1,753.39VN-Index · Wednesday, Oct. 7 close · −0.32%

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26,160USD/VND · Vietcombank selling rate · close of the Oct. 7 session · −0.08%
VN-Index1,753.39▼0.32%10/7USD/VND26,160.00▼0.08%10/7S&P 5007,801.77▼0.22%10/7WTI$88.28▼1.30%10/7Gold$4,140.70▼1.11%10/7
Law · Bạch Mai-Việt Đức casePress ✓ 7 outlets · content per the ruling as cited by the press

The appeals court cuts former Health Minister Nguyễn Thị Kim Tiến’s sentence from 6 years to 3 years in prison; four other defendants get a suspended sentence

The court noted that she had remedied VND 108 billion and paid in another VND 1.1 billion; it still determined that her directive created the chain of later violations.

On the afternoon of Oct. 7, the appeals court of the Supreme People’s Court in Hanoi handed down its ruling in the case of losses and waste at the Facility 2 project of Bạch Mai Hospital and Việt Đức Hospital, according to Dân trí, Thanh Niên, Tuổi Trẻ, Báo Chính phủ and Soha. The court upheld the appeal in part and cut Ms. Nguyễn Thị Kim Tiến’s sentence from 6 years to 3 years in prison for violating regulations on the management and use of State assets, causing losses and waste.

According to Báo Chính phủ, Ms. Tiến has remedied the full VND 108 billion under the first-instance judgment and paid in another VND 1.1 billion to help the other defendants; the panel of judges also recognized that her family has contributed to the revolution. The court determined that she did not directly cause the violations at the two projects but that her directive created the chain of later violations. According to Tuổi Trẻ, four other defendants were moved from prison to a suspended sentence, and all ten defendants had their sentences reduced. The Procuracy at the appeal level had earlier not proposed a suspended sentence for her.

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By the numbers
6 → 3years in prison: Ms. Tiến’s sentence at first instance and on appeal
108 billiondong remedied, plus 1.1 billion paid in
10defendants all had their sentences reduced, according to Dân trí
Markets · VietnamPress ✓ 5 outlets · figures from DNSE, Nhân Dân, SGGP

VN-Index turns down 5.69 points to 1,753.39 because of the Vingroup group, as foreign investors net sell more than VND 900 billion

The VN-Index closed Wednesday’s session on Oct. 7 at 1,753.39 points, down 5.69 points (0.32%) after two sessions of recovery, according to DNSE, Nhân Dân and Sài Gòn Giải Phóng (SGGP). At one point the index lost as much as 16 points, falling back to about 1,743 points, before narrowing its decline late in the session. VHM and VIC came under heavy adjustment pressure.

Market liquidity fell to about VND 15,200 billion, 22% lower than in the previous session. Foreign investors net sold more than VND 920 billion to VND 934 billion, concentrated in PNJ, TCB and HDB; SGGP called it the 10th net-selling session on HOSE. The outlets give different closing levels for the HNX-Index, so DailyDrop does not use it.

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Word of the day
Suspended sentenceLaw

A form in which the court imposes a prison term but the convicted person does not have to serve it right away, on condition that they commit no new offense during the probation period.


Policy · EnergyPress ✓ 6 outlets · content is a draft

Ministry of Industry and Trade: businesses will be able to set fuel prices themselves but must declare and justify them, according to a draft decree

At the Q3 press briefing on the afternoon of Oct. 7, the Ministry of Industry and Trade presented a draft Decree amending the rules on fuel trading, under which businesses may set their selling prices on their own initiative but must calculate them using a formula set by the State, according to Công Thương, Thời báo Tài chính Việt Nam, VietnamPlus and VOH. Ms. Nguyễn Thúy Hiền, Deputy Director of the Domestic Market Management and Development Department, said this does not mean businesses raise or cut prices at will.

Businesses must declare their formulas and the components of their prices and justify fluctuations, on the basis of a price database built by the Ministry; the system will flag cases where a declaration has been filed but the justification is insufficient. The State will no longer manage prices on a weekly cycle as it does now but will still track world prices and use stabilization tools when needed. This is a draft, with no promulgation date or effective date yet.

