11 mandatory requirements for taxis using ride hailing software in Vietnam

This is a new notable content of the Decree No. 10/2020/NĐ-CP of Vietnam’s Government on auto transport business and conditions for auto transport business, effective from April 01, 2020.

11 yêu cầu bắt buộc đối với xe taxi sử dụng phần mềm để tính tiền, Nghị định 10/2020/NĐ-CP

According to Clause 3 Article 6 of the Decree No. 10/2020/NĐ-CP of Vietnam’s Government, taxis equipped with the software capable of booking, canceling and charging rides (hereinafter referred to as “ride hailing software") must comply with the following regulations:

- The taxi must be equipped with a device directly connecting with passengers for booking and canceling rides;

- The ride is charged based on the distance showed on the digital map;

- The ride hailing software must comply with regulations of laws on electronic transactions; the interface for passengers must show the transport enterprise or cooperative's name or logo and provide the following basic information for passengers prior to any ride: name of the transport business, driver’s full name, the taxi’s registration plate number, the route and distance thereof (km), total amount of payment and phone number for feedbacks from passengers.

Concurrently, according to Article 38 of the Circular No. 12/2020/TT-BGTVT of the Ministry of Transport of Vietnam, in addition to the above mandatory requirements, taxis using ride hailing software must also comply with the following regulations, including:

- The following information shall be posted:

+ On the two doors of the taxi: name, phone number and logo of the enterprise or cooperative. Minimum size: 20 cm in length and 20 cm in width;

+ Inside the taxi: Kilometer-based taxi fares; waiting charges and other charges (if any) paid by passengers.

- Taxis must be equipped with usable and unexpired fire extinguishers in accordance with regulations.

- Badge attached to a taxi

+ Design of the “XE TAXI” (“TAXI”) badge is given in the Appendix 8 attached to Circular No. 12/2020/TT-BGTVT;

+ Taxi badges of transport businesses in a province shall be subject to regulations adopted by the People's Committee of that province or shall be attached using the design given in the Appendix 8 attached to Circular No. 12/2020/TT-BGTVT.

+ A specific badge must contain a QR code and have a size consistent with the design provided in the Appendix 8 attached to Circular No. 12/2020/TT-BGTVT. If a local government prints and releases a badge itself, the design of such badge shall be notified to the Directorate for Roads of Vietnam before printing.

+ The badge must be attached beneath the inspection stamp in the top right hand corner of the vehicle’s front windshield.

- The words “XE TAXI” (“TAXI”) must be made of reflective materials posted (fixed) on the front and rear glass of a taxi using the design given in the Appendix 9 attached to Circular No. 12/2020/TT-BGTVT (except for the case where the taxi has a lightbox).

- Inside the taxi, there must be safety cards including seat belt guide (if available); “no smoking” sign; instructions on how to close and open taxi doors.

Besides, the Decree No. 10/2020/NĐ-CP of Vietnam’s Government also stipulates that taxis using ride hailing software must implement the following provisions:

- After a ride is completed, the enterprise or cooperative using the ride hailing software must send the ride’s electronic invoice to the passenger via the software and send the invoice's information to its supervisory tax authority according to regulations from the Minister of Finance.

- The enterprise or cooperative operating a taxi business must notify the Department of Transport which issues its business license of the payment method employed by its taxis prior to its operation.

- Taxis shall be allocated separate pick-up and drop-off areas in transport hubs, tourism areas, tourist accommodations, tourist attractions, cultural-sports establishments and shopping malls; and given priority in metropolises.

Le Hai

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