On April 16, 2024, the Government issued Decree No. 41/2024/NĐ-CP amending several decrees related to the management of automobile transportation activities, driver training, and driver testing services ("Decree 41"). Accordingly, there are many new provisions issued to tighten the management of transportation business activities, training, and driver testing.
Below, ATA Legal Services has updated some noteworthy contents that have a significant impact on businesses operating the aforementioned services as follows:
1. Revocation of business licenses ("BL") for transportation businesses ("TB") within 01 month with 30% or more of the vehicles subject to penalty revocation, disqualification, and removal of signs.
In addition to the 4 cases of TB having their BL revoked as prescribed in Decree 10/2020/NĐ-CP, Decree 41 adds 02 more cases of TB whose BL is revoked indefinitely as follows:
- Failure to comply with inspection decisions, inspection of compliance with regulations on transportation business, conditions for automobile transportation business issued by competent authorities;
- Within a period of 01 month, if 30% or more of the vehicles of TB are penalized for revocation, disqualification, and removal of signs.
In addition, Decree 41 supplements provisions clarifying the procedure and deadline for revoking BL, specifically:
- Within 10 days from the date of signing the revocation decision, TB must return the BL and badges, signs to the licensing authority, and simultaneously cease transportation business activities according to the revocation decision.
- In case TB returns the BL within the specified deadline, the Department of Transport will reissue the BL after a period of 30 days (60 days for the second violation within 06 consecutive months) from the date of submission.
- In case of returning the BL beyond the prescribed deadline, or not submitting sufficient documents as required, the Department of Transport will only reissue the BL after a period of 45 days (90 days for the second violation within 06 consecutive months) from the date of complete submission.
2. Passenger transportation units must keep transportation contracts, customer lists for at least 03 years
Based on the shortcomings in management practices at the Ministries, Departments of Transport, Decree 41 has amended and supplemented many new points related to the management, inspection, and examination of transportation contracts/tourist contracts/transportation orders of trips for businesses/units operating passenger transportation. Accordingly, Decree 41 requires businesses operating passenger transportation by bus/contractual passenger transportation/tourist passenger transportation to keep transportation orders of trips/transportation contracts accompanied by passenger lists/tourist contracts accompanied by customer lists for a minimum period of 03 years.
3. Strengthening the responsibility of enterprises in registering and implementing registered routes
a. Transportation businesses actively develop plans to register transportation routes
Accordingly, for new routes not yet in the list of network routes announced by the competent authority, TB is entitled to develop plans and coordinate with the terminal at both ends of the route regarding departure times, submit to the Department of Transport where TB's main office/branch is located to register the route according to regulations, and the Department of Transport at the other end of the route coordinates management.
b. Revocation of route registration when not operating the registered number of trips
Previously, according to the old regulations, enterprises, cooperatives were suspended from operating routes and had to return badges to the licensing authority when these enterprises did not operate transportation business on the route for 60 consecutive days.
However, Decree 41 has been amended in a stricter direction. Accordingly, enterprises whose route registration is revoked for not operating the registered trips when in a month they implement less than 70% of the total trips of the registered route.
The above amendments aim to ensure that transportation units are responsible for providing services according to the registered routes, limiting cases where transportation units only register but do not operate. Thus, it creates favorable conditions for other transportation businesses to register routes that have been revoked to meet the transportation needs of passengers.
Decree 41 shall take effect from June 1, 2024.
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