Laos traces its first recorded history and its origins as a unified state to the emergence of the Kingdom of Lan Xang (literally, "million elephants") in 1353. Under the rule of King Fa Ngum, the wealthy and mighty kingdom covered much of what today is Thailand and Laos. His successors, especially King Setthathirat in the 16th century, helped establish Buddhism as the predominant religion of the country.
By the 17th century, the kingdom of Lan Xang entered a period of decline marked by dynastic struggle and conflicts with its neighbors. In the late 18th century, the Siamese (Thai) established hegemony over much of what is now Laos. The region was divided into principalities centered on Luang Prabang in the north, Vientiane in the center, and Champassak in the south. Following their colonization of Vietnam, the French supplanted the Siamese and began to integrate all of Laos into the French empire. The Franco-Siamese treaty of 1907 defined the present Lao boundary with Thailand.
During World War II, the Japanese occupied French Indochina, including Laos. King Sisavang Vong of Luang Prabang was induced to declare independence from France in 1945, just prior to Japan's surrender. During this period, nationalist sentiment grew. In September 1945, Vientiane and Champassak united with Luang Prabang to form an independent government under the Free Laos (Lao Issara) banner. The movement, however, was short-lived. By early 1946, French troops reoccupied the country and conferred limited autonomy on Laos following elections for a constituent assembly.
During the first Indochina war between France and the communist movement in Vietnam, Prince Souphanouvong formed the Pathet Lao (Land of Laos) resistance organization committed to the communist struggle against colonialism. Laos was not granted full sovereignty until the French defeat by the Vietnamese and the subsequent Geneva peace conference in 1954. Elections were held in 1955, and the first coalition government, led by Prince Souvanna Phouma, was formed in 1957. The coalition government collapsed in 1958, amidst increased polarization of the political process. Rightist forces took over the government.
In 1960, Kong Le, a paratroop captain, seized Vientiane in a coup and demanded the formation of a neutralist government to end the fighting. The neutralist government, once again led by Souvanna Phouma, was not successful in holding power. Rightist forces under Gen. Phoumi Nosavan drove it from power later that same year. Subsequently, the neutralists allied themselves with the communist insurgents and began to receive support from the Soviet Union. Phoumi Nosavan's rightist regime received support from the U.S.
A second Geneva conference, held in 1961-62, provided for the independence and neutrality of Laos. Soon after accord was reached, the signatories accused each other of violating the terms of the agreement, and with superpower support on both sides, the civil war soon resumed. Although it was to be neutral, a growing American and North Vietnamese military presence in the country increasingly drew Laos into the second Indochina war (1954-75). For nearly a decade, Laos was subjected to extremely heavy bombing as the U.S. sought to destroy the portion of the Ho Chi Minh Trail that passed through eastern Laos.
In 1972, the communist People's Party renamed itself the Lao People's Revolutionary Party (LPRP). It joined a new coalition government in Laos soon after the Vientiane cease-fire agreement in 1973. Nonetheless, the political struggle between communists, neutralists, and rightists continued. The fall of Saigon and Phnom Penh to communist forces in April 1975 hastened the decline of the coalition in Laos. Several months after these communist victories, the Pathet Lao entered Vientiane. On December 2, 1975, the king abdicated his throne, and the communist Lao People's Democratic Republic (LPDR) was established.
The new communist government imposed centralized economic decision-making and broad security measures, including control of the media and the arrest and incarceration of many members of the previous government and military in "re-education camps." These draconian policies and deteriorating economic conditions, along with government efforts to enforce political control, prompted an exodus of lowland Lao and ethnic Hmong from Laos. About 10% of the Lao population sought refugee status after 1975, many of whom resettled in third countries, including the United States. From 1975 to 1996, the U.S. resettled some 250,000 Lao refugees from Thailand, including 130,000 Hmong.
Over time, the Lao Government closed the re-education camps and released most political prisoners. By the end of 1999, more than 28,900 Hmong and lowland Lao had voluntarily repatriated to Laos--3,500 from China and the rest from Thailand. Through the Office of the United Nations High Commissioner for Refugees (UNHCR), the International Organization for Migration (IOM), and non-governmental organizations, the U.S. has supported a variety of reintegration assistance programs throughout Laos. UNHCR has monitored returnees for a number of years and has reported no evidence of systemic persecution or discrimination against returnees per se. UNHCR closed its Laos office at the end of 2001.
n the 2010s, the country benefited from direct foreign investment, particularly in the natural resource and industry sectors. Construction of a number of large hydropower dams and expanding mining activities have also boosted the economy. Laos has retained its official commitment to communism and maintains close ties with its two communist neighbors, Vietnam and China, both of which continue to exert substantial political and economic influence on the country. China, for example, provided 70% of the funding for a $5.9 billion, 400-km railway line between the Chinese border and the capital Vientiane, which opened for operations in December 2021. Laos financed the remaining 30% with loans from China. At the same time, Laos has expanded its economic reliance on the West and other Asian countries, such as Japan, Malaysia, Singapore, Taiwan, and Thailand.