The multi-level marketing sector in Vietnam is experiencing a period of significant growth in revenue as well as contribution to national tax sources. In 2020, this industry's revenue surpassed VND 15,438 billion (USD 623 million), an increase of 22.8% compared to 2019. In 2021, this number has continued to rise to more than VND 19,000 billion (USD 772 million), with a growth of 24% compared to 2020. Notably, for five consecutive years, the multi-level marketing industry not only maintained stability but also witnessed impressive growth at a high rate.
Vietnam is currently an ideal environment for multi-level businesses, with a population of nearly 100 million people. The level of improvement in people's lives and income is continuously increasing, especially in the middle class. This creates many opportunities for multi-level marketing. Businesses participating in this field also enjoy many benefits such as legal recognition, no large investment requirements, no premises requirements, no sales pressure, and no time constraints. They can participate easily regardless of education level or living location.
Vietnam has also been ranked in the Top 5 markets globally with the fastest growth rate in the field of multi-level marketing in 2019. The number of people participating in multi-level marketing in Vietnam ranks 5th in the region of Southeast Asia, after Indonesia, Thailand, the Philippines, and Malaysia.
However, currently, some businesses operating multi-level marketing activities do not fully comply with legal regulations, which makes the state take a stronger step in tightening the management of multi-level activities and imposing strong penalties for companies that violate the law.
According to statistics from the National Competition Commission, there are currently 20 businesses operating legal multi-level marketing activities in Vietnam. In 2022, two businesses terminated multi-level marketing activities, including Siberian Health International Co., Ltd. and Homeway Vietnam Co., Ltd. Both of these businesses had their multi-level marketing registration certificates revoked due to serious violations of legal regulations.
In addition, in 2022, the Competition and Consumer Protection Department conducted specialized inspections on legal compliance in multi-level marketing for five other businesses. The results show that these businesses have complied with the legal regulations on managing multi-level marketing activities; however, there are still some remaining problems and limitations. In the face of measures to tighten management and rectify multi-level marketing, what is the business situation of businesses in this field?
Herbalife is one of the leading health and wellness companies and communities. The company delivers high-quality nutritional products to consumers in more than 90 markets through business Memberships, a one-to-one marketing program, and a strong, inspirational support community for customers.
In November 2009, Herbalife Vietnam officially opened. Vietnam is Herbalife's 71st market globally. Currently, the brand has its Head Office in Ho Chi Minh City and many branches across the country.
Herbalife's revenue recorded a continuous increasing trend in the period 2020 - 2022. Specifically, in 2020, the brand's revenue reached nearly VND 5.4 trillion. This number went up by 25.3% in 2021 and then grew by 10.9% in 2022, standing at nearly VND 7.5 trillion. Regarding profit after tax, in 2020, profit after tax recorded more than VND 280 billion. Its profit climbed by 17.8% in 2021. After that, profit in 2022 recorded a decrease of 78.1% compared to 2021, reaching more than VND 70 billion.
New Image Vietnam was established in 2013, headquartered in Ho Chi Minh City. Through many years of establishment and development, New Image Vietnam's products have been present in many provinces and cities, and they have expanded branch offices in Hanoi, Can Tho, and Da Nang.
The brand offers four product groups, including products containing colostrum ingredients, weight management, cardiovascular health support, and skin care that helps reduce aging.
For three years, New Image's revenue and profit after tax recorded an increasing trend. In 2022, the company's revenue peaked at nearly VND 4.9 trillion. Its revenue is a rise of 8.6% compared to 2021 and 39% compared to 2020. Regarding profit after tax, in 2020, profit after tax recorded more than VND 72 billion. This number increased sharply by 402.8% in 2021 and climbed by 151.4% in 2022, standing at nearly VND 420 billion.
Amway Vietnam was established in 2008, as a member of the world's leading direct-selling group Amway. Amway Corporation was founded in 1959 in Ada, Michigan, USA. After 60 years of establishment and development, Amway has become the world's leading direct-selling group and is present in more than 100 countries and territories.
In Vietnam, Amway produces and sells a variety of high-quality products in the Nutrilite health food and dietary supplement lines, the Artistry skin care product line, and the personal care product line including Glister, Santinique, G&H, and the Amway Home household care product line.
