Vietnam prosecutors say Vinasun’s claims against Grab have no legal basis

A GrabTaxi logo is seen on a car neck pillow in a taxi in Hanoi, Vietnam September 9, 2015. REUTERS/Kham

The People’s Procuracy of Ho Chi Minh City has proposed to dismiss the claims made by local taxi firm Vinasun against Grab asking the Southeast Asian ride-hailing major to pay VND4.8 billion ($200,000) as compensation for its operational losses.

According to an announcement, the chief prosecutor of the People’s Procuracy of Ho Chi Minh City has protested the court’s judgment and requested the city court to wholly reject the claims of Vinasun.

The prosecutors concluded that Vinasun’s claims of damages were groundless.

“Vinasun’s decrease in revenue and profit could be due to factors such as its corporate governance capability, service quality, legal policies of the State, competition from various types of passenger transportation business and changes in customer demand and choice,” said the chief prosecutor.

Vinasun said, it will soon issue an official response to this decision.

Vinasun had filed a lawsuit against the Southeast Asian ride-hailing company in June 2017, accusing it of abusing the Vietnamese transportation ministry’s pilot scheme of applying technology in contracted car operation.

The taxi firm sued Grab for VND41 billion ($1.8 million) in damages, claiming the latter enjoyed an unfair operational advantage as it operated as a technology company instead of a transportation firm.

The People’s Court of Ho Chi Minh City in December ruled that Grab operates a transportation business, and asked it to pay VND4.8 billion (nearly $200,000) as compensation to Vinasun.

The court concluded that Grab had been one of the factors that led to Vinasun’s business losses.

Also Read:

Grab appeals Vietnam court’s ruling in Vinasun lawsuit

Vietnam court asks Grab to pay $200k in compensation to local taxi operator Vinasun