Govt wants decree to manage transportation companies like Grab by year-end in Vietnam

A board showing hours of taxi operation. The Government wants a new decree about transportation services to be issued by the end of this year. (Photo: Sketched by the Pan Pacific Agency.

HANOI, Dec 20, 2019, VNS/VNA. Prime Minister Nguyen Xuan Phuc asked the Ministry of Transport to speed up the revision of the draft decree about transportation service businesses and submit it to the Government for promulgation before December 30, Vietnam News Agency reported.

Several points still needed to be carefully revised to ensure a fair legal framework for the operation of transportation companies, he said.

It became pressing for Vietnam to enhance regulations to ensure healthy competition as the transportation market has witnessed the rapid expansion of ride-hailing companies which use technology platforms to connect drivers and passengers, like Grab.

PM Phuc said that the decree must ensure fairness in the transportation services market and create a legal framework for transportation firms to freely choose their operation models, suitable to their conditions and compliant with the laws.

The decree must prevent interest groups in the management of transportation services, he said.

The latest draft version of the decree was submitted to the Government for consideration in early November.

In this draft, the ministry of transport removed the regulation that cars providing passenger transportation services via ride-hailing applications must all install taxi signs. The regulation (raised in the previous draft) faced objections, saying it would discourage firms from applying technology in operations.

The latest draft said that they could choose to install a taxi sign on the roof or stick a sign made of reflective material on the front or rear window.

By July 1, 2021, cars with more than nine seats providing passenger transportation services must install in-car cameras to record their journeys, according to the latest draft. The deadline in the previous draft was December 31, 2020.

The ministry said that extending the deadline was necessary to ensure enough time for firms to install cameras.

In addition, the recordings must be kept for at least 72 hours for the journeys of more than 500 kilometres and 24 hours for journeys of less than 500 kilometres.

The decree would replace Decree 86/2014/ND-CP about automobile transportation business.

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