Growing in the competitive environment, organizations need to find ways to improve their performance even better by ensuring that all key drivers are being developed and utilized effectively. The aims of this study is to examine the impact of supply chain capabilities on competitive advantages and business performance in small and medium food companies in Mekong Delta. The data were gathered from conducted surveys with 68 small and medium food companies in Mekong Delta, and were analyzed using Structural Equation Modeling (SEM). The empirical results show that supply chain capabilities play an important role in the business improvement. They have direct effects on competitive advantages and indirect effects on business performance through competitive advantages.