App-based taxi services such as Grab may have to have roof taxi signs or carry logo stickers from April 1, according to a newly-issued decree.
The Ministry of Transport has decided to stop the pilot programme on app-based taxi services after more than two years of implementation, starting April 1.
Under a government decree issued on January 17, all passenger cars which provide passenger transportation via ride-hailing platforms like Grab would be required to have their badges or logo installed permanently on their windshield and rear windshield.
The aims to offer a level playing field for traditional taxi company and contract vehicles in the context of rapid science and technology development which was changing the transportation landscape and causing difficulties in management.
Besides Grab, there are several other car-hailing applications in Vietnam, such as FastGo, Emddi and Vato.
In additional eight traditional taxi companies have also launched their own software.
In 2016, the government permitted ride-hailing firms to operate in Hanoi, Ho Chi Minh City, Khanh Hoa, Da Nang, and Quang Ninh.
Since the implementation of the pilot programme, Grab dominated the Vietnamese taxi market, putting huge pressure on traditional taxi firms.