Minister of Transport Dinh La Thang believes change in law is needed allowing Uber to operate taxi services.
Uber first began providing its taxi services in Ho Chi Minh City in July and despite being popular among users it remains illegal under existing laws. Traffic police have issued fines to drivers, pursuant to Decree No.171 on transportation businesses, as they do not possess a business registration certificate or other relevant licenses.
Deputy Minister of Transport Nguyen Hong Truong has confirmed that Uber’s services are illegal because a business registration certificate has not been issued. The Ministry has sent the Ministry of Information and Communications a document asking it to warn the public that their rights were not protected when travelling with Uber.
At a workshop on December 2, however, Minister of Transport Dinh La Thang said that Uber’s services were beneficial to users and Vietnam should allow the taxi service to operate. “Policies and mechanism must be simplified,” he said. “The practice of prohibiting services that haven’t been managed previously must change.” He has directed the Ministry to review the issue and work towards changing the legal framework to allow such services.
Mr. Nguyen Van Thanh, Chairman of the Vietnam Automobile Transport Association, agreed with the Minister’s comments and pointed to the fact that, under existing law, passengers in a Uber taxi that has an accident would not be able to claim compensation because the service does not have insurance that covers passengers.