Grab cars seen in a parking lot in Hanoi during a promotion campaign by the Singapore-based raid-hailing tech firm (Photo: baogiaothong.vn)Hanoi (VNS/VNA) - Vietnam must identify, implement and buildmanagement models for sharing economy applications in the country’s majorsectors such as banking and transport to ensure a fair business playground andprotect all involved parties, said economics experts at a conference on thesharing economy in Hanoi on October 10.
The conference was organised by the Central Institute of Economic Management(CIEM) to share knowledge and support the implementation of sharing economymodels in governmental ministries, agencies and other shareholders.
Deputy head of CIEM Nguyen Thi Tue Anh urged governmental bodies to open up tonew concepts and practices by allowing pilot programmes to test new economicmodels, and to replace antiquated and obsolete regulations.
While not yet reaching a sizeable scope, the sharing economy model has hugepotential for growth in Vietnam, said Dr Nguyen Manh Hai, head researcher ofCIEM’s social affairs study.
He cited massive adaptation of transport technology firms such as Grab, Uberand Didi Chuxing since 2014 and home-sharing models such as Airbnb, which listssome 6,500 homes in Vietnam. In addition, other sharing economy models arestarting to emerge including home repair, construction and fintech services.
Despite its rapid proliferation, the Government showed a lack of focus inproviding a legal framework to regulate sharing economy models, Hai said. Forexample, getting a business licence may prove to be an arduous process becausemany said the models were not even included in the country’s businessregistration system.
There are currently no laws to support and manage sharing economy activities,making it near impossible for governmental agencies to ensure fair businesscompetition and the quality of goods and services provided or protectconsumers’ rights.
Furthermore, in the absence of effective laws, businesses may be able to getaway with not fulfilling their financial duties to the State with consumers’private data being exposed to security threats.
Nghiem Thanh Son, head of the Department of Payment at the State Bank of Vietnam,said measures such as a Regulatory Sandbox – a framework set up by financialsector regulators that allows small scale, live testing of new products andservices in a controlled environment – could address many of the stickingpoints in the fintech sector.
“The central bank supports innovation and encourages all businesses to performextensive testing of new [financial] products to make sure the legitimaterights of businesses and consumers are protected,” said Son.
The transport sector’s laws and regulations were especially antiquated and canno longer accommodate the rapid growth of modern economic models, let aloneensure a fair business playground or protect consumers, said Ngo Vinh BachDuong, head of economic laws from the Institute of State and Law.
Duong said the Government should reduce business conditions for modern economicmodels instead of trying to fit aged regulations currently applied totraditional business models on modern ones. Policymakers must also placegreater emphasis on protecting consumers’ rights./.
The conference was organised by the Central Institute of Economic Management(CIEM) to share knowledge and support the implementation of sharing economymodels in governmental ministries, agencies and other shareholders.
Deputy head of CIEM Nguyen Thi Tue Anh urged governmental bodies to open up tonew concepts and practices by allowing pilot programmes to test new economicmodels, and to replace antiquated and obsolete regulations.
While not yet reaching a sizeable scope, the sharing economy model has hugepotential for growth in Vietnam, said Dr Nguyen Manh Hai, head researcher ofCIEM’s social affairs study.
He cited massive adaptation of transport technology firms such as Grab, Uberand Didi Chuxing since 2014 and home-sharing models such as Airbnb, which listssome 6,500 homes in Vietnam. In addition, other sharing economy models arestarting to emerge including home repair, construction and fintech services.
Despite its rapid proliferation, the Government showed a lack of focus inproviding a legal framework to regulate sharing economy models, Hai said. Forexample, getting a business licence may prove to be an arduous process becausemany said the models were not even included in the country’s businessregistration system.
There are currently no laws to support and manage sharing economy activities,making it near impossible for governmental agencies to ensure fair businesscompetition and the quality of goods and services provided or protectconsumers’ rights.
Furthermore, in the absence of effective laws, businesses may be able to getaway with not fulfilling their financial duties to the State with consumers’private data being exposed to security threats.
Nghiem Thanh Son, head of the Department of Payment at the State Bank of Vietnam,said measures such as a Regulatory Sandbox – a framework set up by financialsector regulators that allows small scale, live testing of new products andservices in a controlled environment – could address many of the stickingpoints in the fintech sector.
“The central bank supports innovation and encourages all businesses to performextensive testing of new [financial] products to make sure the legitimaterights of businesses and consumers are protected,” said Son.
The transport sector’s laws and regulations were especially antiquated and canno longer accommodate the rapid growth of modern economic models, let aloneensure a fair business playground or protect consumers, said Ngo Vinh BachDuong, head of economic laws from the Institute of State and Law.
Duong said the Government should reduce business conditions for modern economicmodels instead of trying to fit aged regulations currently applied totraditional business models on modern ones. Policymakers must also placegreater emphasis on protecting consumers’ rights./.
VNA
