The Female Entrepreneur Behind the Aloe Vera Multi-Level Ecosystem

The multi-level marketing company, Lô Hội, has once again come under the spotlight due to recent controversies involving the couple, Đoàn Di Băng. Entrepreneurs Nguyễn Quốc Vũ and his wife, Đoàn Di Băng, were previously introduced as senior managers of Lô Hội.

A String of Controversies for Lô Hội’s Multi-Level Marketing

According to our research, Lô Hội Trading Services Co., Ltd. was established in 2001, with its headquarters located at 193/11 Nam Kỳ Khởi Nghĩa Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City.

When it was first established, the company had a chartered capital of 5 billion VND, and Ms. Trương Thị Nhi (born in 1948) served as both the legal representative and the Director. Ms. Nhi is also the Chairman of the Vietnam Multi-Level Marketing Association.

As of November 2023, these positions were transferred to Ms. Trương Võ Hoàng Ý. The company now has a chartered capital of 50 billion VND, with Ms. Nhi contributing 49.36 billion VND, holding 98.72% of the capital, and Ms. Nguyễn Thị Thùy Dương contributing 640 million VND, holding the remaining 1.28%.

Lô Hội created a stir in the early 2000s, especially among the 8X-9X generation, with its multi-level marketing model. The company introduced itself as the exclusive importer and distributor of Forever Living Products’ health supplements and cosmetics in Vietnam.

According to their website, Lô Hội offers approximately 66 products, ranging from skincare and personal care cosmetics to health supplements that support healthcare, skincare, and weight loss.

Notably, Lô Hội has been inspected and fined on multiple occasions. Specifically, in 2006, an inspection team from the Ho Chi Minh City Department of Industry and Trade announced the results of their inspection into Lô Hội Trading Services Co., Ltd.’s compliance with the law, revealing several violations.

The inspection’s conclusion stated that Lô Hội’s multi-level marketing products were sold at prices many times higher than their purchase prices, causing harm to consumers.

For instance, the Sonya Mascara from Canada had a capital price of nearly 15,000 VND, but Lô Hội’s wholesale price was 171,000 VND, 11.52 times higher, and the retail price was 244,000 VND, 15.1 times higher than the capital price.

The Forever Bee Pollen dietary supplement from the US had an original price of just over 3,000 VND, but the wholesale price was 244,000 VND, 75 times higher, and the retail price was a staggering 348,000 VND, 117.39 times the original price.

The inspection team also concluded that Lô Hội imported and traded goods that did not meet quality standards, violating the Law on Goods Quality. During their operations, there have been numerous consumer complaints and accusations against Lô Hội regarding deceptive and exaggerated product advertising, with prices far higher than their actual value…

Most recently, in May 2024, the National Competition Commission imposed an administrative fine of 220 million VND on Lô Hội Trading Services Co., Ltd. for multiple violations of the law on multi-level marketing.

These violations included: failure to properly amend and supplement the certificate of registration for multi-level marketing activities; conducting multi-level marketing activities in localities without obtaining confirmation of registration from the provincial Department of Industry and Trade; failure to comply with reporting obligations in multi-level marketing activities to the state management agency as prescribed by law; failure to comply with registered rules of operation; and failure to issue invoices for each transaction with multi-level marketing participants or direct customers.

Who is Behind Lô Hội’s Multi-Level Marketing?

The owner of Lô Hội Company is Ms. Trương Thị Nhi, who currently serves as the Chairman of the Vietnam Multi-Level Marketing Association (term 2020-2025).

In addition to Lô Hội, Ms. Nhi also owns several other businesses, including LH Holding Group JSC, Lien Hoa Tourism Trading and Service Group JSC, Megacash Pawnshop, Vinh Thanh Ben Tre Company Limited, Lien Hoa Go Research and Development of Science and Technology and Medical Technical Services Co., Ltd., and LH Blooms & Greens Vietnam Co., Ltd.

On the other hand, many of Ms. Nhi’s businesses have closed down or temporarily ceased operations, including Lien Hoa Power Net JSC (temporarily suspended), Nguyen Kim Jewelry JSC (temporarily suspended), Lien Hoa Trading and Service Company Limited – International Trade Club Branch (temporarily suspended), Steel Solution Co., Ltd. (closed), Sen Xanh Tourism Trading Service Construction Co., Ltd. (closed), and several Lô Hội branches in Ben Tre, Long An, and Can Tho have also closed down.

Among these, it is worth mentioning Lien Hoa Tourism Trading and Service Group JSC (Lien Hoa Group) – a multi-sector group operating in tourism, commercial consulting, real estate business, jewelry, and specialized vehicles.

According to Lien Hoa Group’s introduction, Chairman Trương Thị Nhi was born in 1948 in Ben Tre and started her career in Vung Tau. From 1979, she was involved in manufacturing equipment for the oil and gas industry in Vung Tau.

In 1983, she trained electricians and refrigeration technicians for the oil and gas industry and built a Finnish cold storage facility for Vietsovpetro in Vung Tau. In 1985, anticipating the wave of economic openness, the businesswoman began building the Lien Hoa Group, focusing on tourism and import-export activities.

In 1989, she became the Director of External Tourism in Ho Chi Minh City, under the Ben Tre Tourism Company, and also managed the Phu Dong Credit Fund in District 5.

In 1990, she was appointed Deputy Director and then Director of Hoa Binh Tourism Company, under the Vung Tau-Con Dao Special Zone Women’s Union.

In 1991, she became the Chairman of the Board and Director of Lien Hoa Tourism Company Limited in Vung Tau and was one of the first people to establish a private office in Ho Chi Minh City.

In 1999, due to the impact of the 1997 Asian financial crisis, the businesswoman opened a restaurant in Singapore and engaged in exporting Vietnamese products such as fruits, vegetables, seafood, and handicrafts.

In 2001, she met Dr. Rex Maughan, Chairman of Forever Living Products (FLP) USA in Singapore, and discussed bringing FLP’s multi-level marketing model to Vietnam. She participated in training programs and prepared resources to establish Lô Hội, the exclusive distributor of FLP products in Vietnam.

By the end of 2001, Lô Hội had inaugurated two offices in Ho Chi Minh City and Hanoi. Since 2009, Ms. Nhi has been one of the founding members of the Vietnam Multi-Level Marketing Association and has been elected as its Chairman up to the present.