Amway puts MLM in the spotlight

Early this year, Amway said it believed in Vietnam’s market because of the rapid economic growth here. But the current economic downturn coupled with weak domestic consumption has negatively impacted many enterprises. What about Amway’s business growth in this market over the past seven months?

From the beginning, we identified Vietnam as a market with great potential for our long-term business development.  In fact, Amway Vietnam has grown to exceed our initial expectations. Despite the economic challenges, we have achieved significant growth over the last three years and we are on track to achieve our sales objectives for this year with a double-digit growth.  

In the meantime, thousands of entrepreneurs across the country join our distributor force every month. We have been investing in training programmes to help our distributors to become successful business owners. More importantly, we ensure that they comply with the company and industry policies, rules and codes of conduct.

To promote multi-level marketing (MLM) in Vietnam, enhanced cooperation is needed between MLM companies and the state management agencies. So what should be done to enhance the cooperation?

MLM or direct selling is recognised as a legitimate business in Vietnam.  The industry has grown rapidly in the last few years, and more and more people have appreciated the opportunity to have their own business. I agree that it is essential for direct selling companies to build strong partnerships with government agencies and media. Work is needed to educate the public about the difference between a legitimate MLM and pyramid scheme.

At Amway, consumer safety is our top priority.  As a leader in the direct selling industry, we are eager to partner with government agencies to protect consumers and to support the growth of the industry.

MLM or direct selling is an industry that has grown to a more than $153 billion industry. In 2011, the World Federation of Direct Selling Associations reported more than 91.5 million people all over the world were engaged in direct selling.

The nation’s economic downturn is slowing local consumption, but the multi-level marketing (MLM) firm Amway has confidence in delivering good business results in Vietnam.  Amway global vice president and deputy general counsel Scott Balfour (left) and Amway South East Asia president Low Han Kee are determined to raise Amway’s profile to meet the huge potential of the Vietnamese market.

Amway and Ho Chi Minh City Department of Industry and Trade recently held a conference discussing the current stage and development of MLM in Vietnam. How do you assess the MLM prospects in Vietnam in the coming years?

Over the past years, only legitimate MLM companies have prospered and continued to grow while fly-by-night companies have folded.  It is very important to educate the public about the difference between a legitimate MLM and a pyramid scheme. The seminar organised by Amway Vietnam and the Department of Industry and Trade in Ho Chi Minh City helped provide a better understanding and enhance positive perception about the industry.

We believe in the Amway values and philosophy. We help people live better lives by providing business opportunities and offering quality products and services. Through training programmes, we help our distributors to be successful business owners. We ensure that they understand the company and industry codes of conduct and abide by those rules.

What differentiates Amway from other MLM companies?

Founded in 1959 in Michigan in the US, Amway, a leader in the direct selling industry, operates in more than 100 countries and territories. Amway officially launched in Vietnam in 2008. We are committed to the Vietnamese market through our investment in manufacturing facilities and training and development of our distributors. We help improve the lives of the less privileged children across the country through the Amway’s One by One Campaign for Children.

To keep on growing in Vietnam, what is your priority to expand the market here?

In order to sustain our growth, we focus our investment in product development, manufacturing, geographic presence and distributor training. We provide training programmes that help them gain knowledge in our products, knowledge in business and leadership. We encourage our distributors to become involved in the community through Amway’s One by One Campaign for Children.