Shein scales back Vietnam warehousing after trial disappoints

Shein's attempt to shift part of its warehousing operations to Vietnam has produced disappointing results, according to a report on the company's supply chain plans, leaving the fast-fashion group dependent on its established Chinese base. Shein had explored Vietnam as part of a broader effort by consumer goods companies to diversify sourcing and distribution away from China in response to trade tensions and tariff exposure. The experiment highlighted the difficulty of replicating China's concentration of garment suppliers, freight capacity and rapid replenishment infrastructure. The outcome is relevant to Shein's cost structure and delivery times as it continues to weigh its options for a public listing.