Vang Vieng was first settled around 1353 as a staging post between Luang Prabang and Vientiane. Originally named Mouang Song after the body of the deceased King Phra Nha Phao of Phai Naam was seen floating down the river, the town was renamed Vang Vieng during French colonial rule in the 1890s.
Significant expansion of the town and its infrastructure occurred during the 1964-73 Vietnam War when the US constructed an air force base and runway that was used by Air America. The airstrip was then called "Lima site 6". In more recent times, the town has grown substantially due to the influx of backpackers attracted by the opportunities for adventure tourism in a limestone karst landscape.
Vang Vieng has become a backpacker-oriented town, with the main street featuring guest houses, bars, restaurants, internet cafes, tour agencies, and Western tourists Attractions of the town include inner tubing and kayaking on the Nam Song River, which, until the third quarter of 2012, was lined with bars selling Beer Lao and Lao-Lao, and equipped with rope swings, zip lines, swimming and diving into blue lagoon, and large decks for socializing.
Vang Vieng locals have organised themselves into a cooperative business association to sell tubing as an activity, in a system in which 1,555 participating households are divided into 10 village units, with each village unit taking its turn on a ten-day rotation to rent inner-tubes to the tourists.