Ministry of Transport: 'Cannot force Uber and Grab to stop operations'

A representative of the Ministry of Transport said that it is impossible to force Uber and Grab to stop operating as proposed by the Hanoi Taxi Association because this is fair competition, and businesses can do anything that is not prohibited by law.

The Hanoi Taxi Association's proposal to urgently stop the pilot plan in September 2017 and conduct a summary assessment of the consequences of the pilot plan is said to be causing much insecurity for society. A representative of the Ministry of Transport said that the Ministry has not yet received the above proposal.

Regarding the Association's arguments that contract vehicles operating like Uber and Grab are not managed or bound like traditional taxis, causing disadvantages and unfairness to traditional taxis, the representative of the Ministry of Transport affirmed that contract vehicles are managed according to regulations and the authorities have handled many contract vehicles that violated the regulations.

Ministry of Transport: 'Cannot force Uber and Grab to stop operations'

According to the representative of the Ministry of Transport, the nature of Uber and Grab's activities is just a form of replacing paper contracts with electronic contracts, and whether Uber, Grab or traditional taxis must register their business, have a badge, list the business name, phone number, price, and monitor the journey.

Uber and Grab's journey monitoring is similar to traditional taxis and is being monitored and managed by the Vietnam Road Administration. Violations through journey monitoring are detected in large numbers and are also punished similarly according to regulations, including having their business licenses revoked...

According to this representative, among traditional taxi businesses, there are currently 8 units that have applied new technology, using electronic contracts, even more optimal technology than Uber, Grab, the booking service is not only software installed on the phone but also uses the social network Facebook.

Therefore, "It is impossible to stop Uber and Grab from operating, because businesses can do anything that is not prohibited by law and this is a very fair and equal competition" - said a representative of the Ministry of Transport.

Ministry of Transport: 'Cannot force Uber and Grab to stop operations'

Regarding traditional taxis "accusing" Uber of tax evasion, a representative of the Ministry of Transport said that if Uber violates regulations, the responsibility for resolving and collecting tax belongs to the tax authority, and tax violations will be handled according to the law.

Regarding the phenomenon of many drivers of some traditional taxi businesses in Hanoi and Ho Chi Minh City simultaneously resigning, a representative of the Ministry of Transport said that it is not that the drivers lost their jobs, but that they quit their traditional taxi jobs to switch to Uber and Grab business. In fact, this is just a transfer from one job to another, from traditional taxi to Uber and Grab.

According to Labor Newspaper