Uber should only partner with licensed transport firms
Prime Minister Nguyen Tan Dung has given approval to the management regulations the Ministry of Transport proposed late last year to be applied for the operations of ridesharing app Uber in Vietnam.
In a report submitted to the premier on December 24, the transport ministry suggested that Uber should be allowed to operate in Vietnam if the company only contracts licensed transport firms.
Uber should only partner with businesses whose car fleets are equipped with badges, logos and tracking devices, Minister Dinh La Thang elaborated in the document.
The San Francisco-based company received an investment license from the Ho Chi Minh City administration on August 30 last year, according to the transport ministry’s report.
The Ministry of Transport said it will conduct regular and sudden checks on Uber cars and will impose strict sanctions if any violations are detected.
It also called on the finance and industry counterparts, and the State Bank of Vietnam to join the effort to properly watch over Uber operations in Vietnam. The finance ministry will make sure Uber fulfills its tax duty, whereas the industry and trade ministry and the central bank will oversee its online commerce and international payment aspects.
Prime Minister Dung agreed with all of the propositions of the transport ministry in the report, according to a document released by the Government Office.
The premier assigned the Ho Chi Minh City administration and relevant agencies to oversee Uber operations.
The Ho Chi Minh City’s taxi association has repeatedly called for a ban on Uber operations in the city, saying it hurts the traditional taxi services.
Prime Minister Dung has tasked the city’s administration with handling the case and respond to the taxi association.
Uber, which connects passengers and drivers via a smartphone app, started offering services in the Southeast Asian country on July 31, with rides now available in both Hanoi and Ho Chi Minh City.
As in many other countries where it operates, Uber is facing legal challenges in Vietnam, including its legality to operate as a transport business and tax issues.
Uber customers use the app to request rides and track their reserved vehicle's location, with information, including the fare and estimated arrival time, made known before they get in the car.
The complete fare is automatically billed to the customer's credit card at the end of a ride.
Uber is a controversial service in many of the 250 cities worldwide the company has a presence in, mostly because it can offer lower fees due to the absence of regulations.