Da Nang forces many tourist electric car companies to temporarily halt passenger transport

Citing Clause 1, Article 34 of the Law on Road Traffic Order and Safety, the department clarified that four-wheeled electric vehicles currently used to transport people in Da Nang are not classified as automobiles.

In 2016, the prime minister permitted Da Nang to pilot the use of four-wheeled electric vehicles for tourist transport within a limited scope.

Four companies put 85 vehicles into operation before 2017, while two of these companies added 15 vehicles in December 2024.

According to the department, during the pilot phase, city authorities provided favorable conditions for businesses to operate.

However, as this was a pilot project with limited operational scope, the city’s leadership did not direct or encourage businesses to invest in additional vehicles.

Recently, based on a review of the pilot program by the Ministry of Transport (now the Ministry of Construction) and opinions from other ministries and agencies, the government instructed provincial-level authorities to end the pilot by December 31, 2024.

From January 1, 2025, the operation of four-wheeled motorized vehicles will be governed by the Law on Road Traffic Order and Safety, the Law on Roads, and accompanying regulatory documents.

Providing further guidance, the Da Nang Department of Construction noted that the government had issued implementation guidance for some provisions of the two laws.

In particular, from February 15, 2025, four-wheeled passenger vehicles may only operate on roads with speed limit signs of 30 km/h.

Four-wheeled cargo vehicles may operate on roads with speed limits up to 50 km/h.

The Traffic Police Department under the Ministry of Public Security also pointed out several limitations and issues with the current operation of four-wheeled electric vehicles that may impact public order and traffic safety.

To address these concerns, the Office of the People’s Committee in each province and city is tasked with strictly overseeing the operation of four-wheeled electric vehicles.

The Department of Construction stated that it and local state management agencies recognize the contributions of road transport businesses to the city’s economic and tourism development. 

They understand the challenges businesses face when being required to adjust the operational scope of these vehicles.

However, in line with the city’s goal of sustainable development, the operation of four-wheeled electric vehicles must not interfere with or conflict with other forms of transportation or affect the daily travel needs of residents.

Previously, several electric tourist vehicle businesses in Da Nang reported months-long operational suspensions, resulting in job losses and significant financial damage.

In early June, many of these companies submitted petitions requesting support and solutions to protect their workers and businesses.