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In the period of globalization, many country around the world has followed decentralization towards good governance and democracy. However, the impact of decentralization depends on how it is implemented. Vietnam has embarked on decentralization since 1990s; however,Vietnam is still facing with many issues such as corruption, red-tape, misuse of state powers.Significantly, under the single party policy and democratic centralism principle, Vietnam has to carry out decentralization by her own way. Recognizing the important role of local government in promoting effectiveness of decentralization, this book indicates the needs to reforming local government system in Vietnam towards good governance and democratic society based on the experiences of Japan.