IntroductionIn 2008, the world experienced a huge financial crisis whose origin was the American real estate market. Additionally, it is considered by many economists to be one of the worst recessions since the Great Depression of the 1930s. After having a considerable impact on the American economy, the financial crisis spread to Europe and the rest of the world. It has ruined economies, collapsed financial companies and impoverished individual lives. For example, the financial crisis led to the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers, and AIG. These collapses not only influenced their own countries, but also internationally. Therefore, government intervention by modifying and expanding monetary and fiscal policy or granting bailout is necessary in order to eliminate and control the enormous effects of the financial crisis. The massive spread of the global crisis poses great challenges to the Asia and Pacific regions. as well as in Vietnam. Vietnam is known as one of the most open economies in the world and relies heavily on external sources of capital (e.g. FDI or ODA) to support its development requirements. Thus, Vietnam is very vulnerable to the broad effects of the financial crisis on global trade and financial flows. First, this essay attempts to analyze the causes of the financial crisis that originated in the United States. Second, the impacts of the financial crisis on the Vietnamese economy. in particular, the general economic outlook as well as the labor market will be examined. Finally, this essay will present the Vietnamese government's responses to reduce the influences of recession.II. The global financial crisis and VietnamA. Main causes of the global financial crisis T...... middle of article .......html (Accessed August 20, 2010). Pham, QN (2009) Impact of the global financial crisis and economic crisis on Vietnam, a quick review. Available at: http://www.ilo.org/asia/whatwedo/events/lang--en/docName--WCMS_103550/index.htm (Accessed August 3, 2010). Krugman, P. (2009) 'The Revenge of the Glut', The New York Times, March [Online]. Available at: http://www.nytimes.com/2009/03/02/opinion/02krugman.html (Accessed August 3, 2010).Steverman,B. and Bogoslaw, D. (2008) “The Financial Crisis Blame Game”, Business Week, October [online]. Available at: http://www.businessweek.com/investor/content/oct2008/pi20081017_950382.htm?chan=top+news_top+news+index+-+temp_top+story (Accessed: August 1, 2010). Velde, DK (2008). The global financial crisis and developing countries. Available at: http://www.odi.org.uk/resources/download/2462.pdf (Accessed August 5 2010).