|
Pleasing growth for direct selling
In spite of being a fledging industry in Viet Nam, direct selling companies have achieved encouraging growth and made significant contributions to the country’s development, according to industry insiders.
Experts, speaking at a recent forum, said that following the passage of the Competition Law in 2004 and Decree 110 in 2005 direct selling was recognised as a legitimate industry in Viet Nam.
During the past five years, the industry has made considerable progress with the participation of 40 local and foreign companies and more than 450,000 distributors.
It has registered an annual sales value of more than VND1.2 trillion (US$67 million). In 2007, it achieved a sales growth rate of 16.8 per cent.
The industry has also contributed corporate income and personal income taxes of VND500 billion to state revenue.
Looe Chee Seng, general director of Amway Viet Nam, said: "The country has about 450,000 people involved in direct selling, meaning that the industry has helped a similar number of Vietnamese families improve their incomes."
Companies that have proved to be very successful in direct sales in Viet Nam include Amway Viet Nam, Avon Viet Nam, Oriflame Viet Nam and NoNi ViNa (Tahitan Noni International).
Still, experts have also confirmed the need to further develop the industry to make full use of available resources.
Direct selling offers opportunities for many people who have previously run into barriers because of age, education or sex.
In addition, the growth of the industry allows sellers to become successful where no opportunity had existed before, according to experts.
A trade official with the US Embassy in Ha Noi has said "direct selling is a great tool for spreading the wealth in an economy because anyone can own his or her own businesses and reap the benefits of hard work, with very little overhead."
A source from the World Federation of Direct Selling Associations said anyone can participate, including housewives, college students, professionals, doctors, lawyers, retirees, businesspeople, civil servants and office and factory workers.
More significantly, the industry can withstand tough economic times, with many involved companies continuing to grow.
Conditions for growth
"Viet Nam has great potential to develop the direct sales industry," Seng said. "The country has a young, large population which could provide a dynamic and ambitious sales force. The efficiency and professionalism of local direct sellers have continuously improved."
With Viet Nam’s growing population and increased incomes, the local market can offer the direct-selling business tremendous room in which to grow in both sales revenue and tax contributions.
Seng, however, said for continued growth companies and agencies must improve public awareness on the legitimacy of the industry.
Industry members and direct sellers should be encouraged to strictly comply with the law.
Seng also said there was a need to set up an association that could attract participation from all companies involved in the industry.
"Because the industry is a new business in Viet Nam, it needs support from state management agencies and the mass media to promote it as an industry," he said.
He suggested that state management agencies issue specific regulations so the industry has suitable conditions for sustainable development.
The forum was jointly organised by the Direct Selling Committee of the HCM City chapter of the American Chamber of Commerce in Viet Nam and the Viet Nam Competition Administration Agency, with the participation of managers of major direct selling companies and distributors in Viet Nam.
The event’s main objective was to help the local direct-selling industry create a positive perception of the industry and seek support from relevant government agencies, the media and the Vietnamese public.
vietnamnews
|
