Ministry of Transport denies GrabVietnam’s expansion plan
Vietnam’s Ministry of Transport has rejected a proposal from GrabVietnam to extend its ride-hailing service into the country’s southern and central highland provinces. The company is required to cancel its launch in the provinces of Ninh Thuan, Dong Thap and Gia Lai.
Additionally, Grab is prohibited from working with taxi drivers without the approval of transport operators and transport departments.
According to a report by The Saigon Times, the ministry says the application of technology to make c
June 29, 2018
Read time: 2 mins
Vietnam’s Ministry of Transport has rejected a proposal from GrabVietnam to extend its ride-hailing service into the country’s southern and central highland provinces. The company is required to cancel its launch in the provinces of Ninh Thuan, Dong Thap and Gia Lai.
Additionally, Grab is prohibited from working with taxi drivers without the approval of transport operators and transport departments.
According to a report by %$Linker: 2External<?xml version="1.0" encoding="utf-16"?><dictionary />000link-external The Saigon Timesfalsehttp://english.thesaigontimes.vn/60779/transport-ministry-rejects-grabtaxi%E2%80%99s-service-expansion.htmlfalsefalse%>, the ministry says the application of technology to make commuting easier for residents is only available for licenced operators whose vehicles have a transport service badge. These companies must adhere to business transport regulations, ensure fair competition and pay duties enforced by the state.
The ministry’s ruling on pilot schemes for ride-hailing businesses reportedly allows GrabTaxi to operate in regions such as Hanoi, Ho Chi Minh City, Khanh Hoa, Danang and Quang Ninh.
In March, minister Nguyen Van The said ride-hailing firms must comply with Vietnamese laws or have their operations halted. The move is intended to improve the responsibility these companies have for drivers and passengers.
The report says the ministry is now developing its automobile business operations to keep app-based firms under control.
Vietnam’s deputy prime minister Truong Hoa Binh is calling on government ministries to better enforce traffic safety following deaths caused by drink- and drug-driving.
Binh says the Ministry of Transport needs to scrutinise procedures for re-issuing driving licences, and to inspect the training and examination process for drivers at training centres nationwide.
He is urging the Ministry of Public Security to direct traffic police units to increase checks and to deal with drivers who are over the blood-
Vietnamese ride-hailing company FastGo intends to expand its service to Indonesia and Myanmar by the end of the year. In a report from Việt Nam News, Nguyễn Hữu Tuất, FastGo’s CEO, says the company expects to occupy a 30% market share in Indonesia and take second place after Grab in Myanmar. The company aims to raise US$50 million in a new round of funding to help accelerate regional expansion, Tuất adds. According to Tuất: “We chose Myanmar and Indonesia as we have relevant strategies for them in place.