The People's Committee of Ben Cat Ward in Ho Chi Minh City said Luong The Vinh Elementary School disciplined the teacher, identified as L.T.M., who was in charge of a third-grade class.
She has been reassigned to manage the school's equipment room following the incident, the authorities said.
The disciplinary panel said mitigating factors included a first-time violation, the teacher admitting responsibility, and apologizing to parents, as well as her family circumstances.
The incident was confirmed on April 15 by local education authorities, who said the students had been told to prick their own hands with unused medical syringes as punishment for talking in class.
The teacher was then suspended pending investigation.
Health tests showed the five students were negative for infectious diseases, and their conditions are stable, with all having returned to school, authorities said.
Parents were informed of the disciplinary decision and agreed with the measures, while local officials have instructed the school to continue monitoring the students and enforce teacher conduct rules.
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