Network marketing, otherwise known as multi-level marketing (MLM), has steadily gained traction in Vietnam over the past two decades.
This business model, which relies on independent distributors to sell products while recruiting new participants, has created economic opportunities for thousands of Vietnamese entrepreneurs.
But how did network marketing arrive in Vietnam?
What legal frameworks shape the industry?
Which companies dominate the market, and who are the most successful network marketers?
More importantly, why is Vietnam an attractive country for building a network marketing business, and how can you grow your team quickly?
This guide will hopefully answer all those questions and more.
The History of Network Marketing in Vietnam
To truly appreciate the current state of network marketing in Vietnam, we need to take a step back and understand how it all started.
Vietnam’s economic landscape began shifting dramatically in the 1980s with the introduction of Đổi Mới (Renovation), a series of economic reforms aimed at transitioning from a centrally planned economy to a more market-oriented one.
These reforms opened the doors to foreign investments and private enterprises, setting the stage for the arrival of network marketing.
By the early 2000s, major international MLM companies started to explore the Vietnamese market.
Brands like Amway, Herbalife, and Oriflame saw Vietnam’s growing consumer base and entrepreneurial spirit as an ideal fit for their business model.
At first, the industry faced significant skepticism in Vietnam.
Many Vietnamese associated MLM with pyramid schemes, and early entrants struggled to gain trust.
However, as reputable companies demonstrated transparency and provided real value through high-quality products, network marketing began to gain legitimacy.
As this legitimacy took root, mlm started to gain popularity.
The industry saw a boom in the 2010s, with increasing participation from local entrepreneurs.
By 2017, the MLM sector in Vietnam was generating over VND 8 trillion (approximately USD 350 million) in revenue, with around 700,000 people involved in the business.
That’s nowhere near how much it generates in some countries, but it’s not pocket change.
The Legal Landscape of Network Marketing in Vietnam
Due to its rapid and fairly quick expansion, network marketing in Vietnam faced growing concerns about unethical practices.
Some companies were found to be operating pyramid schemes, deceiving participants, or avoiding tax regulations.
This prompted the government to implement strict laws to regulate the industry and protect consumers.
Here’s a breakdown of Vietnam’s key MLM regulations:
Decree 42/2014/ND-CP (Issued in 2014)
- This was Vietnam’s first comprehensive MLM regulation.
- Companies needed a minimum capital of VND 10 billion (about USD 454,545) to operate.
- A collateral deposit of VND 5 billion (about USD 227,272) was required.
- Strict guidelines were placed on recruitment practices to prevent pyramid schemes.
Decree 40/2018/ND-CP (Issued in 2018, replacing Decree 42)
This decree introduced even stricter requirements:
- Higher Financial Requirements: Companies must deposit 5% of their charter capital (not less than VND 10 billion) in a Vietnamese bank.
- Operational Transparency: MLM firms must maintain a website detailing their activities and have an IT system to track their distributor network.
- Consumer Protections: Companies cannot require members to buy large stockpiles of inventory upfront.
- Restricted Product Categories: Pharmaceuticals, medical devices, and digital content cannot be sold through MLM.
These laws have helped professionalize the industry, ensuring that reputable companies can thrive while unethical players are shut down.
Top Network Marketing Companies in Vietnam
Several MLM companies have successfully established themselves in Vietnam throughout the year, leveraging the country’s growing economy and entrepreneurial mindset.
Here are some of the most prominent ones you should be familiar with:
- Amway Vietnam: A global leader in direct sales, offering health, beauty, and home care products.
- Herbalife Vietnam: Specializes in nutritional and wellness products, with a strong presence in the Vietnamese market.
- Oriflame Vietnam: A Swedish cosmetics and skincare brand known for its high-quality products and extensive distributor network.
- Nu Skin Vietnam: A well-known brand in anti-aging skincare and supplements.
These companies have created lucrative opportunities for thousands of Vietnamese entrepreneurs looking to build their own businesses within an established framework.
