The paper examines the influence of profitability on distance to default (DD) in Vietnam securities market. The investigated sampl e consists of 211 companies listed on HOSE during 18 years from 2010 to 2017. We apply KMV model to calculate distance to d efault and use both macroeconomics factors and firm specific factors as independent variables. Using General Least Squared (GL S) method, we find evidence to confirm the positive relationship between profitability and distance to default. This result showed t hat, although profitability did not directly reflect the cash flow generated, a good profitable enterprise would be an important facto r to help facilitate and generate cash flow and at the same time debt was guaranteed when it was due. Besides, the test results rev ealed that the financial structure and sales on assets have the inverse effect on the distance to default at the significance level o f 5%. The results also revealed that a group of macro factors had an influence on the distance to default of businesses, including spre ad, GDP and trade balance (via exchange rates). Gross domestic income had certain impacts on the distance to default of businesse s. This was also a basic indicator measuring the national economic cycle.

Abstract
1. Introduction
2. Research Overview
    2.1. Distance to Default
    2.2. Factors That Affect the Distance to Default
    2.3. The Relationship between Profitability andDistance to Default
3. Research Model
    3.1. Research Data
    3.2. Research Variables
    3.3. Research Model
4. Research Results
5. Discussion
References

• Van Thuy Thi VU(School of Ba nking and Finance, National Economics University) Corresponding Author
• Nhung Hong DO(School of Banking and Finance, National Economics University)
• Hung Ngoc DANG(Hanoi University of Industry, Vietnam.)
• Tram Ngoc NGUYEN(School of Banking and Finance, National Economics University)