Shein returns to China after Vietnam warehouse experiment disappoints
The first and biggest hit to Shein's Vietnam plans was the end of the US de minimis duty-free exemption for shipments under US$800 from all countries, not just China.
Shein, the ultra-fast fashion retailer, recently announced a return to China after an experiment in Vietnam proved disappointing. In late 2024, Shein leased a 15-hectare warehouse near Ho Chi Minh City, aiming to establish a major export base in Vietnam. However, the company's expansion plans were disrupted by the end of the US de minimis duty-free exemption for shipments under $800, which took effect in August 2025.
This policy change, coupled with rising US tariffs on Chinese goods, diminished the advantage of sourcing from Vietnam. As a result, Shein is now scaling down its operations in Vietnam and focusing on China, where its suppliers maintain low-cost manufacturing capabilities. The company's draft prospectus revealed a 14% decline in US revenue for Q1, attributed to the de minimis exemption's termination.
Despite Shein's commitment to China, some domestic suppliers are hesitant to recommit due to slower demand and new EU duties on low-value e-commerce imports.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Shein returns to China after Vietnam warehouse experiment disappoints freemalaysiatoday.com
