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​Draft decree highlights conditions for operations of Grab, Uber in Vietnam

Sunday, January 07, 2018, 10:26 GMT+7

Vietnam’s Ministry of Transport has proposed a series of conditions to tighten the management of Uber and Grab in the country.

The transport ministry has submitted a draft decree to the central government, which is expected to replace the current Decree No. 86/2014/ND-CP on the conditions for the auto transportation business.

According to Minister of Transport Nguyen Van The, the provisional decree highlights the addition of new requirements for the operations of passenger transport businesses via digital contracts and software, namely Uber, Grab, and similar services.

The proposed regulations are aimed at striking a balance with the conditions that have been applied to local taxi companies, Minister The continued.

The transport ministry previously collected feedback from taxi firms and transport associations before finalizing the decree, the official added.

Pursuant to the tentative legislation, businesses such as Uber and Grab would have to get legitimate licenses and complete the registration for e-commerce services, which is certified by the Ministry of Industry and Trade.

Uber and Grab have yet to carry out such registration.

A deal with specific terms would have to be signed between technology firms and transport companies.

A logo with the minimum size of 90x80 millimeters would have to be placed on the front and back windows of the cars.

Businesses that provide ride-hailing software will need to cooperate with transport firms to provide sufficient and accurate information regarding their rides in order to facilitate tax collection.

The electronic receipt of each ride would have to be sent to the General Department of Taxation under the Ministry of Finance.

Meanwhile, transport businesses that sign electronic contracts with technology firms would be granted the licenses for auto transportation business.

They must ensure that the age of their vehicles does not exceed 12 years from the date of production.

Such a requirement would be applied to cars with nine seats and below, which is similar to the current condition for local taxi firms.

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