VietNamNet Bridge – Government agencies still cannot come to an agreement about the legitimacy of Uber, a taxi app, in Vietnam. While it has been facing strong protests from traditional taxi firms, it has been welcomed by the public and netizens.

Uber, a service that connects taxi drivers and taxi firms, has become more and more popular in Vietnam since it made debut in June 2014.

Customers just need to download the software from https://www.uber.com to their smartphones. Once they set up their itineraries, Uber provides maps and necessary information, and automatically connects customers with taxi drivers who have joined the Uber network.

Customers can make payment with cards, such as Visa and Mastercards. Taxi owners pocket 80 percent of revenue, while the remaining 20 percent belongs to Uber.

Traditional taxi firms have expressed their dissatisfaction about the presence of Uber, accusing Uber of “damaging the domestic taxi service market” because it is not registered as a business and does not pay tax to the State.

Deputy Minister of Transport Nguyen Hong Truong stated in Mot The Gioi newspaper that Uber is illegal in Vietnam.

Asked about the Ministry of Transport’s view about the new-style taxi service, Truong said Uber had never been allowed to operate in Vietnam, and the customers using Uber taxi would be considered delinquent and be punished in accordance with the current laws.

Truong has warned customers against approaching Uber service because of the risks, though it appears to be convenient and easy.

“Smartphone and internet users should be cautious about Uber, because there is no clarity yet about the accuracy and safety of the service,” he said during an interview with the local press.

Truong said that his ministry has asked the Ministry of Information and Communication (MIC) to join forces to check the legitimacy of Uber’s software in Vietnam. The ministry’s conclusion will serve as an important base for appropriate agencies to build up the legal framework to manage taxi services in Vietnam.

While traditional taxi firms have strongly protested the US-sourced service because it has “taken the bread out of their mouths”, Uber has been welcomed by customers because of its high convenience and lower fees.

“Why cannot Vietnamese use a service if it is convenient and not a threat to national security?” Thu Huong, a businesswoman, said.

The police have imposed fines on many taxis providing service as members of the Uber network.

The police cited Decree No 171 as saying that institutions and individuals providing automobile transport services that do not file business registrations must be fined VND4-8 million and VND2-4 million, respectively.

However, the declaration by MOT that Uber is illegal does not mean that the service will not be able to exist in Vietnam.

Minister of Transport Dinh La Thang reportedly said at the meeting with MOT’s party committee on December 2 that if Uber is a good service, it is necessary to legalize the service and put it under management, instead of prohibiting it.