Trade Ministry to conduct anti-fraud probes
VietNamNet Bridge – The Ministry of Industry and Trade (MoIT) has announced the establishment of an inspection team to scrutinise seven multi-level marketing companies following the Lien Ket Viet scandal that defrauded 60,000 victims.
The Ministry of Industry and Trade (MoIT) has announced the establishment of an inspection team to scrutinise seven multi-level marketing companies following the Lien Ket Viet scandal that defrauded 60,000 victims.— Illustrative Image dantri.com.vn
The inspection team, managed by the MoIT and police forces, will oversee the operations of four Ha Noi-based multi-level marketing firms, including Thien Ngoc Minh Uy, Lien Ket Viet Nam, Lien Ket Tri Thuc and Thang Long Franchise.
Other firms subjected to such inspections include Unicity Marketing Viet Nam in HCM City, Amway Viet Nam in Dong Nai Province and Lien Minh Tieu Dung Viet Nam in Bac Ninh Province.
The MoIT did not explain why the inspection will specifically target those seven firms, but local media have reported complaints and reports of alleged fraud for years.
The formation of the inspection team is the latest move by authorities to manage pyramid-scheme businesses in Viet Nam after the Lien Ket Viet multi-level marketing firm was caught swindling about 60,000 people in more than 27 cities and provinces nationwide, appropriating a total of VND1.9 trillion (US$85 million) since 2014.
Seven key members of the company were arrested, and the investigation is still ongoing.
Earlier this month, the MoIT’s Viet Nam Competition Authority (VCA) decided to revoke the multi-level marketing business licences of four companies in Ha Noi due to several violations found during their operations.
Those companies included Con Duong Viet Trade and Production JSC, Tam Nhin Dai Hung 668 Limited Company, TNC International Trade and Im-Export JSC and Trai Tim Ngoc Viet JSC.
The MoIT also ordered its departments in localities to co-operate with the VCA to conduct a quarterly inspection of all the 66 pyramid-scheme firms operating across Viet Nam, nearly half of which are wholly foreign-invested businesses.
Millions of Vietnamese involved in pyramid-scheme business