Vietnam Proposes Stricter Penalties for 'Xe Ghép' Ride-Sharing Services

Vietnam's Ministry of Public Security is moving to crack down on the burgeoning "xe ghép" (ride-sharing) phenomenon, proposing significant fines and license point deductions for drivers operating these informal services. The draft amendment to Decree 168/2024 aims to impose penalties of 12-14 million VND and deduct six driver's license points for individuals operating non-commercial passenger vehicles who still charge fares or accept bookings.

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"Xe ghép" (or "xe tiện chuyến") is a form where multiple passengers share a private car (usually 4-7 seats) on the same route to share costs, booked via social media or apps.

This move comes in response to growing concerns about unfair competition, tax evasion, and a lack of regulatory oversight within the transportation sector. "Xe ghép" services, which often use private vehicles (typically 4-7 seaters) to transport multiple passengers along similar routes for shared costs, have become increasingly popular due to their flexibility, convenience, and cost-effectiveness compared to traditional taxis.

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The draft amendment proposes a fine of 12-14 million VND for drivers of non-commercial passenger cars who transport passengers for money or sign contracts, or take bookings.

However, the unregulated nature of these services raises significant safety issues. Passengers have reported instances of reckless driving, with drivers allegedly speeding and engaging in phone calls or messaging while operating the vehicle. Furthermore, drivers often coordinate through social media groups to "hand off" passengers or arrange pickups, creating a complex and opaque system that bypasses official transportation management.

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The Ministry of Public Security believes that the situation of vehicles not registered for commercial transport but still carrying passengers or goods for money, and commercial transport vehicles operating in 'disguise,' creates unfairness and lack of transparency in transport business operations, and also causes tax losses to the state budget.

The Vietnam Automobile Transportation Association has expressed support for the proposed measures, acknowledging that "xe ghép" has been a long-standing issue. The association has received numerous complaints from legitimate transportation businesses regarding the unfair advantages enjoyed by these informal operators. The proposed regulations seek to level the playing field, ensure greater transparency, and bolster state revenue by bringing these services under a more formal framework.

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"Xe ghép" is a problem that has existed for a long time in the passenger transport sector.