2023/NĐ-CP dated April 28, 2023 of the Government)

 

Model No. 06a

 

REPORT

OPERATING SITUATION PRIOR TO TERMINATION OF MULTI-LEVEL MARKETING ACTIVITIES

Respectfully submitted to:...

ENTERPRISE NAME:...

Address:…

Contact Person:...Phone: ...Email:...

1. Scope of Multi-Level Marketing Activities up to the Termination Date

a) Provinces/Cities where the enterprise has its headquarters, branches, representative offices, and business locations

b) Provinces/Cities where the enterprise has local representatives/points

2. Number of Participants in Multi-Level Marketing up to the Termination Date:

(The enterprise provides an electronic list of participants in multi-level marketing including the following criteria: full name, date of birth, residential address (permanent or temporary residence), ID number or citizen identification card number or passport number, multi-level marketing participation contract number, participant code, contact phone number of the multi-level marketing participant)

3. Revenue from Multi-Level Marketing Activities from the Beginning of the Year to the Termination Date

4. Commissions, Bonuses, Economic Benefits, and Promotions Paid to Multi-Level Marketing Participants from the Beginning of the Year to the Termination Date

Report on the total value of commissions, bonuses, economic benefits paid during the period; the value of promotions converted to money during the period; individual income tax deductions of multi-level marketing participants.

(The enterprise provides an electronic list of rewards for multi-level marketing participants including the following criteria: full name; ID number or citizen identification card number or passport number; multi-level marketing participation contract number; participant code; revenue from sales during the period; the total value of commissions, bonuses, and economic benefits received during the period; the value of promotions converted to money during the period; individual income tax deductions)

5. Fulfillment of Fiscal Obligations to the State from the Beginning of the Year to the Termination Date

(Specify if there are any outstanding tax payments)

6. Promotional Programs from the Beginning of the Year to the Termination Date

(Specify if there are any unfinished programs and the resolution plan)

7. Purchase of Goods from Multi-Level Marketing Participants from the Beginning of the Year to the Termination Date

Report on the total number of multi-level marketing participants requesting to return goods, total value of returned goods, total deduction value, total amount paid, and remaining balance.

(The enterprise provides an electronic list of multi-level marketing participants requesting to return goods including the following criteria: full name; ID number or citizen identification card number or passport number; participant code; contact phone number; value of returned goods; deduction value; amount paid; remaining balance)

8. Compliance with Administrative Sanction Decisions in Multi-Level Marketing Activities

(The enterprise provides a statistical table of the results of compliance with administrative sanction decisions in multi-level marketing activities issued by all competent authorities during the operation, along with copies of the sanction decision and payment receipts, and specify if there are any unimplemented decisions)

 

 

Form No. 13a

 

APPLICATION FOR RECOGNITION OF TRAINING PROGRAM ON MULTILEVEL MARKETING LAW KNOWLEDGE
KNOWLEDGE OF MULTILEVEL MARKETING LAW

Respectfully submitted to: ...

1. Training Institution Name (in capital letters): …

Headquarter Address:…

Telephone:...Fax:...

2. Decision on establishment of the training institution by the competent authority according to the law or equivalent legal document:…

Request for recognition of the training program on knowledge of multilevel marketing law based on the attached dossier as follows:

3. Attached Documents¹: ……………………………………………………………………

………………………………………………………………………………………………………..

………………………………………………………………………………………………………..

Contact Person:…Phone:…

We hereby solemnly declare our commitment to fully comply with all regulations governing the management of multilevel marketing business activities and take responsibility for the legality, accuracy, and truthfulness of the attached documents.

 

____________________

¹ Attached documents include:

1. Copy of the decision establishing the training institution issued by the competent authority according to the law or equivalent legal document;

2. Training program on knowledge of multilevel marketing law;

3. List of at least two lecturers with a bachelor's degree or higher.

 

Form No. 14a

 

REPORT

Summary of Training Activities on Multilevel Marketing Law Knowledge

Reporting Period: year...

Respectfully submitted to: ...

