Abstract: The research on the factors affecting the construction of identity in designing Lao banknote. The aim of this research is to study the history and the factors contributing to the construction of identity in designing Lao banknote. The researcher had chosen the city of Vientiane as the research area. The criteria for choosing the area are as follows: the location where the bank of Lao PDR is situated; the area where there are academics who are experts, practitioners and personnel related to the Lao banknote. The data is collected from the documents and from field data collection. The following tools were used for data collection: surveys, participatory and non-participatory observation, structured and non-structured interviews and group discussions. The data were then analyzed using descriptive analysis basing o n the objectives of the research. The results from the analysis were reported using the statistics from the data collection. From the study, it was found that the history of the Lao banknote can be categorized into the three different forms of governance over the country in three major periods. Lao banknote during the period of French-Indochina (1893-1945). Lao started using banknotes for the first time after falling into a colony of France. The currency at that time was piastre which started being used in the year 1939. Lao banknote during the period of the Kingdom of Lao (1957-1974). The currency "Katay Kip" was used starting in the year 1946 and Royal kip in the year 1952. These two currencies were being used alongside the piastre currency. In 1955, Bank of Lao PDR officially announced the discontinue of piastre currency and called the kip currency, Vientiane kip. The Vientiane kip started being used in the year 1957 alongside the Khang Khai kip which was used during 1962-1963 and Liberation kip in 1968. Lao banknote under Lao PDR (1979-2016). Bank of Lao PDR announced the use of kip currency in the year 1979 and is being used up until the current time. As for the factors contributing to the construction of the identity for the Lao banknote, it was found that for the following were the external factors. The factors from Foreign influence contribute to the construction of the Lao banknote in terms of the design style, the identity of the main image, the identity of the numbers and the fonts and the identity of the Lao emblem in the Lao banknotes. The factors influenced by technology contribute to the design style, the identity of the main image, the identity of the illustrators, the identity of the numbers and fonts and the identity of the blank spaces and watermarks in the Lao banknote. The followings were the internal actors. The factors from the political and governance influenced the construction of identity in the design of Lao banknote on the design style, the main image, the numbers and fonts and the country’s emblem of the Lao banknote. The factors from the influence of religion, tradition and culture contribute to the construction of the design of Lao banknote on the design style, the main image and the illustrators in the Lao banknote. The factors from the influence of the artist’s creativity contributed to the construction of the identity in Lao banknote on the blank spaces and the watermarks on the Lao banknote.