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<b>THE CHANGES IN PRICE OF FACE MASKS AND</b>

<b>THE NEW NORMAL</b>

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CHAPTER 1: Supply of face masks...3

1. Applying advanced technology to improve productivity and competitive value for product...3

2. Number of masks produced in the market...4

3. Source of mask production in Vietnam...4

4. The guarantee in the supply of masks...5

CHAPTER II: Market demand for masks...6

1. Characteristics of the market on the consumer side...6

2. Number of masks produced in the market...3

3. Source of mask production in Vietnam...4

4. The guarantee in the supply of masks...5

CHAPTER II: Market demand for masks...6

1. Characteristics of the market on the consumer side...7

CHAPTER IV: Assessment of supply-demand response according to influencing factors...16

1. Factors affecting supply...16

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2. Factors affecting demand...17

CHAPTER V: Excess and shortage of goods...21

CHAPTER VI: Government policies affect the market...24

CHAPTER VII: Recommendations...26

REFERENCE...28

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<b>CHAPTER I: Supply of face masks</b>

<b>1. Applying advanced technology to improve productivity and competitive value for products</b>

The COVID-19 epidemic broke out and raged fiercely around the world, which was also the timewhen the story of medical masks became a concern and an opportunity for many individuals and businesses to get rich.

With the advantages of effective anti-epidemic, the potential for mask production and export in Vietnam is currently enormous, experts say, Vietnam has many opportunities to become a "factory" for mask production. only at present and in the future to supply fastidious markets suchas the US, Europe...

Therefore, investing in a modern mask production line, and optimizing productivity and product quality is a must to be able to proactively source masks if business owners want to enter the export market of face masks—this item. To quickly adapt to the new context, Vietnamese enterprises need to constantly innovate in technology and equipment and apply modern management systems, innovative tools, and advanced business models to quickly adapt to the new context to improve production and business efficiency.

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Affirming that the application of technical improvement and application of advanced technology in production has improved productivity and competitive value for products, said Mr. Le Duy Anh, General Director of Xuan Hoa Vietnam Joint Stock Company. , the company has applied product quality management toolkits to the main production stages, so product quality has been improved. In 2020, despite the impact of the COVID-19 epidemic, the company's export products still increased by 30%, and domestic consumption increased by 7%.

<b>2. Number of masks produced in the market</b>

According to information compiled by the Department of Industry (Ministry of Industry and Trade), only 50 businesses have reported to the Ministry of Industry and Trade, that the mask production capacity has reached 8 million pieces/day, ie about 200 million pcs per month. If calculated on a national scale, the output will be much larger.

The raw materials for the production of masks are not too strict. Previously, enterprises had to import antibacterial fabrics or chemicals to produce antibacterial fabrics. But now some enterprises, such as Nam Dinh Silk Textile Company, can produce completely antibacterial fabrics by themselves. entirely from domestic bio-materials. Therefore, if there are markets and customers, the current mask production capacity can be further improved.

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<b>3. Source of mask production in Vietnam</b>

In Quang Ngai, 4 garment factories of Vietnam Textile and Garment Group (Vinatex) are VinatexDung Quat, Vinatex Nghia Hanh, Vinatex Tu Nghia, and Vinatex Duc Pho; Thuyen Nguyen Garment Company, Hoa Tho Garment Joint Stock Company (Tinh Phong Industrial Park) have increased production capacity, with hundreds of thousands of quality masks for markets in provinces and cities in the country, especially in the locality. translation method.

Vinatex Nghia Hanh Garment Factory (Dong Dinh Industrial Complex, Nghia Hanh District) currently has 430 workers, with 6 operating lines, producing high-class masks and ordinary masks. On average, about 50,000 masks are supplied to the market every day.

Vinatex Dung Quat Garment Factory, with 12 sewing lines, and about 650 workers, produces about 100,000 masks of all kinds/ day. Particularly, Vinatex Tu Nghia and Duc Pho garment factories are producing according to orders through the focal point of the Ministry of Industry and Trade.

<b>4. The guarantee in the supply of masks</b>

According to information provided by some distributors, people can buy masks at several locations, such as:

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Aeon Vietnam Co., Ltd.: from February to April 2020, the Company's 5 Department Stores and General Supermarkets are capable of providing an average of more than 1 million masks per month, equivalent to more than 33,000 pieces/day. Person

People can queue to buy at the Company's points of sale, each person can buy a maximum of 2 boxes, 30 pieces each.

