Authorities direct taxi companies to cut fares to reflect falling gasoline prices.
Major taxi companies in Ho Chi Minh City have announced plans to lower their fares after the city threatened to fine any transport company deliberately ignoring recent falls in gasoline prices.
The two largest companies - Mai Linh and Vinasun - have cut their fares by VND300 and VND500, respectively, per kilometer, to between VND10,000 and 17,000. Happy Taxi has cut its fares by VND500 per kilometer.
According to city authorities, eight companies are scheduled to cut their fares this week, though perhaps by less than these other companies. Uber has also said that it will cut its fares shortly to stay competitive.
Gasoline prices in Vietnam were cut by around 12 per cent last year, including five consecutive cuts since mid-October. Prices have also been cut once this year. But transport prices have remained unchanged since October, so authorities directed taxi companies to cut their fares.