Of that amount, fresh capital approvals for 1,408 projects rose 26 per cent compared to last year, to $8.7 billion, and 660 existing projects had their capital augmented by $4.24 billion, up 125 per cent.

FDI disbursement during the period was estimated at $8.6 billion, surging 16 per cent against the same period last year.

The GSO said the manufacturing and processing sector continued to take the lead with over $9.1 billion, accounting for 71 per cent of the nation’s total FDI. The real estate sector ranked second with $957 million, or 7.4 per cent.

From January to July, the northern port city of Hai Phong was the most attractive destination to foreign investors as it lured $1.8 billion, equivalent to 21.2 per cent of the total FDI pledged. It was followed by the capital city with $950 million and southern Binh Duong province with $803 million.

South Korea retained its position as Vietnam’s largest source of FDI, injecting more than $3.2 billion, which are 38 per cent of the country’s total new investments. Singapore ranked second with $1.1 billion, or 13 per cent, while Hong Kong and Taiwan came third and fourth with $755 million, or 8.7 per cent, and $585 million, or 6.7 per cent, respectively.

In his speech at a recent conference in Nha Trang City, Deputy Prime Minister Vuong Dinh Hue said Vietnam must be selective in attracting FDI to ensure it’s suitable for the nation’s economic restructuring and thedevelopment of the private sector.

The country should attract foreign investments in high technology for projects contributing to generating jobs and increasing income, as well as ensuring environmental protection, he said.

Recently, the Ministry of Planning and Investment issued a directive on inspecting and evaluating FDI projects, which aimed to ensure the operation of foreign-invested projects in compliance with laws and the country’s socio-economic development targets.