PM launches scheme to develop sharing economy

10:58 | 27/09/2019 Science - Technology

(VEN) - Prime Minister Nguyen Xuan Phuc recently approved a national scheme for the development of Vietnam’s sharing economy, including the testing and piloting of new technologies. 

pm launches scheme to develop sharing economy

The decision calls for the Ministry of Planning and Investment to coordinate with other ministries and sectors in amending and completing the current legal standards and policies to meet the management requirements of sharing economy activities.

Various models of sharing economy have made inroads in Vietnam in recent years. Examples include ride-hailing apps such as Uber, Grab, or shared accommodations through Airbnb. However, the field is unregulated.

The scheme aims to protect the rights and legitimate interests of all parties involved in the sharing economy, including service providers, service users and platform providers. It also encourages creative innovation and digital technology application to promote the digital economy.

The scheme requires tightened state management to facilitate the development of legal economic activities, including sharing economic models. It targets improving the awareness of businesses and individuals of the advantages and challenges of the sharing economy.

State management authorities need to create a fair business environment for companies operating according to sharing economic models and those doing business in a traditional manner, as well as to ensure equality between domestic and foreign companies, creating favorable conditions for traditional-styled businesses to upgrade their operations in line with Industry 4.0.

State management authorities will pilot new policies through sandbox mechanisms to promote new technology application in the sharing economy. The government encourages sharing economic models that are suited to the interests and socioeconomic development level of Vietnam and comply with Vietnam’s international commitments.

The scheme proposes four groups of state management solutions to promote the sharing economy. These include solutions to help service providers, service users, technology companies/platform providers to implement their rights and responsibilities, and solutions that enable the state to create an ecosystem for investment in sharing economic models.

The prime minister has assigned ministries and sectors to create regulations to support the development of sharing economic models. The State Bank of Vietnam is responsible for piloting peer-to-peer lending and applying financial technology (fintech) in banking operations and electronic payments. The Ministry of Transport has been assigned to draft amendments to laws related to transport and provide guidance for implementation of regulations on auto transport. The Ministry of Industry and Trade has been tasked with developing policies to promote sharing economic models to boost sustainable production and consumption.

Thu Phuong