Global E-commerce Newsletter: Issue 14

1.Amazon Launches Amazon Q, a New AI-Powered Work Assistant

At the AWS re:Invent event in Las Vegas, Amazon Web Services (AWS) unveiled Amazon Q, a groundbreaking generative AI-powered assistant designed for professional environments. Amazon Q aims to revolutionize work processes by providing quick, tailored responses and generating content based on a company's data and systems. It offers personalized interactions for individual users, adhering to an organization's specific roles and permissions. Notably, Amazon Q does not use customer content for model training, ensuring data privacy. Initially available in preview, Amazon Q integrates with AWS applications for various functions including business intelligence, contact centers, and supply chain management, promising to enhance decision-making and creativity across industries. Full availability of Amazon Q in Connect and its upcoming integration in AWS Supply Chain were also announced (Amazon, 2023)

2. Amazon Implements Job Cuts in Alexa Division as Part of Strategic Reorganization

亚马逊 has confirmed the commencement of layoffs impacting 'several hundred' employees within its Alexa division, marking a significant move in the company's ongoing cost-reduction efforts. The decision, as outlined in a memo by a company executive, is part of Amazon's strategy to realign its focus towards areas that hold the most value for customers, with a particular emphasis on generative AI. This realignment necessitates the discontinuation of some projects, leading to the noted job cuts (Palmer, 2023).

3.Walmart CEO Predicts Possible Deflation This Holiday Season

In a notable shift from persistent inflationary trends, Walmart CEO Doug McMillon has hinted at the onset of deflation in the coming holiday season, especially in key sectors like general merchandise and essential groceries. This observation aligns with the recent consumer price index report, which indicates a stabilization in overall inflation rates. The core CPI, excluding the more volatile sectors of food and energy, has reached a two-year low. Echoing this sentiment, Home Depot CFO Richard McPhail remarked on an earnings call that the most challenging phase of inflation might be over. Furthermore, the American Farm Bureau Federation's data predicts a noticeable decrease in the cost of traditional Thanksgiving meals, now expected to be $61.17 for a dinner for 10, a 4.5% drop from last year's record of $64.05. This reflects broader economic trends and potentially signals a shift in consumer spending patterns (Repko, 2023).

4. Vietnam and China Strengthen Economic and Trade Ties Amidst Growing Global Competition

In a significant diplomatic engagement, Chinese Foreign Minister Wang Yi's visit to Hanoi has culminated in an agreement with Vietnam to fortify their economic, trade, and investment cooperation. This development is pivotal as China continues to be Vietnam's foremost trading partner, with Vietnam holding its status as China's principal ASEAN trade ally and its fourth largest globally.

The first ten months of 2023 have seen China emerge as the primary market for Vietnamese agricultural, forestry, and fishery exports. This bilateral relationship is expanding into new areas, including the digital economy and sustainable growth, with both nations finalizing negotiations on several crucial cooperation agreements. These include a strategic plan to integrate Vietnam's 'Two Corridors, One Belt' policy with China's expansive 'Belt and Road' initiative. This enhanced collaboration underscores a strategic alignment by Vietnam and China in the context of escalating regional competition, particularly with the United States, for influence and economic dominance in Southeast Asia (Sai Gon Giai Phong, 2023; Wang, 2023).??

5. Vietnam Forecasts E-commerce Market to Reach $20.5 Billion in 2023, Highlights Role in Digital Economy

At a recent conference in Hanoi, hosted by the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, projections were made that Vietnam's e-commerce sector will achieve a significant milestone, reaching $20.5 billion in 2023. This growth underscores the sector's crucial contribution to the country's digital economy. Deputy Minister Do Thang Hai emphasized the emergence of a robust secondary service system supporting e-commerce, including technology platforms, marketing, online communications, and delivery services (VietnamPlus, 2023).

Reference list?

Amazon (2023). AWS Announces Amazon Q to Reimagine the Future of Work. [online] Press Center.

Palmer, A. (2023). Amazon cuts ‘several hundred’ jobs in Alexa division. [online] CNBC.

PHóNG, B.S.G.G. (2023). Vi?t Nam, Trung Qu?c nh?t trí thúc ??y h?p tác kinh t?, th??ng m?i và ??u t? b?n v?ng, lành m?nh. [online] BáO SàI GòN GI?I PHóNG.

Repko, M. (2023). Deflation could be coming this holiday season, Walmart CEO says. [online] CNBC.

VietnamPlus (2023). Vietnam’s e-commerce to hit 20.5 billion USD this year: conference | Business | Vietnam+ (VietnamPlus). [online] VietnamPlus.

Wang, A. (2023). Supply chains headline China-Vietnam talks as US vies for influence. [online] South China Morning Post.