GrabCar pilot project gets government support

February 01, 2016 | 10:58
(0) user say
The Vietnamese government has just given the greenlight to a ground-breaking pilot project, which aims to strengthen the state’s management of IT-based commercial passenger transportation connection services, particularly with regards to regulations relating to taxation and conditions required for businesses operating in the sector.

The pilot project is to be implemented in five cities and provinces of Hanoi, Ho Chi Minh, Danang and Khanh Hoa in a two-year period, from January 2016 to January 2018.

According to the Ministry of Transportation (MoT), the successful implementation of the pilot project will enhance efficiency in the commercial transportation sector, create fair competition and contribute to the reduction of transportation costs for the benefits of consumers and society as a whole.

To participate in this project, companies must have their own pilot project proposals, which are to be evaluated by the MoT and other relevant agencies. Most importantly, any companies wishing to gain approval for their own pilot projects must be fully compliant with existing laws and regulations.

GrabTaxi (the GrabCar application provider) is the first and the only company that has thus far qualified to participate in the MoT’s pilot project.

On the subject of GrabTaxi’s achievement, the company’s Vietnam country head of Marketing Emily Thu Do said: “GrabTaxi’s most critical distinguishing feature is our commitment to complying with the laws and regulations in each of the markets in which we operate. This has become our global business standard and we see governments as essential partners in our work. In Vietnam, we are particularly fortunate to have support and guidance from the government - especially from the MoT - to help ensure legal and regulatory compliance.”

At a conference held on January 26 by the MoT to launch the pilot project, Nguyen Van Thanh, chairman of the Vietnam Automobile Transportation Association, congratulated GrabTaxi on the project and lauded the company’s efforts to conduct its business in line with Vietnamese laws.

“I would propose that the MoT and GrabTaxi expand the implementation of the pilot project to cover all contract-based transportation activities, not only vehicles with fewer than nine seats,” Thanh said.

Echoing the views with several delegates from the Ministry of Justice, the Ministry of Public Security, Traffic Police Department, and provincial transportation departments at the conference, deputy director of the Ho Chi Minh City Department of Transport Le Hoang Minh commented: “We highly appreciate GrabTaxi’s attitude towards compliance with Vietnamese laws and regulations and congratulate the company for its excellent work proposing the pilot project, which has been approved by the prime minister. The Ho Chi Minh City Department of Transport will co-operate closely with the MoT and GrabTaxi to support GrabTaxi’s operations.”

From a business perspective, the pilot project symbolises the Vietnamese government’s efforts to strengthen the country’s commercial environment and to ensure legal frameworks that enable companies to operate and compete fairly. The pilot project also marks a positive step forward for Vietnam’s efforts to cement a local business culture based on compliance with relevant laws and regulations. During the initial five cities and provinces’ piloting period, the MoT will conduct evaluations and consider expansion of the project to cover the entire country.

By By Anh Duc

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional