Information exchange and aid coordination mechanism in the health sector are not yet available at provincial level. The establishment of a mechanism for aid coordination is therefore essential to effectively use of external assistance in health sector. The survey was conducted with following objectives: (i) To investigate the situation of aid coordination at three provinces, namely Bac Giang, Bac Ninh and Ha Nam and (ii) To identify an appropriate coordination mechanism in order to implement foreign aid more effectively between the provincial and central levels using cross-sectional descriptive design combined with qualitative and quantitative methods and sampling methods by experts applied with the survey instruments that are semi-structured interview questionnaires. The quantitative research data was cleaned by Microsoft Excel program, analysed on STATA 10.0. Qualitative data was integrated into the matrix and result chart. Results: The level of information exchange and sharing is not frequent and mostly by written documents, other faster communication channels such as telephone and e-mail remain limited. Most INGOs in local areas only make independent planning. There has not been any specific coordination organization/agency. An appropriate and feasible aid coordination mechanism at provindal level and clear definition of functions and responsibilities of the stakeholders involved are desired by majority of provinces.