Decree 10/2020 and ride-hailing platforms in Vietnam
On 17 January 2020, the Government issued a new Decree (Decree 10/2020) to replace Decree 86 dated 10 September 2014 (Decree 86/2014) regulating road transportation services by cars. This new Decree introduces updated regulations to govern a growing number of ride-hailing platforms in Vietnam (or at least the parts of such platforms associated with automobile transportation).
Previously, Grab Company Limited (Grab VN) is permitted by the Ministry of Transportation to act as an intermediary connecting automobile transport business entities and passengers to provide its automobile ride-hailing platform (i.e., GrabCar). With the new Decree 10/2020, if Grab VN (and other entities conducting similar business) directly manages vehicles or chauffeurs, or determines the transport fare, they would be considered as conducting transportation by automobile business instead as “conducting business of transport by automobile” (kinh doanh vận tải bằng xe ô tô) is defined as: the act of performing at least one of the main steps of transport activities (being directly managing vehicles and chauffeurs, or determining the transport fare) in order to transport passenger or goods on road for profit.