VietNamNet Bridge - The service fees set by Uber and Grab are 30-50 percent lower than that offered by traditional taxi firms, according to Nguyen Van Thanh, Chairman of the Vietnam Transport Association, who spoke at a recent workshop on using trade remedies to protect Vietnamese goods from foreign imports held in Hanoi.


Uber and Grab Taxi have become more and more popular in Hanoi and HCM City. Providing services at low fees and bringing convenience to customers, they have been very competitive compared to traditional taxis.

Tran Thu Huong, who lives on Truong Chinh Street in Hanoi, said she goes to the office every morning with Grab Taxi, not by motorbike or traditional taxi.

“With traditional taxi, I had to pay VND45,000 to reach the office. But now I have to pay VND25,000 only. Why don’t I take Grab Taxi if I can save money with it?” she said.

“If I drive motorbike to the office, I will have to pay for parking and petrol which will cost nearly the same as taxi fee,” she said.

Thanh, talking to the local press on the sideline of the workshop, confirmed that the fee set up by Uber or Grab Taxi is unreasonably low, at just 30-50 percent of that set by traditional taxi firms.

However, he admitted that it would be difficult to prove the fee was unreasonable; this would require the involvement of state management agencies.

“Using information technology apps will surely help taxi firms cut costs, thus allowing them to offer lower service fees. However, the service fees have been cut to unreasonably low levels as described by taxi firms,” he said.

Thanh admitted that Uber and Grab Taxi now provide services in business fields which are not prohibited by law, while their services have certain advantages. However, it is still necessary to consider if state agencies can control the services and the new firms’ operations.

He went on to say that Uber taxi service has been prohibited in many countries.

However, traditional taxi firms have been warned that it would be not easy to sue Uber and Grab Taxi. 

An official of the Vietnam Chamber of Commerce and Industry (VCCI) said claimants could not use the regulations on trade remedies, but could only cite the provisions of the Competition Law.

Meanwhile, a lawyer warned that the legal proceedings would be more complicated because Uber and Grab Taxi are foreign-owned firms. 

He said traditional taxi firms should thoroughly study the Competition Law to sue Uber and Grab Taxi for their behaviors of dumping services and unhealthy competition.

US$1 = VND21,600

Tri Thuc Tre