Vietnam enters World Bank’s upper-middle-income category

The World Bank classified Vietnam as an upper-middle-income country in its release on Wednesday after years of the country’s robust economic growth.

Vietnam has remained among lower-middle-income economies since 2009.

Bloomberg said this milestone could strengthen and fuel international investors’ confidence in Vietnam.

According to the World Bank, Vietnam’s GNI per capita reached US$4,970 in 2025, exceeding the $4,636 threshold required for upper-middle-income economies.

It is attributed to the country’s export-led growth model.

International media have described Vietnam as one of Asia’s fastest-growing economies as the government pursues double-digit growth through a series of business-friendly reforms and large-scale infrastructure investment.

The Philippines was also upgraded to the upper-middle-income category after being classified as a lower-middle-income economy since late 1980s.

As a result, five of Southeast Asia’s largest economies, including Vietnam, the Philippines, Singapore, Malaysia, and Thailand, are now categorized as upper-middle-income or high-income economies.

That said, the shift also means such countries gradually lose access to concessional development financing.

Before its reclassification, the Philippines had access to below-market rate loans to fund infrastructure projects, disaster recovery efforts, and social welfare programs.

“The point is, the more you go up the ladder of their classification means you are more self-sufficient and able to supply your own needs and resources as a nation, including the fiscal part,” Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines, told Bloomberg.

However, he said that while access to some concessional official development assistance (ODA) may decline, the benefits of a stabler economic foundation and improved access to international markets are expected to outweigh the trade-offs.