Beginning July 1, 2026, a new regulation will prevent officials, civil servants, police officers, and military personnel in Vietnam from engaging in multi-level marketing (MLM) activities. This directive is part of Decree 137/2026/NĐ-CP, which outlines specific groups prohibited from participating in MLM schemes.

Multi-level marketing is defined as a business model that involves a network of participants at various levels, where individuals earn commissions, bonuses, and other economic benefits from their sales and the sales made by their recruits. Under Article 28 of Decree 137/2026, MLM companies are forbidden from signing contracts with individuals who fall into several specified categories.

Among those banned from participating in MLM are individuals currently serving prison sentences or with prior convictions related to the production or sale of counterfeit goods, fraud, or other deceptive practices. Foreigners without a valid work permit in Vietnam and those previously penalized for violating consumer protection laws are also included in the prohibition.

Additionally, the regulation explicitly mentions that public officials and military personnel, including professional soldiers and police officers, are not allowed to engage in MLM activities. This measure has received support from many citizens, who believe it will help ensure the integrity and transparency of public officials.

For instance, Do Manh Hoang, a resident of Ba Dinh, Hanoi, expressed that this regulation will help prevent the misuse of public office and personal influence to recruit individuals into MLM networks. It is also expected to mitigate conflicts of interest and the negative consequences associated with fraudulent MLM practices.

To ensure the effectiveness of this regulation, Hoang suggested that authorities enhance awareness campaigns to inform officials about their rights, responsibilities, and prohibited actions. Furthermore, there should be a robust monitoring and inspection mechanism involving both state management agencies and internal affairs departments to promptly identify violations.

Clear penalties for officials who engage in or facilitate unauthorized MLM activities should also be established, alongside the integration of technology in monitoring and managing these practices. This approach aims to improve public service ethics and accountability.