CFVN boosts business connectivity pertaining to legal compliance

Legal framework key to transparency and growth

Direct selling, also known as multi-level marketing (MLM), emerged in Vietnam in the early 2000s after the country officially joined the World Trade Organization (WTO). The legal framework for regulating MLM activities has been continuously revised and updated to ensure stricter management in line with the industry’s development.

CFVN’s Deputy General Counsel Vo Dan Mach

In 2023, the National Assembly enacted the Law on Consumer Rights Protection, which officially legislated regulations on MLM business management. The Government issued Decree No.18/2023/ND-CP, amending and supplementing certain provisions of Decree No.40/2018/ND-CP on MLM business management. This decree introduced stricter requirements to filter out businesses operating in the industry.

In 2024, the Government issued Decree No.55/2024/ND-CP, which provides detailed regulations on several provisions of the Law on Consumer Rights Protection, including MLM business management. As a result, only strong enterprises willing to invest further can meet these stringent requirements, helping the industry develop on a sustainable basis in Vietnam.

Care For Vietnam is a pioneer in its field in Vietnam, which has been fully complying with the increasingly stringent regulations set by relevant state authorities.

Among the companies operating in this field in Vietnam, Care For Vietnam (CFVN) is considered one of the pioneering enterprises that fully comply with the increasingly stringent regulations set by government authorities. Each time the company adapts to changes in the law, it is a valuable experience, as legal requirements become more rigorous over time. CFVN is committed to continuously improving its operations to lay a solid foundation for future growth.

“In recent years, CFVN has implemented various guidance, training, and strict management activities to ensure legal compliance among its business partners. This is aimed at maintaining transparency, upholding ethical standards, and achieving the company’s sustainable development goals. Recently, CFVN was officially granted an extension of its multi-level marketing business license. This not only serves as strong evidence of our commitment to the direct selling market but also reflects the collective effort of the company and its business partners in gradually realizing the mission of improving healthcare for the Vietnamese people,” said CFVN’s Deputy General Counsel Vo Dan Mach.

Le Hong Nhung, managing deputy director of the information, consultation and training center under the Ministry of Industry and Trade’s National Competition Commission at the information-sharing session with CFVN’s business partners/distributors

Legal compliance foundation for sustainable business

CFVN always collaborates closely with local authorities to stay updated on operational activities in various regions, and to promote awareness of legal compliance among employees and distributors.

This is why CFVN has consistently prioritized organizing training sessions with participation and guidance from regulatory authorities and industry experts. A recent example is the legal training program on multi-level marketing (MLM) held for nearly 900 distributors on December 2 and 3 in Ho Chi Minh City and Hanoi.

The program was organized in coordination with the information, consultation and training center under the Ministry of Industry and Trade’s National Competition Commission. According to the center’s Managing Deputy Director Le Hong Nhung, this initiative aims to help CFVN’s business partners (distributors) gain a better understanding of legal regulations related to direct selling, ensuring a strong and compliant business operation. “The most positive gain of this training session is that CFVN’s distributors demonstrated a high level of awareness of legal compliance in business. This not only helps them perform their work effectively, but also strengthens the company’s credibility in the market. I hope CFVN will continue to maintain these training programs in the future,” Nhung said.

During the training, a representative from the Vietnam Dairy Association also provided valuable insights into legal regulations on advertising in the MLM industry. Pham Thi Ngoc, Member of the Standing Committee of the Vietnam Food Safety Association (VINAFOSA) and Deputy General Secretary of the Vietnam Dairy Association, emphasized the importance of understanding legal requirements to ensure all marketing strategies comply with regulations. “CFVN’s organization of this training session is not just a corporate initiative to protect its reputation, but also meaningful contribution to building a transparent and ethical business environment,” she said./.