Capital Structure and Fundraising Strategy: A Comparative Case Study of Listed State-Owned and Private Enterprises in Vietnam

Pham Thi Huong

doi:10.56201/jafm.vol.12.no3.2026.pg255.265

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Capital Structure and Fundraising Strategy: A Comparative Case Study of Listed State-Owned and Private Enterprises in Vietnam

Pham Thi Huong

Abstract

This study aims to systematically explain and compare the differences in capital structure strategies and financing motives between listed state-owned enterprises and private enterprises in Vietnam, thereby filling a gap left by previous quantitative research. Using a qualitative comparative case study method, the paper deeply analyzes secondary data published from 2020 to 2025 for typical corporate pairs (VGC-VHM, VNM-MCH). The findings reveal a clear divergence: SOEs pursue a cautious, stable capital strategy with low risk appetite, prioritizing internal funds and loans from state-owned commercial banks. Conversely, PEs demonstrate a dynamic, opportunistic strategy with higher risk appetite, readily using diverse financial instruments (bonds, equity issuance) to finance breakthrough growth. This difference is explained as stemming from their distinct ownership structures and strategic objectives. These findings are significant, not only providing deep qualitative insights beyond quantitative analyses but also offering practical implications: providing a reference framework for managers, helping investors more accurately assess risk-return profiles, and reinforcing the rationale for policymakers to promote governance reforms and enhance capital efficiency in the SOE sector.

Keywords

Capital structurefundraisingstate-owned enterprisesprivate enterprisesVietnamese stock market.

References

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Capital Structure and Fundraising Strategy: A Comparative Case Study of Listed State-Owned and Private Enterprises in Vietnam

Abstract

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