The town became the capital of Ratanakiri Province in 1979, following the fall of the Khmer Rouge.

The capital was moved from Veun Sai to Banlung in order to facilitate trade with Vietnam (prior to Veun Sai, the capital was Lumphat).

[2] It is a relatively lively commercial centre; people from surrounding villages often come to the town market to sell their goods.

It is well connected with its neighbouring cities such as Stung Treng, Kratie and Phnom Penh.

One can fly into Phnom Penh International Airport and travel by road from there.