Warning of 'multi-level scam' that may exploit compensation money of fishermen in Central Vietnam

(Baonghean.vn) - Head of the People's Petition Committee, National Assembly Standing Committee Nguyen Thanh Hai expressed concern that in the near future, people in the four central provinces that have just received compensation for environmental damage will be targeted by multi-level marketing companies.

Speaking at the discussion session at the National Assembly hall this morning (November 3), Ms. Nguyen Thanh Hai said that behind the multi-level transformation are extremely worrying social phenomena such as fraud, cheating each other's trust, leading to murder, disputes, lawsuits...

The delegate of Hoa Binh province assessed that multi-level marketing business has been like a “tornado” creating a “nightmare” in many rural areas and poor residential areas that were once quiet and peaceful, causing many people to suffer. Multi-level marketing has destroyed the peace of many quiet and simple villages, reduced people’s trust in each other and affected social morality.

Head of the People's Petition Committee, National Assembly Standing Committee Nguyen Thanh Hai talks with reporters.

Ms. Hai commented that the target groups that multi-level marketing companies aim to develop their networks are usually housewives, workers, retirees, etc. In particular, people who are eligible to receive compensation and support from the State and businesses to stabilize their jobs and lives after land acquisition are the very groups that multi-level marketing companies aim to develop their networks to commit fraud.

Citing the multi-level marketing company Truong Giang, which imported the product Truong Giang calcium kid (calcium supplement for children) for only 12,000 VND but sold it to multi-level marketing participants for 990,000 VND, the delegate commented: "There is a saying "one capital, four profits" used to refer to super-profitable business types, but here the difference between the import price and the selling price is 82.5 times."

According to data published by the Ministry of Industry and Trade, in Vietnam there are currently 1 million people participating in multi-level marketing, meaning that on average, 1 out of 90 people is a multi-level marketer. Explaining this number, the delegate said that many people who have participated in multi-level marketing, although they later know they have been scammed, but because they want to recover the money they have spent, they are like moths to a flame, by all means having to scam to sell products to any other person, whether it is a friend, neighbor, colleague, or even a relative.

"This is the reason why the number of people participating in multi-level marketing is increasing and in all cases, the multi-level business owners profit, even though the commissions given to their sellers are very high," said Ms. Hai.

In her speech, Ms. Nguyen Thanh Hai also warned that due to the phenomenon of multi-level companies always targeting the area where people have just received compensation to develop their network, it is very likely that in the near future, people in the area of ​​4 central provinces who have just received compensation for environmental damage will be the area that these multi-level companies target. Therefore, the Government needs to pay special attention and promptly resolve this issue./.

Duong Gim