Fast fashion giant Shein has asked some of its key apparel suppliers in China to set up production facilities in Vietnam.

This request aims to address the anticipated effects of new United States tariffs on imported goods from China, according to sources familiar with the situation.

The company is also reportedly allowing longer production timelines to assist suppliers during the initial phases of these operations, though these benefits are expected to be temporary.

This diversification strategy aims to adapt to recent changes in US trade policies, specifically the elimination of the “de minimis” rule, which previously allowed low-value shipments to the US to avoid tariffs. This is a loophole that many businesses, including Shein, have relied on.

While Shein has denied any plans to increase production capacity in Vietnam through an email statement, its broader strategy highlights the implications of US tariffs on the manufacturing sector in China.

The brand has previously expanded its supply chains into other regions, including Brazil and Turkey, but continues to depend significantly on mainland China.

Recent Shein developments