Vietnam Business Law

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New regulations on transportation of goods and passengers by cars

Every year there are more than 10,000 people killed by traffic accidents in Vietnam. Decree 86/2014 on transportation of goods and passengers by cars aims squarely to reduce this alarming number by putting more stringent requirements on Vietnamese trucking, coach and bus companies from 1 December 2014. In particular,

  • Decree 86/2014 applies to all companies which use cars to transport goods and/or passengers whether or not the fee payable for the transportation is paid separately or is included in other services. This means that multi-modal transportation companies, logistics companies or reallocation services companies that use trucks or cars for their operation will be subject to Decree 86/2014 as well.
  • From 1 July 2015, any service provider who provides private transportation services to passengers or tourists must notify local transportation agencies before any trip which involves a car of 10 seats or more.
  •   From 1 July 2015, all transport companies must establish a traffic safety regulations and apply such regulations in their operations.
  • By 1 July 2018, all taxis and trucks with a capacity of 3.5 tons or more must be installed with a route monitoring system.
  • By 1 July 2014, all coaches and buses must have priority seats reserved for elders or pregnant women or disabled persons.
  • By 1 July 2015, all goods transportation companies must be licensed by the local transportation agencies. Under the old regulations, only container transportation companies need to be licensed.
  • An operating licence of a car transportation company may be revoked if more than 10% of its drivers violate traffic law and cause serious traffic accident or have their driving licences suspended or more than 20% of its cars violate weight restriction or do not satisfy required technical standards.