In addition, Saigon Co.op supermarket system: Saigon Co.op regularly supplies 20,000 per day. At the same time, strengthen inspection at supermarkets, commercial centers, convenience stores, and retail stores.

To proactively serve customers, supermarkets have contacted many suppliers to place backup orders, ensuring continuous supply to the market at more stable prices.

<b>CHAPTER II: Market demand for masks</b>

<b>1. Characteristics of the market on the consumer side</b>

Before 0:00 on April 1, 2020 (the time when Vietnam implemented social distancing nationwide), the people's disease prevention mentality was pushed to a climax. The image of many people rushing to buy medical supplies such as masks, hand sanitizer, physiological saline,etc. to protect their families against the epidemic has become a familiar scene in pharmacies. This was shown by a statistical chart produced by Statista and Rakuten in collaboration in the same year (Figure 2.1).

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Figure 2. 1. Frequency of wearing masks when going out due to coronavirus COVID-19 among Vietnamese people in 2020

Through the chart, we can see that in addition to stockpiling food (90.53%), and personal products (61.6%), the rate of people hoarding medical supplies (including masks) in the country. The situation of the COVID-19 epidemic is not inferior to other consumer products (59.34%) (40,084,463 million people).

To protect families, loved ones, and the community from COVID-19 in particular and other infectious diseases in general, perhaps the use of masks is one of the best solutions for people.

Since then, it has led to the growth in demand for the mask market in our country.

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<b>2. Consumer income </b>

According to data from the General Statistics Office of Vietnam (GSO) in 2020, the average income of employees is 5.5 million VND, down 2.3% compared to 2019. In addition, as of December 2020, the whole country 32.1 million people aged 15 years and older were negatively affected by the COVID-19 epidemic, of which 69.2% had their income reduced, 39.9% had to reduce working hours, rotate left, and take time off from work. 14% had to suspend or stop production and business activities. The COVID-19 pandemic not only deprives workers of employment opportunities but also causes them to fall into underemployment, leading to reducedincomes.

Income is an important criterion in deciding the purchasing power of consumers. When the consumer's income changes, the demand for the goods changes.

<b>3. Consumer trend</b>

In the context of the increasingly complicated COVID-19 pandemic, it seems that masks have become an indispensable item for any consumer (Figure 2.2). According to statistics from a survey of 28,000 people (from 16 years old to 74 years old) from 15 different countries by Ipsos and Statista, the rate of masks used by Vietnamese people is very large. (91%) when compared with other major powers such as China, the USA, UK. From there, we can see that the use of masks has become a habit of Vietnamese people in the "new normal" state.

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Figure 2.2. Frequency of using masks due to the COVID-19 pandemic

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Taste is an extremely important factor in the production of goods. By understanding the importance of consumer tastes and preferences, businesses have been constantly producing and developing different types of masks, creating new and diverse experiences. for consumers.

<b>4. Consumer expectations</b>

In addition, another statistic from Ipsos through a survey of 29,000 people from 15 different countries around the world (including Vietnam) thinks about the use of masks from April 9, 2020, to December 12. April 2020 (Figure 2.3) has shown that Vietnam's recommended level of mask use in public places and even after the epidemic has ended is up to 88%.

Figure 2.3. Statistical chart of the perception of the use of masks by Ipsos

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Thereby, we can see the sustainability and trust in the mask consumption habits of Vietnamese people even after the pandemic ends, which has made the demand for the mask market increase.

Figure 2.4. Frequency of wearing face masks while staying outside due to coronavirus 19 among Vietnamese 2020.

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<b>COVID-CHAPTER III: The price of masks</b>

<b>1. In 2019 </b>

The price of masks in 2019 has not changed much when this is just a normal product, only fluctuating about 35,000-40,000 VND/box (50 pieces) for 4-layer type, 40-50 thousand VND/box (50 pieces). pcs) for class 5.

For the price of more advanced masks like M3, the price ranges from 9,500-10,000 VND/piece.

<b>2. In 2020 </b>

The price of masks began to fluctuate in the market as a series of videos about COVID-19 in China began to spread and people began to become aware of the potential danger of COVID-19, but The peak was when Vietnam there were the first 2 cases in January, this caused a sudden increase in the number of people buying masks while the supply remained unchanged, causing the market price of masks to increase dramatically as follows:

<b>MASK TYPE PRICE </b>

The price of masks continues to increase through the months of February and March, there are times when the price of 4-layer and 5-layer masks reaches 300,000-500,000 VND/box (50

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pieces). According to an online statistic of 672 participants on Statista in February 2020 about two typical masks of the Vietnamese market (Figure 3.1), the frequency of using masks of medical masks reached the threshold of 88% in 2018. when the frequency of using cloth masks only reached 47%. Because of the higher popularity of medical masks in the Vietnamese market, it has created a shortage of goods and at the same time pushed the price up very high.

