Most of the projects focused on industry, which accounted for 65 percent of the total capital, followed by these in agriculture and services.

Laos remained the most attractive destination for Vietnamese investors as it attracted 80 projects capitalised at US$559 million, followed by Cambodia with 24 projects totalling US$81 million.

Surprisingly, Algeria was a major benefactor as it hooked a US$243 million oil and gas deal - one of the biggest projects invested overseas by Vietnamese businesses to date.

An increasing number of domestic companies have expanded their markets into foreign countries, said the department, adding that most projects run on a small scale.

The department forecast that Vietnamese businesses would invest a total of US$350 million overseas in 2007, a year-on-year increase of 25 percent.

The Ministry of Planning and Investment is set to organise a tour for businesses to study investment environments in Russia and its neighbouring nations.