........................ ¹ . hereby submit the summary report on training activities on multilevel marketing law knowledge for the reporting period year...²..., as follows:

1. Name of Rural Industrial Enterprise (

1. Training Institution Name: …

3. Legal representative's name: …

3. Contact Information: …

4. Recognition Decision Number for the Training Program on Multilevel Marketing Law Knowledge: …

II. RESULTS OF IMPLEMENTING TRAINING WORK ON MULTILEVEL MARKETING LAW KNOWLEDGE

1. Training Results During the Reporting Period

(Summary of the number of training courses implemented during the reporting period, the number of individuals participating in training, the number of enterprises registering for training on multilevel marketing law knowledge)

2. Examination Results and Issuance of Certificates for Completion of Training Courses on Multilevel Marketing Law Knowledge

(Summary of the number of individuals participating in the examination and receiving certificates on laws related to multi-level marketing, the number of individuals who did not achieve the results in the knowledge examination on multi-level marketing)

III. ADVANTAGES AND DIFFICULTIES IN THE TASK OF ORGANIZING TRAINING AND ISSUING CERTIFICATES FOR COMPLETION OF KNOWLEDGE TRAINING ON LAWS RELATED TO MULTI-LEVEL MARKETING

IV. RECOMMENDATIONS AND PROPOSALS

 

___________________

¹ Name of training institution.

² Report submitted before January 31 each year for the previous reporting period.

 

Model Number 19

 

REPORT

Management of multi-level marketing activities

Reporting period: year...

Respectfully submitted to:...

Department of Industry and Trade... summarizes periodic reports on the management of multi-level marketing activities in... for the year..., as follows:

I. SITUATION OF MULTILEVEL MARKETING BUSINESS OPERATIONS IN THE LOCAL AREA

(Summary of the number of multi-level marketing businesses currently operating in the locality, business results of enterprises through multi-level marketing according to the form in Appendix I, II attached).

II. RESULTS OF MANAGEMENT WORK IN THE LOCAL AREA

1. Propaganda and dissemination of laws on multi-level marketing in the locality

2. Results of administrative procedures related to multi-level marketing activities in the locality

(Summary of the number of meetings, seminars, and training sessions organized by multi-level marketing businesses according to the form in Appendix III attached).

3. Results of inspection, supervision, and handling of violations in multi-level marketing activities in the locality.

(Summary of the results of inspections, supervision, and handling of violations in multi-level marketing activities according to the form in Appendix IV attached)

III. ADVANTAGES AND DIFFICULTIES IN THE MANAGEMENT OF MULTILEVEL MARKETING ACTIVITIES IN THE LOCALITY

IV. RECOMMENDATIONS AND PROPOSALS

 

 

Appendix I

LIST OF MULTILEVEL MARKETING BUSINESSES CURRENTLY OPERATING IN THE LOCALITY DURING THE REPORTING PERIOD

 

Seal Registration Certificate

RESULTS OF MULTILEVEL MARKETING BUSINESS OPERATIONS IN THE LOCALITY DURING THE REPORTING PERIOD

 

ANNEX III

NUMBER OF MEETINGS, SEMINARS, AND TRAININGS DURING THE REPORTING PERIOD

 

REGULATIONS ON THE CERTIFICATE DESIGN FOR OUTSTANDING RURAL INDUSTRIAL PRODUCTS

SUMMARY OF INSPECTION, SUPERVISION, AND HANDLING OF VIOLATIONS IN MULTILEVEL MARKETING ACTIVITIES IN THE LOCALITY DURING THE REPORTING PERIOD

 

Form No. 20a

 

PETITION FOR APPLICATION

KNOWLEDGE TESTING AND VERIFICATION ON MULTILEVEL MARKETING LAWS

Respectfully submitted to:...

Name of enterprise (in capital letters):...

Main office address: …

Legal representative:...

Certificate of registration for multi-level marketing activities number:... Issued on:../.../.....

Location of multi-level marketing sales activities in the locality:...

Registration for knowledge testing and verification on multi-level marketing laws for individuals listed in the attached list.

The enterprise takes responsibility for the legality, accuracy, and truthfulness of the accompanying documents.

 

 

REGISTRATION LIST FOR KNOWLEDGE TESTING AND VERIFICATION
KNOWLEDGE OF MULTILEVEL MARKETING LAW

(Attached to Request No... dated... of Company...)

 

 

Form No. 20b

 

PETITION FOR APPLICATION

KNOWLEDGE TESTING AND VERIFICATION FOR LOCAL LEADERS

Respectfully submitted to the organization conducting the local leader knowledge testing and verification session.

Name of enterprise (in capital letters):...

Main office address: …

Legal representative:...

Certificate of registration for multi-level marketing activities number:... Issued on:../.../....

Location of multi-level marketing sales activities in the locality:...

Registration for knowledge testing and verification for local leaders for individuals listed in the attached list.

The enterprise takes responsibility for the legality, accuracy, and truthfulness of the accompanying documents.

 

 

REGISTRATION LIST FOR KNOWLEDGE TESTING AND VERIFICATION
FOR LOCAL LEADERS

(Attached to Request No... dated... of Company...)

 

 

Form No. 21a

Form No. 21b