The current study investigated the potential components that affect second language (L2; English) literacy acquisition and cause-and-effect relationships of those factors to L2 reading comprehension via a structural equation model, with the recruitment of 129 4th-graders learning English as a foreign language. This study consists of two levels of literacy skills. Micro skills include phonological, orthographic processing skills, and word recognition. Macro skills comprise vocabulary knowledge and listening-/reading comprehension. Phonological and orthographic processing skills in L2 played important roles in L2 word recognition. L2 word recognition made a mediated contribution to L2 reading comprehension, while L2 vocabulary knowledge had a direct relationship with L2 listening comprehension and L2 reading comprehension. These findings suggest that sufficient phonological awareness and orthographic processing skill are important for successful English word recognition. Additionally improvement in L2 vocabulary knowledge along with L2 word recognition is significant for effective L2 listening-/reading comprehension.