Vietnam to facilitate sharing economy

Vietnam will create conditions for the development of a sharing economy, Deputy Prime Minister Vuong Dinh Hue said at a recent conference about the compilation of a sharing economy model.
Vietnam to facilitate sharing economy ảnh 1A peer-to-peer lending app (Photo: VNA)

Hanoi (VNA) - Vietnam will create conditions for the development of a sharingeconomy, Deputy Prime Minister Vuong Dinh Hue said at a recent conference aboutthe compilation of a sharing economy model.

“The approach is to facilitate the development of a sharing economy, notto let it develop freely or ban it,” Hue said.

According to the Ministry of Planning and Investment (MoPI), a sharingeconomy is a new business model which takes advantage of technology to reducecosts and reach customers through digital platforms, and will be the trend ofthe future. 

The sharing economymodel has developed in recent years around six major sectors, includingtransportation, room sharing, e-commerce, employment, financial services andonline advertising.

The ministry saidthat more sectors will witness the introduction of sharing economy businessmodels.

Vietnam has witnessed these developments with models like Grab in thetransportation sector, peer-to-peer lending in the banking sector, condotelsand officetels in the tourism and construction sector and e-commerce.

The MoPI said that promoting the development of a sharing economytogether with a proper framework for management will help improve budgetrevenue, enhance resource efficiency, encourage innovation and offer abundantchoices for customers.

Still, the ministry admitted that managing new business models arisingfrom the sharing economy remains a challenge, especially in tax management.

The ministry said that different countries have different approaches tomanage the sharing economy. However, international experiences showed thatthere is no general law regulating all matters of the sharing economy butregulations should be created for different sectors of the sharing economy.

Agreeing with this point, Hue said that Vietnam will develop specificregulations for specific sectors of the sharing economy, adding that developingjust a single law will be impossible because sharing economy business models arechanging too rapidly.

The Deputy PM also asked relevant ministries to improve the legalframework on employment and tax management together with evaluating the impactsof the sharing economy on socio-economic issues.

Deputy Minister of Science and Technology Bui The Duy said thattechnology is developing and the sharing economy business models will becomemore diverse.

He said that it is crucial to create regulations to managealready-formed sharing economy business models like ride-hailing services andpeer-to-peer lending.

Director of the State Bank of Vietnam’s Payment Department Pham Tien Dungsaid that the central bank is compiling a pilot project on peer-to-peerlending.

The Ministry of Transport is also developing adecree to regulate the operation of cars booked via ride-haling apps to createa fair playground for the passenger transportation market.  

The Government issued Resolution No 13/NQ-CP datedFebruary 8, 2018 to assign the Ministry of Planning and Investment to develop thesharing economy project. -VNA
VNA

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