Decree No. 110/2006/ND-CP dated September 28, 2006 of the Government on conditions for automobile transport business

DECREE

ON CONDITIONS FOR AUTOMOBILE TRANSPORT BUSINESS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2005 Investment Law;

Pursuant to the June 29, 2001 Law on Land Road Traffic;

Pursuant to the November 26, 2003 Cooperative Law;

Pursuant to the November 29, 2005 Enterprise Law;

At the proposal of the Minister of Transport,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope

This Decree provides conditions for automobile transport business on the road system of the Socialist Republic of Vietnam.

Article 2.- Subjects of application

1. This Decree applies to all enterprises and households engaged in automobile transport business in the Vietnamese territory.

2. When a treaty related to automobile transport business to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Decree, the provisions of that treaty shall be applied.

Article 3.- Forms of automobile transport business

Automobile transport business has the following forms:

1. Passenger transport along fixed routes.

2. Passenger transport by bus.

3. Passenger transport by taxi.

4. Contractual passenger transport.

5. Tourist transport.

6. Cargo transport.

Article 4.- Interpretation of terms

In this Decree, the following terms are construed as follows:

1. Automobile transport business means the use of automobiles for passenger or cargo transport with the collection of fares or freights.

2. Passenger transport along fixed routes means the business of passenger transport by automobiles along routes with specified terminals of departure and terminals of arrival according to set schedules and itineraries.

3. Passenger transport by bus means the business of passenger transport by automobiles along fixed routes with specified stops for passenger embarkation and disembarkation according to operation charts.

4. Passenger transport by taxi means the business of passenger transport by automobiles according to schedules and itineraries at the passengers' request for fares calculated according to taximeters.

5. Contractual passenger transport means the business of passenger transport by automobiles not along fixed routes but on the basis of transport contracts.

6. Enterprise means a business unit set up under the Enterprise Law or the Cooperative Law.

Chapter II

CONDITIONS FOR AUTOMOBILE TRANSPORT BUSINESS

Article 5.- General conditions for automobile transport business

Enterprises and households engaged in automobile transport business must meet the following conditions:

1. To register for automobile transport business according to the provisions of law;

2. To ensure the quantity and quality of automobiles in conformity with the business form.

3. To ensure sufficient numbers of drivers and stewards in conformity with their business plans:

a/ Drivers and stewards must have clear personal records, certified by local administrations (of ward or commune level), health certificates issued by a competent health agency and written labor contracts signed with the labor user;

b/ Drivers are not banned from driving under the provisions of law.

4. Persons directly managing transport activities of enterprises must have an intermediate or higher professional degree in transport.

5. To have parking lots in conformity with their business scope, meeting the requirements on fire and explosion prevention and combat and environmental sanitation.

Article 6.- Conditions for passenger transport along fixed routes

Only enterprises that fully meet the following conditions may deal in passenger transport along fixed routes:

1. To satisfy all conditions prescribed in Article 5 of this Decree.

2. To have an adequate number of automobiles for operation on fixed routes already registered with the route management agency; automobiles must display a mark of automobiles running along fixed routes and have an itinerary register according to regulations of the Ministry of Transport.

3. The use duration of automobiles must not exceed the following limits:

a/ For distances of over 300 km:

- Not exceeding 15 years, for automobiles manufactured for passenger transport;

- Not exceeding 12 years, for automobiles of other types converted into passenger cars before January 1, 2002.

b/ For distances of 300 km or less:

- Not exceeding 20 years, for automobiles manufactured for passenger transport;

- Not exceeding 17 years, for automobiles of other types converted into passenger cars before January 1, 2002.

4. Stewards must be trained in professional skills and have certificates granted according to regulations of the Ministry of Transport.

Article 7.- Conditions for passenger transport by bus

Only enterprises that fully meet the following conditions may deal in passenger transport by bus:

1. To satisfy all conditions prescribed in Article 5 of this Decree.

2. To have automobiles of 17 seats or more, each having an adequate floor area for standing passengers and painted with a particular color as registered with the concerned provincial/municipal Transport Service or Transport and Public Works Service.

3. To have an adequate number of automobiles for bus transport according to operation charts prescribed by, and registered with, the provincial/municipal Transport Service or Transport and Public Works Service.

4. The use duration of automobiles must comply with the regulations of Point b, Clause 3, Article 6 of this Decree.

5. To be permitted to participate in passenger transport by bus by the provincial-level People's Committee or an authorized local agency in charge of state management of transport.

6. Bus stewards must be trained in professional skills and have certificates granted according to regulations of the Ministry of Transport.

Article 8.- Conditions for passenger transport by taxi

Only enterprises that fully meet the following conditions may deal in passenger transport by taxi:

1. To satisfy all conditions prescribed in Article 5 of this Decree.

2. An automobile used as a taxi must have no more than 8 seats (including the driver's seat) and be equipped with a meter indicating payable fares calculated according to the travelled distance in kilometers and a "TAXI" or "Meter TAXI" light box on the roof.

3. To have a mark granted by a competent agency.

4. The use duration of a taxi must not exceed 12 years.

5. To register automobiles' paint colors, the enterprise's logo and telephone numbers for customers' calls.

6. Taxi drivers must be trained in, and granted certificates of, personal communication skills and passenger transport services according to regulations of the Ministry of Transport.

Article 9.- Conditions for contractual passenger transport

Only enterprises or households that fully meet the following conditions may deal in contractual passenger transport:

1. To satisfy all conditions prescribed in Article 5 of this Decree.

2. When operating, automobiles must have written transport contracts which clearly state the time and place of departure, place of destination, number of passengers, fare and route.

