The Ministry of Transport has denied to let the ride-hailing firm Grab expand operations into other provinces including Ninh Thuan, Dong Nai and Gia Lai.
The two-year pilot project of applying science and technology to support management and connect passenger services of contracted cars was approved and carried out in five provinces and cities, including Hanoi, HCM City, Danang, Khanh Hoa and Quang Ninh, from 2016 to 2018.
The Ministry of Transport said they always supported technology application to improve services but it would only be applied to licensed firms and vehicles. The firms must obey the regulations, tax duties to ensure a healthy competition.
It then denied Grab’s proposal to expand businesses to other cities and provinces that are not included in the pilot project. The ministry also asked departments of transport to work with transportation firms and associations to ensure that the regulations about applying science and technology in transportation are followed.
Grab Vietnam was asked to not sign contracts and use the technology with drivers without permission from the local departments of transport.
Early this year, Grab Vietnam was already asked to stop operating in several provinces including Thua Thien-Hue, Ba Ria-Vung Tau and Lam Dong. However, Grab said it was a kind of e-commerce transaction platform and was registered with the Ministry of Industry and Trade so it can operate nationwide in accordance with a resolution on e-commerce.