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World · FinancePress ✓ 5 outlets · figures from CNBC

The US 10-year bond yield rises to 5.36%, the highest since 2002; the S&P 500 slips 0.22% from its record high

The yield on the 10-year US government bond rose at one point to 5.36% in Wednesday’s session on Oct. 7 US time, the highest since 2002, according to CNBC, Forbes, Fox Business and Yahoo Finance; the 30-year yield rose to 5.67%. Yields eased after a fairly strong 10-year bond auction, with a winning yield of 5.30%.

The S&P 500 fell 0.22% to 7,801.77 points, the Nasdaq Composite fell 0.22% to 27,538.69 and the Dow Jones fell 341.41 points (0.66%) to 51,179.87 after the records of the previous day, according to CNBC and STL.News. Caterpillar shares fell more than 6%, dragging the Dow down. The minutes of the September meeting of the Fed, the US Federal Reserve, were released the same day, but the market reacted little.

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Law · Financial fraudPress ✓ 6 outlets · content per the indictment

Hanoi court expected to try Mr Pips, Shark Bình and 186 defendants from Oct. 26 in forex fraud case

The Hanoi People’s Court is expected to open the first-instance trial from Oct. 26, lasting about 15 days, to try Phó Đức Nam (Mr Pips), Nguyễn Hòa Bình (Shark Bình) and 186 other defendants, according to Dân Việt, Tuổi Trẻ, Thanh Niên, VOH and Báo Hải Phòng. The trial will combine in-person and online hearings.

According to the indictment as relayed by the press, Mr. Nam is charged with fraudulent appropriation of property and money laundering, held responsible in 920 cases with nearly VND 1,600 billion misappropriated; Mr. Bình is charged with laundering nearly VND 320 billion through payment intermediary systems. These are allegations by the Procuracy; the court will consider each defendant’s responsibility.

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In brief
  • VN-Index 1,753.39 (−0.32%); liquidity about VND 15,200 billion, foreign investors net sold more than VND 900 billionDNSE, VietnamPlus
  • Vietcombank sells USD at VND 26,160 at the close of the Oct. 7 sessionNgười Quan Sát, Hà Nội Mới
  • Dow Jones falls 341.41 points to 51,179.87; Nasdaq 27,538.69 (−0.22%)CNBC, STL.News
  • WTI closes at $88.28 (−1.30%); world gold $4,140.7 an ounce (−1.11%)market data
  • US 30-year bond yield rises to 5.67%CNBC, Forbes
  • A large bodhi tree is uprooted at the Đinh Tiên Hoàng - Nguyễn Phi Khanh intersection (Ho Chi Minh City), one person slightly injuredHTV
  • Hanoi court expected to try the Mr Pips case from Oct. 26Dân Việt, Tuổi Trẻ
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Unverified — what we could not confirm

“Ms. Nguyễn Thị Kim Tiến gets a suspended sentence.” She is still sentenced to 3 years in prison; only four other defendants moved to suspended sentences (Tuổi Trẻ, Báo Chính phủ).
“Fuel companies can now raise and cut prices at will.” This is only a draft; businesses must still calculate by the State-set formula and justify fluctuations (Công Thương, VietnamPlus).
“Novaland has gone bankrupt.” The company denies it, announcing nine-month net revenue of more than VND 10,000 billion and after-tax profit of more than VND 2,800 billion; the figures were published by the company (CafeF, Znews, Viettimes).
Glossary · dotted words — economics, law, security and science terms explained in the context of the story. The list grows every day.
INSIDEThe appeals court cuts former Health Minister Nguyễn Thị Kim Tiến’s sentence from 6 years to 3 years in prison; four other defendants get a suspended sentenceLaw · Bạch Mai-Việt Đức caseVN-Index turns down 5.69 points to 1,753.39 because of the Vingroup group, as foreign investors net sell more than VND 900 billionMarkets · VietnamMinistry of Industry and Trade: businesses will be able to set fuel prices themselves but must declare and justify them, according to a draft decreePolicy · EnergyThe US 10-year bond yield rises to 5.36%, the highest since 2002; the S&P 500 slips 0.22% from its record highWorld · FinanceHanoi court expected to try Mr Pips, Shark Bình and 186 defendants from Oct. 26 in forex fraud caseLaw · Financial fraud