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It briefly gained freedom in 1945 after Japanese occupation, but was recolonised by France until it won autonomy in 1949.

Laos' ambitious strategies for development are based on generating electricity from its rivers and selling the power to its neighbours, namely Thailand, China and Vietnam, as well as its initiative to become a 'land-linked' nation, shown by the planning of four new railways connecting Laos to those same countries.

This, along with growth of the mining sector, Laos has been referred to as one of East Asia and Pacific's fastest growing economies by the World Bank, with annual GDP growth averaging 7% for the past decade.

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It is a member of the Asia-Pacific Trade Agreement (APTA), Association of Southeast Asian Nations (ASEAN), East Asia Summit and La Francophonie.