Cash flow always plays an important role in corporate financial strength and is a crucial factor frequently examined and analyzed by potential investors before their making decision on investment. This paper aims at exploring relationship between the free cash flow and business performance of Vietnamese enterprises, and testing influence of theories offree cash flow on Vietnamese enterprises. By observing the free cash flow and corporate business performance in a period, collecting and analyzing panel data using fixed and random efffects models, the research finds a negative relationship between corporate business performance and free cash flow and affirms influences of theories of free cash flow on Vietnamese enterprises.