Vietnam has successfully achieved its goal of becoming an upper-middle income economy four years earlier than expected.
The move, announced by the World Bank on Wednesday, comes after the country’s gross national income (GNI) per capita climbed to $4,970 last year from $4,490 in 2024.
This is higher than the $4,496 threshold set for upper-middle income economies.
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‘A story of growth’
Vietnam’s transition from lower- to upper-middle income country — a feat 17 years in the making — has also been attributed to its rapidly growing, export-led economy.
“Vietnam tells a story of growth. Powered by an export-led model, the country saw exports surge by more than 15 percent in both 2024 and 2025, with its GDP (gross domestic product) growing at seven percent and eight per cent, respectively,” said the World Bank in its latest country income classifications for fiscal year 2026–27.
“GNI expanded at an average of 10 percent annually between 2021 and 2025, one of the strongest sustained runs in the region.”
The Vietnamese economy expanded by 8.02 per cent last year, the second-highest rate since 2011, despite global trade shocks from the United States’ new tariff regime.
The National Statistics Office in Hanoi had stated that annual growth was fueled by the strong performance of services, industrial production and exports.
In 2022, the government set an ambitious goal of transforming Vietnam into an upper-middle income country by 2030 and a developed, high-income nation by 2045.
Four more countries join upper-middle income category
Aside from Vietnam, four other countries have joined the upper-middle income category: Jordan, the Federated States of Micronesia, the Philippines, and Sri Lanka.
The Philippines alone recorded a GNI per capita of $4,850 last year, the World Bank said.
“The Philippines achieved its reclassification through broad-based expansion. GDP grew at an average of 5.8 percent per year over five years, reflecting gains across all major industries, not a single sector boom, but an economy-wide shift,” it added.
The 2025 GNI figures for Jordan, Micronesia and Sri Lanka are $5,260, $4,760, and $4,670 respectively.
Meanwhile, Togo has become the only country to move from low- to lower-income middle status with a GNI per capita of $1,350 last year.
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Why is the update important?
The World Bank has been publishing its income classifications annually since 1978, categorizing countries into four groups: low, lower-income, upper-middle, and high.
The classifications are based on GNI per capita data from the previous fiscal year.
GNI, measured in US dollars through the Atlas method, refers to the total income of all residents of a country, according to the World Bank.
“The [annual income classifications] update matters because the classifications inform which countries can access concessional loans and development assistance, and help governments, researchers, and a wide range of international organizations track economic progress worldwide,” the Washington-based bank said.
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Levi Mora 
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