App-based transportation now recognized as legal in Vietnam.
The government has officially approved a report from the Ministry of Transport regarding app-based transportation company Uber being officially permitted to partner with the owners of registered motor vehicles. In cases where it partners with motor vehicles companies, such companies must be registered and eligible to conduct transport services.
Uber is also subject to tax requirements and the ministry will conduct periodic and ad hoc inspections of its activities. If violations are found they will be handled as prescribed by law. With these measures the government has legalized this new form of business and ensured fair competition between traditional taxi services and the new model adopted by Uber, GrabTaxi and others.
Traditional taxi companies have been under pressure from the new model. The ministry has acted to prevent any new market entrants from evading their tax obligations and to ally any concerns among passengers about unsafe taxi services. The decision from the government provides new businesses in the field with the opportunity to develop in Vietnam while giving traditional taxi companies a chance to compete fairly.