The Ministry of Transport's recently-issued Decision No.146 has ended the pilot period for app-based taxi services in Vietnam. This has officially allowed all transportation firms to use IT applications in their operations.
Speaking to local media about the new decision, economist Nguyen Tri Hieu said that this meant app-based taxi services firms could now officially operate in the whole country.
"As ride-hailing services are still new concepts in Vietnam, there should be detailed regulations for proper management in the local business environment," he commented. "These regulations need to be adjusted frequently to suit with the management methods in different periods."
All firms which have demand and capacity to apply IT in transportation services can now start their business and join the market, and do just as Grab, Vato, and FastGo are doing.
Why stop piloting ride-hailing services?
The pilot of app-based taxi services had been carried out in four years from 2015 until the end of 2019. The four-year period was said to be enough for Vietnam to understand about the services and how to take the best advantage of IT in local transportation activities.
By the end of 2019, Grab had conducted over 150 million trips and created jobs for about 200,000 drivers nation-wide.
With IT applications launched by Uber, Grab, etc, the rate of taxis running without passengers has reduced compared to the 42 per cent of non-app-based taxis. This has helped save money and protect the environment.
Ride-hailing systems have changed the way transport services work.
Official operation of app-based firms
As the app-based taxi services are no longer only restricted in five provinces and cities but now expanded nationwide, more people are having chances to travel safely and at reasonable prices. This has also helped create jobs for more drivers who feel more assured as the services have been approved.
Above all, the official operation of ride-hailing taxi firms means no more worries about their business being suspended.
