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...
Just over a year ago, Chinese fast fashion company Shein began leasing 15 hectares of warehouse facilities near Ho Chi Minh City, hoping to make Vietnam a major export hub. However, the plan faced setbacks soon after. In July 2025, a de minimis duty-free exemption for shipments under $800 from all countries was ended by the US, leading Shein to scale back its Vietnam operations.
The warehouse, previously equivalent to 21 football fields and employing thousands, now covers only 6 hectares with a smaller workforce. Layoffs began in April, with more anticipated. The sharp U-turn in Vietnam highlights Shein's heavy dependence on Chinese suppliers, who have low production costs and are willing to work long hours for low wages.
This dependence also led Shein to move its headquarters to Singapore, deepening its commitment to Chinese manufacturing.
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