Types of Road Transportation Businesses in Vietnam

What is road transport?

According to Clause 30, Article 3 of the 2008 Road Traffic Law, road transport is defined as the operation of using road vehicles to transport people and goods on roads. In other words, road transport is the activity of transporting people and goods on roads using vehicles.

Various types of commercial trucks and buses on a road.Various types of commercial trucks and buses on a road.

Classification of Road Transportation Businesses

According to Article 66 of the 2008 Road Traffic Law, road transport businesses are divided into two main types: passenger transport and freight transport.

1. Passenger Transport Business:

  • Fixed-route passenger transport: This is a form of passenger transport business with a clearly defined departure point, destination, schedule, and itinerary.
  • Fixed-route bus transport: Buses operate on fixed routes, have designated pick-up and drop-off points, and run according to an operating schedule with a specific distance and scope of operation.
  • Taxi transport: This form meets the travel needs of customers with schedules and itineraries on demand, with fares calculated by a meter.
  • Contract-based passenger transport: Passenger transport not following a fixed route, carried out under a signed transport contract between two parties.
  • Tourist transport: This type serves tourism needs, transporting passengers according to specific routes, programs, and tourist destinations.

2. Freight Transport Business:

  • General freight transport: This is the most common form of cargo transportation.
  • Truck taxi transport: Similar to passenger taxis, truck taxis transport goods according to customer requirements.
  • Oversized and overweight cargo transport: This form specializes in transporting goods with dimensions or weight exceeding the limits allowed for conventional transport.
  • Dangerous goods transport: Transportation of dangerous goods, flammable, explosive, toxic, requiring strict compliance with safety regulations.

Conditions for Operating a Road Transport Business

Article 67 of the 2008 Road Traffic Law stipulates the conditions for operating a road transport business as follows:

  • Business registration: Enterprises, cooperatives, and business households must register their road transport business in accordance with the law.
  • Vehicles: Ensure the quantity, quality, and age of vehicles are suitable for the business type; vehicles must be equipped with journey monitoring devices.
  • Personnel: Ensure the number of drivers and service staff on the vehicle; drivers must have appropriate driving licenses, and service staff must be trained.
  • Operator: The person directly operating the transport activity must have professional qualifications in transport.
  • Parking: Have a parking area suitable for the business scale, ensuring requirements for order, safety, fire prevention, and environmental hygiene.

For fixed-route passenger transport, bus transport, taxi transport, and containerized freight transport, some other specific conditions must be met, such as having a traffic safety management department and registering service quality standards.

Conclusion

The road transport business is a diverse field with many different types. To operate a legal and efficient transport business, it is necessary to understand the legal regulations on business conditions, as well as to choose the type suitable for capacity and market demand. Understanding the types of road transport businesses will help individuals and businesses make sound investment and business decisions, contributing to the sustainable development of the road transport industry.

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