World Bank upgrades Vietnam, Philippines to upper-middle income

The World Bank has moved Vietnam and the Philippines into the upper-middle income group as these countries have implemented the export-led growth model and broad-based expansion which reflects "an economy-wide shift." According to the World Bank release, Vietnam achieved development through an export-led growth strategy while the Philippines experienced broad-based expansion, reflecting gains across all major industries, not a single sector boom." The gross national income per capita of these countries reached $4,970 and $4,850 in 2025, respectively, both exceeding the World Bank's $4,636 threshold for the upper-middle income group category. With this reclassification, all five largest economies of Southeast Asia, namely Singapore, Malaysia, Thailand, Vietnam and the Philippines, have now attained upper-middle-income status or above. Besides Vietnam and the Philippines, Sri Lanka, Jordan, and Micronesia were also reclassified as upper-middle-income countries, as reported by the World Bank.

All five major Southeast Asian economies, including Singapore, Malaysia and Thailand, are now at the upper-middle income tier and above, as reported by the World Bank. Vietnam had been in the lower-middle income since 2009 while the Philippines had remained there since the late 1980s. The economic progress has potentially strengthened investor confidence in both countries. Additionally, Jordan, Micronesia and Sri Lanka also moved to the upper-middle income category while Togo was reclassified to lower-middle income from low income. This year, the World Bank assessed 218 economies, with six countries moving to higher income classifications. The classifications determine countries' eligibility for concessional financing and development assistance and serve as a benchmark for tracking global economic trends.

India continues to be classified as a lower-middle-income country, a category it has remained in since 2007. The World Bank estimates India's Gross National Income or GNI per capita at around $2,500 to $2,700, which is well below the upper middle income threshold of $4,496. This classification is based on the World Bank's income groupings, where countries with GNI per capita between $1,136 and $4,495 are classified as lower-middle-income economies, while those with incomes between $4,496 and $13,935 fall into the upper middle income category.

Vietnam, one of Asia's fastest-growing economies, is targeting double-digit economic growth from 2026, with momentum expected to come from business-friendly reforms and a sustained wave of infrastructure investment. The World Bank's assessment covered 218 countries and will be used as the global reference until the end of June 2027. Vietnam aims to become a developing country with a modern industry and upper-middle-income status by 2030, before becoming a high-income developed country by 2045. To achieve that goal, the government is targeting annual economic growth of at least 10% in the coming years. The World Bank classifies economies into four income groups: high income, upper middle income, lower middle income and low income, with the rankings based on Gross National Income or GNI per capita estimates from the previous calendar year.