One common theme is that most of those companies also have a worldwide presence.
Vietnam has yet to produce a company from within that has made this list… but I’m sure it will at some point.
Notable Network Marketers in Vietnam
Like some of the other countries that network marketing has recently grown in, specific individuals’ achievements in MLM aren’t always publicly documented.
However, there are many inspiring success stories within some of the companies nonetheless.
Top earners in Vietnam have leveraged social media, personal branding, and effective team-building strategies to rise through the ranks.
Many of these successful network marketers have built large teams by focusing on:
- Consistently educating their recruits.
- Using online marketing strategies, including Facebook and TikTok.
- Providing real value to consumers rather than focusing solely on recruitment.
- Establishing credibility through transparent business practices.
Why Vietnam is a Great Country for Network Marketing
Vietnam’s economic and social environment makes it one of the best places to build a network marketing business in the world.
That’s one reason it made our list of the top 25 countries to build an mlm business.
Here are some of the reasons it’s a great place to build a team:
1. A Fast-Growing Economy
Vietnam’s economy has been growing at an impressive rate, driven by a strong manufacturing sector, increasing foreign investment, and a rising middle class.
This means more disposable income and greater demand for MLM products.
2. A Young and Entrepreneurial Population
Over 50% of Vietnam’s population is under 35 (take a moment to wrap your head around that statistic).
I wasn’t sure where I got this so I plugged it into ChatGPT and it says 58.4% of the population is under 35. Wow.
Anyway, younger generations are open to new business opportunities, making them ideal candidates for network marketing.
3. High Social Media Engagement
Vietnamese consumers are highly active on social media platforms like Facebook, TikTok, and Zalo.
These platforms provide a great way to reach potential recruits and customers without heavy advertising costs.
4. Favorable Cultural Attitudes Toward Business
Vietnamese people value hard work, community, and relationships—three key factors in successful network marketing.
Word-of-mouth referrals and personal connections play a major role in purchasing decisions.
If you’re here on this page, I assume you know this and that’s one of the reasons you yourself have chosen this business model.
How to Build a Fast-Growing Network Marketing Team in Vietnam
To succeed in Vietnam’s network marketing industry, you’ll want focus on some key core strategies.
People are people from any country so many of these recommendations are similar in any country.
1. Provide Value Beyond Recruitment
Many MLM businesses fail because they prioritize recruitment over actual product sales.
The most successful network marketers in Vietnam focus on product education and customer satisfaction.
2. Utilize Social Media for Growth
Platforms like Facebook, YouTube, and TikTok are crucial for reaching new prospects.
Create engaging content that educates potential customers and team members.
3. Stay Compliant with Regulations
Always ensure that your business practices follow Vietnam’s strict MLM laws.
Transparency and honesty will help you build trust and avoid legal issues.
4. Focus on Training and Development
Your success depends on your team’s success.
Provide regular training sessions, mentorship, and motivation to help your recruits thrive.
5. Build a Strong Personal Brand
In Vietnam, people do business with those they trust.
Position yourself as a knowledgeable and ethical leader in the industry.
By the way, the best way to position yourself as knowledgeable and ethical is to BE knowledgeable and ethical…
Just sayin’…
Conclusion
Network marketing in Vietnam is a thriving industry with enormous potential for entrepreneurs.
While the market is competitive and highly regulated, those who approach it with the right mindset, strategies, and ethical practices can achieve great success.
By leveraging Vietnam’s young and digitally connected population, staying compliant with regulations, and focusing on real product value, you can build a powerful and sustainable network marketing business in this dynamic country.
If you’re considering starting or expanding your MLM business in Vietnam, now is the time to act.
With the right approach, you can create a profitable and long-lasting enterprise in one of Southeast Asia’s most promising markets.
Other Interesting Articles:
How to Generate FREE Leads (Ultimate Guide)
Network Marketing vs. Affiliate Marketing
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Jason and Daniele
