Vietnam upgraded to upper‑middle‑income by World Bank

The World Bank has re‑classified Vietnam as an upper‑middle‑income economy, raising its Gross National Income per‑capita from $4,490 in 2024 to $4,970 in 2025, above the $4,636 threshold. Vietnam is one of six nations worldwide to receive the upgrade in the Bank’s latest review of 218 economies.

World Bank director Mariam J. Sherman highlighted that the move reflects Vietnam’s strong growth trajectory, noting an average GNI growth of about 10 % per year from 2021‑2025, export growth exceeding 15 % in 2024‑2025 and GDP growth of 7 % in 2024 and 8 % in 2025. The drivers cited include stable foreign‑direct investment, rapid export expansion and a growing domestic services sector.

Sherman warned that the new status also brings fresh challenges. To reach high‑income status by 2045, Vietnam’s GNI per‑capita would need to roughly triple, raising concerns about the “middle‑income trap.” The Bank advises focusing on productivity gains, innovation, strengthening domestic small‑ and medium‑sized enterprises, and moving up the global value chain.