Subjects who are not allowed to participate in multi-level marketing from July 2026

Legal Consulting Office of Lao Dong Newspaper answers:

Clause 2, Article 28 of Decree 137/2026/ND-CP on management of multi-level business activities (effective from July 1, 2026), stipulates that multi-level marketing enterprises do not sign multi-level marketing participation contracts with people in the following cases:

a) People serving imprisonment or having previous convictions for the crimes of producing, trading in counterfeit goods, producing, trading in prohibited goods, false advertising, deceiving customers, fraudulent appropriation of property, abusing trust to appropriate property, illegally possessing property, crimes of violating regulations on multi-level marketing;

b) Foreigners who do not have a work permit in Vietnam issued by a competent authority attached to the enterprise in which they participate in multi-level marketing, unless they are not eligible for a work permit according to the provisions of law;

c) Multi-level marketing participants who have been penalized for violating the provisions of points b, d, e, g, clause 1; points a, b, c, d, đ, clause 2, Article 10 of the Law on Protection of Consumer Rights and Article 5 of this Decree but have not expired the term are considered not to have been administratively sanctioned;

d) Individuals who used to hold one of the following 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: 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;

e) Cadres and civil servants according to the provisions of law on cadres and civil servants; officers, professional soldiers, national defense workers and public employees in agencies and units under the People's Army; officers, non-commissioned officers, soldiers serving under professional regimes, and police workers in agencies and units under the People's Police.

Thus, from July 1, 2026, multi-level marketing businesses are not allowed to sign multi-level marketing participation contracts with the above-mentioned subjects.