Herbalife posts $71 mln Q1 sales in Vietnam

Herbalife Nutrition Ltd., a global multi-level marketing company providing dietary supplements and skincare products, recorded net sales of $71.1 million in Vietnam in Q1/2023, down 3.5% year-on-year.

According to the firm’s latest financial report, the figure fell 0.1% in terms of local currency, as foreign currency exchange rates led to an unfavorable impact of $2.5 million.

In the Asia Pacific region, Vietnam’s sales figure was the second-biggest, behind India with $178.6 million. China, another major market in the region, recorded net sales of $67.7 million.

The decline in Vietnam sales volume indicated impacts of inflationary pressures and a January hike in value added tax (VAT), the report said. In 2022, Vietnam reduced VAT to 8% to help businesses recover from the pandemic. This went back to 10% starting January 1, 2023 before being reduced to 8% again last month to spur economic recovery.

Herbalife said it had increased its product prices by 3% in March 2023, after a hike of 10% in July 2022. Further changes in direct-selling regulations in the market are expected to receive the government’s approval in 2023, it added.

Herbalife entered Vietnam in November 2009, making the Southeast Asian nation its 71st market in the world. It has its main office located in Ho Chi Minh, branch offices in Hanoi and the central city of Danang, and representative offices and delivery centers in the provinces and cities of Binh Duong, Phu Tho, Nghe An, Hai Phong and Can Tho.

Herbalife recorded net sales of $298.9 million in Vietnam in 2022, up 9.6% year-on-year. The Vietnamese market has seen several years of growth in sales volume with a focus on sustainable and consumption-oriented business practices including an increase in the number of product access points.

According to the Ministry of Industry and Trade, Vietnam had 19 multi-level marketing (MLM) firms as of March 2023. Total revenues of the MLM sector grew 24% year-on-year from VND15.44 trillion ($657 million) in 2020 to VND19 trillion ($809 million) in 2021, according to the ministry.