HÀ NỘI – The Ministry of Transport has approved Uber Việt Nam’s pilot project of applying technology in managing and connecting under-contract passenger transportation.

Deputy Minister of Transport Nguyễn Hồng Trường, said on Monday Uber Việt Nam had completed its pilot project following requirements of the ministry two months ago. However, Uber Việt Nam would need to get necessary approvals from local authorities where the company has registered its operation.

Đặng Việt Dũng, executive director of Uber Việt Nam, was quoted by online newspaper vneconomy.vn as saying that getting the ministry’s approval marked an important step forward for Uber and would encourage the car hailing service firm to continue renovating technologies and bring conveniences and benefits to users and drivers in major cities across the country.

Dũng also affirmed the large potential of car hailing services in Việt Nam and expected Uber would contribute to promoting socio-economic development.

The ministry had rejected Uber’s pilot project in Việt Nam on two previous occasions -- in November 2015 as the company had not founded an appropriate legal entity in Việt Nam and early this year because the project was not in compliance with established laws.

Việt Nam is the first country in Southeast Asia where Uber allows cash payment. Uber currently provides services in Hà Nội and HCM City, with UberX for 4-5-seater cars, UberBlack for seven-seater cars and UberMoto for motorbikes.

Amid the increasing popularity of the e-hailing service, the ministries have allowed firms to develop pilot projects to apply technology in managing and connecting passenger transportation.

The pilot project of Uber’s rival in Việt Nam, Grab, was approved earlier this year.

Uber and Grab are the only two foreign firms which have registered for pilot e-hailing projects in Việt Nam, besides local taxi companies, including Vinasun Taxi, Thành Công Taxi, Sun Taxi and Vic Taxi. - VNS