Ho Chi Minh City

HCMC proposes to manage Grab, Uber like traditional taxi

The HCMC People’s Committee has proposed the Ministry of Transport to manage ride sharing services Grab, Uber and Facecar as a new type of taxi, which must meet transport business regulations like traditional cabs, said the city Department of Transport leader yesterday.

An Uber driver is fined for breaking transport business regulations (Photo: SGGP)

An Uber driver is fined for breaking transport business regulations (Photo: SGGP)

The proposal was made after HCMC Taxation Department made a decision to penalize tax-related administrative violations with the total arrears of VND66.68 billion (US$2.93 million) to Dutch Uber B.V Company.
According the leader, the move aims at creating a management foundation and ensuring healthy competition in transport business among types of transport such as taxi and contract cars.
At present, traditional taxi firms must declare and post their fares according to meters on their cabs. Therefore, there should be specific regulations on prices to Uber, Grab and Facecar.
In addition, it is needed to build an identification plan to ride sharing cabs and the plan should be sent to authorized agencies for approval. While operating, they should also have barges like traditional taxi cabs.
The city People’s Committee also proposed to supplement regulations to manage software suppliers such as Grab, Uber and Facecar. These regulations are similar to taxi business conditions. Ride sharing service should be piloted for cars of less than nine seater, each trip should conduct a maximum of two contracts to prevent the illegal operation of passenger vehicles and stations. Identification marks should be stuck on ride sharing cars to facilitate inspection and violation handling.
Previously, the Department of Transport has sent a document to the Ministry of Transport and the Directorate for Roads of Vietnam, saying that Uber cabs have no taxi badges, logo or meters like other taxi cabs. They are in fact contract cars unlicensed as per regulations. That affects transport order in HCMC.
The agency suggested the ministry to make clear the legality of the ride sharing service to have basic to manage them and handle violations. The agency also proposed the Department of Information and Communications to consider operation of website uber.com and Uber application.
Mr. Le Hong Viet, deputy inspector chief of the Transport Department, said that inspectors have worked with relevant sides to inspect transport business types. They have penalized Uber service for not doing business registration, not having transport business license, logos or signs with the penalty of VND3-4 million to individuals and VND6-8 million to organizations.
In addition, many vehicles have logos comprising names of transport business firms, phone numbers and contract barges but they are very small, raising difficulties for authorized agencies in handling violations. Hence, relevant sides should stipulate the size of logos.
On the same day, deputy head of HCMC Taxation Department Le Thi Thu Huong, said that if Uber does not voluntarily pay the tax arrears ten days after the penalty decision is issued, the agency will apply coercive measure to blockage its account. Uber has registered in Vietnam so the coercive measure can be implemented.
Uber application is still operating normal in Vietnam. Still many drivers have been concerned about their income and benefit if Uber Vietnam stops operation.

By QUOC HUNG, HAN NI – Translated by Hai Mien

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