Amway has revenue of more than VND 1.5 trillion in 2020. This number climbed by 23.4% in 2021 and increased by 26.09% in 2022, reaching nearly VND 2.4 trillion. Regarding profit after tax, in 2020, profit was recorded at more than VND 45 billion. Brand’s profit rose by VND 10 billion in 2021 and then went up by 50.6% in 2022, standing at a profit of nearly VND 90 billion.
Unicity Vietnam Co., Ltd. is one of the most prestigious multi-level marketing companies in Vietnam. Unicity Vietnam Co., Ltd. is a member of the United States Unicity International corporation. This group has a history of development of more than 100 years, ranking 87th in the top 500 private companies in the US.
The company's main products are mainly health protection foods and cosmetics, which are certified as good quality, contributing to a better life. In 2022, Unicity Marketing's revenue achieved more than VND 1.2 trillion. This number is up 7% compared to 2021 and up 33.6% compared to 2020. Unicity Marketing's profit after tax has also increased steadily over three years. Specifically, the brand's profit in 2020 and 2021 tends to grow by VND 10 billion. Then, in 2022, brand profits continue to grow by another VND 10 billion, peaking at nearly VND 30 billion.
Nu Skin Enterprises
Nu Skin is a direct-selling company that manufactures and distributes high-quality products through a network of Brand Affiliates. The brand's main products are related to anti-aging. Nu Skin is listed on the New York Stock Exchange and is present in nearly 50 markets around the world.
The brand's revenue and profit after tax recorded continuous growth for three years. In 2020, Nu Skin Enterprises' revenue reached more than 1 trillion VND. This number declined by 23.2% in 2021 and increased by 4.8% in 2022, achieving more than 830 billion VND. Regarding profit after tax, the brand peaked at more than 55 billion VND in 2020. By 2021, brand profit decreased by 10.7%, then continued to fall by 95.7%, reaching more than 2 billion VND in 2022.
Founded in 1967 by two Swedish brothers, Jonas and Robert af Jochnick in Stockholm, in 2003 Oriflame officially entered the Vietnamese market. With more than 50 years of experience, Oriflame brings the safest, most trendy beauty products to women and has built a community of consumers who use and are satisfied with beauty products from Sweden.
Oriflame's net revenue and profit after tax fluctuate continuously each year in the period from 2020-2022. Specifically, in 2022, the brand's revenue reach nearly VND 580 billion, up 21.7% compared to the previous year but down 12% compared to 2020. The brand's after-tax profit went from negative to nearly VND 2 billion in 2020, then increased to more than VND 1.7 billion in 2021 and reduced to negative profits of nearly VND 1 billion in 2022.
Lien Ket Viet Nam
As a company specializing in functional foods and supplements for users' health, Vinalink Group has produced and distributed many useful products, from beauty cosmetics, health protection foods, and food for children to drinks.
However, in recent times, the company's operations have changed. In early 2023, many students noticed signs of being tricked into multi-level marketing through promises of salaries ranging from VND 3.2 to VND 7.6 million per month when applying for cosmetics sales jobs. After the incident, Vinalink Group suspended 8 Distributors, terminating the operations of 7 Distributors who had committed violations.
Lien Ket Viet Nam’s revenue in 2021 increased by 3.7% compared to 2020 and continued to climb in 2022, reaching a revenue level closer to nearly VND 420 billion. The company's profit after tax also recorded an increasing trend. From 2020 to 2021, profit grew 6.4% from VND 7.8 billion to more than VND 8.3 billion. By 2022, profits continue to go up sharply by 207.5%, achieving nearly VND 26 billion.
Gcoop is one of several companies, social enterprises, and social groups that conduct sales in the form of global cooperation to bring products to the world. Gcoop was born on the foundation of the General Bio Joint Stock Company. Here, a large number of members participate in sharing policies and business directions to create the most appropriate community programs or campaigns to support business.
GCOOP's revenue reached more than VND 140 billion in 2022. This number is an increase of 68.3% compared to 2021 and a rise of 57.6% compared to 2020. The brand's profit after tax recorded a positive profit in 2020. Specifically, in 2020, the brand's profit reached more than VND 18 billion, then the brand's profit went down to negative levels and tended to climb losses from a loss of nearly VND 2 billion in 2021 to negative nearly VND 9.5 billion in 2022.
