Taxis in VN claim unfair rivalry
TAXI FIRMS are calling for fair competition with tech-based rivals Uber and Grab, which have grown rapidly in Vietnam over the past two years.
Ta Long Hy, chairman of HCM City Taxi Association, told a conference that the taxi market has seen unfair competition between traditional firms and foreign companies with strong financial potential and state-of-the-art technologies.
Hy said the number of licensed traditional taxis with less than nine seats in Ho Chi Minh was reduced from 20,000 in 2010 to 11,000 this year. The rapid development of Uber and Grab has quickly narrowed the traditional taxi market share, hurting cabs in their own playground due to decreasing number of passengers and incomes.
Tax policies are also causing concern for traditional taxi firms, including a 10 per cent value-added tax and 20 per cent corporate income tax.
“The Ministry of Finance levies 3 per cent VAT [value added tax] for Uber. We urge authorities to impose a common tax policy for both traditional and tech-based taxis of 5 per cent,” Hy said.
Do Quoc Binh, chairman of Ha Noi Taxi Association, said taxi companies are bound by strict business conditions regarding parking areas, registration licences, logos, price lists, uniform and price registration, while Grab and Uber are not subject to any conditions.
“The government’s policies seem to be tightening the operation of traditional taxis while loosening management of Grab and Uber,” Binh said. He said Uber and Grab should be managed as regular taxi firms to create fair competition.
