Shein Expands Footprint with Vietnam Warehouse Amid Trade Uncertainty

In a strategic bid to mitigate exposure to the ongoing U.S.-China trade tensions, fast-fashion giant Shein is leasing a massive 15-hectare warehouse in Vietnam, sources familiar with the deal told Reuters. This move marks Shein's first foray into Vietnam's industrial landscape, signaling a significant shift in its supply chain strategy.

Almost entirely reliant on China-based suppliers, Shein's decision comes amid global supply chain disruptions. Vietnam, with its prime location and existing infrastructure near Ho Chi Minh City, provides a viable alternative. As tariffs and trade disputes loom, Vietnam's competitive edge remains intact due to duty-free regulations on low-cost imports.

Despite Shein's previous denials of shifting production away from China, the company is evidently expanding its reach to weather the storm. Industry experts, however, caution against reliance on favorable trade exemptions, urging companies to adopt diversified strategies to navigate the uncertain terrain of international commerce.

(With inputs from agencies.)