Uber accused of violating Vietnamese regulations

Uber is showing an increasing number of violations and reluctance to heed authorities' warnings

This is the report of provincial representatives at the meeting reviewing the implementation of the two-year pilot programme of ride-hailing services via technology application, organised on December 19 in Hanoi.

On January 7, 2016, the Ministry of Transport (MoT) issued Decision No.24/QD-BGTVT on the pilot scheme for ride-hailing services. The pilot duration was two years, lasting from January 2016 to January 2018.

According to the decision, the pilot programme of ride-hailing services will be implemented in five cities and provinces, namely Hanoi, Quang Ninh, Danang, Khanh Hoa, and Ho Chi Minh City.

However, after two years, only four cities and provinces have joined the programme, while Danang remained exempt. At the same time, the authorities identified numerous violations in Uber operations.

Notably, as of December 4, the Hanoi Department of Transport also had yet to receive the report about the company’s operation for the last two years.

Besides, in early August this year, when Uber Vietnam released information about implementing its services in Danang on its website, the Danang Department of Transport asked Uber to stop the pilot programme and the relevant advertisement campaign. However, Uber ignored the request and continued both activities.

In addition, Uber is operating in Danang without any the representative office as well as legal representation.

Uber entered Vietnam in June 2014. Since then, tax collection for the ride-hailing service application has remained controversial as this was the first service of its kind in the country, triggering worries about the efficiency in collecting taxes as well as unfairness to other transport firms in the country.

According to Dang Duy Khanh from the General Department of Taxation, Uber’s total revenue from 2014 to June 30 this year was estimated at more than VND2.77 trillion ($122.1 billion) and the firm has paid approximately VND76.9 billion ($3.38 million) in taxes.

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