Part 2 of the ‘Unraveling Corruption in Vietnam – Catch 22’ series
The new law and regulation on vehicle ownership and registration will be strictly enforced.
Cracking Down on Motorbike Ownership and Registration
In Vietnam, motorbikes are more than just a mode of transportation; they are an integral part of the culture. However, over the years, this has led to lax practices in motorbike registration, opening the door to corruption and illegal activities. In a bid to curb these issues, the Ministry of Transportation recently introduced a new law that is set to be strictly enforced. Starting from 15th August, motorbike owners must have the registration card in their name and the original plate on the caveat, known as the “carte verte à legacy of French colonial administration.” This article delves into the implications of this new regulation, focusing on the challenges it poses, especially for expatriates and motorbike enthusiasts.
The History of Non-Compliance
For many years, the practice of motorbike ownership and registration in Vietnam has been unique. It has been common for motorbikes to stay within families, passing from one generation to the next without the need to change plates or the caveat. Consequently, the Department of Registration has been registering a massive number of new motorbikes annually, approximately 1,000,000 countrywide. This culture of keeping motorbikes within families made any “extra service” for used motorbikes unwelcome, unless a certain “coffee money” was paid. Riding a family member’s or friend’s motorbike was as commonplace as breathing air in Vietnam.
New Regulation to Combat Theft and Scams
While this longstanding practice has had its merits, it has also led to certain downsides. A new trend emerged involving the theft of motorbikes and scams related to “borrowed” motorbikes that did not legally belong to the riders but were pawned for quick cash before disappearing. Furthermore, there were reports of illegal trading of “lucky number plates” within the police transportation registry. These plates, often ending in numbers 8 or 9, could fetch thousands of dollars without any money reaching the state’s coffers.
Ministry of Transportation’s Decree
In response to these challenges, the Ministry of Transportation decided to take immediate action. Their new decree, which came into effect within 30 days of its announcement, mandates that all vehicles should be registered under the name of the owner as per the model and number plate. This regulation aims to combat corruption and illegal practices that have plagued the vehicle registration system. However, its implementation has posed significant difficulties.
Challenges for Expats
This new regulation has created substantial challenges, especially for expats living in Vietnam. Expats often face a two-fold problem – firstly, they cannot legally sell and change the ownership of a motorbike without a proper Resident Card or a long-term visa of the buyer. Secondly, finding the previous expat owners, who may have sold the motorbike due to relocation, is an arduous task. The documentation required for this process is often incomplete, adding to the complexity of the situation.
The Unintended Consequences of the Decree
Since the 15th of August, the 30-day waiting period for the new decree has lapsed, and it has already begun to have unintended consequences. Second-hand motorbike dealers are struggling to trace back the original registration card owner, and many are on the brink of bankruptcy. Expatriates have become easy targets for the police to verify ownership through the carte verte. Additionally, enthusiasts who purchased “lucky number plates” without proper invoices are now facing fines.
The Need for Caution and Reevaluation
In this situation, it becomes evident that the swift implementation of the decree without a thorough assessment of the implications has led to a clear and present danger for many. It is crucial to recognize that the lower levels of government may sometimes mistake speed for efficiency, and decisiveness for smart decision-making. While the intent behind the regulation is to curb corruption and illegal activities, it is equally vital for the authorities to consider the practical challenges that have arisen due to its hasty implementation.
As we created a section about Time and Timing, this is fairly often that the low level of the government officers lead to inadequate decisions and decree mistaking speed with efficiency, or decisiveness with smartness. In this dead end situation, it is urgent to wait and see when the authorities will ‘Undecide’.
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