China's outward foreign direct investment (FDI) is very likely to exceed its inward FDI in 2014, making the country a net investor, according to the United Nations Conference on Trade and Development (UNCTAD).

In 2013, China's inward FDI rose by 2.3 percent to $123.9 billion, ranking second in the world after the United States, according to the UNCTAD's World Investment Report released on June 24.

"What's more, China's outward investment is more striking," said Zhan Xiaoning, Director of the Investment and Enterprise Division at UNCTAD.

In 2013, investment outflows from China increased by 15 percent to $101 billion, the third highest in the world after the United States and Japan, the report said.

As China continues to deregulate outbound investment, outflows to developed and developing countries are expected to grow further, it said.

Outward investment will serve as an important driver for industrial upgrading and economic growth, Zhan said.