Vietnam's Ministry of Transport has instructed localities to stop licensing new ride-hailing services in a bid to control app-based taxis, which are putting pressure on traffic infrastructure and other transport companies.
Uber and Grab have begun providing taxi services at airports, the market that traditional taxi firms typically have dominated.
In a move to relieve traffic pressure and environment pollution, Hanoi is considering banning motorbikes entirely by 2030, as well as other measures like fee collection in rush hours and stricter regulations on app-based ride hailing services.
Authorities in Ho Chi Minh City have suggested banning Uber as the ride-hailing service is not included in the city’s pilot plan on electronic contracts for passenger transport.
Price competition between traditional taxis and ride hailing companies like Grab and Uber has become fierce, but it is mostly the drivers on both sides who are suffering the biggest losses.
Renowned US corporations like Uber, Coca-Cola, Exxon Mobil, Cargil and Pfizer are expanding their business in Vietnam, contributing to Vietnam’s export growth.
In the context of the new US administration finding ways to encourage American firms to return to the US, many will continue with their plans to invest in Vietnam, where they see sunny days ahead in the local investment and business climate.
More than 20,000 Vietnamese men and women have registered to work as motorbike taxi drivers for Uber, a representative of the ride hailing company said recently.
Vietnamese drivers who once eagerly jumped behind the wheel to work with Grab or Uber might have won the battle against traditional taxis, but the fight amongst themselves is just heating up.
The Vietnamese government has finally approved Uber's application to trial its ride hailing services, a minister said, after having rejected requests from the company twice since 2015.
Judging by the barrier that Grab encounters in Danang, the recent approval by the Ministry of Transport is not yet a clear step forward for Uber.
The Ministry of Transport is gathering opinions for a draft decree on the operation and management of Uber and Grab taxis.
Minister of Transport Truong Quang Nghia has announced that State management towards Uber solely aims to ensure that the transportation company’s operations in Vietnam comply with regulations.
Danang, the most popular tourist destination in Vietnam, is waiting for guidance from the Ministry of Transportation on its request to pilot plan to apply technology in contracted passenger transport businesses.
Authorities in Danang are looking at a proposal to block access to car hailing mobile applications Uber and Grab due to traffic concerns.
Taxi-hailing service providers Uber and Grab enjoy exceptionally low taxes compared to traditional taxi companies in Vietnam, the chairman of Ho Chi Minh City Taxi Association has said.
The Transport Ministry has affirmed that Vietnam has not banned Uber but the company must work with ministries and agencies to complete business registration.
As more locals embrace ride-hailing apps, xe om drivers, mostly old and poor, find themselves on the losing side.
Its founder believes that foreign ride-hailing services help many locals, but also threaten so many others.
15,300 cars have joined the popular ride-hailing services since their debut in 2014, aggravating Saigon's traffic woes.