The World Bank upgraded Vietnam to the group of upper middle-income countries

According to the annual country classification announced by the World Bank on July 1, Vietnam’s GNI per capita increases from 4,490 USD in 2024 to 4,970 USD in 2025. This income level exceeds the threshold of 4,636 USD – the criterion to be classified into the upper middle income group according to the new classification of the World Bank.

With this level, Vietnam was raised from the lower middle income group to the upper middle income group.

According to the World Bank, Vietnam climbed the rankings thanks to economic growth and exports. In the two years 2024-2025, exports increase by more than 15%, while economic growth (GDP) reaches 7% and 8%, respectively.

In the period 2021-2025, Vietnam’s GNI will grow on average 10% per year, assessed by World Bank experts as “one of the strongest sustainable growth rates in the region”.

Vietnam aims to become a developing country with modern industry and high average income by 2030, moving towards becoming a developed country with high income by 2045. To achieve this, the Government strives for an economic growth rate of 10% or more in the coming period.

This year, the World Bank evaluated 218 countries, of which 6 countries were upgraded. Besides Vietnam, 4 countries were upgraded from lower middle income to upper middle income including the Philippines, Sri Lanka, Jordan and Micronesia. And Togo, a West African country, was upgraded from low income to lower middle income.

In the Philippines, the average GNI per capita in 2025 will reach 4,850 USD, an increase of 380 USD compared to the previous year. The country has averaged GDP growth of 5.8% per year over the past five years, reflecting comprehensive growth across major industries, not a single sector boom.

Meanwhile, Sri Lanka is gradually recovering from a severe economic crisis that pushed the country to the brink of collapse in 2022. Last year, the country’s GDP grew by 5%, thanks to industries, financial services and tourism.

The World Bank classifies countries based on their gross national income (GNI) per capita in the previous year, after adjusting for exchange rate fluctuations. Countries are divided into low, low-middle, high-middle and high income.

This year’s average GNI threshold for the low-middle income group is 1,176-4,635 USD, the high average 4,636-14,375 USD. These limits increased slightly compared to the previous period due to inflation pressure.

This classification determines each country’s ability to access preferential loans and development support and helps experts monitor global economic trends. However, the upgrade of 6 countries does not affect the World Bank’s current lending policy. For example, Vietnam and the Philippines are still in the loan group from the Bank for Reconstruction and Development (IBRD), while Sri Lanka is in the preferential loan group (IDA).