Hanoi (VNS/VNA) - Units, organisations or companies that use internaltransport will have to obtain transport business licences ifthe proposed revised law on road traffic from the Ministry ofTransport is passed.

UnderDecree 86/2014/ND-CP, internal transport is defined when a vehicle with nineseats or more is used to periodically transport officials, publicservants, officers, employees or students from their living place to theworkplace or studying location or vice versa.

However,Decree 10/2020/ND-CP that replaces Decree 86 does not impose conditionsfor transport business without direct money collection and only deals withfirms like taxi companies or bus businesses that directly collect money fromcustomers. Internal transport is expected to be regulated by a separate decree.

ViceChairman of the National Committee for Traffic Safety Khuat Viet Hung said thatit was time to legalise regulations relating to internal transport, as withoutdoing so, firms could register their vehicles as used for internal transportinstead of normal transport business to avoid conforming to businessrequirements, he told Giao thong (Transport)newspaper.

Now,out of 1.2 million vehiclesproviding transport services, one third of them were used for internaltransport, Hung said.

“Internaltransport, which is classified as a transport business without direct moneycollection, needs to be subject to the law. It would help ensure road safetywhen firms have to meet business conditions and obtain business licences. Itwould also help create healthy competition for all firms that providetransport services,” he said, noting that taxis companies are currentlysubject to many regulations.

PhanThi Thu Hien, Deputy General Director of the Directorate for Roads of Vietnam,said that under the revised law on road traffic, transport business isclassified into two categories - transport business with direct moneycollection and transport business without direct money collection.

Internaltransport would be regulated as a transport business without direct moneycollection and must apply for a business licence, according to the bill.

However,if the bill was approved, foreign direct investment (FDI) companies could berecognised as transport business providers, Hien said, adding that this wentagainst Vietnam’s commitments when participating in the World TradeOrganisation.

Accordingto the commitments, passenger transport companies in Vietnam have a maximum 49percent of their capital from foreign investment and freight companies can havea maximum 51 percent of their capital from foreign investment.

Hienrecommended FDI companies be granted licences for transport business withoutdirect money collection but some restrictions could be imposed on FDIcompanies’ vehicles.

ViceMinister of Transport Le Dinh Tho said the revised law was expected to coverall kinds of business transport and business vehicles so the law could dealwith any possible problem in the future.

“Businessconditions are needed for transport firms to select qualified serviceproviders,” he said, adding that specialised business transport forms wouldhave other specific regulations to regulate them.

Whenenterprises owned vehicles to serve production and operation, to some extent,they ran business transport, so they needed a transport business licence, Thosaid.  

Ministerof Transport Nguyen Van The said when a vehicle violated a violation,organisations must pay a fine as much as twice the fine imposed on individuals,so it was necessary to identify which organisation the vehicle belonged to.

“Internaltransport firms must have a business licence so authorities can know how manyvehicles an organisation/enterprise has,” he said, suggesting the revisedlaw have regulations in cases when the enterprises have had business licencesrevoked./.