Vietnam upgraded to upper‑middle‑income status, prompting growth push and reforms

The World Bank reclassified Vietnam, together with the Philippines and Sri Lanka, as upper‑middle‑income economies, indicating a rise in gross national income per capita to about US$4,970 by 2025, above the US$4,636 threshold for the category. Analysts attribute the achievement to sustained export‑driven growth, resilient macro‑economic policies and a favourable business environment, but note that the upgrade ends Vietnam’s eligibility for concessional development financing, raising the need for private capital and new mechanisms to fund infrastructure.

Domestic officials and business leaders see the change as a trigger for further reforms. A parliamentary economic committee proposes a special task force with authority to hear and resolve administrative and regulatory bottlenecks that hinder enterprises. The Vietnam Chamber of Commerce stresses that improving the predictability of regulations and consolidating overlapping legal documents are essential to sustain the “two‑digit” growth target of 11.9 % for the second half of the year, which analysts say faces four major wild‑card risks.

The upgrade also spurs discussions on attracting international investment without relying on cheap capital, with proposals such as the Vietnam International Financial Center (VIFC) to draw private funding and enhance the country’s financial system.