As revealed on this site several months ago Amway Vietnam is launching in 2008. I’ve obtained new details about the launch, including very strict government regulation. Click on Read More below for the details from Amway’s New Market News about the Amway Vietnam launch.

NEW MARKET NEWS

VIETNAM

ISSUE #1 NOVEMBER 21, 2007

• • Overview
  • Market Introduction
  • Amway Vietnam Objectives and Strategies
  • Authorized Pre-Launch Activities
  • Amway Vietnam Launch Program
  • Authorized Post-Launch Activities

Amway is pleased to announce the launch of the Amway Business Opportunity in Vietnam in March 2008. Until the market is officially opened, please review the details provided here in the New Market News for approved Distributor activities at this time.

MARKET INTRODUCTION

VIETNAM MARKET FACTS
(Details noted in this section are subject to change)
Population: 85 Million
Language: Vietnamese
Currency: Dong (VND)
Exchange Rate: 16,24 = US$1.
GNI per capita: $62
Major Religion: Buddhism
Capital: Hanoi
Largest City: Ho Chi Minh City

Vietnam is the second fastest growing economy in Asia with a very young population of 85 million people: 60% are below the age of 30. Although Vietnam is only beginning to open up its market, we can already see the vibrancy of commercial activities in cities like Ho Chi Minh City (HCMC) and Hanoi, which are commercial hubs. HCMC is the largest city with 5.6 million people and the commercial center of Vietnam. Hanoi is the second largest city with 3 million people and the capital of Vietnam. People are very entrepreneurial, particularly in the south, and the literacy rate is high.

Negative Media and Government Perceptions: The media tends to harbor negative perceptions toward foreign-owned companies. MLM companies are also scrutinized further due to the questionable practices of some local companies. The media is mainly owned by the Government.

Controlled Environment: The environment in the Socialist Republic of Vietnam is highly regulated. All rules and regulations need to be complied with.

Direct Selling Regulations: Potential risks exist due to the Direct Selling regulations and Competition Laws currently in place in Vietnam. The Vietnam Decree 11 governs and regulates Multi-Level Sales Activities in the country. Amway will fully support and comply with the above said laws, and will strictly administer the Amway Rules of Conduct, to ensure Distributor compliance in the market. The key highlights of the Vietnam Decree 11 are:

• A multi-level sales enterprise is responsible for educating participants in multi-level marketing selling, products, and applicable laws and regulations.
• A participant is prohibited from requesting the person sponsored to pay any fees in the name of learning a course, training, seminar, social activity or other similar activities.
• Foreigners are restricted from engaging in Multi-Level Sales activities.

AMWAY VIETNAM OBJECTIVES AND STRATEGIES

We believe that the Amway Business Opportunity will be meaningful, relevant and attractive to the people of Vietnam.

Amway’s objective in the initial years in Vietnam will be to build trust and reputation in order to safeguard interests in the region. Vietnam is a regulated environment and earning the trust and confidence of the government, the media and the public will be both critical to our success and our greatest challenge. In view of negative perceptions of the direct selling industry as well as foreign companies, and given the concerns of the Vietnam government, the following will be our key strategies:

Strict enforcement of the Rules of Conduct

Amway will conduct Corporate Distributor Training Programs to communicate and educate appropriate behavior in compliance with the regulations of Vietnam and Amway’. These Training Programs will also support Distributors to enhance retailing and business building knowledge.

Amway Vietnam is the exclusive provider of all materials to support the building of the Amway Business Opportunity. No Distributor or third-party produced BSMs are allowed in Vietnam.

Amway Vietnam Manufacturing Facilities

We are excited to be in Vietnam, a very fast-growing and vibrant market in the region.

The availability of skilled labor, a large population, combined with strong support from the national and local governments makes Vietnam the most attractive destination for Amway’s latest manufacturing center. This factory in Vietnam demonstrates our long-term investment commitment to the country, its people and the community.

Amway Vietnam’s Manufacturing Facility is located in Dong Nai Province, just northeast of Ho Chi Minh City in the Amata Industrial Park. There are approximately 5 other foreign companies in this location. In October 27, the Amway Vietnam Manufacturing Facility was opened. Presently all efforts are directed toward building sufficient inventory to support the Amway Business Opportunity starting in March 28. Amway Vietnam will not be offering any factory tours.

