World Bank Upgrades Philippines and Vietnam to Upper-Middle-Income Status

The World Bank has upgraded Vietnam and the Philippines to upper-middle-income status after years of rapid economic expansion, a move that could boost investor confidence in both nations. This brings the number of ASEAN countries at upper-middle-income level or above to five, according to a World Bank release on 1 July. Data shows Vietnam had been categorised as a lower-middle-income country since 2009, while the Philippines had also been in the lower-middle-income bracket. The World Bank noted that Vietnam’s export-driven growth model and the Philippines’ broad-based expansion reflect progress across major industries, rather than just single-sector growth, signifying an economic shift. “Vietnam tells a growth story supported by an export-based model, with the country experiencing an export surge of more than 15% in 2024 and 2025, alongside GDP growth of 7% and 8% respectively,” the World Bank stated. Vietnam’s per capita income, or Gross National Income (GNI), increased by an average of 10% per year between 2021 and 2025, marking one of the strongest sustained growth rates in the ASEAN region. Meanwhile, according to the World Bank, the Philippines achieved its reclassification through broad-based expansion. GDP grew by an average of 5.8% per year over five years, reflecting improvements across all major industries rather than just a sectoral boom, indicating an overall economic transformation. Based on World Bank records, their gross national income per capita reached US$4,970 and US$4,850 respectively in 2025, exceeding the bank’s threshold of US$4,636 for the category.