Why do commercial transport vehicles in Vietnam have to switch to yellow license plates?

Why do commercial transport vehicles in Vietnam have to switch to yellow license plates?​ (Illustrative image)

Based on Articles 25, 26 Circular 58/2020/TT-BCA:

- Plates with a yellow background and black letters and numbers will be issued for commercial vehicles using one of the following 20 serial letters: A, B, C, D, E, F, G, H, K, L, M, N, P, S, T, U, V, X, Y, Z;

- Vehicles engaged in commercial transportation before the effective date of this Circular must change to yellow background plates with black letters and numbers by December 31, 2021.

Commercial transportation activities are explained in Decree 10/2020/ND-CP as follows: Commercial transportation by car involves executing at least one of the main stages of transportation activities (directly operating the vehicle, driving, or determining transportation fees) to transport passengers or goods on the road for profit purposes.

Approximately 1.6 - 1.7 million commercial vehicles, including trucks, tech-based cars, taxis, buses, etc., will need to switch to yellow license plates.

1. Why do commercial transport vehicles in Vietnam have to switch to yellow license plates?

Responding to concerns from tech-based car drivers that the requirement to switch to yellow plates is time-consuming and costly, Lieutenant Colonel Pham Viet Cong - Head of Vehicle Registration Department, Traffic Police Department, stated that identifying license plate colors for commercial vehicles addresses managerial challenges in overseeing commercial vehicle operations. In Vietnam, certain streets ban taxis, but tech-based taxis still enter, complicating management. A unique plate color for commercial vehicles helps authorities easily identify them, facilitating management and traffic organization. Additionally, commercial vehicles disguising operations to evade taxes and fees disrupt urban traffic and unfairly compete with legitimate businesses. Thus, changing the plate color is necessary to restore order in transportation activities and ensure fair competition, while also enabling the state to collect full taxes.

Moreover, the procedure to change to yellow plates is very simple, costing only from 100,000 VND to 150,000 VND, which should not pose difficulties for businesses in switching before December 31, 2021.

2. What are procedures for changing to yellow license plates according to Circular 58/2020/TT-BCA in Vietnam?

Procedure

Entities eligible for renewing vehicle registration and license plates: Commercial vehicles with white background plates, black letters, and numbers must submit 01 set of documents for renewal to the Traffic Police Department (CSGT), Road Traffic - Railway Traffic Police Department, or Road Traffic Police Department of the provincial or centrally-controlled city (collectively referred to as the Traffic Police Department).

The renewal procedure will be carried out immediately upon receiving valid vehicle registration documents (Article 4, Circular 58/2020/TT-BCA).

The fee for vehicle registration renewal, including license plate change in this case (Article 5, Circular 229/2016/TT-BTC):

- For cars: 150,000 VND;

- For separate registration semi-trailers and trailers: 100,000 VND.

Document Components

Article 11 of Circular 58/2020/TT-BCA stipulates the document components as follows:

- Vehicle registration application form;

- Vehicle registration certificate;

- Identity card, citizen ID card, or household registration book of the vehicle owner. For Vietnamese residing abroad, a passport (valid) can be presented;

- For persons authorized to handle vehicle registration procedures, in addition to the vehicle owner’s documents above, their citizen ID card or identity card must also be presented;

- Two old license plates;

- Authorized individuals handling vehicle registration must also present their valid citizen ID card, identity card, diplomatic identity card, or public service identity card.

Note: The renewal does not require bringing the actual vehicle or stamping the chassis number and engine number. Tech-based taxis operating for a short period must also change to yellow plates. When no longer engaged in commercial activities, the vehicle owner can visit registration centers to switch back to white plates as initially.

Hoa Hong

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