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DS ART 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 832 (2020) 012070 doi:10.1088/1757-899X/832/1/012070

Taxi transport characteristics in Vietnam

Huy Truong Thai1, Andrey Rementsov2, Khac Minh Nguyen3 and AnhTuan Le4
1
Academy of air defense-air Force, town Son tay., Ha Noi, 154480, Vietnam
2
Moscow Automobile and Road State Technical University (MADI), 64,
Leningradsky ave., Moscow, 125319, Russia
3
Thai Nguyen University of Technology, 666, Tich Luong Strs., Thai Nguyen, 24131,
Vietnam
4
Institute of Military Mechanical Engineering, 42, Dong Quan Strs., Ha Noi, 122000,
Vietnam

Email: truongk25mta@gmail.com

Abstract: In recent years, economic growth and urbanization have been rapid in Vietnam,
which has led to an increase in mobility in urban areas, especially in large cities. The
government of Vietnam and the city authorities are trying hard to find the best solution, in
which developing public transport is considered the most optimal solution to traffic urban
problems. Hanoi and Ho Chi Minh City are the two special cities in Vietnam; they have
applied the best policies for developing public transport and actually made a great leap forward
in economy and tourism. However, the reality shows that the level of meeting the transport
needs of urban people is still very low (about 14 % in Hanoi and 8 % in Ho Chi Minh).
Obviously, there are objective and subjective reasons for this problem, such as: low quality of
urban transport infrastructure, asynchronous development of urban transport network and the
shortage of taxis and system bus. In particular, the management and monitoring of the
operation of the means of public transport are very weak leading to poor quality transport
services, reducing the attractiveness of the customer for the service of public transport. In this
situation, the goal of increasing the efficiency of public transport to satisfy the needs of people
in the large urban centers becomes a major and urgent problem. The article analyzed and
evaluated the role of passenger transport in Vietnam's economy. Important factors that will be
needed to improve the quality of passenger service of Hanoi's public transport system have
been identified. The characteristics of managing and operating taxi cars of major passenger
carriers are also analyzed and evaluated in this article.
Keyword: transports, passenger transports, the operation of passenger cars, transport
infrastructures, taxi.

1. Introduction
Road transport plays an important role in the transport complex of Vietnam, constantly providing the
activities of enterprises and organizations of all forms of ownership. The features and advantages of
road transport are primarily determined by its high mobility and maneuverability, which allows you to
quickly concentrate vehicles in the required quantity in the right place, and when the need passes,
quickly transfer them to another place. In addition, road transport can receive goods and passengers
directly at the place of their formation without intermediate loading and unloading operations and

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DS ART 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 832 (2020) 012070 doi:10.1088/1757-899X/832/1/012070

transfer passengers and deliver them to their destination “door-to-door”, and therefore, without
additional costs for these operations. This type of transport ensures the regularity and sequence of
delivery of goods. However, the cost of transportation by road is very high and on average exceeds the
similar indicators of river and rail transport. The high cost price is determined by the low carrying
capacity and, consequently, the low productivity of the rolling stock and, in this regard, a significant
share of wages in the total amount of operating costs. Reserves of cost reduction are mainly intensive
factors – an increase in utilization rates of vehicle mileage, carrying capacity and average speed.

2. Main part
Road transport, as one of the types of land transport in Vietnam, has received the greatest distribution
and occupies a leading position in the transportation of passengers. In Vietnam, road transport
accounts for more than 77.4 % of the volume of transported goods and 94 % of the volume of
passengers. Thus, it is the main carrier for the main sectors of the economy in table 1 [1].

Table 1. Statistics of volume goods transported by types of the transport in Vietnam in the period of
2007–2017
Quantity Types of the transport
Year
(thousand tons) Roadway Railroad River way Seaway Air way
2007 596800.9 403361.8 9050.0 135282.8 48976.7 129.6
2008 653235.3 455898.4 8481.1 133027.9 55696.5 131.4
2009 715522.4 513629.9 8247.5 137714.5 55790.9 139.6
2010 800886 587014.2 7861.5 144227.0 61593.2 190.1
2011 885681.5 654127.1 7285.1 160164.5 63904.5 200.3
2012 961128.4 717905.7 6952.1 174385.4 61694.2 191.0
2013 1010413.9 763790.0 6525.9 181212.7 58701.6 183.7
2014 1078580.9 821700.0 7178.9 190600.0 58900.0 202.0
2015 1146895.7 877628.4 6707.0 201530.7 60800.0 229.6
2016 1255458.2 969721.0 5209.0 215768.2 64474.4 285.6
2017 1378999.8 1070572.0 5636.1 231950.8 70535.0 305.9
2018 1500918.0 1161632.3 6253.6 256361.3 76325.6 345.2

