The Ho Chi Minh City Department of Transport and Public Works has detected only nine cases of taxi fare fraud this month, compared to 60 in July.

A taxi is inspected by local officials

Mr. Le Hong Viet, the department’s number two man, credits the reduction in cheating to the stiff fine awaiting any taxi driver or operator with an incorrectly calibrated meter.

The fine is now VND16.5 million (that’s about a thousand bucks) for each offence, as against VND4.5 million previously, department inspector Mr. Le Vinh Phat said.

Taxi fare fraud is common in Ho Chi Minh City, and drivers have long employed tricks like recalibrating the meter and using electronic chips and remote controls to overcharge passengers.

Back in May, the gasoline price hike forced most taxi operators to increase their rates. However, many drivers (and perhaps their employers) took advantage of the situation to cheat their customers.

An inspection of local taxis from March to May found that the meters in more than 1,500 vehicles (98% of the cabs checked) had been adjusted without the mandatory authorization from the Quality Assurance and Testing Center 3, and it seemed the taxi companies couldn’t care less.

Mr. Nguyen Mong Hung, chairman of the HCMC Consumer Protection Association, said that unauthorized adjustment of a taximeter was a clear sign of fraud. “Consumers’ rights have been seriously violated and thus the taxi companies must bear responsibility,” he said.

An official from the HCMC Taxi Association tried to shift the blame to officialdom by accusing the regulatory authorities of “loose management”. In his opinion, the HCMC People’s Committee should institute drastic measures to curtail the practice of inflating taxi fares.