HANOI, July 31, 2025 — China’s e-commerce juggernauts are accelerating their expansion across Southeast Asia, signaling a potential shake-up in the region’s online retail market. Backed by massive logistics infrastructure and aggressive platform strategies, players like Shein, Temu, and AliExpress are positioning themselves to dominate not only digital shelves but also the final mile—posing a growing threat to local sellers and platforms alike.
China Goes All-In on SEA
The latest move comes from Shein, which recently secured a 15-hectare logistics and fulfillment site in Ho Chi Minh City. Industry insiders view this as a preemptive strategy to circumvent potential trade war restrictions and build a Southeast Asian hub for its fast-fashion empire. The facility will allow Shein to localize fulfillment, shorten delivery times, and avoid cross-border tariffs—further boosting its appeal to price-sensitive Vietnamese and regional consumers.
“Shein isn’t just selling cheap fashion anymore—they’re building infrastructure,” said one logistics consultant familiar with the deal. “This is a serious push to control the supply chain end-to-end.”
The move aligns with a broader trend: Chinese platforms are no longer content with just selling into SEA—they’re investing directly in fulfillment, warehousing, and last-mile delivery. From Alibaba’s Cainiao building smart logistics parks in Malaysia and Vietnam, to Temu and JD.com running pilot warehouses across the region, China is quietly laying the groundwork for e-commerce dominance.
Threat to Local SMEs and Platforms
The consequences could be stark for local sellers. By combining ultra-low prices with streamlined logistics, Chinese platforms can undercut smaller Southeast Asian merchants who rely on marketplaces like Shopee, Lazada, or TikTok Shop—especially those already grappling with rising fees and stricter policies.
“For SMEs in Vietnam, this is a storm coming from two fronts,” said Hoan Tran, founder of SwiftHub, a local fulfillment provider. “On one side, Shopee is tightening margins and filtering out underperforming sellers. On the other, Chinese platforms are offering better prices and faster shipping than local sellers can match.”
Vietnamese SMEs, already hit by Shopee’s 25% total fee structure and rigid return rules, now face an even tougher landscape. Chinese sellers are flooding platforms with ultra-cheap goods, while Shein and Temu leverage deep subsidies to capture market share.
Vietnam as the Next Fulfillment Battleground
Vietnam is increasingly seen as a strategic logistics hub—not just for local e-commerce, but for international cross-border flows. With its young population, booming online demand, and manufacturing base, the country is ideal for brands and platforms looking to build nearshore fulfillment capabilities.
“Vietnam’s central location in SEA makes it the perfect launchpad for fast delivery to Indonesia, Thailand, Malaysia, and the Philippines,” said a supply chain analyst at Feedforce Vietnam. “China knows this—and they’re not waiting.”
Shein’s 15ha investment is just the beginning. Industry sources indicate that multiple Chinese e-commerce firms are in talks with industrial parks in Binh Duong and Long An to secure additional warehousing space. The goal: replicate their “China speed” logistics inside Vietnam to serve the entire region.
Time Running Out for Local Sellers
With China’s platforms racing to localize fulfillment and control the last mile, Vietnamese SMEs must adapt quickly—or risk being sidelined.
Experts suggest:
- Going omnichannel by combining Shopee, TikTok, Zalo, and Facebook storefronts.
- Leveraging local fulfillment tech (like SwiftHub, Boxme) to optimize inventory and reduce shipping times.
- Building D2C brands with customer loyalty, rather than price-driven selling.
- Focusing on niche categories or Vietnamese-origin products with cultural appeal.
The looming presence of China’s e-commerce giants marks a turning point. For SEA sellers—especially SMEs—the next year will be a survival test.
“The question isn’t if China will dominate SEA e-commerce,” said Hoan Tran of SwiftHub. “It’s how quickly—and who’s ready to compete.”