New regulations on road motor vehicle rental services in Vietnam from January 1, 2024

New regulations on road motor vehicle rental services in Vietnam from January 1, 2024 (Internet image)

1. New regulations on road motor vehicle rental services in Vietnam from January 1, 2024

According to the provisions of Article 78 of the Law on Road 2024, the road motor vehicle rental services are as follows:

- Road motor vehicle rental services include:

+ Self-drive vehicle rental services, where organizations and individuals lease passenger cars with less than 08 seats (excluding the driver's seat), motorbikes, two-wheeled motorcycles, and three-wheeled motorcycles for the lessee to drive the vehicle themselves;

+ Vehicle rental services for transport business and internal transport, where organizations and individuals lease cars (excluding the drivers) to lessees for business activities using automobiles or for internal transport.

- Businesses providing self-drive vehicle rental services must meet the following requirements:

+ Vehicles can only be rented out when the lessee has a valid driver’s license with points remaining, suitable for the type of vehicle being rented;

+ Drivers cannot be arranged for vehicles rented out to lessees;

+ A vehicle rental contract must be signed with the lessee, along with a photocopy of their driver's license.

- Lessees of self-drive vehicles are not allowed to use the rented vehicles for passenger or cargo transport for hire.

- Businesses providing vehicle rental services for transport business by car or internal transport must meet the following requirements:

+ Established in accordance with business law and cooperative law. Foreign service providers can only provide services through forming a joint venture with Vietnamese partners at the equity ratio specified by international treaties to which the Socialist Republic of Vietnam is a member and relevant legal provisions;

+ A vehicle rental contract excluding drivers must be signed with the lessee.

2. Regulations on parking services in road transport in Vietnam from January 1, 2025

Parking services in road transport are specifically regulated in Article 73 of the Law on Road 2024 as follows:

- Businesses providing parking services are established according to business law and cooperative law.

- Businesses providing parking services can perform the following services:

+ Safeguarding road motor vehicles;

+ Maintenance and repair of road motor vehicles;

+ Providing fuel and energy for road motor vehicles;

+ Other services as regulated by law.

- Businesses providing parking services have the following rights and obligations:

+ Ensure security, order, environmental hygiene, and fire and explosion prevention at the parking lots;

+ Publicly post rules, service prices, and the name and phone number of the competent state management agency for vehicle owners to provide feedback and complaints when necessary;

+ Compensate for damage in case of loss or damage to the safeguarded road motor vehicles;

+ Collect fees for safeguarding road motor vehicles;

+ Do not allow transport businesses to use parking lots for picking up or dropping off passengers, or for loading, unloading, packaging, or transferring goods;

+ Refuse service to road motor vehicle owners who do not comply with parking lot regulations;

+ Be subject to inspection and supervision by the competent state management agency.

More details can be found in the Law on Road Traffic Order and Safety 2024 which comes into force in Vietnam from January 1, 2025, except for Clause 3 Article 10 of the Law on Road Traffic Order and Safety 2024 which comes into force in Vietnam from January 1, 2026.

The Law on Road traffic 2008 (as amended and supplemented) ceases to be effective from the date the Law on Road Traffic Order and Safety 2024 takes effect, except as provided in Clauses 1, 2, 5, and 6 of Article 89 of the Law on Road Traffic Order and Safety 2024.

NQ 73/2022/QH15 of the National Assembly on pilot car license plate auctions ceases to be effective from the date the Law on Road Traffic Order and Safety 2024 takes effect, except as provided in Clause 7 of Article 89 of the Law on Road Traffic Order and Safety 2024.

Vo Tan Dai

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