Thursday, December 8 2016

VietNamNews

MoIT to conduct anti-fraud probes

Update: March, 28/2016 - 11:30
The Ministry of Industry and Trade (MoIT) has announced the establishment of an inspection team to scrutinise seven multi-level marketing companies following the Liên Kết Việt scandal that defrauded 60,000 victims.— Illustrative Image dantri.com.vn

HÀ NỘI – The Ministry of Industry and Trade (MoIT) has announced the establishment of an inspection team to scrutinise seven multi-level marketing companies following the Liên Kết Việt scandal that defrauded 60,000 victims.

The inspection team, managed by the MoIT and police forces, will oversee the operations of four Hà Nội-based multi-level marketing firms, including Thiên Ngọc Minh Uy, Liên Kết Việt Nam, Liên Kết Tri Thức and Thăng Long Franchise.

Other firms subjected to such inspections include Unicity Marketing Việt Nam in HCM City, Amway Việt Nam in Đồng Nai Province and Liên Minh Tiêu Dùng Việt Nam in Bắc 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 Việt Nam after the Liên Kết Việt multi-level marketing firm was caught swindling about 60,000 people in more than 27 cities and provinces nationwide, appropriating a total of VNĐ1.9 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 Việt Nam Competition Authority (VCA) decided to revoke the multi-level marketing business licences of four companies in Hà Nội due to several violations found during their operations.

Those companies included Con Đường Việt Trade and Production JSC, Tầm Nhìn Đại Hưng 668 Limited Company, TNC International Trade and Im-Export JSC and Trái Tim Ngọc Việt 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. — VNS

 

 

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