HANOI (Reuters) -Vietnam's ruling Communist Party is targeting faster annual economic growth over the next five years, despite potentially "severe" economic challenges, according to a draft document prepared for its upcoming congress.
The party expects the country's economy to grow by at least 10% a year over the 2026-2030 period, according to the document released on Wednesday.
Vietnam targeted 6.5% to 7.0% annual growth over the 2021-2025 period. The economy expanded at an annual average of about
5.7% in the 2021-2024 period although growth is on track to be above 8% this year.
The draft document sets the stage for discussions at the party congress, which will define the country's main strategies and policies for the coming five years. The congress, held every five years, is expected to take place after the parliament ends a legislative session in mid-December, but a precise date has still to be announced.
Officials are also aiming to lift gross domestic product per capita to $8,500 by 2030, according to the document posted on the party's website, up from a target of $4,700 to $5,000 for the 2021-2025 period. It reached $4,700 last year.
"Over the next five years, our country will face several difficulties and challenges, with some aspects expected to be harsher and more severe than the previous (five-year) period," the document said.
The export-reliant country faces 20% tariffs on its exports to the United States, its main market.
Among other economic challenges, the party said Vietnam risked falling behind on technology, was experiencing "faster than forecast" population aging and needed to confront risks from climate change, natural disasters and corruption.
The party aims to develop a new growth model in which the private economy is the "driving force" with the state taking the "leading role", the document said.
To boost growth and offset possibly declining revenues from trade, it also plans to increase public spending on infrastructure and other projects, with a budget deficit of about 5% of GDP in the next five-year period, up from a range of 3.1% to 3.2% in 2021-2025.
Economists have said it has ample space to do so thanks to a public debt below 35% of GDP last year.
The document said the global situation was rapidly changing "in an unprecedentedly complex direction" with competition between major powers increasing. In a gloomy warning, it said "the risk of war is not excluded" for Vietnam.
(Reporting by Khanh Vu, Francesco Guarascio and Phuong Nguyen; Editing by David Stanway and Kate Mayberry)