3. Automobiles must have the use duration compliant with the provisions of Clause 3, Article 6 of this Decree.

4. Automobiles used for contractual passenger transport must carry the mark of contracted automobiles according to regulations of the Ministry of Transport.

5. Stewards must be trained in professional skills and have certificates granted according to regulations of the Ministry of Transport.

Article 10.- Conditions for tourist transport

Only enterprises or households that fully meet the following conditions may deal in tourist transport:

1. To satisfy all conditions prescribed in Article 5 of this Decree.

2. When operating, automobiles must have written tourist transport contracts or service contracts which clearly state the time and place of departure, place of destination, number of passengers, fares and route.

3. Automobiles must have the use duration compliant with the provisions of Clause 3, Article 6 of this Decree and satisfy standards on technical safety, environmental protection and service quality.

4. Automobiles used for tourist transport must carry the mark according to regulations of the Ministry of Transport.

5. Other conditions as prescribed by tourism law.

Article 11.- Conditions for cargo transport

Only enterprises or households that fully meet the following conditions may deal in cargo transport:

1. To satisfy all conditions prescribed in Article 5 of this Decree.

2. Automobiles used for cargo transport must comply with the provisions of the Government's Decree No. 23/2004/ND-CP of October 13, 2004, providing for the use duration of trucks and passenger cars.

3. Automobiles used for cargo transport (except for cargo taxis) must have written cargo transport contracts signed between the enterprise or household and the cargo owner or a representative of the cargo owner which has a number and clearly states the time for cargo transport, places of departure and destination, volume of to be-transported cargo, route and freight.

Chapter III

RESPONSIBILITIES OF AGENCIES AND ORGANIZATIONS

Article 12.- Responsibilities of the Ministry of Transport

1. To promulgate regulations on the forms of automobile transport business defined in Article 3 of this Decree and manage those business activities.

2. To coordinate with the Ministry of Finance in guiding the declaration of fare and freight rates and ticket forms, putting up of fare/freight rates and in inspecting the observance of the registered fare/charge rates by enterprises and households conducting automobile transport business according to the provisions of law.

3. To coordinate with the Ministry of Planning and Investment in managing enterprises and households conducting automobile transport business.

4. To coordinate with the National Tourism Administration in guiding and inspecting enterprises and households dealing in tourist transport to comply with the provisions of Article 10 of this Decree and other provisions of the tourism service regarding tourist transport.

5. To coordinate with provincial/municipal People's Committees in managing, monitoring, inspecting and examining the observance of conditions for automobile transport business stipulated in this Decree and other relevant laws.

Article 13.- Responsibilities of the Ministry of Planning and Investment

1. To guide competent agencies in granting business registration certificates according to the provisions of Article 3 of this Decree.

2. To coordinate with provincial/municipal People's Committees in directing local agencies in charge of granting business registration certificates to report on enterprises and households having business registration (or having suspended business registration) to provincial/municipal Transport Services or Transport and Public Works Services for coordinated management.

Article 14.- Responsibilities of the Ministry of Finance

To guide the declaration of fare/freight rates and ticket forms and putting up of fare/freight rates and inspect the observance of the registered fare/freight rates by enterprises and households conducting automobile transport business according to the provisions of law.

Article 15.- Responsibilities of the National Tourism Administration

To guide and inspect tourist transport business enterprises and households in compliance with the provisions of Article 10 of this Decree and other regulations of the tourism service regarding tourist transport.

Article 16.- Responsibilities of provincial-level People's Committees

To direct local functional agencies to manage, monitor, inspect and examine the observance of conditions for road transport business according to this Decree and relevant provisions of law. To set bus fares applicable within the localities.

Chapter IV

EXAMINATION AND INSPECTION OF BUSINESS CONDITIONS, COMPLAINTS AND DENUNCIATIONS; COMMENDATION, AND HANDLING OF VIOLATIONS

Article 17.- Examination and inspection of automobile transport business activities

1. Ministries, branches and provincial-level People's Committees shall organize examination and inspection and handle violations according to their competence.

2. Subject to examination and inspection shall be the observance of this Decree and other provisions of law related to automobile transport business activities defined in Article 3 of this Decree.

3. The examination and inspection of enterprises and households conducting automobile transport business must comply with the current provisions of law.

Article 18.- Complaints and denunciations

1. Organizations and individuals may lodge complaints to competent persons about the implementation of this Decree in accordance with the law on complaints and denunciations.

2. Individuals may denounce to competent state agencies violations of this Decree committed by other organizations or individuals and law-breaking acts committed by persons of state management agencies in accordance with the law on complaints and denunciations.

Article 19.- Commendation, and handling of violations

1. Organizations and individuals that record achievements in the implementation of this Decree are entitled to commendation in accordance with the law on emulation and commendation.

2. All acts in violation of the provisions of this Decree shall, depending on their nature and severity, be administratively sanctioned or examined for penal liability; in case of damage, compensations must be paid according to the provisions of law.

3. Those who abuse their positions or powers to act in contravention of the provisions of this Decree and relevant provisions of law shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability; if causing damage, they must pay compensations according to the provisions of law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 20.- Implementation effect

1. This Decree takes effect 15 days after its publication in "CONG BAO" and replaces the Government's Decree No. 92/2001/ND-CP of December 11, 2001, on conditions for automobile transport business. Previous regulations contrary to the provisions of this Decree are annulled.

2. Enterprises and households conducting transport business under the forms defined in Article 3 of this Decree are required to satisfy the prescribed business conditions within 120 days after the effective date of this Decree.

Article 21.- Implementation responsibilities

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees and concerned enterprises and individuals shall implement this Decree.