Chinese ride-hailing firm Didi Chuxing has submitted its request for market entry to the Ministry of Transport (MoT).

Chinese ride-hailing firm Didi Chuxing has submitted its request for market entry to the MoT.

However, the MoT is currently not considering the proposal, citing the inappropriate timing, informed Nguyen Xuan Thuy, Vice Head of Transport Department of the MoT on a meeting on April 6 discussing opportunities for local enterprises after Grab's acquisition of Uber.

"Indonesian Go-Jek is exploring the opportunity in Vietnam market, Chinese Didi Chuxing also has similar move."

Consequently, Didi Chuxing has not been given permission to operate in Vietnam. 

With regard to concern of traditional taxi firms being pushed out of the market, Thuy said the MoT is reviewing experiences from some countries in the region, concluding neither the market shares for taxi firms or ride-hailing apps be completely vanished, regardless of different state management. 

"For example in Thailand, taxis have been dominating, while Grab and Uber still find a way to exist despite the government imposing ban on ride-hailing through phones. The answer lies on customers' demands and preferences. With the best service quality, customers will choose their favorite service providers."

"In the context of industrial revolution 4.0, I hope there will be more local firms participating in the ride-hailing market, so that there will be more competition, more efficient transport services and benefits to customers," Thuy stressed.

From customer perspective, Phan Thi Thu Hien, Deputy Head of Directorate for roads of Vietnam considered the services provided by Grab and Uber to be more comfortable than that of traditional taxis. 

"Grab and Uber are always available. Customer chooses them due to the functionality of the app, but most importantly, the price."

"Grab and Uber accept losses to gain market share. They are also very flexible, with different price during periods of high and low demands. Customers are willing to pay high price in rush hour but want to pay lower price otherwise," Hien added.

By the time Uber and Grab entered Vietnam's market, the Directorate for roads of Vietnam has looked into the question of why customers and drivers choose Grab or Uber, Hien informed. 

"Local firms have to look deeply into the matters after Grab's acquisition of Uber, which is not the matter of technology, but service quality. Customers are more and more demanding, so we have to improve ourselves, instead of waiting for others to push us out of the market," Hien concluded.

Hanoi Times