It seems that I am only able to upload and download file from the datastore, is this correct?
I was wondering if I can download the entire folder (for specific VM) from datastore to my laptop or do I have to download each file individually?
The VM in question is my vcenter and want to protect myself and have it in another media in case something happens to Host and/or to storage device and I lose my VMs.
Welcome to the VMware community.
When you browse datastore, Right-click on the particular folder you need to download and select Download. It will tell ask for you to save it to a particular location. Then save it. Its possible to download a folder
If this is for backup purposes, you may want to look at a free utility from Veeam (a leader in VM backup software) called VeeamZip. It will make backup and recover a bit easier for you than downloading the files from the folder manually. It is included in the free edition of their backup software: http://www.veeam.com/virtual-machine-backup-solution-free.html?ad=menu