1400000

1200000

1000000
Roadway
thousand tons

800000 Railroad
River way
600000
Seaway
400000 Air way

200000

0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure 1. The growth of volume goods transported by types of the transport in the period of 2007–2017

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DS ART 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 832 (2020) 012070 doi:10.1088/1757-899X/832/1/012070

Population growth and urbanization speed are very fast in Vietnam (96 million people in 2017) has
led to demand for passenger transport in the major cities such as Hanoi, Da Nang, Hai Phong, Ho Chi
Minh rising rapidly [2]. In recent years, each year more than 3401.9 million passengers are transported
by the roadway (Table 2). In addition, this increase in transport volumes is supported by the quality of
the roadway infrastructure and convenient road systems [1].

Table 2. Passenger volume statistics are transported by types of the transport in Vietnam in the period
of 2007–2018
Quantity Types of the transport
Year
(million people) Roadway Railroad River way Air way
2007 1638.0 1473.0 11.6 144.5 8.9
2008 1793.5 1629.0 11.3 143.0 10.2
2009 2016.9 1843.6 11.1 151.3 10.9
2010 2315.2 2132.3 11.2 157.5 14.2
2011 2476.1 2306.7 11.9 142.4 15.1
2012 2676.5 2504.3 12.2 145.0 15.0
2013 2839.9 2660.5 12.1 150.4 16.9
2014 3056.8 2863.5 12.0 156.9 24.4
2015 3310.5 3104.7 11.2 163.5 31.1
2016 3623.2 3401.9 9.8 172.9 38.6
2017 3994.1 3760.0 9.6 180.0 44.5
2018 4347.5 4101.3 10.3 186.3 49.6
4500

4000

3500

3000
million people

2500 Roadway
Railroad
2000
River way
1500 Air way

1000

500

Figure 2. The growth in the number of passengers transported by types of the transport in the period
of 2007–2018

Passenger transport in Vietnam is plentiful, including public transport, buses, taxis and personal
vehicles. They are exploited in the city and suburbs. In the period from 2011 to 2020, according to the
development plans of big cities such as Hanoi, Da Nang, Hai Phong and Ho Chi Minh, the main form
of passenger transport is Public services [2]. By 2020, taxi transport should meet the needs of people
with a growth rate of 15 and 20 % growth in 2025 in the table 3 [1, 2].

3
DS ART 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 832 (2020) 012070 doi:10.1088/1757-899X/832/1/012070

Table 3. Quantity characteristics of the passenger transport Hanoi in the period of 2011–2018
Year
2011 2012 2013 2014 2015 2016 2017 2018
Type of cars
Personal cars 116695 119832 123354 127536 132936 140672 149548 159123
Taxi 14632 16220 17880 19635 21563 23126 24665 26350
Buses 983 1016 1138 1269 1462 1589 1583 1936
Total 132310 137068 142372 148440 155961 165387 175796 187409
Rate of increase 3.3 % 3.6 % 3.7 % 4.0 % 4.8 % 5.7 % 5.9 % 6.2 %

The following factors show an increasingly important role of taxi transport in passenger
transportation in Hanoi:
• In the future, the demand for passenger transportation will increase dramatically because most
people use roadway transports as a daily means of transportation. This is evident in large cities and
densely populated areas.
The analysis shows that there is a strong increase in the number of taxis in the roadway traffic
systems in Hanoi
Currently, in the capital Hanoi Taxi 12 joint stock companies, 6 personal companies and the
number of taxi vehicles contract is 26.350 units. The most popular taxis are branded Toyota Vios,
Gran i10, Kia Morning. In 2018, the number of passengers using the taxi service was about
180.5 million. The average travel distance for a taxi is from 23000 to 25000 km. Taxi transport plays a
special role in roadway traffics in Hanoi. Passengers in Vietnam use many different types of the
transportation, bus service accounts for 8 %; taxi service accounts for 14 % and personal vehicles
accounts for 8.5 % [3]. In 2018, passenger taxi transport increased by 12.1 % compared to 2017 and
the number of taxi cars reached 26.350 units in figure 3.
So, currently in the capital of Hanoi there are 12 joint-stock companies, 6 personal taxi companies
and contract cars in the amount of 26350 units. As a taxi, such car brands as Toyota Vios, Grandi 10,
Kia Morning are often used. In 2018, passenger transport by taxi amounted to about 180.5 million
passengers. Each year, the average mileage of one car is about 23000–25000 km. The general structure
of passenger transportation in Hanoi is impossible to imagine without a taxi. Therefore, taxi
transportation occupy a special place in the system of urban passenger transport. Currently, passengers
in Vietnamese cities use various modes of transport. In general, bus services account for 8 % of
passenger traffic, taxi – 14 %, private cars – 8.5 % [3]. In 2018, passenger taxi transport increased by
12.1 % compared to 2017, and the number of taxi cars amounted to 26.350 units (figure 3). Table 4
presents the main companies operating taxi in Hanoi [2].
30000

