Situated along the Nam Song River and surrounded by karst limestone formations, it lies approximately 130 kilometers (81 mi) north of the national capital, Vientiane.

Originally a agricultural settlement, Vang Vieng gained international prominence in the late 20th century as a hub for backpackers drawn to its adventure sports, including river tubing, caving, and rock climbing.

While once notorious for its party-centric tourism, recent efforts to promote sustainable ecotourism have shifted its focus toward nature-based activities and cultural experiences.

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.

Vang Vieng has become a backpacker-oriented town, with the main street featuring guest houses, bars, restaurants, internet cafes, and tour agencies.

[12] In recent years, Vang Vieng has become a stop on the Southeast Asia backpacker circuit and the main street has many guest houses, bars, restaurants, internet cafes and tour agencies.

[12] There are concerns that the town is in danger of losing its charm as it becomes full of tourists, mushroom shakes, and episodes of Friends, a US sitcom shown in many bars.

[20] A report on the future of tourism in Vang Vieng found that many budget tubers were "oblivious to, or uncaring about, the types of social, economic and environmental impact they are associated with.

"[1] A master plan for Vang Vieng noted that local grievances include pollution, inappropriate behaviour of tourists and environmental damage.

In a 2012 interview with The Guardian newspaper, a senior doctor at the Vang Vieng Hospital, Dr Chit, said the overall figure was higher because "many fatalities are taken straight to Vientiane".

Dr Chit said 5 to 10 backpackers a day arrive at the local hospital with injuries such as broken bones or infected gashes, or sickness caused by alcohol intoxication or other drugs.

The incident significantly impacted Laos's tourism-dependent economy, as travelers canceled trips and raised concerns over safety standards in the country.

Tourism, a critical sector for Laos, faced losses as international confidence waned, prompting calls for stricter regulations on alcohol production and improved enforcement to restore trust.

[28] Around the same time, the Bangkok Post reported that although the number of Westerners has dropped, visitors from Japan, China, and South Korea were on the rise, making up for the loss.