Ha Trong Thang, 28, will be investigated for his activities, Cau Giay District police said.
Initial investigations show that without a stable job, Thang came up with idea of pimping to make money. In June, he formed a Facebook group called "Sugar baby Hanoi" to recruit sex workers and connect them with "sugar daddies."
Those who wished to use the service would contact Thang through a phone number on social media.
Thang collected personal information from sex workers including their names, addresses, other jobs and pictures before sharing it with chosen clients. He was also the middleman for agreements between the "sugar daddies" and "sugar babies."
He collected VND1 million ($44.23) each from the sex workers and VND2 million each from clients.
Prostitution is treated as a social evil in Vietnam, where sex workers can be fined and sent to education camps and pimps face criminal punishments.