Circular detailing the procedures for examing, issuing, withdrawing the confirmation on legal knowledge of multi-level marketing

In line with Article 38 of Decree 40/2018/ND-CP dated 12 March 2018 of the Government on management of the business activities in form of multi-level marketing (“Decree 40”), the persons who pass the examination on the legal knowledge of multi-level marketing (the “MLM”) will be granted with the Confirmation on legal knowledge of MLM (the “Confirmation”) by the Vietnam Competition and Consumer Protection Authority within fifteen (15) working days from the implementation of the examination.

Accordingly, the training institution of legal knowledge on MLM has the right to actively design the training framework of legal knowledge on MLM but must ensure training duration of at least eight (08) hours with the main contents, including: (i) Overview of MLM; (ii) legislation on management of business activities in a multi-level mode; (iii) Code of MLM professional ethics; (iv) legislation on consumer protection; and (v) legislation advertising.

The Confirmation will be withdrawn upon the occurrence of any of the following:

(i) The dossier for enrolling the examination made by the applicant is discovered to contain the fraudulent information;

(ii) The MLM enterprise terminates its MLM operation; or

(iii) The person who has been granted the Confirmation on legal knowledge on MLM terminates the labor contract or training contract with the MLM enterprise. An MLM enterprise will inform the Competition and Consumer Protection Agency upon the termination of the labor contract or the training contract with the person who has been granted with the Confirmation on legal knowledge on MLM.

The statutory timeline for the Competition and Consumer Protection Agency to issue and forward decision on withdrawal of the Confirmation to the enterprise is ten (10) working days from the occurrence of the withdrawal event. The Confirmation will terminate its effect from the issuance date of the withdrawal decision by the Competition and Consumer Protection Agency.

The above guidelines are prescribed in Circular 10/2018/TT-BTC dated 24 May 2018 of the Ministry of Industry and Trading detailing a number of provisions of Decree 40 (“Circular 10”). 

Circular 10 takes effect from 15 July 2018 and replaces Circular 24/2014/TT-BTC dated 30 July 2014 of the Ministry of Industry and Trading.