TIENS Group entered Vietnam in 2000. After 23 years of development, TIENS has now built a wide network system throughout the provinces and cities, with 14 agents and more than 20 thousand distributors and employees. consumption across Vietnam.
The superior TIENS product lines introduced into the Vietnamese market include functional foods, family health care equipment, skin care products, consumer goods, etc. With outstanding quality combined with advanced technology, modern biotechnology with 5,000 years of Chinese nutrition culture, Tiens products have been widely accepted by consumers and highly appreciated by Vietnamese agencies and departments.
TIENS's revenue reached more than VND 220 billion in 2022. This number is a rise of 50.4% compared to 2021 and an increase of more than 92.1% compared to 2020. The brand's profits recorded continuous growth. Specifically, the company recorded a profit of more than VND 5 billion in 2020. Its profit went up sharply by 156.4% in 2021, then increased to VND 20 billion in 2022.
Lo Hoi Trading Company Limited was established on June 15, 2002, with headquarters located in District 3, City. Ho Chi Minh. This is also the exclusive importer and distributor of health protection products and cosmetics under the Forever Living Products brand of the United States in Vietnam.
Lo Hoi's revenue in the period from 2020 to 2021 recorded a revenue ranging from VND 140-145 billion. In 2022, revenue was even more breakthrough, increasing by 10% compared to 2021, reaching nearly VND 155 billion. The brand's profit after tax tends to grow in 2020 and 2021, from more than VND 2 billion to more than VND 7 billion, an increase of 212.6%.
Total Swiss Vietnam is a multi-level marketing company headquartered in Switzerland and operating in Vietnam. The company specializes in manufacturing and distributing health care, beauty, and nutrition products, including functional foods, cosmetics, household appliances, and other products.
Total Swiss Vietnam was established in 2012 and has become one of the multi-level companies with high revenue in Vietnam. The company is committed to providing customers with the best quality products and services while also providing business and development opportunities for those who want to participate in the multi-level business model.
In 2022, Total Swiss brand revenue is recorded to reach nearly VND 117 billion, a growth of 36.8% compared to 2021 and an increase of 62.2% compared to 2020. The brand's revenue tends to climb, leading to an annual rise in profits. Specifically, in 2020, the brand's after-tax profit reached more than VND 23 billion. This number was added to nearly VND 4 billion in 2021. Then, it continues to grow by 40.2% in 2022, recording more than VND 38 billion.
Elken International Vietnam Co., Ltd. is a branch of the multinational company Elken International, specializing in trading health care and beauty products, including nutritional products, skincare, hair care, body care, and other products. Elken International was founded in Malaysia in 1995 and is now present in many countries around the world, including Taiwan, Indonesia, Thailand, the Philippines, India, Singapore, Australia, and Vietnam.
In Vietnam, Elken International was established in 2003 and quickly became one of the leading companies in the field of health care and beauty. In addition, Elken International also offers customers business opportunities by becoming agents of the company and participating in Elken International's multi-level business model.
Over three years, Elken International's revenue fluctuated between VND 40-45 billion. Regarding profit after tax, Elken International is the only brand at the top that has recorded negative profits for three consecutive years. The brand's profit in 2020 reached nearly negative VND 1.2 billion. This number climbed to negative VND 3 billion in 2021 and reached negative VND 4.7 billion in 2022.
The multi-level marketing market is currently very complicated with many sophisticated tricks, preying on the greed and ignorance of many people, attracting many sectors, especially young people, to join the network. illegal multi-level network. Therefore, to create a healthy multi-level business environment and protect the rights of consumers, the state has proposed several important measures.
First, multi-level marketing businesses need to focus on improving product quality and ensuring customer trust. In addition, promotes product distribution to consumers. At the same time, managing and training distributors to follow legal regulations is important. Monitor the market to detect and handle unusual activities, and work closely with regulatory agencies such as the Ministry of Industry and Trade to warn, educate people, and create a better business environment.
Source: Vietdata's 2022 Vietnamese Multi-Level Marketing Market Report