The first indigenous kingdom to emerge in Indochina was referred to in Chinese histories as the Kingdom of Funan and encompassed an area of modern Cambodia, and the coasts of southern Vietnam and southern Thailand since the 1st century CE. Funan was an Indianised kingdom, that had incorporated central aspects of Indian institutions, religion, statecraft, administration, culture, epigraphy, writing and architecture and engaged in profitable Indian Ocean trade.^[5]

By the 2nd century CE, Austronesian settlers had established an Indianised kingdom known as Champa along modern central Vietnam. The Cham people established the first settlements near modern Champasak in Laos. Funan expanded and incorporated the Champasak region by the sixth century CE, when it was replaced by its successor polity Chenla. Chenla occupied large areas of modern-day Laos as it accounts for the earliest kingdom on Laotian soil.^[6]

The capital of early Chenla was Shrestapura which was located in the vicinity of Champasak and the UNESCO World Heritage Site of Wat Phu. Wat Phu is a vast temple complex in southern Laos which combined natural surroundings with ornate sandstone structures, which were maintained and embellished by the Chenla peoples until 900 CE, and were subsequently rediscovered and embellished by the Khmer in the 10th century.

By the 8th century CE Chenla had divided into “Land Chenla” located in Laos, and “Water Chenla” founded by Mahendravarman near Sambor Prei Kuk in Cambodia. Land Chenla was known to the Chinese as “Po Lou” or “Wen Dan” and dispatched a trade mission to the Tang Dynasty court in 717 CE. Water Chenla, would come under repeated attack from Champa, the Mataram sea kingdoms in Indonesia based in Java, and finally pirates. From the instability the Khmer emerged.^[7]

In the area which is modern northern and central Laos, and northeast Thailand the Mon people established their own kingdoms during the 8th century CE, outside the reach of the contracting Chenla kingdoms. By the 6th century in the Chao Phraya River Valley, Mon peoples had coalesced to create the Dvaravati kingdoms. In the north, Haripunjaya (Lamphun) emerged as a rival power to the Dvaravati. By the 8th century the Mon had pushed north to create city states, known as “muang,” in Fa Daet (northeast Thailand), Sri Gotapura (Sikhottabong) near modern Tha Khek, Laos, Muang Sua (Luang Prabang), and Chantaburi (Vientiane). In the 8th century CE, Sri Gotapura (Sikhottabong) was the strongest of these early city states, and controlled trade throughout the middle Mekong region. The city states were loosely bound politically, but were culturally similar and introduced Therevada Buddhism from Sri Lankan missionaries throughout the region.^[8]