Fast-fashion giant Shein is leasing a massive warehouse near Ho Chi Minh City, Vietnam, according to a Reuters report citing sources familiar with the deal. The move is to avoid rising U.S. tariffs on Chinese imports.
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This will be Shein’s first warehouse in Vietnam. The facility, which covers about 15 hectares—or roughly the size of 26 football fields—will serve as a storage and distribution hub for clothing before it’s shipped out. Shein has also been looking to lease more space in southern Vietnam.
The warehouse deal comes just weeks after the U.S. ended a key trade exemption for Chinese goods known as the “de minimis” rule. That change hit Shein hard, as the company relies heavily on low-cost shipments from China. As of now, Vietnamese shipments under $800 still enter the U.S. duty-free.
“It would be dangerous for them not to diversify,” said Manish Kapoor, CEO of e-commerce logistics firm Growth Catalyst Group. He added that his team is telling clients to prepare for a possible end to the de minimis rule altogether.
While Shein has denied moving production out of China, some of its Chinese suppliers are already shifting operations to Vietnam. The company is also expanding in China, spending $1.37 billion on supply chain projects, including a $500 million hub near Guangzhou.
For now, Shein seems to be hedging its bets by setting up in Vietnam while continuing to grow its footprint in China. But with trade policies shifting fast, analysts say diversification is no longer optional—it’s necessary.
