Shein scales back Vietnam operations, returns focus to China after warehouse experiment fails

Back to feed Shein scales back Vietnam operations, returns focus to China after warehouse experiment fails ● an hour ago Chinese fast-fashion retailer Shein is drastically scaling back its Vietnamese operations just over a year after establishing a 15-hectare warehouse facility near Ho Chi Minh City. The site, once the country's largest bonded logistics hub employing thousands, has shrunk to 6 hectares with mass layoffs beginning in April. The retreat follows major shifts in US trade policy. Shein initially expanded to Vietnam in late 2024 after Donald Trump's re-election raised fears of trade war escalation, which materialised with US tariffs on Chinese goods reaching 145% by April 2025. However, the company's plans unravelled when Trump ended the de minimis duty-free exemption for shipments under $800 from all countries in July 2025. The move undermined Shein's business model, which relied heavily on small parcel shipments. Shein is now refocusing on its southern China manufacturing base and pursuing a Hong Kong IPO. Source: finance.yahoo.com SHEIN 96 Singapore, Singapore