Fast-fashion giant SHEIN is planning to lease a nearly 15-hectare warehouse near Ho Chi Minh City, Vietnam, pointing to its first and foremost logistics hub in the country. The move, according to sources, is part of a wide-ranging strategy to lessen the risks masqueraded by escalating US-China trade tensions and increasing tariffs on Chinese exports.
The sprawling facility, comparable in size to 26 football fields, will function as a major distribution center for garments from suppliers before export, mainly to the US. While SHEIN continues to rely largely on China-based production, its diversification into Vietnam highlights the growing unpredictability of global trade dynamics.
The move follows current changes in US trade policy, including the tightening of the “de minimis” exemption, allowing duty-free entry for imports under US $ 800. Consequently, Chinese-origin shipments from SHEIN are now subject to tariffs of up to 54 per cent, forcing the company to reevaluate its supply chain approach. In spite of a partial reduction of tariffs amid improving relations between the US and China, long-term uncertainties continue.
Sources also indicated that SHEIN is vigorously exploring supplementary storage facilities in southern Vietnam and is taking into consideration expanding its sourcing footprint to countries such as Brazil and Turkey. However, the company continues investing in Chinese operations, including a US $ 1.38 billion industrial project near Guangzhou.
