Shein Vietnam operations have shrunk 60%, with the retailer cutting its leased logistics footprint near Ho Chi Minh City from 15 hectares to six, six sources told Reuters.
Privately held SHEIN Group, which has no stock symbol, began layoffs at the bonded logistics hub in April, warehouse workers said. The company did not respond to requests for comment, according to the Reuters report
The reversal followed the United States’ removal of duty-free treatment for imports valued at USD 800 or less. President Donald Trump signed the order on July 30, 2025, and US Customs and Border Protection said it took effect on August 29, 2025.
Reuters said the policy change reduced Vietnam’s usefulness as an alternative shipping base, while Chinese suppliers continued to offer faster production and smaller order runs.
Sheng Lu, a University of Delaware professor of fashion and apparel studies, told Reuters that Shein’s reliance on speed, flexibility and small production batches placed practical limits on diversification outside China.
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Shein founder and chief executive Xu Yangtian pledged in February 2026 to invest more than CNY 10 billion, or USD 1.46 billion, in a Guangdong smart supply-chain system over three years, China Daily reported.
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The Singapore-headquartered retailer is pursuing an initial public offering in Hong Kong after unsuccessful listing efforts in New York and London, according to Reuters.
