Wire · operational-macro
Shein finds there's no place like China after Vietnam experiment fails
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Fusion42 · 25 August 2026 · Fusion42 review
Shein's attempt to relocate manufacturing from China to Vietnam has failed due to factors including the end of U.S. duty exemptions, tougher U.S. tariffs on goods from both countries, supply chain speed and cost advantages in China, and local resistance in Guangzhou. The company is now scaling back in Vietnam and doubling down on manufacturing and supply chain investments in southern China.
This Wire brief sits within Fusion42's coverage of E-commerce.
◆ ◆ The Wire takeaway
Your fast-fashion supply chain must factor in that China remains unrivalled for speed and low-cost output despite tariff shifts. This means chasing lower tariffs by relocating manufacturing abroad may backfire if it slows deliveries or raises costs.
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1 source · 10 Aug 2026
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