Ministry of Transport denies GrabVietnam’s expansion plan

Vietnam’s Ministry of Transport has rejected a proposal from GrabVietnam to extend its ride-hailing service into the country’s southern and central highland provinces. The company is required to cancel its launch in the provinces of Ninh Thuan, Dong Thap and Gia Lai. Additionally, Grab is prohibited from working with taxi drivers without the approval of transport operators and transport departments. According to a report by The Saigon Times, the ministry says the application of technology to make c
June 29, 2018 Read time: 2 mins
Vietnam’s Ministry of Transport has rejected a proposal from GrabVietnam to extend its ride-hailing service into the country’s southern and central highland provinces. The company is required to cancel its launch in the provinces of Ninh Thuan, Dong Thap and Gia Lai.


Additionally, Grab is prohibited from working with taxi drivers without the approval of transport operators and transport departments.

According to a report by %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-external The Saigon Times false http://english.thesaigontimes.vn/60779/transport-ministry-rejects-grabtaxi%E2%80%99s-service-expansion.html false false%>, the ministry says the application of technology to make commuting easier for residents is only available for licenced operators whose vehicles have a transport service badge. These companies must adhere to business transport regulations, ensure fair competition and pay duties enforced by the state.

The ministry’s ruling on pilot schemes for ride-hailing businesses reportedly allows GrabTaxi to operate in regions such as Hanoi, Ho Chi Minh City, Khanh Hoa, Danang and Quang Ninh.

In March, minister Nguyen Van The said ride-hailing firms must comply with Vietnamese laws or have their operations halted. The move is intended to improve the responsibility these companies have for drivers and passengers.

The report says the ministry is now developing its automobile business operations to keep app-based firms under control.

UTC

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