The present invention provides a polymer dispersion comprising by dry weight based on total dry weight of the polymer particles, a) from 60% to 95% a vinyl acetate monomer, b) from 0.2% to 2.5% a phosphorus-containing allylic monomer; and c) from 0.2% to 2.5% an itaconic acid monomer; wherein the total amount of monomers b) and c) is from 0.5% to 2.5% by dry weight based on total dry weight of the polymer particles, and the dry weight ratio of monomer b) to monomers b) and c) is from 0.2 to 0.6. The present invention further provides a paint formulation of PVC higher than 60% comprising the polymer dispersion.