VietNamNet Bridge – The biggest barrier Uber faces in Vietnam is not the possibility of a legal ban, as predicted, but the uncooperative attitude of taxi alliances and the indifference of Hanoians.



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Uber has not been prohibited in Vietnam, as many people think. The service that connects taxi drivers and taxi firms, which has become more and more popular in Vietnam since it made debut in June 2014, has gained sympathy from some watchdog agencies, including Minister of Transport Dinh La Thang, who noted that it would be better to put Uber under strict management than to impose a ban on it.

Except for traditional taxi firms, which fear Uber would relieve them of their “livelihood”, the majority of people think Uber should be allowed to operate in Vietnam for consumers’ benefits.

The General Department of Taxation (GDT) reportedly has found a reasonable method to tax Uber services after working sessions with Uber International Holding B.V. The report about the method has been tabled by Ministry of Finance’s leaders for their consideration.

In the latest news, Prime Minister Nguyen Tan Dung has instructed the Ministry of Transport (MOT) to work with HCM City authorities to determine Uber's legal status in Vietnam.

However, while Uber is warmly welcomed in HCM City, analysts warned that it would not receive warm greetings in the capital city of Hanoi, where consumers’ taste and consumption habits are different from HCM City.

Dan Tri newspaper has reported that the Hanoi Transport Association has refused the invitation by Uber for cooperation.

Bui Danh Lien, chair of the association, said he refused the suggested cooperation plan because it Uber’s legal status in Vietnam was still unclear.

Meanwhile, analysts said, the difference in Hanoians’ and HCM City dwellers’ consumption habits and psychological impediments would keep Hanoians away from Uber services.

“Not many Hanoians use a Visa card for making payment. They prefer paying in cash and at once,” an analyst said.

They noted that most Visa card holders in Hanoi are businessmen or those who work in the financial investment sector. Meanwhile, people have their own private vehicles, and if necessary, they will call to order a taxi instead of spending time on Uber.

Also, Hanoi’s market has few luxury cars.

The director of an information technology firm in Cau Giay District noted that Hanoians buy luxury cars just to show off their upper class status in society. Therefore, they would not accept to put cars worth billions of dong into a taxi service.

“I believe that there will not be many luxury car owners to join Uber’s network to provide taxi services,” he said.


 

Uber declines to name partners in Vietnam

Representatives of Uber Technologies Inc. refused to disclose the names of its partners in Vietnam at a meeting with the Ministry of Transport on Monday.

A source from the ministry said Minister of Transport Dinh La Thang reiterated the ministry’s stance to welcome and encourage enterprises to do what is not banned by law in the country.

Thang said the ministry encourages enterprises to apply technology to the management of transport business and that partners of Uber need to meet requirements mentioned in Government Decree 86.

At the meeting, Uber, which plays matchmaker between passengers and taxi drivers through its app, said it expected a proper legal basis to facilitate its operations in Vietnam. Though Uber declined to unveil its partners, it said it cooperates with enterprises with transportation licenses.

Thang stressed Uber’s signing of contracts with partner transport enterprises to offer the car-sharing service must comply with Decree 86, which means the cabs using the Uber app must have logos and GPS devices.

In addition, inspectors of the ministry are assigned to inspect enterprises which are partners of Uber and vehicles operated in a partnership with Uber. If they are not qualified, both Uber and its partners must be held responsible for this.

Thang also asked units under the ministry to supplement legal documents to ensure State management and operations of enterprises.

On December 18, the Government assigned the ministry to work with HCMC to look into the HCMC Taxi Association’s proposal to consider the time to allow the Uber service.

In a related development, the Hanoi Transport Association on December 19 turned down a cooperation request from Uber. Meanwhile, a driver of the Uber service has been found to use a fake driving license.

Kim Chi