Socialist, one party government. The Lao people's Democratic Republic was established in 1975 and since the instigation of new forward-thinking economic policies and their imminent entry into ASEAN, Lao PDR has seen rapid growth and development in the last 10 years. New infrastructures and services have transformed the capital, Vientiane into a thriving and prosperous city with a great deal to offer visitors. The provincial areas of the country are also seeing flourishing change and development.