Vietnam and the Philippines have been reclassified as upper-middle-income economies by the World Bank, leaving Laos, Cambodia, Myanmar, and Timor-Leste as the only ASEAN members still in the lower-middle-income category.
The annual income classifications, released on 1 July, place seven of ASEAN’s 11 members in the upper-middle-income bracket or higher. Indonesia, Malaysia, and Thailand remain upper-middle-income economies, while Brunei and Singapore retain high-income status.
Vietnam had remained a lower-middle-income economy since 2009, while the Philippines had held that classification since the late 1980s. No economy moved down an income group this year.
The World Bank updates its classifications every 1 July using gross national income (GNI) per capita from the previous calendar year. For the 2026-27 fiscal year, lower-middle-income economies have a GNI per capita between USD 1,176 and USD 4,635, while upper-middle-income economies range from USD 4,636 to USD 14,375.
Vietnam and the Philippines
Vietnam’s promotion marks the culmination of years of export-led growth. Exports expanded by more than 15 percent in both 2024 and 2025, while GDP grew 7 percent and 8 percent respectively. GNI per capita reached USD 4,970 in 2025, pushing the country above the World Bank’s threshold.
The Philippines reached upper-middle-income status after several years of broad-based economic expansion. The World Bank said GDP grew by an average of 5.8 percent annually over the past five years, supported by growth across multiple sectors. GNI per capita reached USD 4,850 in 2025.
Laos’ Next Milestone
The latest reclassification leaves Laos among the four ASEAN economies still below upper-middle-income status.
Laos has been classified as lower-middle-income since 2011 and has set a target of reaching upper-middle-income status by 2035, supported by plans to maintain annual economic growth of at least 6 percent over the next five years.
The country’s economy grew 5 percent during the first half of 2026, while average inflation eased to 5.6 percent, down from 7.7 percent in 2025.
Outside Southeast Asia, Jordan, Micronesia, and Sri Lanka also advanced to upper-middle-income status this year, while Togo moved from low-income to lower-middle-income.
