Shein is refocusing its operations on China after a year-long experiment to build a major export hub in Vietnam disappointed the retailer [1, 2].
The move signals a setback for the ultra-fast-fashion giant's efforts to diversify its supply chain away from its primary base. By returning its focus to China, the company acknowledges that the logistical and strategic advantages of operating from its home market still outweigh the benefits of regional expansion.
The experiment began just over a year ago in mid-2025 [4]. Shein leased approximately 15 hectares of warehouse facilities near Ho Chi Minh City [1]. This area, which equals about 37 acres [3], is roughly the size of 21 soccer pitches [1].
The company intended for the Vietnamese site to serve as a critical node for its global export strategy. However, the strategic advantage of using Vietnam as a primary export base has since eroded [1, 3]. This decline in attractiveness has prompted the company to pivot back to its established Chinese infrastructure.
Shein has not detailed the specific operational failures that led to the decision. The company's shift comes as it continues to navigate the complexities of global logistics and trade pressures, factors that likely influenced the outcome of the Vietnamese venture [1, 3].
“Shein is refocusing its operations on China after a year-long experiment to build a major export hub in Vietnam disappointed”
This shift suggests that the 'China Plus One' strategy—where companies diversify manufacturing to avoid over-reliance on a single country—is more difficult to execute in the ultra-fast-fashion sector than anticipated. Shein's reliance on a highly integrated, high-speed ecosystem in China makes replicating that efficiency in Vietnam a significant challenge, reinforcing China's current dominance in rapid-turnaround logistics.
