Should be the illegal multi-level trading crime amended into the revised Penal Code?

VCN- The reporter of the Customs News had a talk with Mr. Tran Quoc Khanh (photo), the Deputy Minister of the Industry and Trade Ministry about the management of multi-level sales as well as the handling of the illegal multi-level trading activities. 
should be the illegal multi level trading crime amended into the revised penal code

Last time, the functional forces penalized, withdrew licenses of multi-level companies repeatedly. Could you outline the basic offense signs of these companies generally? To occur these errors, is it true that the management is not strict, not tight?

Last time, the theme of "multi-level" was always hot in the public opinion and in the press. However, due to the not understanding of the State regulations on multi-level sales, there has been a misconception about the multi-level as well as the responsibility of the authorities.

First of all, the State only allows the use of multi-level method to sale, or, in other words, sale the visible products. Anyone using a multi-level method to raise funds or sell services or invisible products (like virtual currency) is doing business illegally.

The Ministry of Industry and Trade is assigned to manage the sale activities under multi-level method by the Government. Therefore, the Ministry does not have the authority to handle the capital raising activity or sale of services, invisible products in a multi-level mode. The Department of Industry and Trade and the Market Management do too.

With the sale of goods in a multi-level method, there may be administrative violations in the different levels, minor offenses are violations of the announcement regulations, reports, training violations… These violations are treated in the form of a fine. The bigger offenses, such as maintaining many codes for the same participant in multi-level sales, are handled in the form of withdrawing the license. Last time, the companies being withdrawn their licenses mainly due to the using many codes for the same participant in multi-level sales.

With the use of the multi-level method for raising funds or to sell services or invisible products, handling and preventing is very difficult because we have removed "illegal business" offense in Penal Code. If the offense was committed, the Police office would have been able to take part in and deal with the illegal multi-level activities a long time ago, and the society was not so frustrated with multi-level activities.

Therefore, It is necessary to distinguish between meaningful multi-level sales and illegal multi-level activities. Once, you have said that the management of meaningful multi-level sales was not difficult, the management of illegal multi-level activities was difficult. So, which measures prevent these illegal activities? It is known that the Ministry of Industry and Commerce has the policy to invite some international experts to Vietnam to learn about the experience of countries in the early detection and prevention of illegal multi-level behavior. So far, how has this problem been implemented?

To prevent the use of multi-level method to raise funds, the sale of services or invisible products without legal basis to deal with these behaviors since they are emerging, the only ways are to promote propaganda to raise people's awareness, at the same time, and try to detect these behaviors as early as possible and give warning to people to avoid them. Over the past time, both of these activities have been strengthened so that these behaviors have been reduced.

The Ministry of Industry and Trade has coordinated with the relevant agencies to propose the amendment of illegal multi-level trading into the revised Penal Code to have a basis to handle early and strictly for violators.

The international experts have also come to Vietnam, but they only helped us to perfect regulations on management of meaningful multi-level activities. With other multi-level activities, they thought that there are two handling ways. If the law did not consider it as an illegal one, the dispute among the parties, if any, must be dealt with in accordance with the civil law. If the law considered it to be illegal trading, the Police office should take criminal action. Their way of thinking was clear and simple.

should be the illegal multi level trading crime amended into the revised penal code
Illustration photo. Source: saigondautu.vn.

Decree 42 is considered as one of the most effective tools for the multi-level sale management. Over time, the Ministry of Industry and Trade held many meetings to draft a decree replacing Decree 42. Could you tell us when the draft will be completed to submit to the Government and which points will be amended in Decree 42

In order to improve the management effectiveness of the multi-level sales, I emphasize on the meaningful multi-level sale, the Decree replacing Decree 42 will have some new points. First of all is to maximize the transparency of the multi-level sale enterprises through requiring the enterprises have a participant management system with servers located in Vietnam, have websites to publicize and update information regularly, they must provide access right into their server when the management agencies request, must pay commissions and bonuses in the form of bank transfer. The decree will also increase the responsibility of people taking part in the multi-level activities under regulations such as banning the behaviors including non-license multi-level activities. Access and implementation of local management activities will be strengthened through regulations requiring that the enterprises have to local representatives, keep records and documents in the localities where they operate.

The draft decree has been appraised by the Ministry of Justice and Ministry of Industry and Trade is finalizing to submit to the Government for approval.

Actually, the multi-level sales are very attractive when using super-profits to attract a large part of the people take part in the multi-level sales. So, to avoid risks, avoid falling into the illegal multi-level trap, in your opinion, how will the propaganda have to deploy?

