Vietnam and Philippines eye high-income status via chip industry growth

The growth of the semiconductor industry in Southeast Asia is driving economic shifts, positioning Vietnam and the Philippines on a trajectory toward high-income status. According to updated World Bank classifications, both nations have ascended to the upper-middle-income category.

Vietnam has leveraged export-driven growth by establishing manufacturing hubs for electronic components and electrical equipment, bolstered by international trade agreements and foreign investment. The region's transition from light industries, such as garment manufacturing, to advanced sectors like semiconductor and electronic product exports is being accelerated by the global surge in artificial intelligence investment.