AUTHORISED PRE-LAUNCH ACTIVITIES

The following are acceptable pre-launch activities at this time, however all other aspects of the Zero Tolerance Policy are still in effect.

• Communicating about Vietnam via letters, e-mail, phone and having one-on-one meetings.
• Promoting the Sales and Marketing Plan by only using the Amway Vietnam produced Opportunity Brochure and Amway Opportunity PowerPoint (available in the What’s New section of www.gbislink.com).
• The use of curiosity approach, any misrepresentation and inappropriate claims are strictly prohibited.

Who can be an Amway Vietnam Distributor?

• An individual who is a Vietnamese Citizen
• Husband and wife partnership, requires that both are Vietnamese Citizens
• Legal entities and partnerships, other than husband and wife partnerships are not allowed.
• An applicant must be at least 18 years old.
• An applicant may not be a full-time student
• Foreign Distributors are ONLY allowed to internationally sponsor in Vietnam and cannot have a Number 2 Business there because Foreigners are not allowed to participate in any Multilevel Marketing business in Vietnam.

Amway Zero Tolerance Policy

The Amway Zero Tolerance Policy prohibits any Distributor activity in markets that have not been officially opened by Amway. (Please find attached the Zero Tolerance Policy on Unauthorized Activity in Unopened Markets. It can also be found on www.gbislink.com.)

Mandatory Sanctions for unauthorized activities

To protect Amway’s reputation and interests, International Sponsors in Vietnam will be subject to mandatory sanctions should they violate the Rules of Conduct or any Amway policy or procedure in the Vietnam market.

Unauthorized activities by International Sponsors include, but are not limited to,

• Importing into or exporting to Vietnam, buying or reselling Amway products. (No products may be taken across the borders of neighboring countries or any not-yet-opened countries at any time.)
• Conducting, holding or being involved in any Amway meetings, other than one-on-one meetings.
• Promoting and selling BSMs or events to Vietnam Distributors, within or outside of Vietnam. The mandatory sanctions for such violations may include a 2-year suspension of benefits, qualification, or FAA generated from the International link or links in Vietnam, at Amway’s discretion.

Any investigation and resulting sanctions will be administered by the Global Business Conduct Department, in Ada, in collaboration with the home market of the International Sponsor, as well as Amway Vietnam.

Amway may, at its discretion, also apply sanctions in the International Sponsor’s home market up to and including the loss of any benefits from international links.

AMWAY VIETNAM LAUNCH INFORMATION

Amway Vietnam will be opened for business in March 2008:

• International Sponsor Meetings will be held on February 26, 2008. All International Sponsors who come to the market at the launch are encouraged to attend.
• Welcome to Amway Meetings will be held from February 27 to March 4, 2008. These are conducted in Vietnamese for prospects.
• Business Kits and optional product bundles will be available for sale at the Welcome to Amway Meetings.
• Full product sales will begin at the Amway Vietnam Regional Distribution Center (RDC) from March 5, 2008.

The above is a tentative market launch schedule, which is subject to change. Further details will be announced in New Market News- Vietnam Issue #2 and via GBISLink at www.gbislink.com.

AMWAY FACILITIES

Amway Vietnam Office/RDC and Amway Training Center are located in Ho Chi Minh City. Presently, these facilities as well as the staff are preparing for the launch and so we request that instead of visiting these facilities, please direct inquiries to VNHelpdesk@amway.com. We would appreciate your cooperation and kind understanding on this matter.

AMWAY VIETNAM PRODUCT OFFERING

At market launch, there will be 18 products offered:

• Home Care: LOC, Dish Drops, Zoom Concentrate, See Spray, SA8 Liquid Detergent, SA8 PreWash Liquid
• Personal Care: Glister Fluoride Toothpaste, G&H Body Lotion, G&H Body Shampoo, Body Series Deodorant and Anti-Perspirant Roll-On
• Nutrition & Wellness: Bio C Plus, Natural B Complex, Chewable Multi, Calcium Magnesium Plus, Daily
• Product Dispensers: Pistol Grip Sprayer, Plastic Squeeze Bottle

Buy-Back Guarantee

A Distributor may return products under a Buy-Back Guarantee for credit, within 30 days from the date of purchase if products are in saleable condition. Note: Amway Vietnam does not offer a satisfaction guarantee for Amway products.

