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Transport Ministry rejects GrabTaxi’s service expansion
By Le Anh
Friday,  Jun 22, 2018,17:06 (GMT+7)

Transport Ministry rejects GrabTaxi’s service expansion

By Le Anh

The Ministry of Transport recently rejected the business expansion plan of GrabTaxi Vietnam Co., Ltd - PHOTO: TL

HCMC – The Ministry of Transport recently rejected a business expansion plan of GrabTaxi Vietnam Co Ltd for the southern and central highlands provinces, officials said.

The ministry ordered the GrabTaxi operator to cancel the launch of its ride-hailing service in the provinces of Ninh Thuan, Dong Thap and Gia Lai in response to its service expansion proposal. Further, Grab has been barred from working with taxi drivers without the approval of local transport operators and transport departments.

The ministry said it appreciates and supports transport operations that apply technology to make it easier for residents to commute. However, the application is only effective for licensed transport operators with vehicles that have been granted a transport service badge. These firms must strictly follow business transport regulations; ensure fair, open and transparent competition; and pay duties, as regulated by the State.

GrabTaxi is reportedly allowed to operate in five regions: Hanoi, HCMC, Khanh Hoa, Danang and Quang Ninh, according to the ministry’s Decision No.24 on pilot schemes for ride-hailing businesses.

Minister Nguyen Van The, at a meeting held in March, said that the operations of ride-hailing firms are the same as that of the traditional taxi sector. However, too many problems have arisen so far in relation to these companies’ responsibilities toward their drivers and riders, so now, if the firm fails to follow Vietnamese laws, it is ordered to halt operations in the country.

The ministry is working on its draft decree on automobile business operations to keep app-based firms under control.

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