No new taxi licenses will be granted in Ho Chi Minh City from June 1 as the number of cabs exceeds the city's taxi development plan, according to the municipal Department of Transport.
Tran Quang Phuong, director of the department, said there were 12,551 registered taxis under the management of 36 companies and cooperatives citywide as of February 28.
Transport companies could replace their old taxis with new ones but could not register more taxis until further notified, he said.
Experts have warned of the excessive number of taxis in the city, saying they should be limited to 1,000 cars per one million people.
It means that the city needs only 7,000 taxis to serve its population of seven million people.
The large number of taxis, including many unregistered ones, is taking its toll on a city that hasn't been properly zoned, and is a significant factor in the traffic jams that occur so often, experts have said.