In brief: Grab gets respite as Vietnam competition case suspended for third time

[Grab believes] that the judgment committee of the People’s Court of Ho Chi Minh City has made the right decision to adjourn the case due to the lack of independent and concrete evidence by Vinasun to prove that their alleged profit losses were directly caused by Grab’s business activities in the market.

This is the third time that the court case has been adjourned for the reason of lack of evidence, which [suggests] that Vinasun has always been uncertain about the reasons for their profit loss and unable to put together a well-supported cause of action against Grab.

Source: Grab

Last week, Ho Chi Minh City prosecutors recommended that the court should classify Grab as a “taxi or transportation” company when assessing its position in the local market. This would effectively classify it as a direct competitor to the likes of local taxi firm Vinasun, boosting the latter’s case.

Prior to this latest adjournment, the court suspended the case twice due to lack of evidence. After the second adjournment in March, it sought independent damages assessments. Grab contends that the assessment compiled by court-appointed Cuu Long Valuation Inspection Company – which reportedly outsourced “critical portions of the report” and has been absent from hearings – contains “flaws and inconsistencies in the methodologies and calculations […] which cannot be used as the legal basis for [Vinasun’s] alleged damages.”

Vinasun sued Grab and Uber in May 2017, claiming that anti-competitive practices from the two ride-hailing apps had cost it US$1.75 million in lost profits since January 2016. It later dropped Uber from the suit.

Currency converted from Vietnamese dong. Rate: US$1 = VND 23,343.76