Figure 3.1. The chart of the frequency of using two typical masks in Vietnam in 2020 in thecurrent situation of Statista's COVID-19 epidemic picture

The price of the mask cooled down and returned to the original stable price in April, May, and June when the Government issued a social isolation order on 15 On the first day of April, this general pattern caused the number of buyers to start to decrease and the epidemic situation in the

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months April, May, and June have begun to stabilize, making the price of Medical masks reducedto 50,000/box (50 pieces).

The price of masks remained unchanged at the beginning of July, but in the last days of July and the beginning of August when the epidemic situation in Vietnam has bad changes when there is 1positive case in Da Nang, and at the same time people also started to buy in the form of hoardingmasks at home as a quantity to buy Masks spiked because of the sudden increase in demand, so the price of masks is now increased for 3-4 layer masks, its price has been increased to 105,000-150,000 VND copper/box (50 pieces).

The price of masks in the following months until the end of 2020 is always a phenomenon Continuous discount until the price of masks reaches the lowest level in December when the price of 4-layer masks at this time only ranges from 35,000-60,000 VND/box (50 pieces) because at this time, the supply of masks is abundant and the number of buyers is still much but there was a decrease compared to the end of July.

<b>3. In 2021 </b>

change is always stable, but by the end of January, the price of The page continued to be padded when the epidemic situation in Vietnam began to change bad causing the number of buyers to increase suddenly, which made the price of an exported Equipment price increase to 150,000-290,000 VND/box (50 pieces)

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In February and March, although the demand for masks increases, the price of masks increases Pages tend to be stable, there is no shortage of goods like in epidemics before.

In April, the price of masks fell to the lowest level in the past 3 years because now The supply of producers has exceeded the level, causing a phenomenon of overcapacity and goods lots of inventory.

Going through May, although the amount of domestically produced goods are still very much, the situation The price of masks in the country is better and more stable.

2 40k - 50k VND/box ( 50 pieces )3 40k - 50k VND/box ( 50 pieces )4 25k - 50k VND/box ( 50 pieces )5 40k - 50k VND/box ( 50 pieces )

<b>CHAPTER IV: Assessment of supply-demand response according toinfluencing factors</b>

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<b>1. Factors affecting supply </b>

a) Selling price

This is the main factor affecting product supply. In the principle of supply and demand, when theprice of a product increases, the supply of the product also increases and vice versa. Especially, when the epidemic happened like today, the price of masks has increased quite a lot compared to the previous day, leading to an increase in supply. During the peak epidemic (March 2020) the price of medical masks increased to 300,000 VND / box (6 times higher than the price before the epidemic), so the mask factory, company has been trading in masks more and more until now.

b) Technology

The change in supply can also be due to advances in technology that help reduce production costs (if there are modern machinery and technology, the hiring of workers will be greatly reduced) from which the cost of products is also reduced. In addition, when businesses can put technology into production, it will make products more diverse and functional. Masks, instead ofcovering dust and droplets, also have anti-virus and fine dust functions.

c) Government Policy

With the role of regulating and protecting the economy, the Government has a great influence on the supply of products. The lower the tax, the higher the supply of that product. On the other

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hand, if strict regulations are introduced and excise taxes are added, the supply of products will decrease.

Currently, the Government's mandatory wearing of masks in public places to prevent the COVID-19 epidemic has also increased the supply of masks: "At the point, a clause 1, Article 12 of Decree 117/2020/ND-CP, regulations A fine ranging from VND 01 million to VND 03 millionshall be imposed for failure to take personal protection measures for participants in the fight against epidemics and people at risk of contracting the disease according to the guidance of health authorities.

Thus, the act of not wearing a mask in public when required to prevent the epidemic can be finedup to 03 million VND.” The above fine level is the fine level for individuals. For the same act of administrative violation, the fine level for organizations is equal to 02 times the fine level for individuals.

<b>2. Factors affecting demand</b>

a) Income

Demand for goods and services also depends on people's income. Masks are an indispensable item, but if the user's income is high, the supply will be diverse in terms of the function of the mask (instead of using a medical mask that can only prevent droplets and dust, people with low-income High level will require more anti-fine dust, virus and of course the price of this mask will

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