25000

20000
units

15000

10000

5000

0
2011 2012 2013 2014 2015 2016 2017 2018
Figure 3. The number of taxis in the roadway traffic system in Hanoi

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DS ART 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 832 (2020) 012070 doi:10.1088/1757-899X/832/1/012070

Table 4. Number of taxi cars of joint-stock and personal companies

Id taxi company Quantity (units)
1 Taxi Mailinh 4565
2 Taxi Group 2122
3 Taxi Noibai 1532
4 Taxi thudo 1230
5 Taxi Hanoi Tourist 1135
6 Taxi Airport 608
7 Taxi Thanglong 698
8 Taxi АВС 642
9 Taxi Vanxuan 684
10 Taxi Thekymoi 542
11 Taxi Grab 2250
12 Taxi Uber 2260
1 Taxi 54 322
2 Taxi 37 431
3 Taxi 12 453
4 Taxi 83 416
5 Taxi V20 363
6 Taxi CP 460
7 Contract cars in the suburbs 5637
Total 26350

According to the plan to develop passenger transport in Hanoi capital from 2020 to 2025, the rate
of using personal vehicles such as motorbikes and personal cars will sharply decrease and the demand
for public transport such as buses and taxis will increase rapidly [2]. In Hanoi, buses are a popular
means of public transport, but the level and quality of exploitation is still very limited: some routes
have not yet operated buses, the distance between the stations is quite far (more than 2 km), bus
management process is quite outdated, the bus operating time is usually only up to 19 hours and a few
activities up to 21 hours. Obviously, the bus does not meet the needs of people and the type of
passenger transport by taxi is a very promising method to solve this problem. Advantages of this type
of taxi transport are the maximum number of passengers is up to 9 people, the integration with
software such as Grab, Uber helped taxi transportation become very comfortable. In the future need to
develop transport by taxi towards the modernization of management, improve service quality and meet
the needs of the people. By the above analysis, the demand for passenger and cargo transportation in
major cities in Vietnam has achieved significant growth and promises to continue to increase sharply
in the future. The question is how to manage and organize the operation of the taxi system to meet the
needs of the people and suit the tropical climate conditions and underdeveloped infrastructure.

3. Conclusions
Analysis of taxi transport status in Hanoi shows that, in the context of increasing demand for
passenger transport, and the goal of improving efficiency, further development of passenger transport
is one of the major issues of economic and social Vietnam in the current period [6]. To solve this
problem it is necessary to:
• reduce personal vehicle use and increase taxi and bus usage. Also, taxi services to ensure the
reasonable cost of services and the segment so that people can use it;
• improve the quality of road infrastructure; constructing reasonable and convenient bus stops for
operation;
• improve the quality of service delivery, enhance the comfort and safety for our customers;

5
DS ART 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 832 (2020) 012070 doi:10.1088/1757-899X/832/1/012070

• establish policies needed to encourage citizens to develop business in the field of passenger
transport, more established taxi companies.
Obviously, in Hanoi city the level of public transport is very high and the demand for service
quality continues to increase. To solve this problem, it is necessary to improve the organization of
urban passenger transportation and taxi maintenance.

References
[1] Management of the general statistics Retrieved from: https://gso.gov.vn/default.aspx?tabid=721
[2] Logistics Retrieved from: https://logistics4vn.com/thuc-trang-loai-hinh-van-tai-da-phuong-thuc-
trong-nganh-dich-vu-logistics-tai-viet-nam.
[3] Tran H T 2011 Public Transport Issues in Hanoi 4 87–9
[4] Rementsov A N and Fan А В 2018 Features of cargo transportation by road transport in vietnam
Vestnik MADI 55(4) 96–102
[5] Nguyen H M and Rementsov A N. 2013 Organization of passenger traffic in Vietnam Vestnik
MADI 35(4) 8–13