Multi-level Marketing – MLM – has been a controversial business strategy ever since its first appearance in Vietnam in the early 2000s since it can be easily mistaken for pyramid schemes.
The Vietnam Competition and Consumer Authority (under the Ministry of Industry and Trade) confirmed that there are 22 MLM companies in Vietnam licensed for operation. These 22 companies consisting of more than 800.000 participants, reaching revenue of more than 15,300 billion VND.
Vietnam recognizes MLM under strict regulations. News reported that the regulations concerning MLM activities would be amended for better management of the activities of MLM companies in Vietnam.
MLM still proves to be a potential field in Vietnam, as it has been one of the very few markets that suffer less impact during the COVID-19 pandemic in 2020.
Listed below are the five most mentioned MLM companies among the 22 companies recognized for legal operation.
Amway Vietnam Co., Ltd. was established in 2008 with a capital reaching up to almost 25 million USD. The company owns a factory in the Amata industrial park in Dong Nai province, and a factory in VSIP2 Binh Duong valued at 25 million USD that opened in 2015.
Amway Vietnam is a part of Amway Corp – the American MLM company that sells health, beauty, and home care products. Amway currently has 300.000 distributors operating in Vietnam.
Amway Vietnam specializes in producing and selling Nutrilite vitamin and mineral supplements, Artistry cosmetics and skincare products, Personal Care products, and Home Care products. These products all meet the standard quality.
Herbalife Vietnam Single Member Limited Liability Company (Herbalife Vietnam SMLLC.) is a part of Herbalife Nutrition Ltd., headquartered in the United States. Herbalife Nutrition operates in more than 90 countries over the world, with more than 8,000 employees. The company develops and sells dietary supplements.
Like most MLM companies based in Vietnam, the Herbalife operation in the country is controversial. The firm aims to improve nutritional habits with nutrition products based on science and has become one of the familiar nutrition brands in Vietnam. In 2020, Herbalife Vietnam was recognized by VCCI in the Top 100 leading sustainable companies in Vietnam. Herbalife Vietnam products once more won the “Golden Product for Public Health” award recently in April 2021.
While trusted by many Vietnamese, Herbalife Vietnam also faces criticism, due to cases where customers’ health was affected negatively after using Herbalife products. The company was fined in 2018 for showing advertisements that gave misleading information to customers about the use of the product, did not regularly monitoring the activities of participants to ensure that they comply with regulations.
Oriflame Vietnam Limited (Oriflame Vietnam Ltd) is a fast-growing MLM company in Vietnam. It is a part of Oriflame Holding AG, an MLM company that primarily sells beauty and personal care products founded in Sweden. The company is present in over 60 countries around the world.
Oriflame has been distributing its products in Vietnam since the early 2000s, though its official operation branch in Vietnam has only been in operation since 2020. Oriflame Vietnam Ltd. won the certificate for High Quality Natural Products in the 20th Anniversary of the Golden Dragon Awards.
Unicity Marketing Viet Nam Company Limited is a part of Unicity International, an American international MLM company, headquartered in Utah. Its primary products include weight loss products and green tea. The company has a history of development of more than 100 years, ranked 87th among the top 500 private enterprises in the United States.
Unicity Vietnam started operation in 2012, with various representatives throughout the country. Unicity Vietnam claims that they are dedicated to developing innovative product formulations that improve the health and quality of life for people everywhere. In 2021, seven of its products were honored the “Golden Product for Public Health”.
Nu Skin Enterprises Viet Nam Limited Liability Company (Nu Skin Enterprises Vietnam LLC) was established on November 4, 2011, currently in the top three in the Southeast Asia market of Nu Skin Enterprises. Nu Skin Vietnam is currently a member of AmCham Direct Selling Business Association, Vietnam Multi-Level Marketing Association, and Vietnam Chamber of Commerce and Industry. The company has three main product lines: Beauty equipment and personal care products, dietary supplements, and water purifier.
Compiled by VietnamCredit
