What is a traffic account according to the law in Vietnam? In which case is a traffic account in Vietnam closed?

On September 30, 2024, the Government of Vietnam issued Decree 119/2024/ND-CP (effective from October 1, 2024) regulating electronic payment for road transport.

What is a traffic account according to the law in Vietnam?

Article 43, Clause 2 of the Vietnam Road Law 2024 clearly defines the concept of a traffic account as follows:

"A traffic account is an account opened for the owner of a road transport vehicle and connected to a legal payment method to facilitate cashless transactions in accordance with banking laws."

Hence, a traffic account is an account opened for the owner of a road transport vehicle and connected to a lawful payment method to conduct online transactions.

According to Article 11 of Decree 119/2024/ND-CP issued by the Government of Vietnam, which regulates the opening of a traffic account, road usage fee payment service providers are required to open traffic accounts and provide access credentials for electronic road payment applications to the vehicle owner upon first installation of the terminal tag.

At the time of conducting electronic road transport transactions, a traffic account can only be connected to a single cashless payment method in accordance with banking laws to execute electronic road transport payments. The cashless payment method is provided by a payment method provider through a service contract with the electronic road payment service provider.

Each traffic account can be used to pay for multiple vehicles owned by the vehicle owner. However, each vehicle is only authorized to receive payments from one traffic account.

In which case is a traffic account in Vietnam closed?

According to Article 14 of Decree 119/2024/ND-CP, a traffic account of a vehicle owner will be closed under one of the following circumstances:

(1) There is a request to close the traffic account by the account holder or the guardian, legal representative of the account holder, and the account holder has fulfilled all obligations related to the traffic account;

(2) The traffic account holder is an individual who has died, been declared dead, or missing; or the account holder is an organization that has ceased operations, gone bankrupt, or dissolved according to the law;

(3) Cases of closing the traffic account according to agreements between the road usage fee payment service provider and the traffic account holder;

(4) The traffic account holder engages in one of the prohibited actions, which includes:

- Destroying, counterfeiting, deleting data, or tampering with terminal card content; transferring terminal cards from one vehicle to another.

- Infiltrating or attempting to infiltrate, sabotage, steal data, or illegally alter software programs, electronic data used in electronic road payments; exploiting system network errors for personal gain.

- Providing false information during participation in electronic road payment activities.

- Disclosing or providing information related to personal data in violation of legal regulations.

- Opening or maintaining anonymous or impersonated traffic accounts.

- Engaging in deliberate evasion or fraud in electronic road payments.

- Unfair competition among electronic road payment service providers.

Or if the traffic account holder violates the agreement on the opening and use of the traffic account with the road usage fee payment service provider.

(5) Other cases as prescribed by law.

After a traffic account is closed, if the account holder wishes to reuse the account, they must complete the procedures to open a traffic account at the road usage fee payment service provider.

Please Login to be able to download