Uber gets Gov't nod with legal conditions

Update: April, 06/2015 - 09:03

HA NOI (VNS) — The Office of the Government on Friday issued a decision that provides guidelines for the operations of Uber, the app-based taxi service, in Viet Nam.

The decision stipulates that Uber will sign contracts only with transport service companies that fully satisfy all conditions and criteria outlined in national standards.

The company will be subject to regular and random inspections by concerned Government agencies. In cases violations are found, Uber will be held accountable and penalised under Vietnamese law.

The Government Office and the Ministry of Transport have urged other ministries and agencies to establish a legal framework for Uber's operations, ensuring conformity with national law and fair competition requirements.

The office has ordered the HCM City People's Committee to quickly process and respond to a request from the HCM City Taxi Association to temporarily shut down Uber's operations in Viet Nam.

The decision was based on a report submitted by the Ministry of Transport on Uber's operations.

Uber was licensed by the HCM City People's Committee on 30 August last year.

It's operations initially caused much concern among transport officials as the company had not registered to provide taxi services and failed to meet tax regulations.

Local transport companies repeatedly voiced their concerns, saying the app-based taxi service had a cost benefit over local taxi firms that disadvantaged the latter. — VNS