Ride-sharing services temporarily limited in Vietnam

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Vietnamese cities and provinces nationwide have been asked to temporarily limit granting new licenses for taxi-hailing apps like Uber and Grab on a trial basis.

Vietnam's Ministry of Transport said on Sunday it was trying to prevent the rampant surge of technology-based taxis, which pressurize infrastructure and present unfair competition. The move to limit new apps was also described as a bid to regulate the car-sharing industry.

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Seven ride-sharing companies in Vietnam have been granted licenses to operate on a trial basis in three localities, namely Hanoi, Ho Chi Minh City and central Khanh Hoa province.

By the end of April in Ho Chi Minh City, the numbers of traditional and technology-based taxis were some 11,000 and 22,000 respectively, according to initial statistics from the municipal transport bureau.

The taxi market in Vietnam is experiencing fierce competition with the appearance of overseas companies like Grab and Uber. Local car-hailing company Vinasun has been hit hard, and seen its profit plans cut by 20 percent, chairman Dang Phuoc Thanh told media.

The company, he said, has also faced illegal entry into the taxi market by foreign companies with unfair competitive practices in terms of price.

(With inputs from Xinhua)

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