SALES PLAN HIGHLIGHTS

Vietnam is a stand-alone market and does not have a consolidated Line of Sponsorship with any other Amway market.

The first performance year will be from March through August 2008. The product sales at launch in February 28 will be consolidated with the March volume.

Performance Bonus schedule starts at 6% to 21% (there is no 3%).

The first issue of the Amagram will be in April 2008.

Performance Bonus Schedule

The Performance Bonus Schedule is based on a 1, PV schedule as follows:

If your group monthly PV is:	Performance Bonus generated Is:
1,	21%
7,	18%
4,	15%
2,4	12%
1,2	9%
6	6%

Note: The BV/PV ratio for Vietnam will be 1 PV = 11, BV where BV = DP (Distributor Price).

21% above Foster market

In Vietnam, the Foster Sponsor receives the same benefits as a personal sponsor for all Amway awards and bonuses up to the point when the Foster Sponsored Distributor reaches the maximum Performance Bonus level. For example, if the Foster Sponsor has a 21% sponsored group, then they will be paid at 21% regardless of their side volume. The Leadership Bonus and Award is based on Leadership group volume that starts over once the Foster Sponsored Distributor has reached the maximum performance percentage (21%).

BUSINESS SUPPORT MATERIALS (BSM) POLICY

Amway Vietnam is the exclusive producer and seller of all BSMs, including support materials, literature, sales aids, events, websites, etc. to support the building of the Amway Business Opportunity. No Distributor or third-party produced BSMs are allowed in Vietnam.

The BSM Policy of Vietnam allows home meetings of not more than 1 people. Such meetings should be conducted without causing any inconvenience or disturbance to others.

AMWAY VIETNAM TRAINING PROGRAMS

Amway will offer a broad range of Product and Business Workshops and Training Programs for Amway Distributors (free of charge) at the Amway Vietnam Training Center. Support materials are optional and available for a nominal fee.

As Distributors qualify at higher levels in the Amway Business, they will need to comply with mandatory training before recognition of subsequent awards. The first of such training is at the 12% level before recognition of Silver Producer can be awarded. This is to ensure they are equipped with the knowledge of government regulations and Amway’s Code of Ethics. Training and Meeting schedules will be provided in the next issue of the New Market News.

AMWAY WEBSITES

The official website for Amway Vietnam is www.amway.com.vn. Visit this website for updates about the market and activities concerning the launch. Further details for International Sponsors can be found at www.gbislink.com in the What’s New section.

AUTHORISED POST-LAUNCH ACTIVITIES

Decree 11 does not allow Foreigners to participate in the Multi-Level Marketing Business in Vietnam. As such, International Distributors are not allowed to be involved in any form of business activities including, but not limited to sponsoring, holding meetings, setting up meeting centers, retailing, or conducting training. This extends to promoting BSMs or events in or out of the Vietnam market. International Sponsors in Vietnam will be subject to mandatory sanctions should they violate the Rules of Conduct or any Amway policy or procedure in the Vietnam market.

Appropriate Business Building Activities of an International Sponsor

• Comply with the laws and regulations of Vietnam and Amway Rules of Conduct
• Encourage building of the business by staying in contact with your Internationally Sponsored Distributors
• Direct prospects to attend the Welcome to Amway Meetings conducted by Amway Vietnam

A Word of Caution: Amway values the extensive experience and guidance foreign leaders bring to a new market such as Vietnam. However, we caution you before you expend significant financial resources and time to carefully consider the unique positioning of this market. Like China, Vietnam is a highly regulated market where the consequences of breaching the law and regulations can be quite extreme. Moreover, as a Communist government, the Vietnamese government will move quickly to remove any perceived threat to social order. The entire sales force, local and foreign, will be held to a strict standard of conduct and will comply with both the letter and the spirit of the Rules established by Amway as well as the Laws and Regulations of the country of Vietnam.

Amway is committed to responsible growth in Vietnam and while all of our leaders are welcome to participate with us, any violation of the Rules or these laws will require us to take immediate and significant action. If you violate the Rules or the Laws and Regulations in Vietnam, your business will be sanctioned both in your home market and with the International Sponsoring Linkages that you have established in Vietnam.

***Information in this issue is accurate as of the date of publication.***

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