When it was formulating those plans in late 2024, it seemed like a bet that, while risky, was worth making. Shein started encouraging its biggest Chinese suppliers to set up manufacturing bases in Vietnam. Today, IPO-bound Shein, known for selling $5 tops and $10 dresses, is drastically scaling back in Vietnam, six people familiar with its operations there said. At 15 hectares, the ​bonded logistics hub was the largest of its kind in the country and used to employ thousands. Mass layoffs began in April and more are expected, warehouse workers said, adding that some teams have retained one in four employees, while others lost even more.