50 percent MLM companies report losses in Vietnam

Vietnam Competition Authority under the Ministry of Industry and Trade reported low efficiency in operation of multi-level marketing (MLM) companies with profit after tax averaging 2.2 percent and over 50 percent of them posting losses in 2016.


The number of MLM companies reduced by 45 percent and salespeople dropped 25 percent. However the industry’s revenue was down by only VND200 billion ($8.82 million) approximating 2.5 percent.


Total percentage and other economic benefits paid to the staff of MLM salespeople reached VND2.4 billion.


If the amount is divided equally among 640,000 salespeople, a person’s average income is VND3.8 million ($168) a year. This proves that a very low ratio of the number are really selling goods.

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