Takeaways

• A Vietnamese factory proves that climate-proofing boosts both worker welfare and profit.
• The three-pillar adaptation model, comprising resilient operations, worker safety, and social dialogue, offers a regional blueprint.
• Climate adaptation in factories is becoming a competitive advantage, not just a compliance requirement.

A factory in Vietnam is showing Southeast Asia’s manufacturers that climate adaptation and profitability can go hand in hand. Poong In Vina Co., Ltd., part of the Better Work Vietnam program, a joint initiative by the International Labor Organization (ILO) and the International Finance Corporation (IFC), has boosted profitability by up to 7.6% while improving working conditions. Workers now meet production targets up to 40 minutes faster than peers in less climate-adapted factories.

At the heart of this success is a three-pillar adaptation model focused on operational resilience, worker safety, and social dialogue. The result is a practical framework that turns climate-proofing the labor force into a profitable and sustainable manufacturing strategy.

Pillar 1: Building Resilience into Operations

The first step in the model involves low-cost, high-impact modifications to factory infrastructure. By adopting cool roof technology, which reflects solar radiation, Poong In Vina reduced roof surface temperatures by as much as 20°C, cutting energy use and lowering indoor heat. Combined with improved ventilation systems, such as high-volume, low-speed fans and smart building design, these measures have created a more comfortable, efficient production environment.

Read More: The Growing Need for ESG Companies, Sustainability, and Climate Solutions

Pillar 2: Protecting Workers Through Smart Safety Systems

The second pillar centers on Occupational Health and Safety (OHS). The company introduced heat stress monitoring, measuring the Wet-Bulb Globe Temperature (WBGT) to gauge real-time risks. Administrative controls, such as mandatory 10-minute cool-down breaks every two hours and hydration stations, safeguard workers from extreme heat while maintaining productivity. Adjusting work schedules to avoid peak heat periods has also cut operational costs by up to 33%.

Pillar 3: Trust as a Productivity Driver

The final pillar, social dialogue, cements the model’s success. Strong Worker-Manager Committees (WMCs) foster cooperation and reduce conflict, ensuring that safety policies are both effective and accepted. Continuous training on heat stress and emergency procedures further builds a sense of safety and shared responsibility. When workers feel valued and secure, output and quality naturally rise.

A Blueprint for Southeast Asia’s Factories

The model’s significance extends beyond Vietnam. Southeast Asia’s manufacturing sector faces a dual crisis, rising heat and fragile labor systems. Regions like Bangladesh, Vietnam, and Pakistan have seen a 42% jump in extreme heat days, with factory temperatures reaching 40°C. Left unchecked, heat-related productivity losses could cost the region an estimated $65 billion in export earnings by 2030.

Scaling this success requires both policy integration and climate finance. Governments need to embed heat mitigation in labor standards, while industry and financial institutions can back upgrades through blended finance and green building certifications like IFC’s EDGE framework.

Also Read: Climate Technology: The Path to Net Zero and Sustainability

Poong In Vina’s experience demonstrates that sustainable manufacturing is not just ethical; it’s economical. Factories that invest in adaptive infrastructure and workforce resilience gain a competitive edge and create long-term value. As climate risks intensify, those who climate-proof their labor force will emerge as leaders in the global supply chain.

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Source: peoplematters