What conditions must multi-level marketing businesses meet?

Legal Consulting Office of Lao Dong Newspaper answers:

Clause 1, Article 8 of Decree 137/2026/ND-CP on management of multi-level business activities (effective from July 1, 2026), stipulates that organizations registering multi-level sales activities must meet the following conditions:

a) Is an enterprise established in Vietnam according to the provisions of law and has never had its multi-level marketing business registration certificate revoked;

b) Members for partnerships, owners for private enterprises or one-member limited liability companies, members for limited liability companies with two or more members, shareholders for joint-stock companies, legal representatives, business managers who have never held one of the above roles at multi-level marketing enterprises who have had their certificates of registration of multi-level marketing activities and certificates of registration of multi-level marketing organizations revoked;

c) Deposit at a commercial bank or foreign bank branch in Vietnam as prescribed in Clause 2, Article 50 of this Decree;

d) Having a multi-level marketing participation contract form, operating rules, reward plans, basic training programs that are clear, transparent and consistent with the provisions of law on management of multi-level business activities;

e) Having an information technology system to manage the network of multi-level marketing participants, electronic information pages to provide information about businesses and multi-level marketing activities of businesses;

e) In case the organization registering multi-level marketing activities is a business with foreign investors or an economic organization with foreign investment capital who is the owner or member or shareholder, all foreign investors and economic organizations with foreign investment capital must have a business operation period according to the multi-level method in practice of at least 03 consecutive years in one country or territory in the world.

Thus, from July 1, 2026, multi-level marketing businesses must meet the above conditions.