The first aim of the article is to examine the effect of capital structure on the profitability of the power firms in Vietnam. This research utilizes secondary data in the form of financial reports by the power providers in the years 2010-24. The article has an approximate dynamic panel data model of systematic generalized linear model (GMM) estimate. The capital structure measures are DEBT, DE, and LTT that have the following meanings: debt-to-asset, debt-to-equity, and long-term debt-to-asset respectively. The dependent variables are the return on equity (ROE) and the return on assets (ROA) that indicates the profitability of the business. Other control variables that were used in the study are corporation operational time (t) and firm size (SIZE). According to the experimental findings, the first-order lag coefficient of ROA is positive (0.4907) and statistically significant in the 1% level in the regression equation in which ROA is the dependent variable. It means that the profits of the enterprise have a positive contribution of the previous performance that defines the profit sustainability. On the other hand, the variables of capital structure are not statistically relevant in ROE model and indicates that capital structure has not yet proven itself to be significantly relevant to the profitability as indicated by ROE. According to the research findings, this paper will make some recommendations to integrate the operational efficiency of power enterprises, the main ones being: identifying the optimal financial leverage level appropriate to the cash flow nature of power projects; maximizing production costs and reduction of power losses to ensure greater efficiency in the operations of enterprises; reorganizing the portfolio of power sources towards higher rates of renewable energy; and encouraging the digital transformation to increase the management capacity and business efficiency of enterprises.
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