World Bank upgrades Vietnam to upper‑middle‑income status

The World Bank reclassified Vietnam as an upper‑middle‑income economy, citing a rise in gross national income per capita to US$4,970 in 2025, above the US$4,636 threshold. The upgrade follows nearly two decades of export‑led growth, extensive infrastructure investment and a series of business‑friendly reforms. While the higher classification signals stronger macro‑economic fundamentals and may boost investor confidence, it also means Vietnam will gradually lose eligibility for concessional development loans that were available to lower‑middle‑income countries. The Bank noted that the Philippines received the same upgrade, bringing five Southeast Asian economies—Vietnam, the Philippines, Singapore, Malaysia and Thailand—into the upper‑middle‑income or high‑income categories. Analysts project that, if Vietnam maintains real growth around 10 % per year, it could reach high‑income status by the late 2030s.