FOCUS-Shein finds there’s no place like China after Vietnam warehouse experiment disappoints
[HANOI/GUANGZHOU, China] Just over a year ago, Chinese ultra-fast fashion retailer Shein began leasing 15 hectares of warehouse facilities — equivalent in...
Chinese fast-fashion giant Shein has decided to abandon its Vietnam warehouse experiment, which began a year ago with the leasing of 15 hectares of facilities near Ho Chi Minh City. The company, which sells clothing items ranging from US$5 to US$10, had initially hoped to establish Vietnam as a significant export hub, taking advantage of the US exemptions for duties on small parcels from China.
However, with the end of these exemptions and the implementation of high US tariffs on Chinese goods, Shein has scaled back its operations in Vietnam, reducing the leased warehouse space from 15 hectares to 6 hectares. The company has initiated mass layoffs, with only a fraction of the originally planned site now in use. This shift highlights Shein's increasing reliance on its Chinese manufacturing base and its ongoing struggle to find a suitable alternative market, following unsuccessful attempts to list on NYSE and London Stock Exchange.
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