In fact, a person is 18 or over, when he gives money to another person for interest, he participates in a civil transaction. If he does not receive an interest as agreed, he may take the other person to court for a refund. If he thinks the other person has cheated on him, he could report the police to deal with.

The story is really simple. However, there are many people who have been very irresponsible to themselves and their money. They are willing to believe in illusory promises and are willing to give money to others without requiring any written agreement, so it is difficult to handle when they were in trouble. Many people are credulous but many people do it because of greed.

There is not any the State agency that manages credulous or greed but they can promote propaganda to limit them. Once, greed and credulous no longer exist, the multi-level sales will have no chance to implement. Therefore, we have been trying to promote the propaganda in the direction of clarifying the nature of the multi-level sales, confirm that the multi-level sales is a retailing method, not a form of investment for profit and not anyone success when participating in the multi-level sales. This job is really hard and if anyone tries really, their incomes will be only above average.

The propaganda activities should be promoted to as many people as possible, especially in the local media, because the illegal multi-level activities often target localities where people are used to living in the community cohesion, so it is easy to believe the other people.

Thank you, Sir!

Mr. Truong Thanh Duc, the Chairman of Basico Law Company

Actually, forms of the multi-level sales are very easy to generate fraud. However, in recent years, there have been many cases which have been mentioned , but these enterprises were still continue to be operated for a long time, so that, they have time to further expand the cheat for many people. The issuance of the decree replacing Decree 42 on the multi-level sales with many new points to clarify more clearly, manage more tightly is also necessary. However, this decree will be not a magic wand, a decisive factor for good management of the multi-level sales if other issues are not coordinated well.

Our legal implementation, enforcement is not strict. the old regulations regulated a dozen of prohibited acts; we only referred to them to detect the violation people, but our inspection and management were not tight, so such situation occurred.

In my opinion, the key to the multi-level sales was in two things. Firstly, the management agencies loosened, covered, colluded, so that, "envelope relationship" was arisen, and the management agencies ignored. Over the past years, the authorities have examined and dealt with many cases but I think that more cases should be released, and punished severely, so that, people who do the wrong thing fear, and the citizens see that to avoid. Penalty increases not only millions but also billions because in the market economy, the strict punishment is much better than imprisonment.

Second, when the intellectual standard of people is not interested in production, doing business, most of them depends on praying, begging, looking at the chance, the loss by being seduced is inevitable and must pay a heavy price. Therefore, more propaganda is needed.

Phan Thu (reported)/Binh Minh

Related News

Goods trading, being seen from Lang Son border gate

Goods trading, being seen from Lang Son border gate

VCN - At this time, import and export activities at the three international border gates of Huu Nghi, the bilateral border gate of Chi Ma and the secondary border gate of Tan Thanh are all very active. This is also the answer to the question of why Lang Son's import and export turnover in 2024 increased sharply.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading

VCN - The issuance of Circular 68/2024/TT-BTC by the Ministry of Finance is considered a solution to remove a major bottleneck in upgrading the stock market related to the abolition of the regulation on pre-trading margin requirement for foreign institutional investors.
Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.

Latest News

Prioritising growth to create stepping stone for Vietnam to enter new era: PM

Prioritising growth to create stepping stone for Vietnam to enter new era: PM

Politburo member and Prime Minister Pham Minh Chinh reported on national socio-economic development this year and solutions to accelerate the development in 2025 at a national conference held on December 1.
Party chief demands more institutional breakthroughs for development

Party chief demands more institutional breakthroughs for development

Party General Secretary To Lam, while addressing a national conference in Hanoi on December 1, emphasised the need to further create institutional breakthroughs, resolve all difficulties, obstacles, and bottlenecks to unlock resources and strongly accelerate administrative reforms thus fostering a favourable environment for development.
Driving economic growth through port development

Driving economic growth through port development

Quang Tri province has been focusing on attracting investments in its port infrastructure, aiming to establish itself as a significant logistics and trade hub in the central region and countries along the East-West Economic Corridor (EWEC) by 2030.
New Director of Lang Son Customs Department appointed

New Director of Lang Son Customs Department appointed

VCN - On November 28, in Lang Son, the General Department of Vietnam Customs (GDVC) announced the decision to temporarily transfer and appoint Nguyen Van Hoan to the position of Director of Lang Son Customs Department.

