Vietnam hits upper‑middle‑income status and records record consumption in 2026

The World Bank announced that Vietnam has moved into the upper‑middle‑income category, becoming one of only six economies worldwide to do so this year. Seventeen years after entering lower‑middle‑income status, the upgrade highlights sustained reforms, strong export growth and rising living standards. Experts note that reaching high‑income status by 2045 will require the gross national income per capita to nearly triple, alongside deeper institutional reforms, innovation‑driven growth and a green, digital transition.

Domestic demand surged, measured by the National Statistics Office, with retail sales and services reaching $148 billion in the first half of 2026 – a 12.9% year‑on‑year increase and the highest on record. Growth was broad‑based, led by precious metals, fuels, construction materials, apparel and food, while the services sector saw double‑digit gains in hospitality, tourism and other services.

Industrial output continued its upward trend, with the industrial production index rising 10.8% year‑on‑year, the strongest pace since 2019. Foreign direct investment hit a new high of $346 billion, up 61% from the previous year, reinforcing Vietnam’s appeal to overseas investors. In parallel, Vietnam and Japan have deepened cooperation in the semiconductor sector, launching five joint research projects to build expertise and integrate Vietnam into global chip value chains. Officials stress that sustaining this momentum will depend on strengthening domestic firms, advancing green and circular economies, and improving research infrastructure.