The World Bank has upgraded Vietnam and the Philippines to upper-middle-income status following years of strong economic growth, a move that could boost investor confidence in both countries.
Vietnam had been classified as a lower-middle-income economy since 2009, while the Philippines had remained in that category since the late 1980s.
The World Bank attributed Vietnam’s upgrade to its export-led growth model and the Philippines’ broad-based expansion across multiple sectors.
Both countries surpassed the World Bank’s upper-middle-income threshold of $4,636 in gross national income per capita in 2025, with Vietnam reaching $4,970 and the Philippines $4,850.
Philippine officials said the new classification reflects the country’s sustained economic resilience, while Vietnam is targeting double-digit economic growth in 2026 through business-friendly reforms and infrastructure investment.
Jordan, Micronesia and Sri Lanka were also upgraded to upper-middle-income status, while Togo moved from low-income to lower-middle-income. The World Bank said the share of low-income economies has fallen significantly since 1987.
The new status could reduce access to concessional development financing, although Philippine officials said stronger economic fundamentals and improved market access are expected to outweigh the impact.
