The police said Wednesday they are also considering fining against the 45-year-old man, Cong Ly newspaper reported.
The passenger took the taxi at Tan Son Nhat Airport for a seven-kilometer trip to a hotel in District 1. While the meter read VND120,000 (US$5.07), the driver demanded VND1.2 million.
The tourist informed his hotel, which helped him file a complaint with the police.
When summoned by the police, the driver confessed to cheating the Japanese man.
Since Vietnam reopened after Covid in March last year, a number of taxi scams targeting foreign tourists have been reported.