Management of post-tax profits and old vehicles transition to circular advanced transport by transportation enterprises in Vietnam


Authors

  • Nguyen Thi Thuy Dung University of Transport and Communications
DOI: https://doi.org/10.57110/vnu-jeb.v5i6.393

Keywords:

Post-tax profits, circular advanced transport, transportation enterprises, Vietnam

Abstract

This study examines the impact of post-tax profit management strategies on the transition of old vehicles toward the Circular Advanced Transport (CAT) system in Vietnam’s transport sector, where CAT vehicle adoption is still in its early stages. Using empirical data from 124 joint-stock transportation enterprises from 2019 to 2024, this study employs Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM) regression models to assess the financial determinants of CAT adoption. The findings reveal that enterprises prioritizing dividend payouts from post-tax profits tend to be more engaged in CAT transition, whereas firms allocating a higher share of post-tax profits to internal development funds or operations exhibit lower engagement due to capital constraints. Moreover, companies with higher long-term debt ratios or strong bank financing access demonstrate greater capacity for large-scale CAT investments. These findings also highlight the need for policymakers to encourage external capital mobilization and shareholder investment to accelerate the sector’s sustainable transition.

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Published

25-12-2025

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Nguyen Thi Thuy Dung. (2025). Management of post-tax profits and old vehicles transition to circular advanced transport by transportation enterprises in Vietnam . VNU University of Economics and Business, 5(6). https://doi.org/10.57110/vnu-jeb.v5i6.393

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