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The local government of China serves as a supervisor of vocational education. The vocational education governance is actually a dynamic game process involving local governments, vocational schools and enterprises. This study attempts to construct a multi-player evolutionary game and show the results that the external benefits of developing vocational education positively influence the probability of local governments choosing cooperative strategies. The choice of local government has a key impact on the strategic choice of vocational schools and enterprises. The vocational education policy would not only affect the calculation of benefit-cost, but also the strategic choice of local governments, vocational schools and enterprises. The research results can help local governments to formulate policies for vocational education development.