More News

Vietnamese top legislator’s Singapore visit a concrete manifestation of bilateral ties: Singaporean parliament speaker

Vietnamese top legislator’s Singapore visit a concrete manifestation of bilateral ties: Singaporean parliament speaker

National Assembly Chairman Tran Thanh Man’s upcoming visit to Singapore is another concrete manifestation of the excellent bilateral and inter-parliamentary ties between the two countries, Speaker of the Singaporean Parliament Seah Kian Peng has stated.
Vietnam enhances relations with Canada, Singapore within CPTPP framework

Vietnam enhances relations with Canada, Singapore within CPTPP framework

Minister of Industry and Trade Nguyen Hong Dien had meetings with Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng and Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong on November 28 within the framework of the eighth Comprehensive and Progressive Agreement for Trans-Pacific Partnership Commission (CPTPP) meeting in Vancouver, Canada.
National Assembly approves appointment of new Minister of Finance Nguyen Van Thang

National Assembly approves appointment of new Minister of Finance Nguyen Van Thang

VCN – At the meeting on the afternoon of November 28, 2024, within the framework of the 8th session, the National Assembly voted to adopt a resolution approving the Prime Minister's proposal to appoint Nguyen Van Thang as Minister of Finance for the 2021-2026 term.
PM orders strengthening 2024 credit management

PM orders strengthening 2024 credit management

Prime Minister Pham Minh Chinh on November 27 ordered the Governor of the State Bank of Vietnam (SBV) to outline solutions aimed at improving credit management for 2024 in the face of evolving global economic challenges.
Cambodian King begins state visit to Vietnam

Cambodian King begins state visit to Vietnam

Cambodian King Preah Bat Samdech Preah Boromneath Norodom Sihamoni arrived in Hanoi on November 28 morning, beginning his two-day state visit to Vietnam at the invitation of State President Luong Cuong.
PM orders strengthened state management over e-commerce

PM orders strengthened state management over e-commerce

Prime Minister Pham Minh Chinh on November 25 ordered relevant ministries and localities to intensify state management over e-commerce.
Vietnamese ambassador pledges support for trade expansion with Argentina

Vietnamese ambassador pledges support for trade expansion with Argentina

Vietnamese Ambassador to Argentina Ngo Minh Nguyet has pledged to help Argentine firms expand trade cooperation with Vietnam, particularly in the export of key local products such as beef, soybean, corn and cotton.
13th Party Central Committee convenes meeting in Hanoi

13th Party Central Committee convenes meeting in Hanoi

The 13th Central Committee of the Communist Party of Vietnam (CPV) convened a meeting in Hanoi on November 25 under the chair of Party General Secretary To Lam.
Green transformation: It

Green transformation: It's time to force businesses to "get involved"

VCN - Implementing ESG (environment, society, corporate governance) and green transformation has become a mandatory requirement for businesses to achieve sustainable development.
Read More

Your care

Latest Most read
Prioritising growth to create stepping stone for Vietnam to enter new era: PM

Prioritising growth to create stepping stone for Vietnam to enter new era: PM

Politburo member and Prime Minister Pham Minh Chinh reported on national socio-economic development this year and solutions to accelerate the development in 2025 at a national conference held on December 1.
Party chief demands more institutional breakthroughs for development

Party chief demands more institutional breakthroughs for development

Party General Secretary To Lam, while addressing a national conference in Hanoi on December 1, emphasised the need to further create institutional breakthroughs, resolve all difficulties, obstacles, and bottlenecks to unlock resources and strongly accelerate administrative reforms thus fostering a favourable environment for development.
Driving economic growth through port development

Driving economic growth through port development

Quang Tri province has been focusing on attracting investments in its port infrastructure, aiming to establish itself as a significant logistics and trade hub in the central region and countries along the East-West Economic Corridor (EWEC) by 2030.
New Director of Lang Son Customs Department appointed

New Director of Lang Son Customs Department appointed

VCN - On November 21, GDVC’s Director General Nguyen Van Tho signed Decision 2718/QD-TCHQ to temporarily transfer and appoint Nguyen Van Hoan, Deputy Director of the Anti-smuggling and Investigation Department to hold the position of Director of Lang Son
Vietnamese top legislator’s Singapore visit a concrete manifestation of bilateral ties: Singaporean parliament speaker

Vietnamese top legislator’s Singapore visit a concrete manifestation of bilateral ties: Singaporean parliament speaker

National Assembly Chairman Tran Thanh Man’s upcoming visit to Singapore is another concrete manifestation of the excellent bilateral and inter-parliamentary ties between the two countries, Speaker of the Singaporean Parliament Seah Kian Peng has stated.
Mobile Version