Aug 14, 2019 / 11:26

Vietnam PM okays plan to promote sharing economy

The Hanoitimes - The plan requires such business models to be compatible with the current economic development level of Vietnam and in compliance with Vietnam’s international commitments.

Prime Minister Nguyen Xuan Phuc has approved a plan to promote sharing economy in Vietnam, aiming to ensure a fair business environment between sharing economy business models and traditional one. 
Illustrative photo.
Illustrative photo.
Following the plan, the government would put measures in place to protect lawful rights and responsibilities of parties joining the sharing economy, including service providers, users and companies providing necessary platforms. 

Vietnam gives high priority to innovation, technologies application and the development of digital economy, stated the plan. 

Meanwhile, the plan expresses its support and expects better adaptation from all economic groups in the context of new development trend of sharing economy, noting specialized legal framework for new business models is not necessary. 

This is due to the fact that sharing economy is not a separate part of the economy, while there must be a change in the mindset of state agencies to catch up with the advancement of digital economy and the Fourth Industrial Revolution, as well as raising awareness and capabilities of enterprises, provinces and the people on sharing economy. 

In the coming time, the government plans to put enterprises at the center of its innovation effort, supporting local tech firms in developing digital platforms and through the digital transformation process. 

Vietnam also expects to set up sandbox approach to review and evaluate the impact of new economic practices emerged from sharing economy on the market. 

It, nevertheless, requires such models to be compatible with the current economic development level of Vietnam and in compliance with Vietnam’s international commitments. 

Deputy Prime Minister Vuong Dinh Hue previously said the country must support the development of sharing economy, instead of prohibiting new business models for fears of they would get out of control.

In Vietnam, sharing economy has not been fully developed but there remains huge potential for development, according to the Ministry of Planning and Investment. There have been a few business models based on sharing economy in Vietnam, including transportation through ride-hailing apps, shared accommodation and P2P lending, which are all conditional businesses. 

Management of sharing economy is a challenge for the local authorities, as most of its business models have not been catalogued for tax declaration and payment, while there has not been a clear line to differentiate between traditional business forms and new models.