On the 24th of May 2018, the Ministry of Industry and Trade (MOIT) published the new Circular 10/2018/TT-BCT to implement Decree 40/2018/ND-CP (Decree 40) on the management of multi-level marketing (MLM). 

In many years, according to the traditional legislation in Vietnam, when a decree is released, it needs at least one or several circulars to actually implement that decree. Notwithstanding, with recent changes to the legislative practice, there are not many provisions in this Decree which will require a Circular to make clear, rather,  the  Decree includes as much of the detail as is possible. This is the reason why Decree 40 only needs one circular to make clear a few provisions.

The new Circular 10/2018/TT-BCT applies to training establishments that provide legal knowledge on MLM, MLM enterprises, individuals who want to examine and certify their legal knowledge on MLM and other relating individuals/organizations.  , 

The Circular contemplates those individuals who want to certify their knowledge on MLM, and training establishments capable of training for new members who wants to join a MLM network. This Circular took effect on the 15th July 2018 and it focused on some provisions relating to: (i) the frame of training courses of legal knowledge on MLM which is applied for MLM distributor, and (ii) the procedure to test, issue and revoke the certificate after passing that legal training course.

According to the Circular, the duration of a training course of legal knowledge on MLM is at least 8 hours. The course includes the following contents:

(i) Definition and current situation of MLM in Vietnam and in the world;

(ii) Regulations of laws on the MLM management;

(iii) Code of ethics in MLM’

(iv) Regulation of laws on consumer protection;

(v) Regulation of laws on advertising.

After finishing the course, the trainee must submit the dossier to be allowed to attend the exam. This exam lasts at least 60 minutes and the trainee must gain the score of 75 (if the test is conducted in the manner of writing) or 90 (if the test includes multiple – choice question) to pass the exam and achieve the certificate. This certificate is granted by the Vietnam Competition and Consumer Protection Authority, an unit of MOIT. The Circular also includes the form of certificate and the form of application letter for attending the exam.

The issuance of this Circular has made the training activities on legal knowledge of MLM to be continue after a temporary postponement in the transition time from former Decree 42/2014/ND-CP to the new Decree 40. This Circular also takes the place of Circular 24/2014/TT-BCT which guided the Decree 42/2014/ND-CP.