VietNamNet Bridge – Government agencies should adopt a new approach to efficiently manage the Uber car-sharing service in Vietnam, said Deputy Minister of Industry and Trade Cao Quoc Hung.

Transport inspectors check a Uber taxi at Tan Son Nhat airport in HCM City

Hung made the point in a document sent to the National Assembly's Economic Committee in response to the questions about State controls on Uber asked by the committee in a document of December 2014 following complaints by taxi operators.

Hung said managing Uber also requires close coordination between the ministries of transport, finance, and industry-trade and the central bank, as prevailing regulations do not cover issues related to the Internet taxi service.

Hung said there were no detailed legal documents governing e-commerce via mobile telecom networks in general and e-commerce exchanges via mobile devices in particular though Decree 52 on e-commerce is in place.

“There is neither a mechanism nor a tool to manage the Uber application,” Hung emphasized.

Hung said identifying whether Uber is a type of passenger transport or a support service provider is the responsibility of the transport ministry. But Hung said Uber is a new business model which has not been regulated by existing regulations in Vietnam.

The deputy minister proposed the transport ministry study proper rules and management solutions to this new service. Besides, the ministry needs to collaborate with the finance ministry to manage fares and collect tax from this service.

However, Hung said as Uber can provide taxi service in Vietnam without having to operate cabs in this country, revenue sharing between it and local transport service providers is challenging local tax agencies in ensuring efficient tax collections for the State budget and fair competition among transport companies.

Uber is seen as an intermediary service, which connects car owners and passengers in need of this service. Unlike GrabTaxi and EasyTaxi, the cars joining the Uber network are private vehicles.

SGT