Decentralization, the transfer of decision-making authority, responsibility and tasks from higher to lower organizational levels, has been adopted as a policy in governance in higher education (HE) in Vietnam. With the decision to move away from the traditional centralization in decision-making, the government expects to bring HE institutions more autonomy and accountability, and increase the effectiveness of the system. However, the limited understanding and experience in leading the change, the unclear strategies for successful policy implementation, the overlapping functions among different related authorities and the lack of necessary financial support for the change, all hinder the effort to decentralize the system. The reform in governance in HE in Vietnam also proves that decentralization is not necessarily a good thing, especially when the lower organizations who receive the power are not strong enough to create a positive change, and when the central ministry also loosens the control over the outcomes or the goals the lower organizations need to achieve.