Amway insists ethical direct selling delivers

Amway Vietnam CEO How Kam Chiong emphasizes business ethics to staff and distributors

The sector has revealed some limitations in terms of business practices and ethics. To deal with some of the negative publicity associated with the actions of a tiny minority of firms engaged in the Vietnamese market, the Multi-level Marketing Association of Vietnam and the Direct Selling Business Association under the American Chamber of Commerce Vietnam (AmCham Vietnam) have worked together to develop a code of ethics for companies and individuals engaged in direct selling in Vietnam, claimed Phan Duc Que from the Competition Authority, Vietnamese Ministry of Industry and Trade.

“The code is intended to underscore the sense of responsibility and good ethics of those companies and distributors towards consumers,” he added.

Vietnam has seen strong public reactions to the behaviour of some unscrupulous firms that have employed direct sales methods. However, some companies in the sector have pursued a policy of complete transparency throughout their distribution network and with their partners.

Those firms that have embraced transparency regard it as a key element in their long-term sustainable growth strategies. Compliance with the code of conduct and the willingness to observe domestic regulations will build a strong foundation for the sector, as well as provide the driving force for the sustainable development of ethical direct selling companies.

How Kam Chiong, CEO of direct selling firm Amway Vietnam, said Amway was dedicated to long-term, sustainable development in Vietnam and was committed to investing in production, human resource development, healthy co-operation with the authorities and partners and raising public awareness of honest multi-level marketing.

“Amway has just undertaken a special training programme for our distributors on Code of Conduct in business activities. We believe that our distributors will observe the rules. We’ll regularly conduct such courses and unceasingly dedicate ourselves to overcoming challenges to build Amway’s reputation.”

This form of retailing has been present in Vietnam for more than a decade and seen strong growth. Some 60 companies and one million people participated in such sales in 2012, contributing more than VND500 billion (some $24 million) to the state budget. 

The US-based Amway has more than 50 years of development, cementing its leading position through strict ethical business standards. It is also a strong supporter of corporate social responsibility practices over recent years since its beginning operation in Vietnam in 2008. Amway is implementing the Amway One by One campaign for children around the world and has contributed VND14.4 billion (about $690,000) to helping disadvantaged children throughout Vietnam.