Sri Lanka, Vietnam upgraded to 'upper-middle income' status

The World Bank has elevated Vietnam and the Philippines to upper-middle income status after years of brisk of economic expansion, potentially bolstering investor confidence in the two nations.

All five of the major Southeast Asian economies - which include Singapore, Malaysia and Thailand - are now at the upper-middle income tier and above, according to a release from the World Bank on Wednesday. Vietnam had been categorized as lower-middle income since 2009, while the Philippines was there since the late 1980s, the data showed. Other countries that moved to upper-middle income category are Jordan, Micronesia, and Sri Lanka. Togo was reclassified to lower-middle income from low income. The share of economies classified as low-income has declined to 11% from 30% since 1987, the World Bank said.

The World Bank cited Vietnam's export-led growth model and the Philippines' broad-based expansion, "reflecting gains across all major industries, not a single sector boom, but an economy-wide shift." Their gross national income per capita reached $4,970 and $4,850 in 2025, respectively, exceeding the World Bank's $4,636 threshold for the category.