Uber private taxi operators have been told by Transport Minister Dinh La Thang they can operate in Vietnam, but will be subjected to strict inspections and regulations.
A Uber taxi driver pulled over in HCM City
Thang laid down the law at a meeting on December 22 with representatives of the Uber taxi industry in Hanoi.
"The goal is to bring a safe, convenient trip to travellers, improve enterprises' capacity and to reduce congestion and traffic accidents," Thang said. "The ministry encourages the use of high technology, but companies must ensure passenger safety and prevent unfortunate incidents like the recent rape in India."
Khuat Viet Hung, Vice Chairman of the National Traffic Safety Committee, said he had undertaken five trips with Uber taxi operators, but none had met government standards, such as a displayed taxi badge or a list of prices.
Representatives from Uber said they would investigate those charges, but maintained there was no intention of violate regulations and hoped there would be further consultations so that the new industry can operate within Vietnam laws.
Michael Brown, the director of Uber in South East Asia, said the company was foremost a technology provider, not a taxi firm.
Uber only offers a computer application for mobile telephones so potential travellers can be put in contact with potential drivers to travel to a specific destination, with fees charged to the traveller's preregistered credit or debit card. No cash is exchanged, and transport fees are calculated on the most direct available route. On average, Uber taxis cost a little bit more than a normal taxi, the extra cost having been counted out as a convenience factor.
The president of the HCMC Taxi Association, Ta Long Hy, is opposed to Uber operations and filed a complaint to the Ministry of Transport.
"Uber said they are just medium agency between riders and drivers. But they run a full operation like a taxi firm from accepting passengers, assigning cabs to routes and listing the prices," the association said in its letter of complaint.
Thang ruled that Uber may only make a contract with licensed transport firms. Inspectors from the Transport Ministry will closely monitor the activities of such firms, and conduct random checks on their operations.
The minister said he would ask all relevant departments and the National Traffic Safety Committee to review the current laws and make suitable adjustments if necessary.
The General Department of Taxation has reviewed Uber operations and decided on two paths. If Uber is considered a transportation firm then the VAT tax rate will be three percent, and corporate tax two percent. If Uber is a medium agency then the rate will be five percent of total income.
Uber is a ride-sharing service app to connect passengers and drivers. Currently, several nations have banned Uber, among them France, Belgium, Spain, Germany, Thailand and even some US states. The most common reason is that Uber was not a registered taxi operator, and had launched its operations without seeking proper permits from authorities.
Earlier this month, Uber was banned in India after a female passenger accused one of its drivers of rape. And users of the service in Australia alleged they were charged far more than the standard, metred rate for taxis, with allegations peaking as Sydney city workers tried to get home during the hostage crisis in the central business district, which shut down most public transport.
