Shein Scales Back Vietnam Warehouse Hub, Cuts Jobs | August 2026 - News and Statistics
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Chinese ultra-fast fashion retailer Shein is sharply reducing its operations in Vietnam, according to a Reuters report published on August 10, 2026. The company had begun leasing 15 hectares of warehouse space near Ho Chi Minh City just over a year ago, an area comparable to 21 soccer pitches, as part of an effort to turn Vietnam into a major export hub. When Shein formulated these plans in late 2024, the strategy appeared risky but worthwhile. At that time, U.S. exemptions on duties for small parcels from China were expected to be abolished, and Donald Trump had just been elected President of the United States for a second term. By April 2025, U.S. tariffs on many Chinese goods had risen to 145%, prompting Shein to encourage its largest Chinese suppliers to establish manufacturing bases in Vietnam. However, the expansion did not proceed as intended. Six people familiar with Shein's operations in Vietnam said the company is now drastically scaling back. The bonded logistics hub, which was the largest of its kind in the country and employed thousands, has seen its lease reduced to 6 hectares, according to two sources. A separate person with direct knowledge said only a third of the originally planned site is in use. Mass layoffs began in April, with warehouse workers reporting that some teams have retained only one in four employees, while others lost even more. During a...
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