Disbursement of foreign direct investment (FDI) experienced a modest increase of 2 percent during the first six months of this year, reaching 5.4 billion USD, according to the Ministry of Planning and Investment's Foreign Investment Agency (FIA).

However, new FDI registered in the country slumped significantly during the period as only 452 new foreign-invested projects, worth 4.76 billion USD, were granted licences, equivalent to one-fourth of the last year's corresponding period in terms of both number of projects and level of capital.

The rate of added capital in existing projects also decreased. In six months, 123 projects registered to increase their capital by a total of 1.62 billion USD, a year-on-year decreases of 65 percent in capital and 50 percent in number of projects.

During the first half of this year, foreign investors have committed to pump total FDI of approximately 6.4 billion USD into the country, a 27.3 percent reduction from last year.

Japan remained Vietnam 's largest source of foreign investment, as Japanese investors registered to invest 4.16 billion USD, making up 65 percent of the nation's total FDI.

Japan was followed by the British Virgin Islands, the Republic of Korea , Hong Kong and Singapore .

The southern province of Binh Duong retained its position as the most favourite location for foreign investors, drawing about 1.79 billion USD or 38 percent of total FDI registered in the country over the period.

In the January-June period, the foreign-invested sector posted an export value of 32.7 billion USD, up 37.3 percent year-on-year. The sector also recorded an export surplus of 4.7 billion USD.

According to a draft circular recently released by the Ministry of Planning and Investment, State authorities will check that foreign-invested enterprises and projects conform to investment licences, development plans, investment incentives as well as regulations related to capital attraction, land use, ground clearance and compensation.

They will also check on matters such as taxation, capital contributions, project progress, wage mechanisms, treatment of workforce and environmental protection activities.-VNA