The Ministry of Transport has proposed the Government to cut and simplify 314 of the 500 business conditions and regulations related to transport operations.

The reduction focuses on areas of maritime, multi-model transportation services, dangerous goods carriage, railways, roads, waterways and aviation.

The proposal was made at a recent conference held by the Vietnam Chamber of Commerce and Industry in Ha Noi and is expected to have a major impact on the business community, particularly the transport sector.

According to Trinh Thi Hang Nga, head of the transport ministry’s Legal Department, after 10 years of implementation of the 2008 Law on Road Traffic, the ministry was evaluating the effectiveness of its operation conditions and regulations, in which it reviewed business conditions in the field of transport.

“There are many shortcomings, even many regulations of Decree 86/2014/ND-CP on conditions for auto transport businesses not keeping up with the actual situation and problems of the businesses. That is why it is necessary to review and propose to amend or abolish business conditions that do not create favourable conditions for enterprises and cause difficulties and obstacles for them in the implementation process,” said Nga.

Regarding the roadways, Phan Thi Thu Hien, Deputy Director of the Directorate of Roads of Viet Nam, said the road sector had proposed to remove the conditions for registration of auto transport businesses or transport activities that required sufficient number of vehicles according to the approved business plan.

It also asked to lift other business conditions, such as autos ensuring technical safety and environmental protection, having parking places suitable for the business plan or ensuring requirements on traffic safety, fire and explosion prevention and environmental sanitation, according to the provisions of the law, said Hien.

In terms of hi-tech taxi service, Hien emphasised that the drafting committee’s view was to encourage the application of information technology in all modes of transport, including passenger and freight carriages.

“The problem is how to manage the application of information technology in vehicles, especially after the controversial incident of Uber and Grab taxis competing with traditional taxis,” Hien said.

In the maritime transport business, a representative of the Legal Department said the goal of the proposal to cut more than 50 per cent of current business conditions was to facilitate businesses to enter the market easily. As for the issues that arise in practice, enterprises, associations and relevant management agencies would continue to synthesise and recommend amendments in future.

Nga said the breakthrough in the proposal to reduce business conditions for sea transport was to remove the requirements for certification of qualified shipping businesses, including international shipping, as well as a guarantee from a credit institution or foreign bank branch, with a minimum guarantee of VND500 million.

Following the review of regulations on business conditions that need to be cut and revised in the transport sector, many businesses agreed with the transport ministry’s proposal and expected them to be implemented soon.

“We believe that the conditions that are within the scope of the Government will be corrected this year. As for issues regulated by laws, we will submit a proposal to the National Assembly for amendment,” Nga said.

Reform of business conditions of the transport sector will have a great impact not only on transport enterprises but also on the economy. With cheap transport costs and good transportation services, Viet Nam’s services are expected to benefit more.