Hanoi authorities will ban taxis licensed outside Hanoi from operating in the city in an effort to reduce traffic congestion and unhealthy competition among taxi drivers.
Starting on August 15, the Hanoi Transport Department will grant new badges to city-licensed taxis to distinguish them from taxis licensed outside Hanoi, news website VnExpress reported.
Taxis without Hanoi badges will not be allowed to operate in the city.
The municipal authorities have ordered traffic inspectors and local police officers to keep a close watch on these “outside” taxis as well as unlicensed taxis.
According to the Hanoi Transport Department, around 2,000 taxis from neighboring provinces such as Ha Nam, Bac Ninh, Vinh Phuc and Hung Yen are operating inside Hanoi.
Theses taxis contribute to traffic congestion and create unhealthy competition for Hanoi's licensed cabbies, the department says.
There are 107 taxi operators with more than 17,000 taxis and 20,000 drivers in Hanoi, performing an average 100 million trips each year.
Hanoi stopped granting new taxi licenses in 2012.