The World Bank has elevated Vietnam and the Philippines to upper-middle-income status—but now they face 'a far more demanding phase of development'

(Credit: UMMU NISAN KANDILCIOGLU VIA GETTY IMAGES)

Vietnam and the Philippines are now “upper-middle-income” countries, at least according to the World Bank, putting them on the same level as Southeast Asian peers like Malaysia, Thailand, and Indonesia.

The upgrade is “a highly encouraging milestone,” says Khuong Minh Vu, a professor at Singapore’s Lee Kuan Yew School of Public Policy. “It represents strong international recognition of the development progress achieved by the two economies.”