Most prominent is the strong increase of foreign investment. According to the statistics of the Ministry of Planning and Investment, 367 foreign direct investment (FDI) projects were licensed over the past seven months with a total investment capital of $2.77 billion, a 32 percent increase over the same period last year. An additional $642.6 million was invested in upgrading existing projects and helped to increase the total of FDI inflow to $3.4 billion.

Ho Chi Minh City, Hanoi and Ba Ria-Vung Tau remained the biggest FDI attractive localities. Over the past seven months, the industrial production value has been estimated VND86,000 billion, a 16.5 percent year-on-year increase. Increase was seen in the industrial production of all the State-run, non-State and foreign invested sectors, at growth rates of 9.6 percent, 21.4 percent and 18.8 percent, respectively.

In the first seven months of this year, the export sector also saw a marked growth with an export value of more than $22.3 billion, the highest ever rate and 3.5 times the total GDP growth.

Twenty of the 25 staple export items posted increases, with crude oil export remaining the top of the five products earning revenue exceeding $1 billion. The coal export also did well by surpassing the planned value by 13 percent.

Vietnamese farm produce continued to affirm its foothold in the world market. The export of rubber products was noteworthy with a record year-on-year increase of 13.2 percent. Vietnam has become the world largest pepper exporter with the export of 89,000 tonnes in the past seven months, a 40 percent increase year on year.

In regard to imports, over the past seven months, the country imported goods and machines worth nearly $24.77 billion, a 16.5 percent increase over last year. Increases were seen in the imports of materials for production of petroleum, plastics, paper and yarn.

Trade deficits in the first seven months of this year reduced markedly compared to the corresponding period last year to nearly $2.43 billion from $3.5 billion last year or to 10.9 percent from 19.6 percent.

In the period, Vietnam welcomed more than 2.1 million foreign visitors, a 7 percent increase compared to last year. With large tourist events planned such as the Year of Quang Nam Tourism 2006 and the APEC Leaders' Conference, the tourist sector has expected a high growth rate for this year.

Source: VNA