The State Bank of Vietnam should release detailed bad debt information, said a National Assembly delegate, economist Tran Du Lich.

It should not have been happened when local banks said it was at 4 percent, while the central bank said it must be at somewhere higher than 8 percent, he said.

“Without the data on the scale of bad debts and their sizes in each economic sector, we cannot solve the problem,” he added.

"Once bad debts are resolved the local economy’s credit flow will circulate more freely, thus improving the economy,” Tran Hoang Ngan, a member of the NA's Economic Committee, as saying.

The fact that the local GDP growth is improving quarter by quarter as stated in the Government's report is just a normal phenomenon, not a sign of economic recovery.

But in my viewpoint, we are extremely difficult period, and there are no signs of recovery, Ngan said, citing the number of businesses going through dissolution of 40,000 ones as of September 2012.

Deputy Tran Du Lich warned that if the situation goes on not to continues, it will exhaust local business capacities.

Delegate Doan Cuong, head of the delegation of the National Assembly of Hung Yen Province - said the three hottest areas in the economy, real estate, banks and state-run corporations.

"Maybe Vietnam tops the world in the number of existing banks with such a small scale economy,” he added.

Lich also suggested that commercial banks must establish reserve funds to cover bad debt risk that resourced from profits, pay cut, and bonus reductions.

In the long run, there should be a National Committee on economic restructuring led by the Prime Minister to work on restructuring the banking system, bad debts and state-owned enterprises.