Vietnam has been upgraded to the upper-middle-income country group by the World Bank, according to its annual country classification released on 1/7. This elevation comes as Vietnam's gross national income (GNI) per capita increased from 4,490 USD in 2024 to 4,970 USD in 2025.
The World Bank attributes Vietnam's ascent to its robust economic growth and strong export performance. During 2024-2025, exports grew by more than 15%, while gross domestic product (GDP) growth reached 7% and 8% respectively. Over the 2021-2025 period, Vietnam's GNI grew by an average of 10% annually, a rate World Bank experts describe as "one of the strongest sustainable growth rates in the region".
Looking ahead, Vietnam aims to become a developing country with modern industry and upper-middle income by 2030, with a long-term vision of achieving developed, high-income status by 2045. To realize these goals, the government is striving for an economic growth rate of 10% or more in the coming period.
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Lach Huyen deep-water port complex, Hai Phong city, 23/6. *Le Tan* |
This year, the World Bank assessed 218 countries, with 6 receiving upgrades across various income categories. Besides Vietnam, five other nations were elevated from lower-middle to upper-middle income status, including the Philippines, Sri Lanka, Jordan, and Micronesia. Togo, a West African country, was upgraded from low-income to lower-middle-income status.
Among these, the Philippines saw its GNI per capita reach 4,850 USD in 2025, an increase of 380 USD from the previous year. The country achieved an average GDP growth of 5,8% annually over 5 years, reflecting comprehensive growth across key industries rather than a boom in a single sector. Meanwhile, Sri Lanka is gradually recovering from a severe economic crisis that brought the country to the brink of collapse in 2022. Last year, its GDP grew by 5%, driven by industries, financial services, and tourism.
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List of countries upgraded as of 1/7. *World Bank* |
The World Bank classifies countries based on the previous year's GNI per capita, adjusted for exchange rate fluctuations. Countries are categorized into four income groups: low-income, lower-middle-income, upper-middle-income, and high-income. This year's GNI per capita thresholds are 1,176-4,635 USD for the lower-middle-income group and 4,636-14,375 USD for the upper-middle-income group. These thresholds slightly increased from the previous period due to inflationary pressures.
This classification determines each country's access to concessional loans and development assistance, and helps experts monitor global economic trends. However, the upgrade of the 6 countries does not affect the World Bank's current lending policies. For example, Vietnam and the Philippines remain in the group borrowing from the International Bank for Reconstruction and Development (IBRD), while Sri Lanka is in the International Development Association (IDA) concessional lending group.
Thuy Truong
