In the year 2008 and the first half of 2009, the world witnessed the unfolding and heavy repercussions of the global financial crisis. Being a small open, FDI-reliant and export-dependant economy, Vietnam has not been spared from this external shock. The global crisis has led to the reduction of investments inflow, lower global commodity prices and trade. The government of Vietnam has acted quickly, easing both monetary and fiscal policies. It seems that the expansionary policy has worked in preventing the economy from falling further. Pursuing such an expansionary policy puts extra-ordinary pressure on the economy. Given the fragility of the situation, a premature withdrawal of stimulus could cause recovery to halt; at the same time, the continuation of expansionary macroeconomic policies could also raise inflationary and debt sustainability concerns. This paper intends to examine the impact of this global financial crisis on Vietnam economy and discuss the policy responses and their implications on the fiscal sustainability of the government