Striking a balance
Historically, Laos has had longstanding close relations with neighboring Vietnam, dating back even before the Indochina wars of the 1960s and 1970s. These strong ties have continued between the communist governments since the Indochina wars.
But Martin Stuart-Fox, emeritus professor of History at the University of Queensland, says China has developed a policy aimed at weakening the bonds between Laos and Vietnam.
“As Chinese economic influence increases - it goes hand in hand with increasing political influence," he said. "The Chinese have always been determined that they are going to be at least as influential as the Vietnamese. There was a decision in Beijing that Laos was not going to be just left as a Vietnamese sphere of influence.”
Analysts say the Lao government recognizes a need to strike a balance between China and Vietnam, and draw support from the West.
In 2016 Laos will take up the chair of ASEAN, seen as an opportunity for Vientiane to gain leverage and bargaining power in dealing with its larger neighboring rival powers.