Uber should register to operate in Vietnam: official
Uber should register to operate in Vietnam: official
While Vietnam may create a new legal framework to legalize the ridesharing service of Uber, the U.S. company should first register to operate in the country, an official from the traffic safety watchdog said Wednesday.
Uber is in fact offering a “transport supporting service,” which is covered by the Vietnamese transport law, Khuat Viet Hung, deputy chairman of the National Traffic Safety Committee, told reporters in Hanoi.
“Uber needs to apply for a business license in Vietnam,” Hung said.
“Any entity doing business in and gaining revenue from Vietnam has to register with local authorities no matter which nation it belongs to.”
Obtaining a business license in Vietnam will ensure Uber is operating as per local laws and that the rights and interests of the company as well as its customers will also be protected by law, Hung added.
Uber, which connects passengers and drivers via a smartphone app, is grabbing national headlines as it has won over many passengers for its fast and cheap rides, while authorities are confused about its legality.
The San Francisco-based firm started offering its services in Vietnam on July 31, with car rides now available in both Hanoi and Ho Chi Minh City.
The road transport supporting services include those run at car stations or parking lots; long-haul coach stops; transport dealerships; ticket agents; and road rescue, according to the transport ministry.
“As the transport supporting service is governed by the Vietnamese road traffic law, Uber will be able to legally offer its service after it registers for the business as per law,” Hung elaborated.
The official added that the transport ministry will collaborate with relevant ministries and industries to conduct studies to propose a new legal framework so as to regularize the ridesharing service in Vietnam.
“The ministries and industries are responsible for developing new legal documents to regulate and provide guidelines for the ridesharing to develop,” he added.
Asked if organizations and individuals will be penalized if they use Uber in the absence of the new legal framework, Hung said those who are involved in transport business should “comply with the current laws.”
Hung is the third high-ranking official to speak to the press about the ridesharing app, after Minister of Transport Dinh La Thang and his deputy, Nguyen Hong Truong, provided contradictory statements about the issue.
Minister Thang said during a meeting on Tuesday that Uber operations should be regularized in Vietnam, while Truong told reporters a day earlier that the service is illegal as Uber cars “do not run through a registered transport business,” which is against the law on road traffic.
Thang himself seemingly had second thoughts about the issue, as he had signed a document asking the ministries of public security, finance and information and communications to tell members of the public that Uber is breaching laws and regulations before the Tuesday meeting.
Asked about the changed view of the minister, Hung said the transport ministry initially addressed the issue based on a complaint by the Ho Chi Minh City Taxi Association, which said Uber poses unhealthy competition to local cabs.
“But our studies then show that Uber is not a model of transport or taxi business,” Hung said.
“So the ministry asked relevant agencies to conduct studies on the legality of Uber’s service.”
Hung noted that Uber is not responsible for the quality and safety of the transport service it offers, but the Uber drivers are.
“So those who drive for Uber must meet all conditions to be eligible to provide transport business as per law,” he said.
