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Shein finds there's no place like China after Vietnam warehouse experiment disappoints
The retailer is pulling suppliers back to China as only a third of the planned site is in use and layoffs have spread, sources said.
- IPO-Bound Shein drastically scaled back its Vietnam warehouse lease from 15 hectares to 6 hectares, reflecting a significant shift in the retailer's global supply chain strategy.
- New U.S. tariffs of 12.5% imposed last month on China and Vietnam, combined with the end of the de minimis duty-free exemption for shipments under $800, undermined the case for Vietnam expansion.
- Suppliers reported that finding local labor proved difficult, and manufacturing in Vietnam lacks the efficiency of Shein's Chinese network, where production margins can be as little as 1 yuan per piece.
- Shein is intensifying its investment in Guangzhou and the broader Guangdong province, pledging over 10 billion yuan to upgrade its smart supply-chain system.
- While pursuing a Hong Kong IPO, Shein faces growing competition from Amazon and PDD Holdings-owned Temu, as operations manager Ping He noted the company "is not the prettiest boy in town anymore.
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By moving production from China to Vietnam, Shein hoped to have an answer to the hefty US tariffs on Chinese goods by the end of 2024.
·Amsterdam, Netherlands (Kingdom of the)
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FOCUS: Shein finds there's no place like China after Vietnam warehouse experiment disappoints
Just over a year ago, Chinese ultra-fast fashion retailer Shein began leasing 15 hectares of warehouse facilities — equivalent in size to 21 soccer pitches — near Ho Chi Minh City, part of a grand experiment to make Vietnam a major export base.
·Tokyo, Japan
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Coverage Details
Total News Sources18
Leaning Left1Leaning Right4Center7Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
C 59%
R 33%
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